If anybody owes you money, then today, which is Friday 29 November 2019, would be a good day to send them a statement to remind them of the fact. This is just a statement which you are entitled to send: it is not a threat.
Archives for November 2019
It is quite common to invoice a customer with terms of “30 days or nett monthly account”. Small customers will be expected to pay within 30 days, while large customers will be expected to pay at the end of the month following the month of the invoice, so an invoice sent in October 2019 would be settled by Saturday 30 November 2019. Obviously, the average settlement time will be 45 days, but this is OK if the customer’s credit is good.
Large companies insist on doing it this way because they may receive several invoices from a supplier during a month, and will want to settle all of them with a single payment when they do their monthly computerised cheque run. It would therefore be a good idea for the supplier to have sent a statement at the start of November listing all outstanding invoices. Typically the cheque run would be about the 25th of the month, which is today.
If you give credit and have debts to collect, then you might like to have a discussion with us. Most accountants are also general business advisers as well. Some large companies rely upon a cynical calculus of bargaining power when they take ages to settle invoices, and you need to know what to do about this.
The “nett” in “nett monthly account” has “net” as an alternative spelling.
Value Added Tax returns for the quarter ended 31 October 2019 should be submitted by Saturday 7 December 2019, and any payment which is due should be made electronically by the same date.
Small private companies with a year end of 28 February 2019 and into their second or later year of existence should submit their accounts to Companies House by Saturday 30 November 2019 in order to avoid a Late Filing Penalty.
It can happen sometimes that when you are an employer, you have not actually made any wage or salary payments for a PAYE month such as the month from 6 October to 5 November 2019. In that case you must submit electronically an Employer Payment Summary as a NIL return by Tuesday 19 November. This bureaucratic requirement is too easy to overlook.
If you engage a local accountant and business adviser or a payroll bureau to do your wages, then this will be taken care of. In our case we keep a diary and do a batch of payrolls at about the same time each month. Our payroll files are bright yellow like the old P30BC booklet so we do not overlook them. We colour-code all the taxes so green is VAT, red is income tax, blue is corporation tax and yellow is PAYE.
If you no longer want to have a payroll scheme, then you need to close it down in a formal way. You cannot just assume that you can stop sending in monthly returns.
We are going to make the working assumption that handwritten records are more repetitive than printed records such as bank statements. Such records are said to be low entropy and the records that we get handed in during December and January in order to prepare an income tax return are often like this.
Typically we get a little rental account with twelve receipts of £500 recorded in an exercise book. Low entropy means that there is scope for invention in dealing with this. We will type in the number 500 once, and then type in * eleven times in order to copy down the 500 entry. Alternatively, we can click on the * button on an onscreen toolpad eleven times to do the same thing. To copy down a date we use Ctrl-C, and to copy down a date with an increment of one month we use Ctrl-Shift-C. Alternatively we can click on buttons on an onscreen toolpad to do the same thing. We will have the f1 key reprogrammed from last year to say “Rental income” or similar and we can just hit it twelve times to generate the narrative.
Generally handwritten records are shorter and more predictable. We cannot use optical character recognition on them, but we can use other methods to enter them into our system which have the same mentality or ideology. We want to use the best of new technology to do it quickly. There isn’t that much of a gain with our example of a rental account, but in other cases substantial gains can be made.
Construction Industry Scheme returns for the month from 6 October to 5 November 2019 should be submitted online by Tuesday 19 November. This includes NIL returns.
It is only too easy to get caught out by the need to submit a NIL return when no payments to subcontractors have been made. If you engage a local accountant to do your CIS returns, then this will be taken care of. In our case we keep a diary and do a batch of work at about the same time each month. We aim to be the accountants for small business that you will turn to for a range of advice and services. Our payroll files are bright yellow so they are hard to overlook, and CIS files also have a green line around them so they are easy to pick out.
The new Christmas Stamps will be issued today and can be purchased online from the Royal Mail. I will be buying the 1st and 2nd class stamps for most of my Christmas cards, but the higher value stamps are rather small and I will be using other nice commemorative stamps for my airmail cards. All my cards will have a “Merry Christmas” sticker on the back purchased from Amazon.
If your company had a deadline of Thursday 31 October 2019 for the submission of its accounts to Companies House, and this deadline has been missed, then you still have something to play for, and you should contact Carlisle accountants such as David Porthouse and Co at once. You will incur a penalty of £150, but this penalty rises to £375 after Saturday 30 November 2019 if you still haven’t submitted your accounts. These penalties are £300 and £750 if you miss the deadline two years’ running. We can readily prepare and submit your accounts within the month if you contact us straight away.
Just stating the obvious, if you miss a deadline and incur a penalty, you still have the obligation of preparing and submitting accounts. That doesn’t go away and your penalty is just extra money you will need to pay.