Press Releases

Tax planning for trusts
Buckinghamshire accountants Russell Phillips are warning that from 6 April 2010, the tax rate applicable to trusts will become 50% with dividend income from discretionary trusts being taxed at 42.5%.

These rates will apply to all income above the maximum standard rate band of £1,000, where the trustees have the power to accumulate income or have discretion over its distribution.

Partner Jonathan Russell said: “In cases where the beneficiary who receives income will not be liable for the new 50% tax rate, they are able to reclaim the tax, although that is likely to be an added inconvenience, while for higher earners it will represent an additional tax cost.

“To help prepare for this, trustees may want to review who benefits from their trust ahead of next April, with a view to maximising payments to individuals who can recover the tax”.

It is also worth considering creating ‘revocable interests in possession’ in favour of beneficiaries, which would allow them an immediate right to income from the trust. The trustees’ liability would then be limited to basic rate which in many cases would mean they did not have to make any payments to HMRC, and the problem of the loss of notional tax credits from the trust’s tax ‘pool’ is removed.

Revocable interests no longer have any Inheritance Tax (IHT) implications, and there should also be no consequences for Capital Gains Tax (CGT).

For more information contact Russell Phillips on 01753 886711.

How Business Owners Can Save On Tax
Buckinghamshire accountants Russell Phillips are advising high earners facing the prospect of a 50% income tax rate, increased National Insurance Contributions and reduced tax relief on pensions to plan for ways to reduce the impact of those changes now.

Managing partner Helen Phillips said: “For business owners, this is a particularly crucial issue as there are different ways of extracting value from a business, which attract different levels of tax. Within a company, directors have the options of taking dividends, receiving cash bonuses or paying additional pension contributions, while unincorporated businesses owners need to take decisions on whether to withdraw capital from the company, or leave it in.

“The forthcoming changes to personal taxation mean capital and corporate taxes are now significantly lower than income tax (see table), and taxpayers need to consider whether alternative methods of receiving income may now be more effective, including bringing forward income, deferring expenditure and restructuring investments to realise capital rather than income”

With personal tax rates returning to levels not seen since the 1970s, high earners need to begin planning now for how they can minimise the effect of the proposed changes.

For more information contact Russell Phillips on 01753 886711.

NEW TIMETABLES FOR TAX REFUNDS
Buckinghamshire accountants Russell Phillips are reminding taxpayers that the time limit for claiming back overpaid tax is being reduced from six to four years.

While it is normally simpler to make claims when the tax return is submitted, it is also possible to claim back tax at a later date, if required.

Managing partner Helen Phillips said: “Next year will mark the transition between the old and new time limits, meaning anyone who has a claim for the tax year 2003/04 must submit it by 31 January 2010, claims for 2004/05 must be submitted by 31 March 2010 and claims for 2005/06 need to be filed by 5 April 2010.”

For more information contact Russell Phillips on 01753 886711.

TAX DISCLOSURE MOVE COULD INCREASE RED TAPE
Buckinghamshire accountants Russell Phillips are warning that the move by HM Revenue and Customs (HMRC) to require 300 banks to hand over customer details  may lead to further demands being placed on small businesses to provide information on their customers.

Russell Phillips partner Jonathan Russell said: “According to reports, HMRC may now move forward with plans to force all customers to disclose customer payment details, in order to find out whether smaller firms are paying the right level of tax. The report also claimed HMRC could dictate the format the data is provided in, and demand to see deleted data”.

However, HMRC said the claims in the report were ‘inaccurate’, and insisted no decisions had yet been made on what powers it would seek in the future.

For more information contact Russell Phillips on 01753 886711.

INHERITANCE TAX PAYERS FACE INTEREST RATE HIKE
Gerrards Cross accountants Russell Phillips is warning that families faced with an inheritance tax (IHT) bill after the death of a loved one will encounter higher interest charges if they take longer than six months to pay up.

HM Revenue and Customs (HMRC) increased its interest rate on late payment to 3% from September, in a move expected to net the government an extra £10million per year.

Russell Phillips partner Jonathan Russell said: “The increase has prompted criticism that it amounts to a ‘stealth tax’ which would unfairly hit families who are struggling to sell a deceased relative’s property in the current depressed market.

“At the same time, HMRC has lowered the rate it pays in interest when it returns overpayments which have been made on inheritance tax bills to 1% below base rate, with a floor of 0.5%”.

However, HMRC has defended its position, stating its rates had been ‘streamlined’, following an 18-month consultation, so that all late tax payments were treated the same. A spokesperson for the department added that the move ‘had been largely welcomed by customer groups and their representatives’.

For more information contact Russell Phillips on 01753 886711.

TAX RULES FOR TEMPORARY WORKERS UNDER SCRUTINY
Gerrards Cross accountants Russell Phillips are warning employers that HM Revenue and Customs (HMRC) is set to investigate the alleged misuse of tax concessions for temporary workers.

The department has published a business brief on the way that tax, National Insurance (NI) and minimum wage rules are applied to temporary staff, following concerns that some are being used unfairly or illegally.

Managing partner Helen Phillips said: “There is particular concern over the scheme which allows temporary staff to claim tax relief on travel and subsistence, as it is suspected some employment agencies may be misusing the concessions.”

Examples included wrongly applied exemptions, expense claims incorrectly made tax free, illegal deductions from workers’ pay and breaches of the national minimum wage. HMRC believes that such schemes are often marketed to workers as representing a tax and NI saving for them, when the major beneficiary was in fact the recruitment agency.

HMRC has warned that it will investigate and challenge employment businesses and umbrella companies which do not fully comply with their statutory obligations.

For more information contact Russell Phillips on 01753 886711.

KEEN PHILLIPS WELCOMES NEW PARTNER
Buckinghamshire chartered accountants Russell Phillips can now offer their customers access to an even greater range of expertise after hugely-experienced and respected accountant Jonathan Russell joined the firm as partner.

He will eventually replace Helen Phillips, who founded the Gerrards Cross-based practice in 1981, and will be gradually winding down her involvement over the next two to three years, before she steps down completely.

Jonathan is currently a partner at Witney-based ReesRussell and is a former president of the UK200Group of small and medium-sized accountancy firms and lawyers – where he served as vice-president when Helen Phillips was president, before succeeding her in the top role.

He said: “I’ve known Helen for a number of years, and we seem to have this system of presidential succession going on between us – first I succeeded her at UK200 and now I’m doing the same here!

“I’m joining what is already a very effective practice, so I don’t expect much change immediately, but I think there is the scope to expand further here and will be revisiting our client services and looking at what they want from us.

“I believe in giving clients good service, from a readily-accessible team of people in their locality, but with enough expertise available to provide all the higher-level services that people might need.”

Jonathan has been a practising accountant for over 30 years and is also a Fellow of the Institute of Chartered Accountants as well as a member of the Academy of Experts, an associate of the Chartered Institute of Arbitrators and an ADR Group accredited mediator.

He is already well known to clients in the Oxfordshire area, where he set up ReesRussell three years ago, and before worked at Critchleys from 1981 to 2006, becoming a partner in 1985.

He will now split his time between Russell Phillips and ReesRussell, but said he would always be available to clients of both.

Helen added: “I’m absolutely certain I’m leaving the business in very safe hands and I wouldn’t have done this otherwise.

“The uppermost thoughts in my mind were always staff and client continuity and I know Jonathan will ensure they are still provided with the level of service they expect and require. He will be a breath of fresh air and bring new ideas, but any changes will be gradual and always with our clients’ best interests in mind.”

ACCOUNTANTS HIGHLIGHT CYCLING TO WORK TAX BREAKS
Russell Phillips chartered accountants are highlighting a tax-efficient way to travel to work and reduce carbon footprints.

