Member Since: 6th Apr 2008
14th Oct 2011
You cant do wrong with a bookkeeping O Level or an accounts A Level and go on a Sage course. Also Buy Sage 50 accounts in easy steps.
12th Oct 2011
Its mad but correct
I have a client who owns a Childrens Nursery. Some of the staff also use the Nursery to look after their own chidren and pay a discounted rate. The fee was being deducted from the Net Wage, (after it had been taxed and NIied).
The client had a NMW check and was told that due to these transaction she was paying under the NMW rate. In the legislation there is something about staff paying the Employer by this sort of deduction if it is benefiting the Employer and if the transaction brings the wage under the NMW rate its a no no.
Her staff even approved the deduction in writing but it still did not help the issue.
I think it is some historic protection. Going back to the 1800's employees often got paid with vouchers to use at the company shop where a margin was made on them.
It is a stupid thing HMRC are doing here because I can imagine the situation of some very small businesses where the Employer and Employee collude to create an advantage by deducting goods or services prior to the calculation of the Gross Wage thus doing the country out of VAT Tax and NI and possibly claiming benefits in addition because the gross wage is much smaller. This will be harder to discover by the HMRC because there will be nothing written down.
13th Sep 2011
New ownership of Company
Yes this is a tricky one. I have seen adverts from people wanting to buy a company with VAT number and a bit of age. If it has a bank account even a better price can be obtained.
You do not have to use much imagination to work out that you can make a VAT reclaim or get up to some other type of fraud.
I am an honest bloke that is why I have too much debt.
If you are going to do something dishonest its best if you do not have roots here and you have a very common name and even one of these interchangeable names.
29th Jul 2011
Every business man likes to know what he has taken
You are probably on the fiddle. I was in business before I became an accountant. My father had always been in the fashion business and wanted to have his own business. We opened a shop together. He bought a nice colourful book to record the takings. Each days takings went into the book and he said next year we got to beat these figures. These were the correct figures because we were not into conning ourselves. My father did not like paperwork but he did know how to write down how much we took in a day. As Alexis says "simple"
I will tell you a funny story. Years ago there was a company in Leeds called Ring a Till. They rented cash registeres to little shopkeepers. It happened twice to me that I met a new client who had rented the till from Ring a Till. Each month on the bank statement was a standing order payment to Ring A Till. So I asked where the till rolls were and both potential clients said that the till never worked. So I asked why they kept on renting it?
If you are going to fiddle you have to use your head. Those Pizza Boxes. Did you buy some for cash and not put them through the books. These would have been for the Pizza's not recorded in the takings. At the same time some of your food purchases would have to be bought for cash and not put through the books or the Gross Profit return will be to low.
13th Apr 2011
Can you reverse a dividend?
I do believe that HMRC can take the opinion that an illegal dividend is in reality a withdrawal from the company and as such is out of the directors current account. If that creates a debit balance then there are tax implications. If it is repaid to the directors current account within a certain period, one can stop the tax implication. I have a very bad memory so I have to look all these things up.
If it is not an illegal dividend to reduce the dividend by repaying it does not affect the profit of the company but reduces the tax liability of the director if he is a higher rate tax payer with the original dividend grossed up as part of his income. This is what would upset HMRC.
I feel you can reverse an illegal dividend. You can waiver a dividend and this would only take place by one shareholder if there is more than one shareholder. But you can not reverse a legal dividend unless the company has not got the ability to pay it. This last point would only occur if a dividend was declared, usually at the end of the year.
12th Dec 2010
Beat the System
This shows you that if you try to do the right thing you end up in a pickle. This is what I have devised. Do not file the late accounts. When companies house contacts the company saying they will strike off the company do nothing. Then when they start the process get someone to object to it being struck off because they can say the company owes them money. It wont get struck off. The next year do not be late. As Alex says "Simple".
6th Dec 2010
This Chef has a mind of his own. Maybe he could advise the restaurant owner how to cook the books. Now on a serious note, does the restaurant owner know how to cook? I do not mean scrambled eggs but how to get everything right, to manage the whole kitchen. If the restaurant owner is totally reliant on the chef and does not tell the chef how to do his job then the chef is like the boss. I would get the chef to specify in writing his terms and conditions of providing the service which he is doing. This would be from ordering the food to how he wants to be paid and the status he considers himself. When the public health inspector comes also it is the chef which must take on all that responsibility. I feel it is highly likely that the chef is self-employed
15th Nov 2010
Where in the legislation does it say only humans are entitled to a tax allowance? We had a dog and it had a fantastic personality. Therefore it must be entitled to a personal allowance. It refused dog food and only ate human food. Can a dog be a shareholder? I heard that a Police force were making some of its dogs redundant. are they entitled to the £30,000. And dogs are quite clever, let us remember that a dog got into space first. Now that is one-upmanship if ever there was.
1st Nov 2010
Because its a con
Directors who are the owners of a company do not take low wages for fun if the money is available to pay more, they take low wages to enable the payment of high dividends. Go back to Solomon V Solomon. People have forgotten this case. I say if a director does not pay himself wages and only relies on Dividends he is taking away the relationship he has with the business as an employee. So if the business fails can a creditor find an angle here? I think he could.
1st Nov 2010
Dividends instead of Salary
I feel this will become a major problem. If you are working for a company you should receive a wage to the value of the work done even if you are a shareholder. If you decline a wage then I feel you are jeopardising your legal separation between the company and the shareholder. Even if the company can not afford to pay you what you are worth to the company you should still process the wage and credit the Directors Loan Account with the amount not taken. Not to do so leaves you open to claims on your personal assets by the creditors. I know this is contrary to the tax advice of tax experts but I am telling you the moral and legal implications of not taking a fair wage.
Another point is to be in the NI club. Why throw away your right to an old age pension at such a cheap price.