UK Income Tax Liabilities regarding Offshore Matters

New legislation has introduced a legal requirement for UK taxpayers who have undisclosed UK tax liabilities to income tax, capital gains tax and inheritance tax in respect of offshore matters to disclose the relevant information to HMRC by 30 September 2018.  This is known as the Requirement to Correct (RTC).

The penalties for failure to correct (FTC) start at 200% mitigated to a minimum of 100% of the tax.  There can also be asset-based penalties in more serious cases.

With effect from 1 October 2018, the Common Reporting Standard will be introduced under which 100 jurisdictions will exchange financial account information on residents’ investments offshore hence the need to report any undisclosed liabilities by the 30 September 2018.

When the legislation was first drafted it was thought it was intended to target deliberate tax evasion, such as routing undeclared UK income through off shore structures. However over the course of the last few months it has become clear that HMRC will be taking a more aggressive approach even in cases where an innocent error has occured.

In brief, a person must correct any offshore tax non-compliance, including failure to notify chargeability to tax or failure to submit a Return that should have been submitted.

The RTC covers tax years as far back as 2013/14 if a failure has occurred but the taxpayer has taken reasonable care, back to 2011/12 if behaviour was careless and back to 1997/98 if the behaviour is deliberate.

If you have any assets overseas, for example holiday homes, letting income, bank interest, then Pierce can help you prepare for the new legislation.

For further information, please contact Anne Wilson on a.wilson@pierce.co.uk or call 01254 688 100.

Awards success for Pierce

Accountancy firm Pierce is celebrating after its employees and clients achieved award success at Lancashire Business View’s Sub 36 awards and the BIBAs.

Payroll assistant Layton Smalley has been shortlisted for the Apprenticeship Award at the Sub 36 awards. Layton, 19, recently completed his 18-month apprenticeship at the firm before being promoted to his current role.

Layton was nominated for playing a key role in the payroll team, providing vital administration support for the department, as well as assisting other team members with processing payroll and dealing with client queries.

Pierce’s client, English shoe company, LANX had a hattrick of shortlistings for

the New Business Award and the Innovator Award and Entrepreneur of the Year Award for its owner Marco Vaghetti.

Continuing the success, last week client Flavour Warehouse won two BIBAs after being named Manufacturer of the Year and Exporter of the Year.

Lisa Kennery, Payroll Manager at Pierce, said: “We’re delighted that Layton has been shortlisted for the Apprenticeship Award. He is so committed to his job and works really hard so he truly deserves the recognition.

“We’re really proud of our client’s achievements too, both LANX and Flavour Warehouse are really innovative businesses.”

The Sub 36 awards will be held on Thursday October 18 at the Winter Gardens, Blackpool.

For more information about Pierce, please visit www.pierce.co.uk or call 01254 688 100.

Pierce’s payroll manager shortlisted as biggest influencer

Pierce is celebrating after their payroll manager, Lisa Kennery has been shortlisted for a prestigious industry award.

Lisa has made the final eight for the biggest influencer category at the Chartered Institute of Payroll Professionals Annual Excellence Awards.

Lisa was nominated by Pierce’s payroll assistant manager Philip Johnson, after receiving unrivalled support from Lisa during his career at Pierce.

Philip said: “Lisa has not only played a key role in enhancing my knowledge needed for my professional qualifications but also in gaining the softer skills needed to develop my career. Since being at Pierce I have worked my way up from being an apprentice to assistant manager which is all thanks to the support, guidance and encouragement from Lisa.”

Lisa added: “It was such a shock to find out that I have been shortlisted for this award. It’s a great achievement and I’m thrilled that Phil nominated me.”

The 2018 Annual Excellence Awards will be taking place in Birmingham on Thursday October 11.

Luxury hotel appoints Pierce to support growth

Lancashire-based luxury hotel Stirk House has appointed Pierce to support its ambitious growth plans with expert business advisory and accountancy services.

Stirk House, a listed building which overlooks the Ribble Valley, has experienced significant growth in the past three years, increasing turnover from £1.4m to £2.4 million by branching out from guest stays and becoming a popular wedding venue.

The family run Clitheroe hotel has enlisted the services of Blackburn-based accountants, Pierce to provide auditing, tax planning and advice on access to finance.

Helen Kay, financial director at Stirk House, said: “In the last few years we have developed our core hotel business by taking a more pro-active customer approach and investing £750,000 into the building to offer bespoke wedding packages at an affordable price. This has helped us to increase the number of weddings we host per year from 18 to 180.

