PROFESSIONAL PARTNERSHIPS
Professional Partnerships share many of the needs for accountancy services that other forms of business have. However, they do have specific requirements which demand specially tailored services.
Huw J Edmund has developed a high level of experience and expertise in providing services to Professional Partnerships and has specific knowledge of:
- Doctors
- Architects
- Dentists
- Civil Engineers
- Solicitors
- Estate Agents
- Chartered Surveyors
- Insurance Brokers
Virtually all of our client services are relevant to Professional Practices:
- Accountancy and Bookkeeping
Annual and Management account, Business Plans, Payroll, dealing with regulatory compliance work (eg Solicitors' Accounts Rules) etc.
We can offer advice and solutions for online accounting.
General tax planning compliance and mitigation service including special features for different professions.
- Financing the Partnership
Methods of financing; drafting business plans; presenting the case for finance to lenders; financing for incoming Partners; special schemes (eg Doctors' Funding Surgery Purchase).
- Partnership Ownership and Structure
Options for partnership structure, ownership of assets between partners, partnership deeds, etc.
ACCOUNTANCY AND BOOKKEEPING
Many organisations, because of their relatively small scale or for other reasons, see the benefit of having their books and records maintained by a Chartered Accountant. This provides three benefits:
- As experts we are able to ensure that your bookkeeping records are maintained properly, reducing the risk of problems with the Inland Revenue and HM Customs & Excise.
- Using us removes the need to either do this work yourself or reduces the cost of employing someone to do it for you. In the former case, this releases you to concentrate on running your business. In the latter case, it allows you to avoid getting involved in increased overheads.
- Ensuring that records are kept to comply with statutory and other regulatory requirements such as Companies Act, Solicitors Accounts Rules, etc, to give you peace of mind.
Our services are computer based, some of the specific tasks we undertake are:
- Keeping records for VAT Returns.
- PAYE/NIC records and returns and payroll maintenance.
- Maintenance of accounting records for the production of year end accounts.
- The provision of regular (eg monthly or quarterly) financial management reports to help you better control your business.
TAXATION
The dynamics and complexity of the modern taxation system demand a thorough and professional approach on the part of Chartered Accountants. At Huw J Edmund, our Tax Department is set up to deal with everything from Self Assessment and individuals' Income Tax Returns to complex Inheritance Tax and Capital Gains Tax planning.
Our specialist computer tax system enhances the services to clients, these include:
Our experienced staff, some of whom have spent part of their career with the Inland Revenue, can complete your Tax Return and compute your tax liability using our knowledge and expertise. The late filing of Tax Returns can result in automatic penalties so it is essential that the strict deadlines introduced under Self Assessment are met.
We are able to advise you on issues such as Capital Gains and Inheritance Tax, to provide you with sound, effective guidance in planning your personal tax affairs. Also, we advise Directors and key company personnel on issues such as the taxation of non-cash remuneration packages. As part of our service, we will guide you in minimising your tax liabilities.
- Business Tax Compliance and Planning
In addition to calculating and agreeing business tax liabilities with the Inland Revenue, we are able to advise on pre year-end tax planning in order to minimise the business tax burden.
Our staff deal with all aspects of PAYE and National Insurance including incorrect Notices of Coding, completion of end of tax year returns and P11D compliance.
- Value Added Tax Reviews and Advice
VAT can be a major problem for clients and our specialist staff can provide advice to ensure compliance with regulations and mitigation of liabilities in the event of disputes with Customs & Excise.
Managing your own staff payroll can be time consuming and complex with the ever increasing burden of employment legislation impacting on employers' payroll. Our staff are specially trained to deal with the day to day and complex issues involved. We are able to process all aspects of your staff wages and salaries, whether weekly or monthly, and ensure all appropriate returns are submitted to the various agencies on time. In particular we are able to ensure that your business is registered with the Inland Revenue for Online filing.
AUDIT & ACCOUNTANTS' REPORTS
The introduction, by Parliament, of Audit Regulation from 1 October 1991 has changed the approach of Accountants towards the conduct of Audits. We have the capability to fully comply with the Regulations and Audit Standards.
Audit Regulation has introduced quality control procedures and checks in the completion of an Audit - an approach which has always been central to Huw J Edmund's business philosophy. Our aim is to provide "added value" in our Audit work. This means not only ensuring an effective Audit procedure but also the constructive input of the Principal responsible at post audit stage.