HM Revenue & Customs offer a range of incentives to businesses that want to help  employees travel in a more environmentally friendly way.

Under Cycle to Work schemes designed to encourage staff to travel to and from work by bike, employees pay no tax or national insurance for using bicycles or cycle safety equipment provided by their employer, as long as the bikes or equipment are available to all staff.

Employees can even use the bikes for leisure, providing they are mainly used for commuting to work, while employers are exempt from paying tax or national insurance on the cost of providing cycle parking.

Businesses can also sign up to a scheme under which they can claim back the VAT on bikes they buy, then lease the bicycle to an employee for a year. The employee pays a monthly rental, deducted before national insurance and income tax are calculated to cut their personal tax bill, and may also be given the opportunity to buy the bike at the end of the 12 months at a fair market price.

Staff who use their own bike for business travel are also eligible for a tax-free payment of 20p a mile. Employers can pay more than this, although higher payments will be taxable.

Helen Phillips, partner at Russell Phillips , said: “Cycling to work s a great way to keep fit as well as bringing many tax and environmental benefits.

“Cycling also cuts fuel bills and eases car parking problems for employers while saving them money on the costs of company car maintenance. With the tax breaks available, many businesses could find that cycling to work is well worth considering.”

NASTY SURPRISE ON NATIONAL INSURANCE
Russell Phillips chartered accountants are reminding individuals to check their National Insurance Contributions are up to date.  

Every year, thousands of workers have an unpleasant shock as they near retirement age and find that their state pension is worth rather less than they expected.

Helen Phillips, partner at Russell Phillips , said: “The problem arises because national insurance contributions (NICs) they thought they were making have not been credited to them, either because HM Revenue & Customs (HMRC) has mislaid their records or because an incorrect national insurance number has been entered.

“According to research, a staggering 118 million items have not been matched up with individuals and remain in suspense accounts, with the figure continuing to grow at three per cent each year.

“Because most people usually only request a pension forecast when they near retirement age, a problem – such as missing years’ contributions – may only be identified at a late stage”.

It is also useful to remember that the number of qualifying years needed for a full basic state pension has now reduced to 30 years for people who reach state retirement age on or after 6 April 2010.

ACCOUNTANTS WARN OF NEW FOCUS ON OFFSHORE ACCOUNTS
Russell Phillips chartered accountants are warning taxpayers to take steps now to ensure their affairs are in order before the government launches a second crackdown on the holders of offshore accounts.

No date has yet been set for the crackdown to begin but it will take place during 2009. The government is hoping it will repeat the success of its first initiative, which netted £400 million in tax that would otherwise have gone unpaid.

Offshore accounts first came under scrutiny in April 2007 when account holders were given until November of that year to disclose and pay outstanding tax and any other undeclared liabilities going back 20 years.

To encourage account holders to make voluntary disclosures, HM Revenue & Customs (HMRC) limited penalties for those who admitted owing tax to ten per cent of the outstanding bill. Tax experts believe HMRC will be seeking much higher penalties during its second initiative.

It has been reported that HMRC will be contacting 300 banks and building societies requesting names and addresses of UK resident customers with offshore accounts as part of the 2009 crackdown.

CAPITAL NEWS FOR COMPANY CARS
Chartered accountants, Russell Phillips are advising business owners of new rules in relation to company cars.

Following November’s Pre-Budget Report, HMRC have issued draft legislation and guidance on the intended changes to tax relief, also known as capital allowances, on business cars which take effect in April 2009.

The new rules apply to expenditure incurred on or after 6 April 2009 (1 April 2009 for companies). The immediate 100 per cent write-off for expenditure on cars with CO² emissions of 110gm/km or less remains in place.

Helen Phillips, partner at Russell Phillips said:  “The annual rate of write-down allowances for expenditure on other cars will be determined by the individual car’s CO² emissions in each case. The new rules state that expenditure on cars with CO² emissions that do not exceed 160gm/km will be pooled in the main 20 per cent pool. Those which do exceed 160gm/km will be pooled in the 10 per cent pool”.

For more information contact Russell Phillips on 01753 886711.

ACCOUNTANTS WARN OF EMAIL FRAUD
Gerrards Cross accountants, Russell Phillips , are warning taxpayers that recently they have been made aware of the following scams that look as if they’ve been sent by HMRC.

Helen Phillips, partner at the firm said “We have received reports of emails being sent asking clients to 'update your account to the new EV SSL certification'. This is a scam email attempting to steal User IDs and passwords.

The email is being sent from Onlineservices@HMRevenueCustoms.org

Our advice to taxpayers who think they have received a fraudulent email is to not follow any links within the email, disclose any details or respond to it”.

Russell Phillips have also advised that they are aware of a large number of emails being sent offering taxpayers a tax rebate. They advise that HMRC would not inform customers of a tax rebate via email or invite them to complete an online form to receive a rebate of tax. They also advise that recipients should not visit the website contained within the email or disclose any personal or payment information.

BAD DEBTS? DON’T FORGET TO RECLAIM YOUR VAT
With the credit crunch claiming an increasing number of companies as its victims, Russell Phillips chartered accountants are reminding businesses that they need to be alert to reclaiming VAT paid on bad debts for goods supplied.

VAT on unpaid sales invoices can be claimed if all the following apply:

• the VAT was included on an earlier sales invoice
• the relevant debt is more than six months overdue for payment
• the invoice or invoices have been written off as bad debts in the supplier’s business accounts.

Helen Phillips, partner at Russell Phillips said “When all these conditions apply, the supplier can recover the VAT the originally paid by adding the VAT element of the bad debt to the input tax figure in Box 4 of the return.

Although the standard rate of VAT was reduced to 15 per cent on 1 December 2008, if the rate on bad debt sale was originally accounted for at 17.5 per cent, the supplier can reclaim the VAT at 17.5 per cent.

Having reclaimed the VAT, if the supplier then receives payment from the client, the bad debt relief must be repaid on the VAT return that covers the payment date.

For example, if a supplier receives a payment of £1,175 against a debt of £4,700 (£4,000 plus £700 in VAT at 17.5 per cent), the supplier must repay VAT of £175 (VAT levied at 17.5 per cent on £1,000).

If a business has reclaimed VAT (input tax) on a purchase invoice that is more than six months overdue, they must repay the VAT claimed on the invoice by adjusting the Box 4 figure on their next VAT return. When they do pay their supplier, they can then claim the VAT in input tax as usual.

For smaller businesses, the cash accounting system can avoid many of these VAT issues.

With cash accounting, the supplier pays no VAT until they have been paid by their customer. If your customer never pays, the supplier never has to pay the VAT.

Cash accounting is available to businesses with an estimated turnover during the next tax year of not more than £1.35 million and they can continue to use the system until their estimated turnover exceeds £1.6 million.”

For more information contact Russell Phillips on 01753 886711.

ACCOUNTANTS WELCOME NEW GOVERNMENT HELP FOR BUSINESSES
Chartered accountants, Russell Phillips have welcomed a new package of government measures designed to give small and medium-sized businesses a financial boost.

The package, announced by Business Secretary Lord Mandelson on 14 January, includes:

• a £10 billion Working Capital Scheme, securing up to £20 billion of short-term bank lending to companies with a turnover of up to £500 million. The government hopes the first £1 billion tranche of the scheme will be operational by 1 March.

• an Enterprise Finance Guarantee Scheme, securing up to £1.3 billion of additional bank loans to small firms with a turnover of up to £25 million. The guarantee, available through high street banks, will apply to loans and can also be used to convert existing overdrafts into loans to enable businesses to free up current overdraft facilities to meet working capital demands.

