Checkout our top tips below to see if you could be saving tax.

1. Tax Relief on pensions

By the end of the tax year you can max up your contributions to your pension, to benefit from a generous amount of tax relief and also gain benefit from the tax efficient treatment of pension funds.

2. Give it to your other half

You can save tax further by transferring money into the account of your other half or spouse, if they are lower earning or non-earning.

3. Get yourself an ISA

If you have an individual savings account you can benefit from tax breaks as long as you are saving and/or investing the money.

4. Your tax code

Double check your tax code and make sure you are not paying over the odds

5. Got a spare room?

Renting out a room in your home can raise you some extra income and it completely tax-free.

6. Write a will

Writing a will is the only way to make sure your loved ones will get the inheritance, and limit the tax you will pay on your estate.

7. Use a Company car?

If you have the benefit of a company car, make sure you fill out a form to declare it as a taxable perk. The smaller the vehicle, the less tax you with have to pay.

8. Made a gain?

If you have made a gain in the taxable year. You should take full advantage of your annual capital gains tax exemption limit.

9. Buying a property?

Negotiate with the person you are buying a house from, they may be willing to drop the price below stamp duty thresholds. You can literally save thousands if they do.

10. Look after your family

Your children and grandchildren will get their own personal tax allowance, and you can set up tax-efficient trusts for them.

Need Tax Saving Advice? Call Stonehouse Accountants, Peterborough, Kettering, Market Harborough and Corby – Main Switchboard : 01733 265888

The explanation for this surprising result could be the that a fair proportion of these small businesses will experience significant business during this time, while the retail sector being the highest example in the Boxing Day sales, hospitality businesses experiencing high business for Christmas dinners and New Years eve parties, along with the tourism sector for similar reasoning.

On the other hand many businesses featured in the survey made a decision to work during the festive period based on the current economical climate. Implicating that revenue was too bad to take a long holiday. The findings have been supported that, more businesses will be increasing working hours in 2012, to compensate for the condition of the economy.

The survey taken also found findings that 35% rated the economy as good or very good.

The chairman of the FSA (Lord Turner) has been quoted to say, “While the excesses of the pre-crisis period have largely disappeared from the current market, it is important to ensure that better practice endures in future when memories of the crisis recede and the dangers of poor practice return.”

The rules that will be implemented are to stop any re-occurrence of lenders handing out mortgages with cursory checks on borrower’s ability to repay, as seen in the early years of this decade. For example the mortgages offered by Nothern Rock entitled “Together mortgages,” which granted loans worth 125% of the property value.

In the worst cases, mortgages were given by the lenders which were seven times the worth of a borrower’s income, or allowed them to value their real income much higher than it really was, this was the case for many of the “self-certified” mortgages offered.

Stonehouse Accountants in Peterborough is a well established husband and wife partnership accountancy practice helping small to medium size business clients grow and prosper in Peterborough and further afield for the past thirty years.

We understand how family self employed business works and take the time to help other husband and wife self employed partnerships, sole traders, subcontractors and family owned limited companies with there income tax, book-keeping, PAYE payroll, VAT returns, annual financial accounts preparation and business and tax planning. We also support family business in their succession planning – which ultimately is the bridge many successful family run business’ will have to consider crossing.

A recent report* co-produced by Oxford Economics and The Institute for Family Business finds that H M Revenue & Customs Inland Revenue tax system is penalising family run business’ and presents the following facts and statistics for our consideration:

Two thirds (2/3) of all UK private-sector firms are family owned.

(The above) Private-sector firms employ 9.2 million people or (40%) of all private sector jobs.

Family business generated £1.1 trillion and paid £82Bn (eighty two billion pounds) in taxes in the last tax year 2010/2011 – which equates with 14% of annual Government revenue.

The current tax system penalises entrepreneurial family business.

200, 000 new jobs could be created if Inland Revenue employment rules were relaxed.

Here at Stonehouse Accountants we are well aware of the challenges facing many small family run business’ in these difficult economic conditions – but take heart – it will be small business’ such as ours,  that will put their collective shoulder to the wheel and nose to the grind stone… and turn this country’s economy around – given a fighting chance.

EXPERIENCE COUNTS EVERY TIME!

I hope the above comments indicate what we do best here at Stonehouse Accountants – a firm of local experienced accountants looking after small business’ in Peterborough Cambridgeshire. If you’ve woken up to looking for the right accountant this financial year, then telephone
Frank Waller FCPA on Peterborough 01733 – 265888 who will be pleased to see he can help you succeed.

*source i business pages 14/11/2011

UK taxpayers will find it harder to ‘hide’ money from the tax collector in Swiss accounts, an industry body has said, following a deal made with the Swiss authorities.

Money held by UK taxpayers in Swiss band accounts will be taxed for the first time following further details being released, and concerns that it offered an amnesty for some tax dodgers.

The Charter Institute of Taxation (CIOT) said that lawbrakers could be prosecuted. Gary Ashford of the CIOT said, “This is a significant agreement which opens a new chapter in tackling international tax evasion. Rightly, the net is tightening on those who think they can keep money in offshore bank accounts out of sigh of the tax man.”

The terms of the deal the Swiss with tax the UK taxpayers bank accounts from 2013 and transfer the money directly to the treasury. The bank accounts will be taxed by the Swiss authorities between 19% and 34%, depending on the length of time the account has been open. The Swiss have made a 500million Swiss fancs (£385m) initial down-payment.

If in doubt, always seek the advice of an Accountant in Peterborough who understands Tax and can give you sound pointers on staying legal.

