AIMS Accountants for Business

AIMS Tip of the week

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 18 Jun 2013 09:37:00 +0000

Don’t be scammed!

HMRC will never send notifications of a tax rebate, or ask you to disclose personal or payment information by email. Visit our website for more great tax tips; http://www.aims.co.uk/news.asp#accountingtips

Tax avoidance, who’s to blame? You decide

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 13 Jun 2013 07:34:00 +0000

I recently read an article about a businessman who is suing his accountant because the accountant didn’t tell him to seek specialist advice about a tax avoidance scheme. We’re not talking small change either; the sum that was successfully sued for was £1.4million, although this will certainly go to appeal.

The judge is siding with the non-domiciled refugee who obtained political asylum because he could not go back to his war torn country. The claim was that the accountant did not recommend that the businessman seek specialist advice about opportunities for aggressive tax avoidance which his non-domiciled status created.

There is so much confusion here; the judge is confused, the accountant is confused and the businessman doesn’t know whether he’s coming or going. One question we have is how can a tax system suggest this businessman is not domiciled here when he has nowhere else to go?

So, is it the accountant’s fault for not considering the non-domicile tax rules? Is it the businessman’s fault for trying to avoid paying proper UK tax? Or is the tax system at fault for being confusing and contradicting?

You can read more in our latest blog; http://www.aims.co.uk/blog.asp?id=84

AIMS Tip of the week

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 11 Jun 2013 09:43:00 +0000

If you draw a salary from your business, check your tax coding, if it’s wrong you could be entitled to a rebate. Speak to AIMS if you would like to know more: http://www.aims.co.uk/contact.asp#headoffice

A government proposal on how to save some money

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 06 Jun 2013 08:34:00 +0000

In the current climate, government spending is always going to be criticised, especially when it’s in excess of £1m. But we are not going to jump on the band wagon and take a cheap shot at the large amounts of money the government spends. Instead I thought about offering up a couple of suggestions in response to a recent article which highlighted.

I recently read that the FCA spent over £1 million to re-brand its name/image from FSA . I understand this information came to light through a “Freedom of Information Act” request and was recently highlighted by the Financial Adviser. £1 million is an awful lot of money for such a simple re-branding and at a time of austerity I would have thought that quasi government agencies would be a little bit more in tune with what is happening in the world. As far as I am concerned the FCA does not need a pretty logo image and the website just needs to be functional – after all they are not selling anything!

But it seems to be another classic demonstration that there are quasi government agencies and indeed government agencies that are not monitored because there is no direct line of ownership and/or responsibility. It is actually quite simple; would I spend £1 million to re-brand my business or would I spend £700,000 for a new website?

The simple answer is no. Would any of our clients do that? The simple answer is no. So why do the government agencies do it – is it because it is not their money?

AIMS Tip of the week

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 04 Jun 2013 08:31:00 +0000

Do yourself a favour;

If you are going to have problems paying your next VAT bill (or any other tax for that matter) talk to HMRC before it is due and you may be able to negotiate time to pay. Read more great tips here; http://www.aims.co.uk/contact.asp#headoffice

Another new scandal on the horizon!

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 30 May 2013 08:10:00 +0000

There is usually no smoke without fire, but let us know what you think about the latest scandal . . .

First there was endowment miss-selling, then a scandal with overdraft charges and more recently with payment protection insurance. Now its interest only mortgages that pave the way for the telephone claims handlers to go viral, pestering anyone and everyone that’s ever had an interest only mortgage in the hope that they can cash-in on an oversight from either the banks or the financially uneducated consumer.

But what is the right answer here? Should we be defending the banks? Surely if someone enters an interest only mortgage they are aware and advised that there is a final payment when they decide to sell up and move on?

Articles in the press are suggesting that this is a scandal waiting to happen. From where we are sitting it looks like the claims handlers are trying to stir up trouble.

When it comes to regulating these issues it seems that regulation alone does not do the trick, because there are now calls to regulate the claims chaser. Something doesn’t add up, because if everyone knows that these financial products do not make sense, why are the offered and sold in the first instance?

Let us know what you think, or even better; if you have been ill-advised over an interest only mortgage we would love to hear from you.

AIMS Tip of the week

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 28 May 2013 09:09:00 +0000

Are your records up to scratch?

HMRC are starting to check business records and have the power to levy penalties on anyone with (in their view) inadequate records.

AIMS can help you implement a cost effective system liberating you to operate your business, contact AIMS here: http://www.aims.co.uk/contact.asp#headoffice

It’s your fault that Google & Amazon get away with it!