• a £75 million Capital for Enterprise Fund, made up of £50 million from government plus £25m from the banks, to invest in small enterprises that need equity but have exhausted traditional forms of finance to invest in their business.

Helen Phillips, partner at Russell Phillips , said: “As accountants and business advisers, we are keenly aware of the challenges currently facing our business clients and have been working closely with them to help weather the economic storms. We welcome the government’s initiative and look forward to seeing this new money making a difference to businesses.”

For more information contact Russell Phillips on 01753 886711.

FINANCIAL FITNESS FOR YOUR BUSINESS
Chartered accountants, Russell Phillips , say that “fit businesses” are the ones that will survive in 2009 and here offer their top ten tips to keep your business in good shape to weather the ongoing economic storms.

1. Cash is the number one reason why businesses fail, so understanding the cash flow in and out of your business is vital for survival while regular cash flow projections – monitored and updated daily, if necessary – will help you to identify relevant indicators for how your business is performing.
   
   
2. Businesses also need to know where they are now, so updating bookkeeping records is a vital task. Producing monthly management accounts for comparison with forecasts will also provide early warning of future difficulties.
   
   
3. Keeping in regular contact with your bank and other creditors will give them a better understanding of your business and sector. Alerting them to potential difficulties at an early stage will also create more time to identify solutions.
   
   
4. 4. Be creative when it comes to sourcing finance, such as invoice discounting or factoring as an alternative to an overdraft. With invoice discounting, a bank or finance company will advance money to a business against its invoices – usually 80 or 90 per cent of the value – to improve cash flow, while the business manages its own debtors. Factoring is a similar arrangement that includes a collections service to chase unpaid invoices.
   
   
5. Issue invoices regularly. One of the most common reasons for invoices not being paid is a query over the amount owed, so agree the invoice amount in advance if possible.
   
   
6. Make sure your customers are aware of your debt collection policy and that that your terms of business allow you to add interest to overdue accounts. If your terms set credit limits, stop supplying when these are reached.
   
   
7. Pursue outstanding debts, as customers will often pay the suppliers who are the most persistent.  Be prepared to threaten legal action if phone calls and letters fail to get results.
   
   
8. Cash is not the only form of remuneration. Share options or equity stakes are among the alternatives.
   
   
9. Think carefully about accepting every contract and consider how it will generate cash and add to your profits. Be wary of taking on non-profitable work that simply increases turnover.
   
   
10. Look at the bigger picture. Making time to look at how the businesses is performing, what you hope to achieve and how you plan to do so will give you a clearer focus for the way forward.

For more information contact Russell Phillips on 01753 886711 or visit www.keen-phillips.co.uk

ENTREPRENEURS ‘MUST MAKE EXIT PLAN’
Russell Phillips chartered accountants are cautioning business owners to give ‘adequate thought’ to how they will eventually exit the business.

The warning comes after the publication of a recent report that found while in more than 70% of firms, the founders are still heavily involved in running the business, almost four in ten still have no plans in place as to how they will leave.

While more than a third of entrepreneurs said they have no exit plan in place because they are ‘waiting for an opportunistic approach from a third party’, the report found many entrepreneurs who did not have an exit plan encountered problems.

Helen Phillips partner from Russell Phillips said  “More than 60% of family businesses are bought by private equity investors, unfortunately, the lack of planning results in difficulties agreeing a price, with owners reluctant to give potential investors access to vital financial information.

“On the positive side, good succession planning can ensure the family firm maintains independent ownership and stewardship, albeit in a metamorphosed business structure, An exit is not something which can happen easily and time spent planning for the inevitably and structuring the business correctly is seldom wasted.”

For more information contact Russell Phillips on 01753 886711.

SURVIVING THE CREDIT CRUNCH
Helen Phillips from Russell Phillips chartered accountants looks at the so called “credit crunch” is likely to affect the owner-managed or average SME business in the Thames Valley.

The media stories about the banking world, and the economy in general, tend to either be focused upon the effect for individual consumers, home owners or the larger companies and ‘UK plc’.  But we are now also starting to see some worrying signs that smaller companies, our typical clients, are hitting some tough times ahead. 

However, all is not lost and there are things you can do to prepare and protect yourself and your business.  Firstly, make sure you are managing your working capital and there’s an overall positive cashflow, rather than a cash drain.  Look at your credit control procedures – tighten them up;  Don’t pay your suppliers earlier than the due date you have agreed;  Review your stockholding policies;  Make sure your business systems are slick and efficient;  Watch petty cash expenses – get trade accounts instead where possible; Review your overheads and purchase ledger costs.

Secondly, look at your banking facilities now.  If there is a downturn, you’ll be in a weak negotiating position with any lenders, so prepare now, whilst you have time  How much will you need?  Good projections are invaluable for forward planning; Who are your lenders?  Are you spreading your financing risk between more than one supplier?  Are you using the most appropriate facility for your needs?

We are generally finding that the more traditional banking solutions are becoming less common, and banks are definitely tightening up their underwriting policies.  More security is being required and the facility costs are going up.  However, there are still many more routes for finance.  We have the personal contacts, know all the products, and can advise you on which is most appropriate and make the necessary introductions.

In fact, you can get help for everything mentioned above from [firm].  So please make the most of our expertise and skills to help you bolster your business up, and get yourself ready for any potential storm that may hit your sector or market.  It doesn’t have to be ‘doom & gloom’ if you make sure that you carefully review your own situation and plan ahead.  You could really find that this economic climate can bring some great opportunities too.

TAX RELIEF BOOST FOR SMALL BUSINESSES
Gerrards Cross based chartered accountants Russell Phillips are informing innovative entrepreneurs of a new tax credit boost.  The government has announced an increase in the tax relief rates for investment in research and development.

The new rates took effect on 1st August.  The previous rate of 150% of the investment has increased to 175%.  The size of eligible businesses has also increased from companies with up to 250 employees, to those employing up to 500 people.  The associated limits on balance sheet value and turnover have also doubled.

Helen Phillips comments:  “The government is investing heavily in firms that are developing new and innovative products, with the theory that the small firms of today will be the large firms of tomorrow.  It is worth assessing investment into research and development, as this new tax credit boost equates to an extra £80 million for SMEs to access.”

For more information contact Russell Phillips on 01753 886711.

HOME RESPONSIBILITY PROTECTION
Gerrards Cross based chartered accountants Russell Phillips are informing individuals of a little-known scheme available to help protect basic state pensions.  For those with low earnings, or no earnings at all, that have cared for a sick or disabled person or a child Home Responsibilities Protection (HRP) is available to ensure adequate state pension provision is available.

Recipients of Child Benefit for a child under the age of 16, or of Income Support where it has been agreed that they are substantially engaged in caring for a sick or disabled person HRP should be given automatically.

Helen Phillips comments:  “HRP entitlement can be overlooked where Child Benefit was claimed in the name of the partner who was not, in fact, the partner to stay at home with the children.  If this was the case, the HRP can be transferred.”

Transferral of the HRP applies where; an individual reached State Pension age on or after 6 April 2008, was living a partner who claimed Child Benefit and shared care for a child under 16 and would have been able to get Child Benefit if their partner had not claimed.

HRP has been available for full tax years from April 1978.

For more information contact Russell Phillips on 01753 886711.

DON’T MISS OUT ON CHILD TRUST FUND MONEY
Gerrards Cross based chartered accountants Russell Phillips are advising new parents not to forget about their Child Trust Fund (CTF) vouchers.  The government automatically issues parents of children born after 2002 with a voucher for £250 that can be put into a savings account for their child.  They receive another £250 voucher when the child reaches the age of 7.