We believe that the combination of good quality control systems and close Principal involvement ensure:
- The audit is completed efficiently and cost effectively.
- Consideration can be given to related business issues as a result of our Audit work, eg tax planning.
- An understanding of the business which helps us in assisting clients towards the Directors' personal and business goals, eg funding for expansion.
- Constructive comment on the company's financial management controls.
- Potential business opportunities (eg grants available towards improving business performance) are presented to management for their consideration.
COMPANY SECRETARIAL SERVICES
Many smaller companies see the benefit of using an outside expert to ensure that the duties and requirements of a Company Secretary are completed correctly. The late filing of documents at Companies House, for instance, can result in fines, and it is essential therefore that the company's information is kept up to date at Companies House.
In general, the duties and responsibilities of Directors are continuing to become more and more complex, with the resulting further time pressures being placed on Directors. We can take some of the burden of this work, leaving you secure in the knowledge that compliance matters are taken care of and enabling you to devote more time to the running of your business.
We provide the following services:
- Company formations.
- Share issues and advice on share structures.
- Transfer of ownership of shares.
- Filing of documents within the prescribed time limits.
- Minuting of meetings effecting the constitution of companies.
- Appointment and removal of Directors.
- New share issues.
FINANCIAL SERVICES
This firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.
The market for financial services has grown dramatically and is now a complex and sophisticated area that demands constant updating on the part of practitioners advising in this area. There are two related, but separate needs of financial services - the need for Tax Efficiency and the need for Personal Financial Planning.
In general terms, Financial Services fall into three, broad categories:
- Financial Protection
This area includes, for the individual, Life Assurance, Permanent Health Insurance, Private Medical Insurance, Mortgage Protection.
In addition, there are services for the business - Professional Indemnity Insurance, "Key Man" Insurance, and Partnership Insurance.
- Savings and Investments
We are able to advise on ISAs (Individual Savings Accounts), PEPs (Personal Equity Plans), Unit Trusts, National Savings, Insurance Bonds, School Fee Schemes, TESSA's (Tax Exempt Special Savings Account) EIS, VCTs and other tax efficient investments.
- Retirement
We can review your current Pension provision and advise on Personal Pensions, Occupational Pensions and Additional Voluntary Contributions.
In all our dealings with clients, we operate to the highest ethical and professional standards and we provide these services on a fee basis.
MEDICAL PRACTITIONERS
Doctors' Practices share many of the needs for accountancy services that other forms of businesses require. However, they also have specific requirements which demand specially tailored services.
We specialise in the Accountancy and Taxation affairs of Doctors and Dentists and we are familiar with all aspects of the New GMS Contract. We presently act for more than 60 Medical Practices including Dispensing Practices, which includes in excess of 300 GP's . In addition we act for more than 100 Medical Consultants and Dentists. We are a member of the Association of Independent Specialist Medical Accountants which is dedicated to making available to medical clients a high quality accountancy, taxation, management and financial advisory service, performed by specialist firms, at an acceptable cost.
The following are examples of the services specifically designed for Doctors' Practices:
ACCOUNTS
New GMS Contract
Practice Statistics
Private Fees and Hospital Remuneration
Partners' Drawings
Cash Flow Forecasts
TAXATION
Personal Expenses
Deferment of NIC
Relief on Surgery Refurbishments and Construction
Tax Codes (NT), Hospital Remuneration
PARTNERSHIP STRUCTURE
Partnership Agreements
Partners' Capital
Property Owning Partners
Salaried Partners
RETIREMENT PLANNING
Implications of Pensions "A"day
Statutory Concession A9
Added Years
AVCs
Personal Pensions
Pension Abatement
FINANCING
Surgery Purchase/Refurbishment
Cost Rent/Notional Rent Scheme
Partnership Changes
Tax Efficient Borrowings
Improvement Grants
ASSOCIATION OF INDEPENDANT SPECIALIST MEDICAL ACCOUNTANTS
At the Heart of Medical Finance
AISMA is a network of more than 60 firms of accountants throughout the UK who are all specialists in working for medical practitioners. A rigorous qualifying procedure ensures that AISMA accountants are amongst the best financial, taxation, practice management and accounting advisers in the UK. AISMA accountants act for over 7,000 doctors in more than 2,000 medical practices including the whole spectrum of dispensing, co-operative, large group practices and partnerships. By a pooling of statistical data from existing AISMA client practices and an ongoing sharing of expertise and knowledge AISMA accountants have built up a clear picture of just what makes a profitable, well-run practice and are keen to share such insights with medical practitioners and practice managers.