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 23 May 2013 08:33:00 +0000

Let’s clear a few things up!

On one hand we’ve got tax evasion which is illegally not pay tax while on the other hand you have tax avoidance which is the perfectly legal practice of paying the bare minimum, usually involving a lot of clever scheming.

The current hype in the press of late is surrounding Google and Amazon and so on. Don’t worry, this blog isn’t going to judge whether their practice is legitimate or not. Instead we’ll start from the top and look at our tax system. Is it faulty? Yes. Should we be doing more to straighten it out, making the tax laws more sensible? Yes. And is the longer this tax saga goes on chasing away foreign investors? Yes.

Do any of the issues above relate to Google? No. So it seems that we are highlighting, albeit through the vilification of certain corporates, the gaps in our system.

If you look at the argument from Google’s side of the fence, they have done nothing wrong, they abide by our tax laws, and yes they have made the most out of the loopholes but that’s not illegal. Google is a pioneering company that provides a free service to billions and which has allowed thousands of UK business to profit from, surely its contribution as a whole should be taken into account and not just its tax contribution.

But rather than waiting for politicians to change the system and for the press to express the public outcry – there is a simple solution. If you don’t like the way certain businesses behave – don’t buy into them: there are other search engines and there are other coffee shops that you can use. What I am saying is you can’t have it both ways. Enjoy the way they do business as a customer but condemn them as tax payer (especially when they have complied with the law!)

At AIMS we help small businesses in tax planning and accounting. Yes we will look at ways of saving tax, but we also recognise the need to contribute to the UK economy, and after 20 years of being at the heart of the SME community, we recognise the economic importance that it plays.

Which side of the fence are you on? Do you think we need a significant tax overhaul or do you think that the Amazon’s and Google’s are in the wrong?

Apple’s cash “mountain” and their mole hill of a tax bill

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 16 May 2013 09:31:00 +0000

Have you ever wondered why the large corporate companies like Apple manage to record such large profits? The simple answer is that they filter their profits into tax havens to avoid local taxes.

Recent articles have announced that Apple is also sitting on billions of dollars in offshore accounts which they can’t use otherwise they would incur substantial tax payments.

Incidentally, compared to other nations our tax payments are not that substantial – I think it is only about 9% - 10% corporation tax if those funds were to be repatriated (as I read in the FT). But what is interesting is how the situation has been allowed to happen. Why on earth do the authorities create tax laws which are so complicated that they actually motivate businesses to have complex corporate structures?

I fear our current tax policies in the UK suggest that some corporate businesses are using tax avoidance schemes even though the tax rates are relatively low. Most of our clients would be delighted to have such a low tax rate and enjoy the benefits of the profit that they make. Good old fashioned advice would always be to consider the benefits for your business and then consider the tax implications – never do a deal for tax reasons alone; business first and then tax

As always, we enjoy hearing from you, so join the conversation by leaving your comments on our blog: http://www.aims.co.uk/blog.asp?id=80

AIMS Tip of the week - sole trader

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 14 May 2013 08:06:00 +0000

Are you setting up as a sole trader?

You can claim against your profits for items used in your business even if they were purchased prior to commencement of trade. If you need more information, contact AIMS: http://www.aims.co.uk/contact.asp#headoffice

Pick’n’mix – the tax sweet shop

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 09 May 2013 10:30:00 +0000

Well that explains everything. No wonder we have ludicrous tax laws; the very people that are in charge of advising the government on tax law are the same people liaising with large corporate companies to assist them in exposing the loopholes. It’s no surprise we have anomalies.

It’s absurd that companies are allowed to hire accountants that are also the same people who have a foot in the door when new tax laws are created. We are the UK largest network of professional accountants and although we don’t advise the government we do ensure that all of our clients pay a fair amount of tax which is why it seems more unjust that the small companies get punished for not abiding by UK Tax law when larger corporates, who are operating in the UK tuck their profits in foreign bank accounts to avoid their tax implications.
I wonder what law you would create if you were asked to advise the government?I think we would suggest a tax relief for small businesses or simply ask that the National Lottery includes a small business initiative to drive local funding for SMEs.

You can leave your response below, we would love to hear from you.

Find out more about what we do on our website; www.aims.co.uk

AIMS Tip of the week - working abroad

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 07 May 2013 13:02:00 +0000

Working abroad?

