Oury Clark Chartered Accountants

Taxing Times Ahead

Oury Clark Chartered Accountants Blog - March 15th, 2010 by Ian Friend

  • Ian Friend

  • Position: Partner OCA
  • Phone: +44 (0) 1753 551111
  • Fax: +44 (0) 1753 550544
  • Email: Ian.Friend@ouryclark.com
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    Ian Friend at ouryclark.com

With pressure on profits and cash flow, are you getting the right advice to minimise your tax liabilities?   Are your advisors proactive or do they simply complete your tax forms?

Whilst corporation tax rates are unchanged for the time being, other taxes are set to increase. There may be action you can take now to reduce your overall tax burden.

Here are just a few things to consider:

With the top rate of income tax increasing to 50% (and to 60% in some instances) with effect from 6th April 2010, have you considered accelerating bonuses or dividend payments.
If you have been reporting losses are you sure you have maximised all possible repayments of tax. Trading losses can generally be carried back and set against the profits of [...]

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Oury Clark Chartered Accountants

Income Tax Rate Rises

Oury Clark Chartered Accountants Blog - March 3rd, 2010 by Sarah Harris

  • Sarah Harris

  • Position: Partner OCA
  • Phone: +44 (0) 1753 551111
  • Fax: +44 (0) 1753 550544
  • Email: Sarah.Harris@ouryclark.com
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    Sarah Harris at ouryclark.com

The top rate of Income Tax will increase to 50% on 5th April 2010 for earned income over £150,000.

Additionally, those earning over £100,000 will have their tax free personal allowance reduced by £1 for every £2 they earn above the £100,000 threshold- this is an effective tax rate of 60%!

Planning Possibilities

Short Term/ One Off

Consider bringing forward one off payments of bonuses or dividends so that they fall to be taxed at the existing lower rates.
Partnerships and Sole Traders may wish to consider changing their accounting reference date to push more profits into 2009/10.
Both of these measures would result in a [...]

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Oury Clark Chartered Accountants

The present economic climate

Oury Clark Chartered Accountants Blog - June 10th, 2009 by Richard Oury

  • Richard Oury

  • Position: Senior Partner OCA
  • Phone: +44 (0) 1753 551111
  • Fax: +44 (0) 1753 550544
  • Email: Richard.Oury@ouryclark.com
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    Richard Oury at ouryclark.com

We would strongly recommend in light of the present economic climate and the recent guidance that the auditors have received in relation to going concern concepts, that companies subject to audit should be considering most carefully their financing arrangements and in particular, their ability to pay back loans and whether covenants in respect of such loans may be broken in the foreseeable future.

I have seen a number of cases recently where substantial bullet repayment loans granted are now a limited number of years away from repayment and with the downturn in economic activity, there is an obvious concern as to whether or not companies will be able to repay such debts and if it is clear that they are unlikely to be able to do [...]

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Insurance premiums

Oury Clark Chartered Accountants Blog - June 10th, 2009 by Ian Friend

  • Ian Friend

  • Position: Partner OCA
  • Phone: +44 (0) 1753 551111
  • Fax: +44 (0) 1753 550544
  • Email: Ian.Friend@ouryclark.com
  • More information about
    Ian Friend at ouryclark.com

Another cost you might want to review is that of your insurances. Some policies are based upon the gross sales or turnover of the business or other financial data such as the cost of payroll etc. With your results coming under pressure, the financial numbers used to assess your insurance premiums may well have fallen and you may be able to negotiate lower premiums as a result.

Similarly, the cost of life protection insurance has fallen over the past 10 years and the simple re-broking of policies may reduce costs.

Some brokers may be happy to levy a fee rather than take a commission. This will reduce the amount of insurance premium tax payable.

Lastly, do you know what all those miscellaneous standing orders are for? Are they [...]

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The Business Payment Support Service

Oury Clark Chartered Accountants Blog - June 10th, 2009 by David Taylor Rea

  • David Taylor Rea

  • Position: Tax Partner OCA
  • Phone: +44 (0) 1753 551111
  • Fax: +44 (0) 1753 550544
  • Email: David.TaylorRea@ouryclark.com
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    David Taylor Rea at ouryclark.com

The Business Payment Support Service was set up by HMRC in November 2008 to assist businesses encountering cash flow difficulties by allowing then to delay payment of tax within an agreed timescale e.g. payment by monthly installments. If you wish to use this facility you should telephone HMRC on 0845 302 1435. Our experience to date is that HMRC is amenable to any reasonable request.

One of the effects of a reduction in income is that you may become eligible for Child Tax Credits. With savings rates at an all time low and employment increasingly less secure, the potential for a reduction in income is profound. The best starting off point for a claim is to telephone the Tax Credit Helpline on 0845 300 3900. As [...]

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Things to consider

Oury Clark Chartered Accountants Blog - June 10th, 2009 by Rachel Lockwood

  • Rachel Lockwood

  • Position: Partner OCA
  • Phone: +44 (0) 1753 551111
  • Fax: +44 (0) 1753 550544
  • Email: Rachel.Lockwood@ouryclark.com
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    Rachel Lockwood at ouryclark.com

Auditors are under pressure in the current climate to ensure businesses really are a going concern… and not just this year! Auditors MUST consider any known future events which may cast doubt on the going concern assumption and obtain evidence to satisfy themselves such that any events are not a major going concern risk.

Things to consider include:

if bank financing is due for renewal evidence can be seen as a positive response from a bank or alternative investor;
if the plan is to sell a business to repay finance in an active market within a range sufficient to discharge liabilities is evident;
the forecasts that are available are realistic and show the business being able to meet its liabilities as they fall due.

All of these going concern considerations [...]

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