“Pierce is not only a dependable, expert partner – the team is pro-active, friendly and approachable which made them a great fit. With their help, we will be able to implement our business plans, get everything in place financially and grow the business further.

“Our future plans include investing into the leisure club and spa facilities and increasing the number of bedrooms.”

Nadeem Hussain, director at Pierce, said: “Stirk House is an iconic local hotel and a much loved heritage building – but at its heart lies a thriving, modern business with exciting plans.

“We will work closely with Helen and the management team at Stirk House to build on the incredible successes of the past three years, by underpinning their excellent business ideas with strategic business, accountancy and funding plans.

“We look forward to helping the business during this exciting next phase.”

For more information about the expert financial services offered by Pierce, please contact them on 01254 688 100 or visit www.pierce.co.uk.

Pierce treks the three peaks for local charity

Fourteen employees from Pierce joined forces to conquer the infamous Yorkshire three peak’s challenge, raising more than £1,300 for local charity Nightsafe.

The team of accountants and business advisors trekked up Pen-y-Ghent, Whernside and Ingleborough completing the challenge in 13 hours 20 minutes in blistering heat.

All funds raised by Pierce will go to Blackburn-based charity Nightsafe which provides accommodation, meals and support for young homeless people in the borough.

The team comprising Lewis Withnell, Elizabeth Stebbings, Charles Hopkinson, Lisa Kennery, John Corteen, Philip Johnson, John Wilkin, James Briggs and Thomas Brassey,– are still seeking donations from clients and the community to help raise further funds for Nightsafe.

Team Leader Lisa Kennery said: “At Pierce we are passionate about the Blackburn community and very active in our efforts to create opportunities for all. The work Nightsafe does to help vulnerable young people is truly inspirational and we wanted to do whatever we could to raise funds to help them continue their vital work.

“The challenge itself was gruelling. Just as you feel the pride of scaling one peak you realise you’re just a third of the way through. It’s a real test. That said the challenge really pulled us together. We had fun along the way and our teamwork shone through as we encouraged each other every step of the way.

“As tough as the three peaks challenge was though – it’s nothing to the community challenges that Nightsafe works tirelessly to tackle. The funds raised will really help young homeless people aged 16-24 to provide them with food and accommodation. Just £2.00 provides a young person with breakfast and £25.00 pays for a night at a shelter so the money raised will make a huge difference to young people.”

Jan Larkin, CEO at Nightsafe, said: On behalf of everyone at Nightsafe, I want to say thank you to Pierce for all of their wonderful efforts, enthusiasm and generous support towards our charity.”

There is still time left to donate, so please visit https://www.justgiving.com/fundraising/pierceaccountants. For more information about Pierce, please visit www.pierce.co.uk.

Removing your home address from Companies House Records available to the public

The Companies Act 2006 requires companies House to make certain information regarding companies available to the public in order to improve transparency, this was achieved via the beta service which was launched in June 2015.

The beta service allows documents to be viewed online at the click of a button, the service has proved popular and company records are now more accessible than ever before. This does however mean that if a Company Director, Secretary, Shareholder or Person of Significant Control has ever shown their home address on a company document rather than using a service address this will also be available to the public.

If a company officer or member no longer wishes this information to be available to the public it is now possible to have the information removed from the document. This is achieved by obscuring the address on the document so that anybody viewing the document will not be able to see the address and is known as suppressing the information.

To have your information suppressed you must provide an alternative correspondence address if you are still appointed to a live company and will need to pay a fee of £55 per document you wish to have suppressed.

You are unable to remove your home address if you have used it as the company’s registered office or on any documents prior to 2003.

Currently the application form required to suppress information is not available online and needs to be requested by contacting Companies House directly.

If you require any further information in respect of suppressing your information please do not hesitate to contact our company secretarial department on 01254 688100 or cosec@pierce.co.uk

Pierce celebrates Hive Award shortlisting

Pierce is celebrating the announcement of the Hive Awards shortlist after their assistant payroll manager Philip Johnson is in the running for the Rising Star Award and clients have been shortlisted for 11 awards.

Philip was nominated by the firm due to his success in the payroll department. Since starting at the firm as an Apprentice in 2013, he has risen through the ranks, recently covering the role of payroll manager.

During his time at Pierce, Philip has grown the payroll department, introduced efficient software for pensions, completed a foundation degree in payroll management and mentored new apprentices.

Pierce’s clients shortlisted for awards includes:

  • Curtis Law Solicitors – The Professional Services Award; The Growth Business Award and the Hive Large Business of the Year Award.
  • Darwen Terracotta – The Manufacturing, Innovation and Technology Excellence Award.
  • Bryan Lee Building Contractors LTD –  The Family Business Award; Investing in Future Skills Award and The Hive Employee of the Year Award for Daniel Brearley.