According to a recent survey by Nationwide bank however, only 57% of the vouchers issued this year were paid into a CTF.  This equates to £282 million worth of unused vouchers, many of which expire after twelve months.

Helen Phillips comments:  “The first year of a baby’s life is often hectic for parents.  With so much to do, it is easy to put things like the CTF voucher to one side and forget about it.  The time passes so quickly and before they know it, twelve months has passed.  The government is working hard to encourage a nation of savers, and it would be a shame to let the CTF vouchers expire and miss out on £250 for the child.

Parents can pay up to £1200 each year into a CTF on behalf of their child.

For more information contact Russell Phillips on 01753 886711.

TIME RUNNING OUT FOR PAPER RETURNS
Gerrards Cross based chartered accountants Russell Phillips are reminding individuals that have not yet filed their paper tax returns that there are only a few weeks left to get it done if they want to avoid a fine.  This year is the first year that the new deadline of 31st October is in force for the filing of paper returns.

Previously, individuals have had until 31st January to get their returns filed, whether this was done online or using the traditional paper method.  The 31st January deadline will still remain for online returns.

HMRC will fine those who haven’t filed their paper returns on time £100.  Alternatively, individuals could register for online filing, to buy themselves a few extra months.

Once returns are filed, any tax due must be paid by 31st January, regardless of whether the returns were filed by paper or online.

For more information contact Russell Phillips on 01753 886711.

STAMP DUTY THRESHOLD RAISED IN A BID TO HELP BUYERS
Gerrards Cross based chartered accountants Russell Phillips are informing individuals that the government has announced a package of measures to help boost a struggling property market, including raising the stamp duty land tax threshold by £50,000.  Brought in for a twelve month period from 3rd September 2008 to 3rd September 2009, a home must now sell for £175,000 before stamp duty is paid. 

According to the government, this move will take half of properties into exemption from stamp duty.  Previously, when the threshold was at £125,000, there were a third of properties that were exempt from the tax.

Early speculation says that this move will cost the treasury £600 million.  The government has promised to provide more details relating to how this move will be financed in the chancellor’s autumn pre-budget report.

Other measures announced include; an extension of the powers of councils and housing associations, allowing them to pay off homeowner debt, and then charge rent on the property and a reduction in the duration before which income support for mortgage interest is paid.  This will now be paid after 13 weeks instead of the previous 39 week period.

The government has also introduced HomeBuy Direct; a scheme that offers 5 year loans of up to 30% of the value of a new property for first time buyers.  Households earning less that £60,000 will be eligible for the loans, which will be ‘free of charge’ for 5 years, with a fee payable at the end of this period.

Helen Phillips comments:  “This is good news for the property market, as it is a beneficial move for buyers without forcing sellers to necessarily compromise their position.  The government has come under fire with many people accusing them of pulling yet another publicity stunt.  However, homeowners do look set to benefit from this move, and should get in touch if they would like further information on how they will be affected.”

For more information contact Russell Phillips on 01753 886711.

FUEL DUTY INCREASE POSTPONED
Gerrards Cross based accountants are informing individuals that the government have again postponed plans to increase fuel duty by 2p.  The increase was originally due to come into force in April 2008, but the chancellor announced on Budget day that it would be put back to October.  Due to rising fuel costs the rise has now been deferred once more.  The new due date is April 2009.

Plans for the overhaul of the road tax regime are still very much in swing however, with the government now admitting that approximately 9 million road users are likely to see a significant increase in their vehicle excise duty bills.

This comes after the government introduced 13 new bands of taxation that hit the most polluting cars hardest.  Older cars will also see a vast difference, as the exemption from the top rate of tax for older cars has been eradicated.  Cars registered between March 2001 and March 2006 will now be subject to the new system of taxation according to the car’s CO2 emissions.

For more information contact us on 01753 886711.

EFFECTS OF THE INCREASE TO PERSONAL ALLOWANCES
Gerrards Cross based accountants are informing individuals that HM Revenue and Customs have announced the effects of changes to personal allowances.  HMRC increased the annual personal allowance for earnings before they are subject to income tax at 20%.  This was by means of compensation for the abolition of the 10p tax rate.

The changes will come into effect on 7th September 2008, but will be backdated to 6th April 2008.  The personal allowance increases by £600 to £6035, which equates to a tax saving of £120 over the course of the tax year.  The basic rate band has been reduced by £1200 to £34,800.

“Employees with a monthly paydate on or after 7th September will see a £60 reduction in their tax paid that month.  If a September paydate falls before the 7th they will see a £70 reduction in their October tax.  After this, monthly-paid employees will see up to £10 less tax deducted from them, with weekly paid employees noticing a £2.30 difference.”

For more information contact us on 01753 886711.

EMPLOYERS – DON’T FORGET TO UPDATE TAX CODES
Gerrards Cross based accountants are reminding employers to update their employees’ tax codes in September, to ensure pay reflects the tax savings due.  HM Revenue and Customs has increased personal allowances by £600 to £6035.

This is effective from 7th September 2008, so employers must ensure the changes affect the pay runs after this date.  The £120 tax saving does, however, apply to the entire 2008-2009 tax year.

Tax codes suffixed with the letter ‘L’ must be changed by employers adding 60 to them.  For example the old 543L tax code will become the 603L tax code.  Tax codes with other prefixes – T, P, V, Y, NT, BR, DO or K – should not be altered unless an employer receives a P6 notice.

Helen comments: “The changes will mean a one-off administrative burden for employers or payroll managers, but as the changes are relatively similar across the majority of cases, this should not be too problematic. 

“Before 7 September employers should apply any tax code changes dated 23 August or earlier but must not operate these codes before 7th September.  They will also need to calculate whether tax refunds are due to any employees that were adversely affected by the changes earlier in the year.”

For more information contact us on 01753 886711.

TAX RELIEF ON PROFESSIONAL SUBSCRIPTIONS
Gerrards Cross based accountants are informing individuals of a useful tax relief they may be entitled to.  Funds paid towards subscriptions to professional bodies or learned societies may be eligible to tax relief.

HMRC have released a list of professional bodies that subscriptions to which are eligible for tax relief.  The list covers a range of professional bodies across all sectors that have been approved by HMRC up to 30th May 2008. 

Anne comments: “There are several different little known tax reliefs that individuals are eligible to claim.  To ensure maximum tax efficiency, it is advisable to seek professional advice.”

The list can be found at http://www.hmrc.gov.uk/list3/index.htm

For more information contact us on 01753 886711.

PREPARING FOR A RECESSION
Economic slowdown, recession and downturn are all phrases that have dominated the press over recent months, reflecting increasing concern about that state of the world’s finances.  So with many business owners beginning to feel the pressure, is there a way of preparing for the worst?

Helen Phillips, insolvency specialist and managing partner of Gerrard’s Cross based chartered accountants Russell Phillips believes that the key is to retain a sense of perspective.  “It is very tempting to get swept along with a sense of widespread panic about the shaky global market,” she says.  “However, while global turbulence will inevitably have a knock-on effect, businesses that keep a cool head and take early precautionary steps have a better chance of becoming recession-proof.”

Helen believes that the key to preparation is ensuring control over cashflow – making sure you can pay and also get paid.  “Remember that your clients may also be feeling the pressure of the credit crunch, and may miss scheduled payments as a result,” she says. “Forecasting is important, but it is also important to think about every eventuality.  For example, how would a missed payment affect your ability to pay monies owed?”

The sting of the rising cost of energy and fuel is also being felt by business owners, especially SMEs.  Helen believes that now more than ever is a good time to audit business overheads to identify potential savings.  She does, however, advise employers to think hard before making any rash staffing decisions.