UK account holders in Switzerland will also face an annual levy on the income of their accounts from 2013 between 27% and 48%, depending on if their income has arisen as capital gains, interest or dividends. As part of the deal, UK authorities could track down and tax money in offshore bank accounts, with a total estimate of £5billion being handed over to the HM Revenue and Customs, by the Swiss authorities. The UK authorities have also been given access to details of up to 500 UK individual accounts per year, to take for further investigation.

Swiss banking laws provided complete secrecy for foreigners with bank accounts for decades. Allowing the account holders to hide large amounts of money from their own tax authorities, without having to pay a penny in Swiss tax.

The details of the deal have now been published and it now offers opportunities to tackle evasion, especially if people try to move their money from existing offshore accounts. Chas Roy-Chowdhury, head of taxation at the ACCA, has said that more than the 500 names originally agreed could be provided to the UK tax authorities for further investigation. People should come clean or face a stiff penalty.

Charity Christian Aid director Loretta Minghella, has disagreed with the deal and said that, “This deal makes it much less likely that developing countries will ever be able to get the taxes owed to them from those hiding money in tax havens like Switzerland. It is a disgrace.”

Stonehouse Accountants in Peterborough has thirty years experience in long term tax and business planning to develop business interests and achieve significant tax savings with compliance. We have generally found that old idiom to ring true; “where there’s a will, there’s a way… call us on Peterborough 01733 265888

“Does your firm ‘specialise’ in dealing with my type of business and do you have many other clients in the same line of business as me?”

Is a fairly regular opening question put to me, by new clients at an initial telephone conversation or first meeting at my offices.

Having served many years as a local Peterborough accountant in public practice dealing with literally hundreds of different types of self employed business, partnerships and limited companies over a period in excess of three decades… I always feel a little uncomfortable, dare I say ‘shy’ in describing myself or my accountancy firm as ‘specialists’ or ‘experts’ in a specific area of accountancy or in dealing with a certain type of business. It seems to me that so many other trades and business’ declare themselves to be specialists, experts and professionals.

When pressed on the point of specialism or expertise by a new client understandably looking for a little reassurance I always confirm one simple truth to them as I know it – I Frank Waller FCPA, senior partner of Stonehouse Accountants will always personally deal with them, their business and their related income tax and accountancy affairs and ultimately I believe I have over the years focused my experience on doing just one thing, really very well indeed, for which I do not apologise:

If I accept their assignment, I guarantee to assist them to organise their personal, business and tax affairs so as to best avoid paying one penny more income tax than they absolutely have to and I have yet to come across another accountant who will save them more – if indeed this is the service they require.

Experience counts every time!

I trust the above comments have clarified what we do best here at Stonehouse Accountants – a firm of local experienced accountants looking after small business’ in Peterborough Cambridgeshire. If you’ve woken up to looking for the right accountant this financial year, who is not too shy of saving you tax; then telephone Frank Waller FCPA on Peterborough 01733 – 265888 who will be pleased to see if we can help you succeed.

Thomas Cook is parting with Ian Derbyshire, head of UK retail division, after only recently parting ways with former chief executive, Manny Fontenla-Novoa.

The Peterborough based travel company,  reported to be in trouble, said that Ian Derbyshire left to take over the family’s business.

The company’s former Chief Executive, Manny Fontenla-Novoa left after Thomas Cook reported a third profit warning in just a year. Sam Weihagen, his former deputy replaced him in the position.

The downturn in consumer spending has led the company into trouble, as a result of fewer people taking holidays, with the main core customer base of young families. It is also reported the profit warning reported by the Peterborough based travel company, could have been a direct result by turmoil and conflicts in the Middle East and North Africa.

Mr Derbyshire, the former head of its UK retail division, was said by Europe’s second-biggest tour operator, to have made the decision to part ways earlier in the year, but then agreed to stay put while the company plans to merge its high street stores with Co-Op Travel were completed, and the preliminary approval was given by the Competition Commission last month.

A strategic review is now to be continued by the Company.

The reasoning for this is fairly simple. With an increase in redundancies, a lack of good jobs and the fact that in many industries it can pay to go it alone.

Taking the step to self-employment can seem frightening for many, particularly the money side of being self-employed.

The Federation of Small Businesses says, “For someone becoming self-employed for the first time it can feel as if they are entering uncharted waters alone,” this recently called on the government to do more for those heading to the direction of self-employment. “They will need to work out how they will finance themselves until they secure their first client or contract. They are also legally obliged to register with HM Revenue & Customs (HMRC) within three months of becoming self-employed, or risk a fine.”

Read more about how to set up as:

Setting up as a Sole Trader
Setting up in a Partnership
Setting up as a Limited Company

A limited company must have at least one director and, in some cases must have a company secretary. The limited company must be registered (or incorporated) at Companies House, it will have to pay corporation tax and submit a tax return for the company. Requirements must also be met to comply with HMRC’s requirements over PAYE for employers and VAT.

“Limited companies are very easy to set up and are tax-efficient. Had we encountered financial difficulties, the limited liability regulation means our company finances wouldn’t impinge on our personal ones.” “Limited companies also offer the directors a very clear shareholding, so  directors know what they own. There is a lot of paperwork to set the company up but an accountant does most of this for you.” says Victoria Pooley, founder and managing director of Ipswich-based business The Data Partnership.

Read more about how to set up as:

Setting up as a Sole Trader
Setting up in a Partnership

The author of Which? guide Working for yourself, Mike Pywell says “Partnerships will only work if all partners share the same goals and actively work together to achieve them.” He adds “As a partnership, the approach and attitude you take to work is much more important than if you are a sole trader.”

Read more about how to set up as:

Setting up as a Sole Trader
Setting up as a Limited Company