Hornbeam Highlights 24

Taxation

The senior staff at Hornbeam spend much of their working lives looking for legal ways for our clients to minimise the tax that they pay. However, we recognise that it is also a major part of our role to ensure that our clients are secure in the knowledge that they do pay the correct amount of tax that is due. In fact as professionals, we have a duty to report any money acquired illegally {i.e. by defrauding the tax authorities} to NCIS – the National Criminal Intelligence Service. There is no minimum amount and we understand that the service has been flooded by reports from banks and accountants, amongst others.

We have handled two unusual cases over the winter period. One person was recommended to come and see us when the Revenue sent a simple letter enquiring about a property disposal. He had never put in a tax return and after we explained about...

...he provided details of two large capital gains and undeclared rents running back more than 6 years. Although the amount already paid including interest is substantial, the threat of penalties is unresolved and we will argue strongly that because of co-operation and prompt payment only a relatively notional penalty should apply.

The second person was recommended to come and see us by a ‘Friend’ who had been ‘doing’ the accounts. It became apparent to me at our first meeting that output VAT had been omitted in error for 4 quarters. We were appointed and immediately filled out a five figure ‘voluntary disclosure’ form, again my greatest concern was that the Customs & Excise would open an enquiry before the voluntary disclosure was in, allowing them to charge a

• possible 100% penalties for undeclared tax
• criminal sanctions for deliberate fraud

Once you know about underpaid VAT and do not correct it, it becomes fraud.

How the Customs computers failed to pick up 4 quarters of VAT refunds for a Hardware Store I will never know!

The point of these stories is this. Penalties for illegal tax evasion are very heavy. These guys by coming to Hornbeam have largely avoided the worst of the penalties and in at least one case have agreed to make payment over a period of time. We will always try to help people who want to get back on the straight – and – narrow, and indeed are pleased to do so.

Business Management Training

Our experience is that investment in Management training repays business owners many times over. We are putting on a series of Business Management seminars this year. Our seminars are specifically designed for Managers of small businesses. Frankly we don’t think that you can afford to miss them!

Each seminar will run between 3:50pm and 6pm and will be followed by a buffet supper.

The seminar is priced at £25 plus VAT and an order form is attached.

We are so confident of the content that we will refund the price in full of anyone does not think that the seminar has shown them how to add value to their business.

The seminars will be held at Hornbeam House unless we advise otherwise.

Seminar Topics are:
 

Payroll

Payroll gets more complicated every year. This year we have invested heavily in electronic filing. Our payroll clients will all get a £250 refund from the government for this year and next which we have agreed to split with them. For many people operating small manual payrolls this would pay our charges for 18 months! There will never be a better time to appoint Hornbeam as your payroll agents.

We acquired a very substantial payroll during 2004. We have managed to reduce the time taken by more than 50% and thus made substantial saving for our clients.

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