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London to Paris Cycle Ride - 9th -– 12th September 2009

An eventful 2008 included cycling from John O'Groats to Lands End (taking in the 3 Peaks!), undertaking a half ironman triathlon and the usual cycle trip across France. I was, then, planning a quieter 2009 to rebuild my fitness, as I had a double hip resurface last November - wore the blighters out.... (I now have metal hips and go under the pseudonym 'Bionic Bruce'!)

When chatting to Gary Thomasson, fundraising manager at The Rose Road Association, he asked whether I would consider supporting them again this year (they were one of my four nominated charities for the big 50th birthday fundraising last year) by taking part in the London to Paris Cycle Ride.

We, at CW Fellowes, had already decided that we would adopt Rose Road as our nominated charity for 2009. I took all of a minute and thought about the fantastic support that Rose Road provides for children and young adults with profound and multiple disabilities. If you visit the School at the Bradbury Centre in Southampton you will appreciate the difference that Rose Road makes to so many young people and families.

For my 19th consecutive year of sporting charitable fundraising I will be cycling over 300 miles in four days from South East London to Paris, finishing beneath the Eiffel Tower.

Many of you have kindly supported me very generously over the years. I very much appreciate your generosity and support. Once again, thank you. You too can help make a difference.

Please send your cheque to the office, made payable to 'The Rose Road Association', and help me towards my target of £5,000 and the Rose Road 'Change My Life Appeal' towards its target of £500,000. 

For more information visit www.roseroad.org.uk/changemylife (together with the gift aid declaration if you are an individual).

Alternatively, visit www.justgiving.com/bruceelkins and make a donation.

Thank you.

Kind regards

Bruce Elkins

International Accounting Services

Therefore it has become increasingly difficult for us to provide timely advice on international matters from our UK offices.

We therefore looked at a number of international networks to assess whether they fulfilled our criteria to meet the needs of such clients and, after very careful consideration we consider IAPA to be far and away the best fit.

About IAPA

Background

Established in 1979, IAPA comprises around 230 member firms with offices in more than 50 countries.  In terms of the total fee income of its membership, IAPA ranks amongst the top 25 global accounting organisations.

IAPA's aim is to support member firms in providing their clients, regardless of sector or location, with professional, comprehensive and cost-effective solutions to all their business needs.

IAPA - member firms

Each IAPA member firm is an independent entity controlled or owned by individuals holding internationally recognised accountancy qualifications.  Admission is subject to rigorous eligibility criteria.  In joining the association, every member firm commits to maintaining IAPA's high standards of professionalism and integrity.

IAPA - local expertise, global coverage

Through IAPA, member firms gain immediate access to the local expertise and knowledge of qualified professionals in key business centres worldwide.

This association with IAPA now allows us to provide a global coverage to our UK-based clients to assist them with any accounting or fiscal issues that they may have.

Please do look at their website when you have a few free minutes http://www.iapa.net/

The World’s Leading Flight Data Monitoring Service Provider

Flight Data Services (FDS) are dedicated to providing a complete Flight Data Monitoring service to the scheduled, charter, cargo and corporate aviation industry. Focusing on the management of flight data (the information recorded in the aircraft’s black box), FDS specialises in translating raw data into the information operators need to maintain the highest standards of flight safety and efficiency of operations.

Alongside the Flight Data Monitoring service, FDS provides design services for the installation of flight data recording systems and flight safety consultancy services. FDS can assist in carrying out a simple gap audit through to setting up a complete safety department.

Formed in 2000 by Managing Director Dave Jesse, FDS has gone from strength to strength, expanding rapidly over the last few years. Located in Fareham, Hampshire, FDS has over 40 customers worldwide and monitors over 400 aircraft in total.

FDS pride themselves on the quality of their data analysis and maintaining their position at the leading edge of industry developments in Flight Data Monitoring. Providing a service that is tailored to the customer’s needs and focused customer support has made FDS the world’s leading Flight Data Monitoring service provider.

“Flight Data Monitoring is perhaps the most important tool to enhance flight safety in the airline industry and FDS provides Norwegian with the service needed in a very professional manner.”

Hans Herdahl, Quality Manager, Norwegian Air Shuttle

If you would like to find out more about our client please go to www.flightdataservices.com

National Minimum Wage Increases

Penalties for non compliance

HMRC are able to charge penalties to those employers found to be in breach of the NMW rules.

From 6 April 2009, automatic penalties are levied on employers where HMRC officers find NMW arrears. The penalties range from £100 to £5,000 with 50% prompt payment discounts for employers who settle within 14 days of notification.

The penalty is payable in addition to arrears owed to the workers.

The penalty notice will detail the amounts due to workers (calculated according to the formula shown below) and any penalty due on those arrears. The penalty is calculated as half the total underpayment. The underpayments are uprated to take into account the length of time the arrears have been outstanding.

For each payment period the formula is:

Original underpayment x Current NMW rate = Arrears
Original NMW rate

In serious cases of non compliance the employer may be tried in a Crown Court and in those cases the fines are unlimited.

If you have any queries on the NMW please do get in touch.

Internet links: HMRC guidance on penalties and NMW news release

Tips and the National Minimum Wage

HMRC have won their case in the Court of Appeal as to the treatment of tips and service charges for bar and restaurant workers. The court ruled in favour of HMRC in the National Minimum Wage (NMW) legislation case relating to tips, gratuities and discretionary service charges. The case concerned Annabel's restaurant and night club and others.

