Great advice on pre registration VAT:


http://www.peninsula-uk.com/bottomlineexpress/447/Ask-The-Taxwise-Expert.html

HM Revenue & Customs recently issued the following as a reminder of the late filing penalties for Self-Assessment Tax Returns for the 2010/11 years and onwards. Accountants and Tax Advisors should take note of the initial £100 penalty applying regardless of whether the taxpayer has paid their tax on time or not!

HM Revenue & Customs (HMRC) is reminding individuals and businesses about new Self Assessment penalties for late returns and payments, which come into effect this autumn.

The changes will affect Self Assessment returns for 2010-2011 and all future financial years.
The new penalties for late Self Assessment returns are:
- an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time.
- after 3 months, additional daily penalties of £10 per day, up to a maximum of £900.
- after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater; and
- after 12 months, another 5% or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due.

New penalties for paying late are 5% of the tax unpaid at:
- 30 days,
- 6 months, and
- 12 months.

Interest will also be charged on top of these penalties. Further information on the new penalties is available from the HMRC website at www.hmrc.gov.uk/sa/deadlines-penalties.htm

I wanted to share an interesting document produced by the British Chamber of Commerce (BCC). It is a timeline looking at forthcoming employment legislation for the next four years, calculating the cost to employers. Given the squeeze on public sector jobs, it’s more important than ever that the private sector creates jobs. However, the BCC argues that the tremendous costs involved in complying with red tape are holding back growth and job creation in the private sector.

The Government has said that it wants to reduce the burden posed to business by employment legislation. It has committed to reforming the Employment Tribunal system, a necessary step which we support. But the reality is that there is a raft of UK and EU legislation coming down the pipeline which will add further costs and complexity to the already hefty burdens posed on management.

In 2012, the Parental Leave Directive, Pensions Reform; National Minimum Wage Increase; in 2013 Gender Pay Reporting under the Equality Act; in 2015 Shared Parental Leave – to name but a few. And the cost? According to the British Chamber’s calculations, the cumulative cost to business of this legislation between 2011 and 2015 is £22.17 billion.

Welcome to our new blog.

We hope to be able to use the blog to post interesting and useful stuff to help our clients grow their businesses and so achieve their maximum potential.

Harris & Co

Seeking a business loan requires preparation and excellent documentation of your businesses financial health. The following list will help get you started, complete and accurate information will help the lender complete their review with a better chance of reaching approval. Pay close attention to financial projections and cash flow needs, they must be believable and supported by your business plan market assumptions

Proof read your documents as errors will delay review and possible cause rejection. Have someone else review you documents did they clearly understand what you wrote?


I. Cover Letter --States who you are, how much money is needed, what the money will purchase and what results are expected.

II. Business Plan
A. Description of the business
B. History and nature of business
C. Ownership structure. Attach contracts or organizing charter, copies of business licenses, EIN, Resolution/Articles of Incorporation or partnership contracts.
D. Key Management resumes
E. Description of product/service and market place. Including competition, market area, major customers, major suppliers, description of plant and equipment
F. Amount of loan requested. Specific dollar amount and purpose of loan, use and benefits, amount of owner’s contribution, primary source of repayment and repayment terms, list of collateral.

III. Business Financial Reports
A. Projected cash flow budget, income statement, balance sheet, financial assumptions
B. Business financial history for last three years
C. Tax returns for last three years
D. Itemization of all debts
E. Current aging of accounts receivable

IV. Personal Financial Statements (for each co-owner)
A. Recent personal financial statements, recent
B. Personal Tax returns for last three years

V. Attachments
A. Application forms.
B. Business incorporation documents, partnership agreements, buy/sell agreements, etc.
C. Legal documents: leases, contracts, franchise agreements,
D. Detailed lists of assets to be purchased
E. Summary of market research
F. Supporting documentation, pictures, plans, contractor estimates, customer contracts.


NOTE: Loan Decisions Points – Lenders have several critical decisions points. The information you provide must prove to a lender your ability to accomplish your business goals.  A lender review will include but is not limited to:

• Evidence of your ability to achieve the cash flow budget
• Total amount existing debt and how much more debt will be added with a new loan
• Ability to pay all of your debts and still be profitable
• Personal and business credit history
• Amount you are investing as the owner
• Amount of collateral
• Potential risk of business failure
• New business vs. well established business

 Hope you all had a great summer.  It certainly was a wet one in the Greater Detroit Area.  The Detroit area is starting to see a little bit of a bounce in the economy from the resurgence of the automotive industry.  This is the time of year that business owners need to continue to focus on the current year but also start thinking about next year.
When we think about the future of your business the Planning and Budgeting Process comes to mind.  Every business has this process, some more formalized than others.   The benefits of planning and budgeting usually will outweigh the effort.  It's like anything else the more you put into it the more one can potentially get out of it.  The following discussion outlines the potential benefits of planning and budgeting.  (Pretty much a list of the typical roles and responsibilities of management.)



Planning in itself forces management to look at the future and anticipate risk and opportunities in the market place.  If one is caught-up in the day to day activity they can miss opportunities in their industry by not paying attentions to trends.  One must also think about how decision you make today will impact the future.

Organizing is a key role of management.  As your business grows organizing it becomes more important in making it operate efficiently.  The planning and budget process helps one to organize economic and human resources in the most financially rewarding areas and efficiently manage these resources.

Controlling involves investigating variances from established targets and taking corrective action.  This activity serves as an internal control over your business and helps identify when you may have to make some changes to the budget because things may not always go as planned.

Coordinating is derived from planning and budgeting.  Planning and budgeting serves as a system to coordinate the activities of the different departments,  bringing them together so everyone is on the same page.

Communication is a byproduct of planning and budgeting.  It forces the organization to exchange information, ideas and achievements.

Motivation can be gained by the planning and budgeting process.  Having realistic goals and the thrill it gives when they are achieved can be a motivating factor.

Clarity is achieved if rewards and accountability are tied to your planning and budgeting process. 

As one can see planning and budgeting incorporates a lot of the roles and responsibilities of management. Look for my next next blog when I will discuss key steps in a formalized budget and planning process.

Thank you for your time.  Please contact  me should you have any questions concerning the above information or if I can assist you with your Planning and Budgeting Process.

Best regards,

Andrew Jordan, CPA, MSF
248-514-6213