“Employers often let people go to free up some potential cashflow, but regret it afterwards.  Recruitment costs are high, and if business does pick up again, it’s likely that you’ll spend unnecessary funds on replacing a member of staff that you didn’t really need to let go.  Instead, think about your existing workforce, and whether roles can be adapted to fill gaps, or offer overtime to increase work output.”

Helen believes it is never too early to begin putting a damage limitation strategy in place, as even brief plans made now could lead to problems being contained in the future.  For more information contact Helen Phillips at Russell Phillips on 01753 886711.

SMALL BUSINESSES BOOSTED BY THE BUDGET
Gerrards Cross based accountancy firm Russell Phillips is encouraging small business owners to pay close attention to this year’s budget, as a large proportion of the changes are pertinent to them.

In his speech, Chancellor Alistair Darling announced proposals to make compliance with legislation easier for small and medium sized enterprises, including a £12.5m contribution to a capital fund for businesses run by women.

The abolition of taper relief and indexation relief and the introduction of a flat rate capital gains tax of 18% that was announced last year were met with the widespread opinion that SMEs would be the hardest hit.  In response, Mr Darling announced the proposed Entrepreneur’s Relief; a lifetime allowance of £1million to be taxed at the lower 10% rate.  In the budget he confirmed that these plans would go ahead in April 2008.  The individual annual exemption rate is also increased to £9,600.

He also announced further measures beneficial to businesses, including access to the Small Firms Loan Guarantee Scheme for all firms, rather than those older than five years.  There is also to be a 20% increase in available funding.

Mr Darling announced that measures would be taken to encourage more SMEs to benefit from public sector contracts. An independent review would take place, with the aim of achieving a 30 per cent target within the next five years.

Family owned businesses have been given a temporary reprieve from the Chancellor’s planned Family Business Tax (“income shifting”), which he announced in the Budget will be delayed until 2009 to allow for consultation.

Helen Phillips comments: “SMEs looked set to suffer from many of the changes in this year’s budget, especially in terms of CGT, but the government’s introduction of some new initiatives to encourage entrepreneurship and enterprise is actually a positive move for the sector.”

For more information contact us on 01753 886711.

BE PREPARED FOR TAX CHANGES, SAY ACCOUNTANTS
Gerrards Cross-based accountants Russell Phillips are urging businesses to think carefully about future investment as they prepare for major changes to key tax allowances in just a few months.

Capital allowances recognise that business assets – including buildings, plant and machinery – decline in value over time and are used by businesses to offset the cost of such items against taxable profits. Major changes announced to the allowances in the March 2007 Budget will come into force from 6 April 2008.

All businesses, of any size or structure, will be able to claim a 100 per cent annual investment allowance (AIA) on the first £50,000 of expenditure on plant and machinery, except cars. At present, small business – those with up to 50 employees – can claim a 50 per cent first year allowance, falling to 40 per cent for medium-sized businesses, of up to 250 employees.

Expenditure above £50,000 will go into a “pool” of spending on plant and machinery. Businesses will continue to claim a writing down allowance - ongoing tax relief - on this pool, though this will fall from 25 per cent to 20 per cent from next April.

Another key change is an allowance for “integral fixtures” – standard fittings within a modern building, rather than equipment. These will fall into a new ten per cent capital allowance pool for long-life assets, with a useful life of 25 years or more.

Helen Phillips, of Russell Phillips , said: “These are significant changes for the capital allowances regime, and both winners and losers will no doubt emerge as the new measures take effect.

“Small businesses are likely to welcome the new AIA as an incentive to invest, as they will be able to claim 100 per cent relief on spending of up to £50,000, instead of 50 per cent, while medium-sized businesses will have to spend up to £125,000 before they lose out.

“Consulting a qualified professional, such as chartered accountant, is always a wise step for a business considering such investment. Doing so will clarify their most beneficial options on capital allowances, and the most appropriate timing of purchases, and they will also benefit from expert advice on issues such as financing the investment and the impact on cash flow.”

For more information contact us on 01753 886711.

TAX TIPS GUIDE TOPS FOR MONEY SAVING ADVICE
Tax is a complex issue that most of us find confusing – but carefully managing your tax situation can bring significant financial benefits.

Now Gerrards Cross-based accountancy practice Russell Phillips has issued a simple guide to tax matters, packed with ideas for maximising personal and business tax efficiency.

Essential Tax Tips from Russell Phillips is an easy to read, eight-page guide, that includes expert advice and highlights dozens of ways to make the most of tax allowances and incentives in a range of different areas, including:

• Personal tax planning
• Savings and investments
• Retirement and estate planning
• Property
• Running a business.

Helen Phillips, a partner at Russell Phillips , said: “Whatever your circumstances, there are ways to carefully manage your taxes that could pay off significantly.

“This guide is a useful tool for carrying out a financial health check on your tax situation, whether personal, business or both, and will provide inspiration for ways to increase your tax efficiency.

“Tax rules and regulations do change from time to time, so is always worth talking to an accountant or financial advisor to keep up to date on the latest developments, and how these could affect you.

“Everyone’s circumstances are different, but a financial professional will have the expertise and knowledge to identify the tax opportunities that are best suited to you.”

For a copy of Essential Tax Tips from Russell Phillips , or for more information, contact Russell Phillips on 01753 886711.

BUILDING FOR THE FUTURE WITH KEEN PHILLIPS
Accountants Russell Phillips are helping eco-friendly client Sweetcroft Homes lay firm foundations for a cleaner, greener future.

Gerrards Cross-based Russell Phillips provides a range of accounting services to the Oxfordshire-based Chapman family business, which has been building homes in the county for more than 30 years.

Sweeetcroft, which was launched in 1996, uses cutting edge construction techniques in its drive to reduce the carbon emissions of its homes, with the aim of eventually creating properties with a zero carbon footprint.

Wherever possible, the company includes technology such as geothermal ground source heat pumps, which use heat from deep within the ground to provide hot water and heating, and photovoltaic cells, to generate electricity from sunlight. Other techniques include energy-efficient timber-framed buildings and high performance windows.

Stephen Cox, from Russell Phillips , who has a long professional relationship with the Chapman family, provides services to Sweetcroft including management and annual accounts, financial planning, company and personal taxation and assisting with pension arrangements.

He said: “It is very satisfying to know that we’re playing a part in the success of this pioneering company.

“Properties built using these eco-friendly techniques may still be fairly unusual now, but they will become very familiar to future generations. Sweetcroft are setting the pace for others to follow.”

Sweetcroft director Glen Chapman said: “The construction industry has long been seen as an inefficient dinosaur, but we intend to change people’s perceptions and prove we have moved ahead of the times.

“Stephen’s expertise is useful to us in so many ways – for example, in working out our cash flows when we have identified a site and when we expect to start work. We value him so highly that we consider him part of the Sweetcroft team and wouldn’t take a decision without his input.”

For more information please contact Stephen Cox at Russell Phillips on 01753 886711.

For more information on Sweetcroft Homes contact 08165 321144.

TACKLING THE NEW CONSTRUCTION INDUSTRY SCHEME
Gerrards Cross based accountancy practice, Russell Phillips is warning all local construction industry workers to make sure that they are fully operating the new construction industry scheme (CIS) or face being liable for potentially hefty fines.

On 6th April 2007, HM Revenue and Customs implemented a revised and much stricter version of the construction industry scheme, the tax system for the construction industry. Yet despite the massive publicity that surrounded the new rules, there were still a number of people who were still not prepared in time for the 19th may deadline for the first monthly return.