Lisa Kennery, payroll manager at Pierce, said: “Philip has achieved so much at Pierce and being shortlisted for this award is very well deserved. He has proven himself to be a vital employee of the firm, demonstrating his skillset and ability for the future.

“With so many of our clients also shortlisted, the awards look set to be a great night.”

The winners of the Hive Awards will be announced on Thursday July 5 in King George’s Hall, Blackburn.

Pierce helps entrepreneur step into the fashion industry

Lancashire entrepreneur Marco Vaghetti is launching English shoe company LANX thanks to the help and support from accountancy firm Pierce.

Pierce has been working with Marco for the past decade providing expert financial advice across his business portfolio.

Marco is the brains behind LANX, which designs and tests business-casual shoes – made with the finest leather and British sourced textiles – from its base in Whalley. LANX’s shoe collections are limited edition, with as few as 30 pairs manufactured in some styles.

Marco said: “I’m really excited to be launching LANX after developing the business during a six-month trip to Asia. I visited 10 countries and countless shoe designers and manufacturers to learn how to make footwear and search for creative inspiration.

“When I landed back in England, I was ready to start the company and Pierce was one of the first calls that I made. They have provided me with excellent financial advice with my other businesses and I knew they would be a great support for LANX.”

Pierce has worked with Marco for 10 years providing bookkeeping, VAT, tax planning and financing support for his two existing businesses and a previous venture.

Pierce has worked closely with Marco from the inception of LANX to structure the company, advise on footwear import duties and on financial projections.

Paul Moulding, senior manager at Pierce, said: “It has been a pleasure to work with Marco over the past 10 years. He is a very ambitious and driven individual and it has been fantastic to play a part in his thriving business portfolio.

“Marco has worked so hard to develop LANX and I’m sure his collections will be successful as they are developed to such a high-standard. We are proud to work with a business that designs and tests shoes in the heart of Lancashire.”

To celebrate the launch of the LANX website and the AW18 collection launch, LANX will be hosting a pop-up shop on May 26 at Nushu, 29 King Street, Whalley, Lancashire between 12.00-18.00.

Pierce employees take on three peaks

Fourteen employees from Pierce have started training ahead of their Yorkshire three peak challenge this summer to raise money for local homeless charity Nightsafe.

Lewis Withnell, Elizabeth Stebbings, Charles Hopkinson, Lisa Kennery, Fred Green, Daniel Burrows, John Corteen, Philip Johnson, David Barker, Gary Speak, Paul Moulding, Thomas Brassey, Scott Hughes and Katie Nicholson-Taylor have joined forces to raise money for charity.

The team will face Pen-y-Ghent at 694 metres tall, followed by Whernside at 736 metres then climb 723 metres up Ingleborough.

Lisa Kennery, payroll manager at Pierce, said: “Last year a group of employees did Tough Mudder and this year we have chosen to do the Yorkshire three peak challenge.

“It is a great team-building activity and will be very worthwhile as we hope to raise lots of money for our chosen local charity, Nightsafe. All team members have shown their dedication to the challenge and everyone at Pierce is right behind the team.

“Nightsafe is based locally to our office in Blackburn and helps support homeless young people aged 16-24 through its day centre, night shelter and supported housing projects. A donation of just £2.00 would provide a young person with their breakfast and £25.00 would pay for a night in the night shelter, so every donation would make a huge difference to a young person.”

Please follow the link to donate https://www.justgiving.com/fundraising/pierceaccountants 

 

Making Tax digital – What will the future bring?

The government announced on 13 July 2017 that Making Tax Digital will commence in April 2019 for all VAT registered entities with a turnover above £85,000. Vat registered businesses with turnover below this amount will not be required to use the system but can choose to do so. They will also be able opt in for other taxes, benefitting from a streamlined, digital experience.

 Making tax digital will extend to other areas of tax for example,  self-assessment tax returns  in April 2020 . This gives you two years to adapt to the change of reporting digitally,

 Challenges you may face:

  • Converting manual records to digital version
  • Converting spreadsheets to recognised book-keeping software that will link direct with HMRC
  • Upgrading old software that will not be compatible
  • Adapting bespoke software
  • Cost of doing the above
  • Time processing

How can we help

  • Assisting in selecting the correct software for you
  • Implementing the software
  • Provide training initially and as and when required
  • Take the headache away and provide a full package