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News - 1 June 2012

June 2012 NewsLetter

Welcome to the June 2012 ABDS newsletter designed to keep you informed of the latest tax and business issues. We hope you enjoy reading the newsletter and remember, we are here to help you so please contact us if you need further information on any Financial topics such as tax  planning, returns or compliance, bookkeeping, payroll, retirement planning, business consultancy on purchase, sale or start up, and not to forget management accounts.

ABDS – the one stop shop for your business.

In this edition we will be looking at:

  • HMRC send out incorrect penalty notices.
  • Contractors and IR35?
  • Good news from The Tax Man.
  • Tax concerns over PPI compensation
  • “Serious Failings” in some Academy Schools.
  • UK Government confident about its Banking Reforms
  • and Have you heard about The Youth Contract?

We also have Part One of our new series: Financial Glossary

As part of our regular features we introduce you to one of our team members, this month it is Katherine Carslake, our IT and Property Manager

This months Fact Sheet is on HMRC Investigations: Tax Enquiry Insurance. To request a copy Contact us now

And we will conclude, as usual, with an accountancy joke supplied by our resident comedian David Nelson.

HMRC send out incorrect penalty notices.

The 10.5 million taxpayers in self-assessment had until 2 February to file their forms, and HMRC has written to 650,000 who failed to do so to fine them £100 and warn them that from 1 May they face penalties of £10 a day……………

To continue

Contractors and IR35?

Recent television and newspaper headlines have been full of stories relating to 2000 Senior Civil Servants who are using companies to avoid or mitigate tax……..

To continue

Good news from The Tax Man.

The good news is for about three and a half million taxpayers that will receive a letter informing them that they will receive, on average, £379 each thanks to its annual reconciliation of peoples' PAYE tax codes against their final earnings and tax payments………

To continue

Tax concerns over PPI compensation

People who were miss-sold Payment Protection Insurance (PPI) may well be liable to extra tax payments HMRC has revealed……

To continue

“Serious Failings” in some Academy Schools.

An investigation by The Department for Education says there have been "serious failings" in the financial management of the Priory Federation of Academies Trust in Lincolnshire……..

To continue

UK Government confident about its Banking Reforms

A government source has said that they expect their flagship banking reforms to go ahead despite opposition from Brussels to choose its own level of banks capital defences.

To continue

Have you heard about The Youth Contract?

The Youth Contract will provide nearly half-a-million new opportunities for young people, including apprenticeships and work experience placements. It also marks a substantial increase in the support and help available to young people through the Work Programme, Jobcentre Plus and sector-based Work Academies.

To continue

Financial Glossary: Part One A to B

As part of our attempt to demystify the complex world of financial jargon, here is Part One of the ABDS guide to current business terms.

AAA-rating The best credit rating that can be given to a borrower's debts, indicating that the risk of a borrower defaulting is minuscule.

Administration A rescue mechanism for UK companies in severe trouble. It allows them to continue as a going concern, under supervision, giving them the opportunity to try to work their way out of difficulty. A firm in administration cannot be wound up without permission from a court.

AGM An annual general meeting, which companies hold each year for shareholders to vote on important issues such as dividend payments and appointments to the company's board of directors. If an emergency decision is needed - for example in the case of a takeover - a company may also call an exceptional general meeting of shareholders or EGM.

Assets Things that provide income or some other value to their owner.
• Fixed assets (also known as long-term assets) are things that have a useful life of more than one year, for example buildings and machinery; there are also intangible fixed assets, like the good reputation of a company or brand.
• Current assets are the things that can easily be turned into cash and are expected to be sold or used up in the near future.

Austerity Economic policy aimed at reducing a government's deficit (or borrowing). Austerity can be achieved through increases in government revenues - primarily via tax rises - and/or a reduction in government spending or future spending commitments.


Bailout The financial rescue of a struggling borrower. A bailout can be achieved in various ways:
• providing loans to a borrower that markets will no longer lend to
• guaranteeing a borrower's debts
• guaranteeing the value of a borrower's risky assets
• providing help to absorb potential losses, such as in a bank recapitalisation

Bankruptcy A legal process in which the assets of a borrower who cannot repay its debts - which can be an individual, a company or a bank - are valued, and possibly sold off (liquidated), in order to repay debts.
Where the borrower's assets are insufficient to repay its debts, the debts have to be written off. This means the lenders must accept that some of their loans will never be repaid, and the borrower is freed of its debts. Bankruptcy varies greatly from one country to another, some countries have laws that are very friendly to borrowers, while others are much more friendly to lenders.

Base rate The key interest rate set by the Bank of England. It is the overnight interest rate that it charges to banks for lending to them. The base rate - and expectations about how the base rate will change in the future - directly affect the interest rates at which banks are willing to lend money in sterling.

Basel accords The Basel Accords refer to a set of agreements by the Basel Committee on Bank Supervision (BCBS), which provide recommendations on banking regulations. The purpose of the accords is to ensure that financial institutions have enough capital to meet obligations and absorb unexpected losses.

Basis point One hundred basis points make up a percentage point, so an interest rate cut of 25 basis points might take the rate, for example, from 3% to 2.75%.

BBA The British Bankers' Association is an organisation representing the major banks in the UK - including foreign banks with a major presence in London. It is responsible for the daily Liborinterest rate which determines the rate at which banks lend to each other.

Bear market In a bear market, prices are falling and investors, fearing losses, tend to sell. This can create a self-sustaining downward spiral.

Bill A debt security- or more simply an IOU. It is very similar to a bond, but has a maturity of less than one year when first issued.

BIS The Bank for International Settlements is an international association of central banks based in Basel, Switzerland. Crucially, it agrees international standards for the capital adequacyof banks - that is, the minimum buffer banks must have to withstand any losses. In response to the financial crisis, the BIS has agreed a much stricter set of rules. As these are the third such set of regulations, they are known as "Basel III".

Bond A debt security, or more simply, an IOU. The bond states when a loan must be repaid and what interest the borrower (issuer) must pay to the holder. They can be issued by companies, banks or governments to raise money. Banks and investors buy and trade bonds.

BRIC An acronym used to describe the fast-growing economies of Brazil, Russia, India and China.

Bull market A bull market is one in which prices are generally rising and investor confidence is high.
The list continues next month, or for further information, contact: ABDS

The spotlight this month falls on Katherine Carslake

Katherine Carslake, after graduating in Media and Cultural Studies, joined ABDS in November 2010 initially on a graduate internship in the admin department but is now responsible for the ABDS IT functions and the Property Portfolio and has rapidly proven herself a valuable asset to the Team.

It is likely that Kat will be the first person that you meet when attending the office or talk to when phoning the firm.

In her spare time Kat enjoys supporting her fellow Welshmen by attending rugby and football matches with her family. She also enjoys travelling to Italy to practice her Italian and cooking the food she has sampled over there for family and friends.

If you would like advice on any of the above issues, or with a property project, please Call a member of the Team to arrange a no obligation consultation for you to see how ABDS can make a difference to your business.

As promised we conclude with a couple of Auditor jokes (for a change) supplied by our resident comedian David Nelson.

Why did the Auditor cross the road?
A.  Because he looked at the file and that’s what they did last year

Why did the Auditor stare at his glass of orange juice for three hours?
A.  Because on the box it said ‘Concentrate.’

Kind regards

Lavinia and the team

Tel: 023 8083 6900
email: abds@netaccountants.net

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