The ruling confirms that employers must pay their employees at least the NMW without taking into account tips, gratuities, service charges or cover charges, unless they are paid to employees through the employer's payroll.

The case means that Annabel's and others must now pay over £125,000 in arrears to their employees.
 
Annabel’s had operated a ‘tronc’ scheme which HMRC had argued did not count towards the necessary payment of the NMW. A ‘tronc’ scheme is sometimes used where restaurant or bar service charges are paid by the customer to the employer, but are then paid into a 'troncmaster's' bank account for distribution in accordance with a 'tronc' scheme agreed between the ‘troncmaster’ and employees.

The court decided that where a ‘tronc’ scheme is used the amounts distributed to workers are not paid by the employer and therefore could not be included in pay for NMW purposes.

Rt Hon Stephen Timms, Financial Secretary to the Treasury, said:

"The government's priority is to ensure that all workers are paid at least the national minimum wage. I am extremely pleased that the court has recognised HMRC's commitment to ensuring that tips are correctly and fairly distributed to the people who earn them. This is good news for bar and restaurant workers across the UK."

Internet links: Press release

UK Opt Out on 48 Hour Working Week

"We refused to be pushed into a bad deal for Britain. We have said consistently that we will not give up the opt out and we have delivered on that pledge.

Everyone has the right to basic protections surrounding the hours that they work, but it is also important that they have the right to choose those hours.

In the UK and many other Member States, choice over working hours has operated successfully for many years. The current economic climate makes it more important than ever that people continue to have the right to put more money in their pockets by working longer hours if they choose to do so."

For more information on the operation of the working time regulations please visit the Business Link guidance below.

Internet links: Press release and Business Link guidance

Financial Services Compensation Scheme

The Financial Services Authority (FSA) have provided a table listing the largest UK deposit takers. The list shows how the Financial Services Compensation Scheme (FSCS) limits would apply for most customers but is not a complete list of deposit takers covered by the FSCS.

If a bank or building society authorised by the FSA is unable to pay back deposits held with it, the FSCS can pay 100% of the first £50,000 of an eligible depositor's claim, per authorised institution. Where a person holds accounts with two or more UK deposit takers covered by a single authorisation, then the FSCS will only pay up to the maximum limit of £50,000 in total, regardless of how many different institutions a person holds accounts with and/or the number of accounts that they hold.

In the case of customers with joint accounts, FSCS will assume that the money in that account is split equally unless there is evidence to suggest otherwise. This means that each account holder in a joint account would be eligible for compensation up to the maximum limit of £50,000.

Internet links: fsa list of linked deposit takers

P11D Deadline Looming

HMRC have advised that they will shortly start sending out paper forms P11D(b) - Return of Class 1A NICs. The forms should be issued by 15 June 2009. Those employers who filed electronically last year will receive an electronic reminder as opposed to a paper form. Payslips will be issued to employers regardless of how the form is to be submitted.

This year HMRC have introduced a new quality standard for P11Ds that are submitted on paper, setting out how employers must complete the form and what information must be included.  Failure to complete forms in accordance with the standard may result in the forms being rejected by HMRC and may result in a penalty. For more information on these issues please use the links below.

If you would like any help with the completion of forms P11D or the calculation of the Class 1A liability please get in touch.

Internet links: HMRC P11D guidance, HMRC P11Db guidance and HMRC notice

Landlords and Gas Safety

Landlords letting property equipped with gas appliances need to ensure that they comply with the law relating to gas safety. As a landlord it is their responsibility to ensure that any pipe work, appliances and flues provided for tenants are maintained in a safe condition.

The landlord must now ensure that a gas safety check is carried out every year by a Gas Safe registered engineer. The new system of registration for engineers was introduced earlier this year. A registered engineer has to check gas appliances and confirm they are safe and issue the relevant certificates. The certificate must be given to the tenant within 28 days.

For more information visit the link below.

Internet links: Gas Safe Register advice

Furnished Holiday Lettings

• The removal of the scheme, and its advantageous tax treatments, completely from April 2010. Unlike general property rental businesses, FHL are treated as a trade for certain taxation purposes, which is generally more preferential in terms of loss and capital gains tax reliefs.

It may be worthwhile making claims for FHL treatment for properties in the EEA including those for which tax returns have already been submitted and where the property has actually been disposed of in the last few years.

HMRC have indicated that, in the correct circumstances, late claims and amendments will be accepted in relation to this matter. The first deadline is 31 July 2009, although later deadlines may apply in certain circumstances.

If you believe you may have or have had a property which qualifies for FHL treatment, please do get in touch.

Internet links: HMRC Budget guidance

HMRC Warn of Email Scam

HMRC are warning that they have become aware that a large number of individuals are receiving emails offering tax rebates. These emails, which are being sent from HMRC Tax Refunds Online and HMRC Tax Refunds On-line, are not genuine. HMRC are stressing that individuals should not visit the website contained within the email or disclose any personal or payment information.

For more information on this and other scams visit the link below.

Internet links: HMRC fraud attempts

Vehicle Scrappage Scheme

HMRC have published their view on the tax implications of the car and van scrappage scheme. The guidance covers the business tax and VAT implications of the scheme.

If you have any queries on the tax implications of the scheme please do get in touch.

Internet links: Directgov website and  HMRC Brief