HMRC are now operating a new online system in a bid to increase control by introducing more rigorous checks of workers who have self-employment status. Contractors are being increasingly encouraged to complete their tax returns on line, although via post is still an option, with tough penalties for non compliance. More importantly, contractors now have to decide each month whether their sub-contractors are employed or self-employed and sign a declaration to that effect.

Helen Phillips, partner at Russell Phillips comments: "One of the main objectives of the new scheme is to make sure that businesses who are required to operate the scheme comply with the tax obligations, with HMRC stating that compliance will be closely monitored.

"As such, it is now more important than ever for contractors and subcontractors to make sure that they are fully compliant. Surprisingly then, especially in light of the massive publicity of the new rules, it has been reported that a number of local contractors who have failed to comply could be liable for substantial penalties."

Contractors who fail to submit their monthly returns on time will be charged an automatic £100 penalty. Plus, if the return shows more than 50 subcontractors paid in a month, there will be an additional £100 penalty for every 50 subcontractors. These penalties will be changed for each month that the return is late.

In addition, there will also be a £3000 penalty for an incomplete or incorrect monthly return where the omission or error was caused by negligence or intent.

Helen concludes: "The deadline for the next monthly return is not until 19th June so I would urge anyone who thinks that they may be affected by the new scheme but is still unsure to consult a professional accountant as soon as possible."

For more information please contact Helen at Russell Phillips on 01753 886711.

TAX ASSISTANT TIES THE KNOT
Russell Phillips would like to congratulate team member Margaret Ashton, a tax assistant at the practice, who is to be now known as Mrs Macleod after tying the knot with partner Marcus Macleod.

The ceremony took place at High Wycombe registry office on Saturday 28th April, which was also coincidentally Margaret’s birthday.

Over 40 guests, mainly family and close friends, gathered to watch the wedding which carried a subtle Scottish theme on account of Marcus’ Scottish background.

Margaret, who wore traditional white, was escorted down the aisle by her two sons to ‘Nimrod’ by Sir Edward Elgar but walked back down the aisle with her new husband to the sounds of Scottish bagpipes and drums.

In further signature Scottish style, the groom wore a kilt and Margaret’s wedding bouquet was made up of white roses and heather. Plus, all of the guests’ corsages and buttonholes were also heather.

Afterwards, guests enjoyed a small reception held at the newlywed’s organised by Margaret and her sister, who flew over from America especially for the big occasion.

Margaret comments: "I couldn’t have asked for a better day for the wedding, the weather was beautiful and everything ran really smoothly. It was a really enjoyable, truly wonderful day and one that I will never forget."

Margaret and Marcus plan to go to the romantic city of Venice on their first year anniversary as a delayed honeymoon.

ACT NOW TO ESCAPE THE DEATH TAX TRAP
As the death tax trap net continues to close in on more and more families, Gerrards Cross based leading accountancy practice, Russell Phillips offers some advice for local homeowners on how to avoid being caught.

Although originally aimed solely at the richest members of society, Inheritance tax (IHT) is now increasingly afflicting middle-income families as well, with recent reports that a record 10 million families across the country are now to be caught in the ‘death tax trap.’

The predominant cause of this is the fact that as house prices continue to soar, more and more families are meeting the £285,000 threshold, which the government is defying to increase in accordance.

Helen Phillips, partner at Russell Phillips comments: "Recent research shows that around 41 per cent of households could be liable to pay inheritance tax this year, which is a massive jump from the 34 per cent estimated in 2006. Thus, as house prices continue to rise and the threshold, which is clearly being used as a cash generator by the government, continues to stay so low in comparison, the number of houses affected by IHT is only going to greaten."

Helen continues: "By acting quickly and taking a number of simple but strategic measures, however, it is possible for families to avoid giving a huge chunk of their child’s inheritance to the taxman.

"Firstly, one of the easiest ways of avoiding this is to give your money away while you are still alive, as anything gifted after a seven year period is not counted as part of your estate. Whilst people wanting to retain their capital as they get older, can alternatively set up a discounted-gift trust or loan trust, with the help of a professional adviser.

"It is also essential to make a will as soon as you have some assets such as property, even if you are only in your teens or twenties, the earlier the better. Then with the help of a professional, you can maximize the benefits of having a will. A couple, for example, can specify in their wills that a portion of their property, should go to their children or other inheritors on the death of the first partner. Thereby taking a huge portion of value out of the estate on the first death, leaving a smaller estate on which to pay tax at the second death as transfers between spouses are IHT-free."

Currently, inheritance tax is 40% on the value, at death, when an individual’s estate, combining both their household and personal assets, is over £285,000.

For more information please contact Russell Phillips on 01753 886711.

UK200 CHARITIES GROUP PRODUCES CHARITIES ACT GUIDE
Gerrards Cross based accountancy firm Russell Phillips is offering charities across the region a free invaluable guide to help them understand the new Charities Act which has resulted in a major overhaul in their accounting regulations and reporting requirements.

The guide has been produced by the UK200 Charities Group, a leading professional mutual association of accountants and lawyers, which Russell Phillips are members of.

The aim of the report is to set out the broad framework of the Charities Act and provide an overview of the recent developments in accounting regulations and cross border charity issues.

Helen Phillips comments: "The amount of regulation which charities need to get to grips with is increasing all the time and The Charities Act is the latest example.  All charities across England and Wales are affected and for those who work across the border in Scotland things can be even more complex.  Our report aims to simplify the regulations for cross-border charities - English and Welsh charities that have branch offices or property in Scotland.   Basically these charities are now facing dual regulation. There are similarities in English and Scottish legislation regarding definitions of issues such as public benefit and how to operate as a charity, but they are not the same."

This report follows the highly successful guide by UK200 Charities Group on The Charities & Trustee Investment (Scotland) Act 2005.

Helen continues: "Working closely with the Charity Commission and the Office of the Scottish Charity Regulator OSCR on the Statement of Recommended Practice for Accounting and Reporting for Charities(SORP) we are ideally positioned to offer help and advice to any local  charity who feels this may affect them.  We felt that an easy to use guide was the most valuable tool."

The guide features comprehensive information on:

a.. The Charities Act 2006
b.. Changes to accounting procedures
c.. Reporting standards and external scrutiny of accounts
d.. Fluctuations in the charity investment market 
e.. Advice on diversification strategies 
f.. Ethical investments.

For more information contact Helen at Russell Phillips on 01753 886711.

OUTSOURCE YOUR PAYROLL TO OUTSOURCE STRESS
With the start of the new tax year fast approaching, Gerrards Cross based accountancy practice, Russell Phillips is advising local business owners to outsource their payroll functions in order to get their paper work ready for April, rather than be burdened with the unwanted stress of having to do it in house.

Many large companies in the UK choose to outsource their payroll functions in order to increase efficiency and save on time and money. The large majority of SMEs, however, have failed to latch onto the growing trend and are not yet realising the long-term benefits attached to outsourcing.

Helen Phillips at Russell Phillips comments: "There are a number of reasons why SMEs can benefit from taking the outsourcing route. Firstly, outsourcing payroll can help to greatly reduce costs because the cost of employing a payroll provider is usually far cheaper than the direct labour costs of doing it in house.

"Not only this, payroll is often rather tedious, time -consuming and can be a headache, so by outsourcing it you are able to alleviate the stress involved and free up time for staff to pursue more important value-added activities. Plus, outsourcing also removes the strain of having to keep your payroll software up to date, which in itself can be rather expensive.

"Not to mention, outsourcing companies usually conduct regular staff training schemes to keep up to date with changing legislation and thus possess a greater and more informed range of payroll knowledge that an in house payroll department."

Helen concludes: "Easy, cost-effective and stress-free, outsourcing really is the perfect solution for any company's payroll needs. Therefore, I would recommend all local businesses who are not already doing so to consider the option and perhaps take a new approach to their payroll functions in light of the impending new tax year."

