It is never a surprise to me how so many people become landlords of a rental property.

It is never a surprise to me how so many people become landlords of a rental property. Let me give you an example….

You owned a house and moved in with your girlfriend/boyfriend and so rather than selling your house you decided to rent it out…..

You haven’t let anyone, including HMRC know, because you don’t make any money as the rent just covers the mortgage…. Unfortunately it is only the interest element of the mortgage that qualifies as a deduction before paying tax.

4 years later HMRC ask you why you haven’t declared any income because they find out from Land Registry you have 2 properties.  This is not unusual and usually leads to years of tax assessments that are massively increased by penalties for not informing them and not filing a return.

Not only that but significant responsibilities fall onto landlords such as:-

If you have a mortgage on the property you rent out, you must get permission from your mortgage lender.

What a minefield!

Moral of the story…… make sure as soon as this happens you talk to us. We can guide you through the financial requirements and ensure that you do not get any unwanted tax surprises years down the line.

 

Mark Torr – Director

Torr WaterfieldMark Torr April 2012.JPG

A day in the life of a junior accountant

Some of you may think that training to become an accountant involves going to university and graduating with a degree – but this is not always the case. Here is my day as a junior accountant:

It’s the dreaded Monday morning and I’m waking up nice and early so that I can attempt to miss the rush hour traffic. Get into work, turn on my computer and sit down with a brew to wake me up before starting work.

First job is a set of accounts, looking through the income and expenses, then knuckling down to balance some control accounts!

At 10am I have a catch up with one of the directors to discuss my plan of action for the week including jobs that need completing, what bills need raising, any deadlines that are looming and any courses that I will be taking.

After that I will carry on with the set of accounts I am working on for the rest of the morning, making sure that I make full use of my lunch by working on some booklets that need completing in order for me to pass my AAT qualification – currently I am working on ‘developing commercial awareness’ which involves me producing a presentation to show to my tutor based on Torr Waterfield.

When lunch is over, I will pass the finished set of accounts over to my trainer who will look through them to adjust any notes or figures to make sure that the accounts are correct. Once he has passed these back to me, I will review the notes so that I am aware of anything that I will need to look out for on my next job and do the amendments that are necessary.

It’s now time to see the client manager with the job who will scrutinize the figures and ask any questions that they will need to know in order to have a successful meeting with the client.

Once the manager has reviewed the file and is happy with the figures I will contact the client to arrange the meeting.

It’s now 5.15pm- but my day is not over!

Time for college now to learn about ‘budgeting’ for one of my five AAT level 4 exams.

At 5.45pm the tutor will go through the aims of that lesson and then the lesson commences; a 5 minute break at 7.15pm. Just an hour left!

We complete some practice questions as a group, and then jot down the home work that the tutor has set us for that week.

Finally 8.15pm – it is home time!

Jessica Cooper , Accounts & Tax 

 

My day is never boring.

It is Tuesday 22nd March; I don’t usually work on a Tuesday but I am today!

When I come in, the first thing I do like most people is open up my computer, the emails are always the first thing to load, my first email was from Hollie telling me I had been picked out to do the next blog. OH NO, panic!  I haven’t a clue what a blog is, how to do one or if I have ever read one.

With the help of my colleagues around me, Becky, Heather, Paula and Zahra, I have been on to the TorrWaterfield website and read a few of our previous blogs. I know I probably should have been on before but I am not really up with all the social media stuff.

I’ve titled mine ‘My day is never boring’, because most of my days are always different.

I am the credit controller at Torr Waterfield; on and off I have been involved with credit control for about 25 years. I feel very lucky to work with such nice, friendly people and to have a job that I really enjoy.

My first task of the day is to go through my diary, not the one on the computer, but an old fashioned paper diary, (it’s what I was taught when I first did the job and what I still do now) everything I need to do I write in there. The sort of things I write down are checking that a promised payment has come in, email to remind a payment is due, has the client returned their completed standing order mandate, have the clients first standing order payments come through, have the managers replied to my email I sent to them, all sorts of things.

Once I have done this I go through my debtors list to check which invoices are still outstanding. I email a client to advise they have an invoice which is now due; after 10 days if it is still outstanding I email again; after a further 10 days if it still remains outstanding, I will telephone the client.  I quite like telephoning clients because once they answer the telephone they can’t ignore me like they can an email, it is something I have done for a long time and you have to learn how to say things in a certain way, for instance, if a client hasn’t paid, I can’t ring and say ‘you haven’t paid your bill’, you have to say ‘we don’t seem to have received your payment’, it’s all about the way you word things.