If you work abroad for at least 60 days, your spouse or partner and children can visit you twice without a tax charge arising to you. If you need more info, speak to AIMS: http://www.aims.co.uk/contact.asp#headoffice

The (tax free) Rich List

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 02 May 2013 09:09:00 +0000

The (tax free) Rich List

The moment so many have been waiting for; the release of the Sunday Times Rich List! And as you run your finger down the list and gulp at the unfathomable amounts of money that the people in the top 20 manage to accumulate, you start to realise that there is a distinct lack of British representation.

Now comes the real question. How many of the Top 20 are resident and/or domiciled in the UK? I won’t bother you with the fine print or the idiosyncrasies of the British Tax system, so to rephrase the question: how many do pay the same taxes (income tax, inheritance tax, capital gains tax) as you and I? You know the answer. And by the way, this is not about them being “foreigner” because many participants of this list are “British Born” and/or lived most of their lives in the UK

On one hand you have a select list of people with eye-watering sums of money who are supposed to do enough in the UK to qualify their participation in the British Rich list and on the other hand you have the Small Business community, our clients, who are running successful ventures and living by the HMRC code of conduct, paying their share to bolster the dwindling growth figure.

We know which category we are in and we will continue to do everything we can to work towards a fair and loophole-free tax system to level the playing field for the tax-free corporates and law-abiding SMEs.

It’s mind boggling to think that if the people in the top 20 clubbed together with their spare change they could bring the UK out of recession in one foul swoop, but that’s a conversation for another time.

Let us know how you would spend £13.3bn if you were sitting at the top of the rich list or read more blogs on: http://www.aims.co.uk/news.asp#blog

AIMS Tip of the week - creating a Will

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 30 Apr 2013 09:25:00 +0000

Will you or won’t you?

A simple Will gifting your worldly goods to a spouse or partner will avoid getting stung by IHT. Contact AIMS to find out the small print; http://www.aims.co.uk/contact.asp#headoffice

The cost of regulation

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 25 Apr 2013 08:39:00 +0000

I’ve just read that the budget for the “Financial Conduct Authority” and the Prudential Regulation Authority will be £646.3 million. You need to take a big step back and a deep breath to reflect on this figure. It’s a vast sum of money.

But this is not the real message. The FCA collected nearly £300 million of fines. What do you think is happening to this money? If you think it is being used to reduce the regulation cost then I am afraid you are wrong. This money is being handed over to the Treasury. And this doesn’t make sense to me.

Shouldn’t the fines being paid by the “naughty boys” be used to reduce the costs of the “good boys”?

Let us know what you think below.

AIMS Tip of the week - Property Income

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 23 Apr 2013 07:20:00 +0000

Don’t get stung by property income.

Get the best terms by voluntary disclosing your income or gains from a UK or oversees property sale. The HMRC deadline is 6.09.13, after that it could be bad news. Speak to AIMS for more information; www.aims.co.uk

You deserve better, how loyal are you?

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 18 Apr 2013 13:51:00 +0000

Loyalty is admirable and a great virtue, but ask yourself one question; do you receive added value from your service providers?

Sometimes you feel that you are being taken for granted but choose to stick with your current service or product supplier because you think it’s too difficult to change or you are too loyal to switch.

Companies rely on people like this and continue to offer a mediocre service knowing that people will continue to pay. Switching service providers is not only a good idea, it’s encouraged. Martin the Money Saving Expert encourages small businesses to constantly compare current rates and insists that it’s easier than you think to trade in your underperforming bank, energy supplier or even accountant.

But it is not just “price”. You deserve the best service and shouldn’t be taken for granted by companies that have more attractive offers for new customers than they do for their existing ones.

I’m still puzzled by the attitude of some companies. The customer is your most important asset; he/she is the one that is buying your product or service and has the greatest influence on the buying nature of those around them.

Switch! You never know you may just get that service you’ve been longing for.

Let us know if you’ve had a positive outcome from switching your service provider.

AIMS Tip if the week - more red tape!

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 16 Apr 2013 12:27:00 +0000

More red tape!

Do you know when you will have to start automatically enrolling staff in a pension scheme? If not, speak to your local AIMS Accountant http://www.aims.co.uk/contact.asp#localaccountant

VAT anomalies – have a laugh (you are paying for it already)

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 11 Apr 2013 10:16:00 +0000

VAT was first introduced in 1973 and since then there has been constant anomalies and grey areas. I am sure you already know how complex our VAT system is, but I bet you didn’t know how absurd it really is.

