Thanks and further info
Thanks everyone. So, from looking at the guidance, even though it's not statutory redundancy pay, it is redundancy pay (his notice period has been paid an normal pay). It's not included in his contract. So, my conclusion is that it is not taxable. I will advise that they ought to seek an employment tax specialist to be sure. The details of the final letter to the employee are as follows, which lead me to the above conclusion. Would anyone mind just have another look and letting me know whether they think I've come to the right conclusion? I thought I would get a straight answer from HMRC!! Thanks again.
Further to our meeting on Xth January I regretfully confirm that your employment with XYZ Ltd will be terminated as of Xth February 2016. This is due to your position having to be made redundant and us being unable to identify a suitable alternative role for you within the business.
As stated at our meeting the terms of your redundancy are as follows:
You are entitled to four weeks notice. We do not require you to work your notice period, thus allowing you maximum time to search for another position. Your outstanding holiday entitlement of 0.5 days is to be taken during the notice period. Your last day at the office was Xth January 2016.
As you have less than two years’ service, you have no entitlement to statutory redundancy pay.
To assist you at this difficult time, and to recognise your service with XYZ Ltd, we are pleased to offer a termination payment of £10,500.
TaxfilerAnother vote for taxfiler. Used to use BTC but wanted to go cloud based. Taxfiler is so easy to use and keep track of what stages the returns are at. Love it for accounts too. Sarah
WaitroseIt must be a thing in Waitrose car parks - saw exactly the same a few weeks ago. You don't shop in Surrey, do you??!
VT, BTC and TaxfilerWe switched from BTC to Taxfiler before the summer and absolutely love it. Great customer service too. Taxfiler now has an accounts option and although a bit limited, we are doing as many sets of accounts in it instead of VT.
Another thing that is great about Taxfiler is it's so easy to see all clients, what stage they are at and who they are assigned to. Filters work well too.
Received within a couple of weeksWe did an advance payment application in July and it arrived in client's bank account in early August. Don't know why there's suddenly a long waiting period. Sarah
PayrooWe switched to Payroo this year as we wanted a cloud based payroll solution. Once you learn how to navigate around it, it's great! Free for up to 9 employees. You can see all of your clients in a list and check if the RTI has been done for a client in one list at a glance.
GoogledriveWe use Googledrive for a team of 6 and it works well. It does have the odd occasion of not syncing and you have to keep an eye on it, but it has worked for us. As Howard Marks says though, it doesn't work well with BTC or similar.
voip phoneHad exactly the same issue for SA302's and signed up with Voip Phone. Costs £2 p.m. Seems good so far. Sarah
dittoSame as Rachael and Mouse....
..and I also have a child's birthday before christmas!
We are a small practice - there are 6 of us and we all work part-time hours. We have an office, but we also work from home. For those reasons, most of our software and systems are cloud based.
We use taxfiler for both accounts and tax returns. We moved a year ago to taxfiler and find it's fantastic. The support is also very quick and helpful. On the accounts side, there is still some work that taxfiler needs to do on this area, but we have VT as a backup option for more complicated accounts that need bespoke headings. I use taxfiler as my go to place to see my list of clients.
For managing tasks, we use Asana. It's free and really good. We have project headings for Tax Returns 2015-16; Company Accounts & Tax; Vat Returns; New Client Paperwork etc. Within the projects we then have those clients with the year end date and due date, which is then also assigned to a staff member. We can add comments as we go along, for example if we are waiting for information or sent a query etc. This gives everyone in the team the visibility. For repeating items such as Vat returns, when one quarter is complete, the task is just then copied for the next quarter and new dates etc added.
For keeping copies of files etc we use googledrive. It's ok, but I am thinking of switching to something more secure. We have a few issues recently where files have been duplicated and then some removed.
For payroll we use Payroo which is cloud based. It's fine once you know your way around it. We did use Moneysoft but we were getting issues with corrupting files due to the way we keep our files - nothing to do with Moneysoft as it's a great system, but we needed a cloud based one.
It's always interesting to see how other people are managing things such as the above, so I hope you find this useful.
Budgeted time for jobsMy staff complete time sheets but we also have an idea of budgeted hours per job before it starts. If it's looking like it will exceed these hours, I'm informed as to why and an estimated number of hours before it is breeched. I can then make a call as to whether it is right for us to take the hit (everything is fixed fee based), or whether the client hasn't lived up to what was expected and whether I need to have a fee conversation with the client before we go any further. Our timesheets are not by specific time slots as we are all working mums and typically in the holiday season we flex our hours to suit. I don't expect all hours to be billable but I do need to know the amount of admin or training time.
Hope that helps!
3 children and a 6 year old practice later.....
I also know exactly where you're coming from......
I set up my own practice in 2006 when my oldest daughter started school. I came from industry so it was a huge leap and I had a big knowledge gap as I hadn't worked in tax for quite a few years. I hadn't been happy in my job for some time and I didn't know how on earth I was going to manage all of the school holidays.
I have to say that it was the best decision I ever made (apart from getting married and having my children, of course!). I have a lot of flexibility and the children don't have to be in constant childcare over the holidays and after school. I had my youngest daughter 2 years into running my practice and that was a struggle. My son is in-between my daughters and I think he got the better deal as it meant he could go to pre-school in the mornings and I could pick him up every day as it was in the early days and I wasn't as busy as I am now, with my youngest at pre-school.
Trying to get the balance between developing my practice and remembering why I did this in the first place, is hard. I naturally want to grow the practice and be successful, but sometimes I realise that I haven't spent much time with my youngest daughter in the afternoons, or I work very late into the evening to catch up, which makes me quite grumpy and tired the next day(s)!
Overall though, I would highly recommend it. Enjoy your children while they are little as it's the most precious time. I would much rather have the flexibility that I have now, than be a tax hotshot in the city!