For more information please phone 01753 886711.

LUCKY LOCAL RADIO LISTENER WINS DREAM TRIP
Dreams can come true as lucky Charlotte Long, office manager of Gerrards Cross accountants Russell Phillips proved when she won a dream trip to New York in a local radio competition.

The competition was based around the theme of ex-partners, with competitors having to decipher between true and false accounts of what various random people on the street had supposedly done to their ex-partners.

Charlotte phoned up to enter the competition and successfully got picked out of thousands to be one of three contestants to play for the prize. The competition was structured in knockout stages, meaning each round a contestant was withdrawn until there was only one remaining; the winner. This, of course, was Charlotte.

Charlotte comments: "I’m not usually the type to enter a radio competition but there was just something about this particular one which grabbed my attention and made me pick up the phone. I really didn’t expect to win, so I was really shocked when I found out that I had.

"I am absolutely thrilled by the whole prize. I have visited New York once before and it is a truly magical city. From the shopping to the skyscrapers, I love everything about New York and I can’t quite believe my luck. I’m especially excited about visiting the city during the winter season and buying lots of nice things."

Charlotte will be visiting the famous city with her husband Mark and has already arranged lots of plans for her stay. She comments: "Shopping will definitely be high on the agenda and we have also booked a Broadway show and a helicopter ride tour of the city."

The couple will stay at the Edison Hotel situated in the heart of New York’s theatre district. The hotel is just minutes away from Times Square, Central Park and the Empire State building, making it a popular destination for fun and thrill seeking holiday makers from around the world.

For more information call Charlotte Long on 01753 886711 or email Charlotte.Long@keen-phillips.co.uk

IS YOUR SELF ASSESSMENT TOO TAXING
The Christmas rush may be over but for many that means the start of the self assessment rush. The January 31st self-assessment deadline is often approached with dread, however, completing your tax return form within the given time constraints can be achieved with the right amount of preparation and some simple, solid, professional advice, advises based Gerrards Cross based accountants and business advisers Russell Phillips .

Helen Phillips at Russell Phillips comments: "By following a few simple guidelines self assessment needn’t be too taxing. First of all, it is important to check that you have all the required pages in your tax return ‘package’ and all the information you need for each type of income or gain, before making a start. Following this, you need to decide whether you would prefer complete the paper tax return or file online, although if choosing the latter option you first need to register on the site which can take up to a week and this is thus inadvisable for late-filers."

Helen concludes: "Late filing can make for a bad business ethic so if you think you are heading into difficulty consult a certified accountant. Not only does late submission incur a penalty charge which is reportedly set to increase greatly over the next few years, but it can also make it difficult to distinguish between tax owed between the concluding and pending years."

Self-assessment describes the method in place by which certain people have to assess their own tax liability rather than have their local HM Revenue and Customs district office carry out the assessment for them. The law states anyone issued with a ‘Self Assessment tax return’ must complete and return the form by 31st January, with exceptions given only for abnormal circumstances. Failure to do so will result in the automatic penalty of £100, with additional surcharges for continued non-compliance.

For more information please phone 01753 886711.

KEEN PHILLIPS CELEBRATES 25 YEARS
Gerrard’s Cross based chartered accountancy firm Russell Phillips is this week proudly celebrating its 25th anniversary.

Founding partner Helen Phillips set up the company in 1981 in order to meet the needs of the region’s businesses by offering her international expertise.

The firm started life as Phillips and Co in Denham. Ten years later Helen was joined by David Keen and Russell Phillips was born. Phillips and Co continued to exist and became the insolvency arm of the company. The past 25 years have seen the firm increase in size and support a wide ranging client base from their modern privately owned premises.

Helen comments: "It’s hugely exciting for us to reach this important milestone. Russell Phillips was created to support and encourage small businesses who could not previously source first class accountancy and business advice within their budget. These days starting your own business is more popular than ever so we are able to offer our expertise to more and more people who require the services of a small firm who can offer fully personalised service.

"Over the years we have forged strong relationships with all of our clients and we look forward to working with them all over the next 25 years."

Helen Phillips qualified in 1969. Following admission to the Institute in 1970 she accepted a job as a travelling auditor in Canada. She then settled in Montreal for a further three years as the Financial Controller of a large Car Dealership. After a further period of travel she returned home to the UK. Helen then worked with a market research company that was part of Unilever for the next eight years before starting what was to become Russell Phillips .

Russell Phillips holds membership to the UK200Group, the UK’s leading mutual professional association of quality assured accountants and lawyers, with a membership of 120 UK firms and more than 40 international associates. Helen was the appointed president of the Group from 2003-2005.

For more information call Russell Phillips on 01753 886711.

HOW WILL GORDON’S FINAL PBR AFFECT YOU AND YOUR BUSINESS
The last pre-budget report (PBR) from Chancellor Gordon Brown was surprising brief, yet contained many key points, according to Gerrards Cross based accountancy firm Russell Phillips . While green issues dominated, underlying these were major financial and tax implications for local businesses and individuals to address.

Helen Phillips at Russell Phillips comments: "Many businesses may feel that environmental issues are not their concern, however it’s exactly this reaction which Gordon is trying to address and of course the best way to do this, is to introduce financial measure for those which ignore our changing climate. So looking at your company’s fuel consumption, company car schemes and business travel is now more important than ever."

Main points announced included that from February, air passenger duty will rise from £5 to £10 for most flights. There was also an inflation rise in fuel however these increases were offset against tax discounts for biofuels, which were extended.

With regard to the self employed, the government remains concerned about the tax motivated incorporation of the self-employed, which involves businesses taking advantage of structural differences in the tax and NIC treatment that applies to companies. The government will therefore continue to review ‘how the system could be modernised, made simpler, more efficient and more competitive’.

Protecting employees featured as highly on the list on priorities as protecting the environment with the national minimum wage now at £5.35 an hour and in January the penalties for failing to pay it will rise. The government will also introduce from April 2009 a new entitlement for all pregnant women to receive child benefit from the 29th week of their pregnancy and the basic state pension will rise to £87.30.

Helen continues: "While any extra direct costs to a small or growing business can be hard to deal with, such as the national minimum wage, it’s good news that the government is also making the effort by increasing state payments such as child benefits and pensions."

For more information contact Helen at Russell Phillips on 01753 886711.

A WHITE WEDDING FOR THE WHITES
Johanne Andrews, office administrator at Gerrards Cross based accountancy practice Russell Phillips , has tied the knot to her long term partner, Laurence White in a traditional, white wedding ceremony held on 28th October.

Surrounded by the beautiful, rustic scenery of Marlow Buckinghamshire, Johanne and Laurence exchanged vows at their local church in front of a host of friends and family. The delighted Mr and Mrs White were then carried off in a riverboat along the River Thames to Bisham Abbey

The eighty-plus guests subsequently congregated at the Abbey where they were treated to a champagne reception and luxurious nibbles, as well as entertainment from a magician who performed an assortment of tricks throughout the day. A fully organised affair, a crèche was even provided to cater for the younger children.

Later on, in great British tradition, dinner was served, speeches were made and the happy couple cut their rather unique banana wedding cake.

A swinging jazz band played throughout the day, which was later replaced by a disco. Naturally, however, the first to hit the dance-floor were the newlyweds who traditionally danced the first dance, to the sound of Ben E. King’s ‘Stand By Me.’

Not content, with the fine itinerary of the day itself, the newlyweds also held a luxurious wedding brunch the following morning at the locally esteemed Compleat Angular hotel before jetting off on their dream honeymoon, making stops at three equally exotic destinations, South Africa, the Seychelles and Mauritius.