So is the Jaffa Cake a cake or a biscuit, you might think it is trivial, but not when VAT is involved. The answer; it’s a cake! In 1991 the Jaffa Cake went on trial to prove (with tests over its texture) that it is in fact a cake and therefore retaining its tax free status. Other anomalies range from; a paper book (which is VAT-free) to an e-book which is listed as an “electronic guide” (suffering a 20 per cent VAT charge) to the price difference between a “Subway” with hot sauce and one without.

You could say that AIMS exists because of the complex VAT and tax system - but we work differently. We like to think that we are no ordinary bean counters and work with our clients as a partner, so that they can focus on running and developing their business whilst we take care of the hurdles, pitfalls and traps of VAT and tax matters.

Let us know if you have come across any more absurd VAT or tax anomalies or have a look on our website to find out more about what we do: www.aims.co.uk

AIMS Tip of the week - Keep track of your finances!

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 09 Apr 2013 08:42:00 +0000

There are so many simple and easy tools available – it won’t cost you more than a few minutes a day - but will help you enormously. Call us to find out more; http://www.aims.co.uk

Will email die out? The future of business communication!

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 04 Apr 2013 12:27:00 +0000

According to research generation X and Y consider ‘email’ passé and some Universities have stopped distributing email accounts. This begs the question; what will be the foundation for business communication in the future.

I’m sure if you asked someone 30 or 40 years ago if the printed hand written or typed letter would ever be replaced they would have laughed, and the same could be said about email. Surely we have found the most effective way of communicating with no cost, no carbon footprint, no delays, no reliance on anything but the electricity that powers your computer or device. Emails are built into everything we do. We are no longer unobtainable and mobile technology has enabled us to send and receive business emails from remote locations.

So why are we even contemplating thinking about another solution? The emergence of the social landscape is changing; people and businesses can now actively engage with their audience online. Some might say that too much is reliant on email and we’ve lost the art and personality that goes with physical interaction. We still send out printed letters in the post and although our printed marketing materials are diminishing we still see value in tradition marketing methods.

Do you think that emails will still be the number one communication tool for businesses in 10 years’ time?

Henry

www.aims.co.uk

AIMS Tip of the week - switching is easy

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 02 Apr 2013 14:45:00 +0000

It’s surprising how many people think it’s difficult to switch accountants. Meet them, check their experience and make sure they are qualified to give business advice. We cover all three; http://www.aims.co.uk/contact.asp#localaccountant

£10m fund for UK high street remains unused

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 28 Mar 2013 11:41:00 +0000

I didn't expect the scheme to be successful – you may remember the government proposed to give 100 local authorities millions of pounds in a high profile initiative designed to attract shoppers to town centres. But the current statistics are quite worrying. Because it appears that only 7.2% of the funds available were awarded.

Some items that were purchased using the fund were a portable stage, a PA system and £37,000 for the salary of a business manager. I am sure that there are better ways to stimulate the economy rather than creating another layer of bureaucracy and red tape. Let me give you a couple of ideas.

What about suspending parking charges or providing free bus journeys. All this can be done simply without employing another person and without administration. Initiatives like this will attract shoppers to town centres.

Let us know if you have any ideas for distributing the fund and boosting the economy.

Henry Booker

AIMS Tip of the week - be prepared!

noreply@blogger.com (Henry S Ejdelbaum) — Tue, 26 Mar 2013 09:38:00 +0000

Don’t leave it to the last moment, because it will be too late. Taxes should be a year round concern for any business. Make sure you are prepared by having a professional accountant on board. Speak AIMS http://www.aims.co.uk

Budget update - what's changed?

noreply@blogger.com (Henry S Ejdelbaum) — Thu, 21 Mar 2013 15:59:00 +0000

The chancellor has now delivered his ‘budget for the aspiration nation’ and we have summarised the highlights which have the biggest impact on Small and Medium sized Businesses in our spring update.

It seems that the Chancellor introduced another tsunami of small initiatives, most of which will probably be lost through red tape and small print, like most of the previous initiatives. Whilst in isolation the proposed ideas are positive and welcome, what are missing are bold and positive concepts which will motivate SMEs to grow and expand. Just look at the scrap yard of failed initiatives like the funding for Lending scheme, which actually motivated the banks to lend less because of the unsustainable conditions and lack of demand.

This budget has again shown how important it is to have the right professionals on your team. Tax issues are becoming more complex, which is where we come in. Allow me one quick plug, we are at the largest network of professional accountants, so if you need any help with you accounts and tax planning let us know.

What do you think about the latest budget announcement? Is there anything else that you would have liked to see?

Henry Booker