David Porthouse & Co

Carlisle Accountants

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81 Larch Drive, Carlisle CA3 9FJ

Employer Payment Summary by 19 March 2018

 
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 February to 5 March 2018. In that case you must submit electronically an Employer Payment Summary as a NIL return by 19 March. This 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.

Something new to do in February or March

 
February and March are quiet months for accountants and we have a bit of spare time. One new activity for us is to update or fine-tune our client-customised keyboard to give a better result.

As an example, if a client makes regular payments to Pioneer, Tesco, Sainsbury’s and Morrisons, then we can redefine the keys F6 … F9 on the keyboard to be able to generate these narratives just for that client. This makes it a lot quicker to type in client data from handwritten records onto our system, and of course once the data is in the system we’re laughing.

It might occur to the reader that life would be easier still if we redefined F6 as Morrisons, F7 as Tesco, F8 as Sainsbury’s and F9 as Pioneer, so there is some similarity in vowel sounds to make it easier to remember. This is the sort of thing we can do in February and March. Overall, doing this gives us a strong feeling that the computer is working with us rather than against us.

Generally the advanced technology campaign is coming to an end now. The new priority is to produce crib sheets and checklists for everything so we can concentrate on service to clients.

CIS Returns to 5 March 2018

 
Construction Industry Scheme returns for the month from 6 February to 5 March 2018 should be submitted online by 19 March. This includes NIL returns.

It is only too easy to forget 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 Carlisle accountants that businesses will turn to for a range of advice and services.

Starting a Business in March 2018

 
You might wish to think twice about becoming self-employed in March. If you have any trading activity, then there will be a requirement to file an income tax return for the year ended 5 April 2018. If you delay starting until 6 April, then your first tax return will be for the next year ended 5 April 2019.

Talk it over with an accountant if you are not sure. Perhaps there is a good reason to start in March after all, but make sure that you have some clear ideas.

This advice applies to sole traders and partnerships. It does not apply to companies which start in March which are taxed under a different system.

A Company which has missed the 28 February 2018 Deadline

 
If your company had a deadline of 28 February 2018 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 31 March 2018 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 now.

The Cheque Run round about 23 February 2018

 
It is quite common to invoice a customer with terms of “30 days or net 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 January 2018 would be settled by 28 February 2018. Large companies do it this way because they may receive several invoices from a supplier, and will want to settle all of them with a single payment when they do their computerised cheque run. It would therefore be a good idea for the supplier to have sent a statement at the start of February listing all outstanding invoices. Typically the cheque run would be about the 25th of the month, or this February the 23rd, the date of this posting. 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.

The Off Switch

 
If the Revenue send you a tax return, then you must fill it in and send it back by the deadline, or there will be a penalty.

What happens when you retire or there is a radical change in your circumstances? Sometimes the Revenue machine will just go crunching on, sending you returns when you no longer need to complete them. If necessary, we will write to the Revenue to ask them to stop sending you returns, and this is a free service to clients. We will look on the Revenue website after April 6th and check that they haven’t sent you a return, and e-mail you the evidence. You become an ex-client after that.

Often the Revenue will save us the bother of writing to them by sending us a note at about this time of year. We will still check after April 6th.

Employer Payment Summary by 19 February 2018

 
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 January to 5 February 2018. In that case you must submit electronically an Employer Payment Summary as a NIL return by 19 February. This is too easy to overlook.

If you engage a local accountant and business advisor 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.