Sometimes it can be quite frustrating when I have to constantly ring the same clients but it is all part and parcel of the job.

As well as chasing payments, I check the cash diary for payments on a daily basis, I send out standing order mandates to clients, I update Sage and Excel with client standing order payments that come in, I review standing orders every 3 months, I take credit card payments, I have monthly meetings with all managers regarding their debtors lists and finally I review client referrals every 3 months in order to raise appropriate credits in line with our client referral scheme.

That’s what I do in credit control !

Linda Sampson, Credit Control

Tax Events due April 2016.

The following Tax Events are due April 2016:

Business Tax Events

PAYE quarterly payments are due for small employers for the pay periods 6th January 2016 to 5th April 2016

What this means for you?

This deadline is relevant to small employers and contractors only. As a small employer with income tax, national insurance and student loan deductions of less than £1,500 a month you are required to make payment to HMRC of the income tax, national insurance and student loan deductions on a quarterly basis.

Postal payments for month/quarter ended 5 April should reach your HMRC Accounts Office by this date.

Where the payment is made electronically the deadline for receipt of cleared payment is 22nd April 2016.

Penalties apply if payment is made late.

PAYE, Student loan and CIS deductions are due for the month to 5th April 2016

What this means for you?

This deadline is relevant to employers who have made PAYE deductions from their employees’ salaries and to contractors who have paid subcontractors under the CIS.

Employers are required to make payment to HMRC of the income tax, national insurance and student loan deductions. Contractors are required to make payment to HMRC of the tax deductions made from subcontractors under the CIS.

Postal payments for month/quarter ended 5 April should reach your HMRC Accounts Office by this date.

Where the payment is made electronically the deadline for receipt of cleared payment is 22nd April 2016.

Penalties apply if payment is made late.

Automatic interest is charged where PAYE tax, Student loan deductions, Class 1 NI or CIS deductions for 2015/16 are not paid by today. Penalties may also apply if any payments have been made late throughout the tax year.

What this means for you?

This deadline is relevant to employers who have made PAYE deductions from their employees’ salaries and to contractors who have paid subcontractors under the CIS.

Deadline for employers’ final PAYE return to be submitted online for 2015/16

What this means for you?

This deadline is relevant to employers.

This is the last day by which your final Full Payment Summary (FPS) for the 2015/16 tax year should be sent to HMRC.

You will not be able to file an FPS relating to 2015/16 after 19th April. If you need to make an amendment or correction to the details reported on a 2015/16 FPS you will need to submit an Earlier Year Update (EYU).

Please be aware that if we deal with the payroll on your behalf that we will ensure that this matter is dealt with on a timely basis.

Running a payroll can be time consuming and complicated and divert resources from the core activities of your business. We can address this by installing payroll software and training your staff. Outsourcing this activity also helps relieve the pressure and we can offer cost-effective solutions. We are able to provide the complete service, what ever the size or complexity of your business, or simply provide support when needed. Please don’t hesitate to get in touch 

‘Spring’ your business forward with a fresh look at book-keeping

Staying on top of the book-keeping is often an overlooked part of business, with a mad rush around deadline time to get everything up to date.  However, in order to better understand your business and ensure you are maintaining a healthy profit margin, keeping on top of your records is key.

We recommend you therefore do the following on a monthly basis:

  • Reconcile your bank accounts.

Ensure that the balance you have on your records agrees to your bank statements – if not, have a look to see if you’ve missed any expenses or receipts.  Remember – you need to record every transaction, even if it is not business related, and just indicate that it is private in your books.

  • Review your creditor lists.

Check your records of suppliers you currently owe money to.  Any outstanding invoices can then be paid either within the credit terms or earlier, potentially receiving an early settlement discount, if offered.  You will also be able to check for payments you have made up front, and are yet to receive an invoice for.  Chase it up now while this is fresh in your mind.

  • Review your debtor lists.

Cash is king in business, so it’s important to regularly review who owes you money, and chase it in as soon as the invoice is due.  This will also prompt you to keep on top of your invoicing.  The sooner the customer is invoiced, the sooner they will pay!

Book-keeping is not always everybody’s cup of tea, so if you feel you need extra support with yours, or would like some training on the best way to monitor your business, please feel free to give us a call.

Holly Makinson.

Accounts, Audit & Tax 

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