KEEN PHILLIPS ENJOY SUCCESSFUL MEDIATION
Helen Phillips from the Gerrards Cross based accountancy practice Russell Phillips is today celebrating having successfully completed another mediation.

The news comes off the heels of the recent National Mediation Week, which saw a series of events around the UK to support mediation and the various benefits it entails including low-costs, speed, efficiency and flexibility.

Helen Phillips, partner and founder of Russell Phillips , is a qualified mediator with a 100 percent settlement rate.

Helen comments: "Although the mediation process is growing in awareness, such cases are still rather far and few between. Many lawsuits involve court proceedings due to strong opposition between parties involved and therefore it is a rare treat to have two clients opting for the mediation process. "

Helen recently helped two parties who wanted to reconcile their dispute out of the courtroom in order to be able to continue trading together. The settlement was successful.

Helen comments: "I am delighted with the outcome of this recent mediation. The mediation process is a satisfying one. It leaves out the tensions of the courtroom and helps the parties involved works towards an amicable resolution. There is nothing better than seeing two people shake hands and walk away, having settled a dispute."

Mediation is one type of Alternative Dispute Resolution in which a neutral third party, the mediator, assists. There are a number of benefits attached to the mediation process; not only does it allow both parties to discuss their issues in a more comfortable environment than that of a courtroom, it also permits a greater freedom of style of settlement.

Another big advantage is that mediation can be completed a lot quicker than through the Court process. A mediation may take only a day whilst a full court hearing with a full verdict given can take an average of 13 weeks.

For more information contact Helen Phillips on 01753 886711.

GERRARDS CROSS ACCOUNTANTS HELP LOCALS SWITCH ON FOR CHRISTMAS
With Christmas getting closer and excited anticipation growing for the festive season, Gerrards Cross based accountancy firm Keen Philips is already doing its bit to ensure it will be a wonderful Christmas for locals throughout the area.

Helen Phillips, partner and founder at Russell Phillips has been helping to raise funds for this year's Christmas lights, as a member of the Gerrards Cross Traders Association.

The newly established association has this year taken full responsibility for the successful purchase, erection, maintenance and storage of the town's Christmas lights.

Helen comments: "For many years now, the Parish Council have been responsible for the Christmas lights, but this year the traders’ association agreed to take over the task.

"My role started by advising on the formation of the company. We decided to introduce a new format. As a team the Directors actively sought funding by approaching fellow traders in the town centre and asking for donations, which proved hugely successful. We also received a number of anonymous donations that were much appreciated. We believe these came from residents who also care about the look of the town centre during the Christmas festivities.

"We are now looking forward to seeing the lights switch-on during the early part of December in readiness for the town's Christmas Evening."

She continues: "Having only been established this year, the Association is really pleased with the success of our first funding campaign for the Christmas lights. It is really important to mark the arrival of the festive season and I'm confident that as we develop and gain more members we will be able to finance a more impressive Christmas lights display year after year.

"Gerrards Cross is a wonderful place and I am delighted to be part of an organisation helping to ensure that the town remains a delightful place for residents and visitors alike, particularly during the Christmas season."

For more information call Russell Phillips on 01753 886711.

KEEN PHILLIPS WELCOMES NEW ADDITION TO PAYROLL DEPARTMENT
Gerrard’s Cross based independent accountancy practice Russell Phillips has welcomed a new addition to its payroll department.

Maria Stratton has joined Russell Phillips as a payroll assistant to support the growing demands of their successful payroll services section.

Having acquired a wealth of experience from her past employment working within various company payroll and credit divisions, Maria brings with her a vast knowledge of the sector.

She comments: "I am delighted to be joining Russell Phillips . More and more companies are coming to realise the extensive benefits of choosing an independent payroll manager over an in-house function. Keen Phillip’s payroll section presents an enormous opportunity, it is a growing sector with lots of room for progression and I am excited to be part of the team.

"In my role I intend to build up a good working relationship with my new clients and assist in the successful completion of all payroll duties."

Helen Phillips partner and founder of Russell Phillips comments: "The firm is investing heavily in people as part of its growth program and I’m confident that Maria will be a valuable asset to the company."

For more information please telephone 01753 886711.

FREE SEMINAR FOR LOCAL BUSINESS OWNERS
Gerrards Cross based accountants Russell Phillips is inviting all owner-managers to a free succession planning seminar.

Russell Phillips will be holding the free event in conjunction with Clydesdale Bank and Austyn James Consulting at the Bull Hotel in Gerrards Cross on Tuesday 26th September.

Helen Phillips partner at Russell Phillips comments: "For business owners wanting to sell up because they feel the company no longer meets their personal aspirations or for those who have no natural family or internal successor, the need to plan who will take over is extremely important.

"It is advisable for any owner-manager to seek professional advice on succession planning. This seminar will advise on strategies that can make the process easier even if it may be by just having a Partnership agreement in place."

For more information or to book your free place please call Russell Phillips on 01753 886711

IS THE TAX MAN CALLING YOU?
A Gerrards Cross based firm of Chartered Accountants is advising local businesses to be aware of a recent announcement by HM Revenue and Customs which could see them encouraged to discuss alleged tax breaches.

Russell Phillips has announced that businesses should forward any enquiries to their appointed tax agent.

HMRC issued the consultative document, Modernising Powers, Deterrents and Safeguards, in March with a view to introducing legislation in next year's Finance Act. The pilot scheme will be run for six weeks from 1 July 2006.

Helen Phillips, partner at Russell Phillips , comments: "This document surrounds HMRC’s powers with regard to reviews and investigations. Perhaps the most uncomfortable aspect is set out in the section titled New Interventions To Assure Compliance. This states that the Revenue will contact businesses directly to discuss tax compliance where they feel an error has been made.

"Businesses should be made aware that they have no obligation to enter into discussion or correspondence with the Revenue as this is not a formal tax investigation. The Revenue have been put on notice that they may be in breach of agency law if they try to get information in this manner direct from taxpayers who have recognised tax agents.

"Our strong recommendation is that they do not give the Revenue any information and that all enquiries should be handled by their accountant. Those companies without accountants or tax agents are advised to consider appointing one as the investigation culture continues."

For more information call Russell Phillips on 01753 886711

KEEN PHILLIPS SPONSOR LOCAL RIDING CLUB
Gerrards Cross accountancy firm Russell Phillips is sponsoring South Bucks Riding Club (SBRC) for the forthcoming open horse shows in June and July.

Beryl Jarvis from SBRC comments: "Russell Phillips ’ sponsorship is extremely appreciated by everyone at the club. It enables us to buy our rosettes and trophies and helps manage our general expenses and therefore without such support these events wouldn’t be possible."

Helen Phillips, partner at Russell Phillips , has been a member of the SBRC for a number of years and was Treasurer of the club for nearly a decade. Although having recently handed over this responsibility, Helen remains a key figure to the club, not only as a sponsor but also as a competition judge.

Helen comments: "I have been a lifelong horse rider and competitor and when I moved to the area 25 years ago I was thrilled to become part of such a friendly and dedicated club.

"The open horse shows are structured into several sections and I will be responsible for judging the turnout, which involves evaluating how well presented the horse and rider are. This is an integral part of the tournament and riders will normally have spent several hours cleaning the horse and tack before the show."

Russell Phillips has been sponsoring the open horse show events for several years and they have many equestrian clients.

Beryl concludes: "Helen has offered help and support to the club for over 20 years and her and the firm’s contribution has been invaluable."

SBRC is based near Gerrards Cross and is affiliated to The British Horse Society. They run events throughout the year. The open horse shows will be taking part on June 18th, July 16th and July 24th and are open to the general public.