An Ever-Evolving Environment
The working environment for GPs continues to change and there are ever-increasing demands and stresses imposed on medical practitioners. Quite simply the vast majority of doctors do not have the time to be commercially up-to-date and are not maximising their net income. This is particularly the case for those practices who are not using specialist medical accountants.
How AISMA Accountants Can Help
AISMA accountants pride themselves on their pro-active involvement and assistance in the areas of:
- Preparation of accounts promptly, with the minimum of disruption and in a format that will serve as a management tool for the financial control of the practice
- Tax planning to minimise liabilities
- Understanding the effects of self assessment
- Surgery premises, including cost/notional rent
- Practice capital and re-financing
- Pension planning for both doctors and staff
- Partnership changes and agreements
- Assistance with computerisation
Through our contacts with the medical press and various authorities, AISMA frequently comes into possession of proposed new legislation which can be used for the benefit of clients.
Strength in Depth with a Personal Service
AISMA accountants have the in-depth strength provided by a national network, together with a local presence to ensure personal service. Because all members work within independent accountancy firms rather than major national firms you will find that all fees charged are extremely competitive.
SPECIALISED ACCOUNTING COMPUTER SOFTWARE
With the proliferation of computers most clients now maintain their Accounting records on computer using a variety of specialised accounting software. We are able to advise on the most appropriate software applicable to your business. Furthermore, we have access to the following specialised software and are able to not only install this software, but are able to assist you with your ongoing computer accounting to enable the efficient production of periodic and annual accounting information.
SAGE SOFTWARE
Sage software is widely used by many organisations to maintain and process accounting records. Different versions of software are available including payroll, simple accounting/recording with more advanced versions capable of producing detailed reports, maintaining sales/purchases/stock control and are suitable for larger organisations.
We are members of the Sage Accountants Club and are able to advise on the installation of the most suitable software for your business. As club members we are automatically updated with the latest up to date versions of Sage software enabling us to advise on the latest developments. We are also able to obtain discounts on certain Sage products and services.
MACLEAN McNICOLL SOFTWARE
Maclean McNicoll software has been specifically designed for use by Medical Practices. This software is used to maintain analysed records of income and expenditure as well as the specialised analysis of Health Authority income/deductions. The Health Authority income may also be compared with national statistics for medical practices. We are familiar with this software and are able to assist in its installation and setting up as well as the general use of the software.
ABBEY TAX PROTECTION
Professional Expenses Insurance
Why should I take out the cover? The threat of random investigations by the Inspector of Taxes should be reason enough! However, we have identified a few facts which we believe you should seriously consider:
- "Revenue plans huge increase in tax checks" - source Sunday Times, 28th November 1999; the Inland Revenue are increasing the number of Full Enquiry investigations by 50%.
- "VAT men to focus on company audits" - source Daily Telegraph, 6th December 1999; there has been a significant increase in revenue generated by visits by Customs & Excise, a staggering £992 million last year.
- "New revenue powers on fraud" - source Financial Times, 1st December 1999;
- "Taxman suffers as firms take out inquiry insurance" - source Guardian, 18th April 2000
- "Revenue goes to war on the black economy" - source The Times, September 30th 2000
- "Tax officers may pursue those [taxpayers]…and coerce them into settling" - source daily Telegraph, January 2001
- £880 million extra has been invested in additional staff through the 'spend to save' initiative.
- The average length of an investigation is 18 months.
- In 1999/2000 the Inland Revenue collected over £5.4billion in additional tax liabilities from investigations and compliance work, a 36% increase over 1998/1999.
- The yield from Income Tax Self Assessment Full Enquiries into businesses increased by over 300% from 1998/1999 to 1999/2000.
- The yield from Enquiries into personal taxpayers Self Assessment Returns increased by over 200% from 1998/1999 to 1999/2000.
- The Inspector of Taxes is no longer obliged to give a reason for investigation.
- A recent survey shows that clients who take out Fee Protection Insurance have a considerably better result following investigation than "unprotected" clients
- All employers are likely to have an Audit visit every 5 years
Professional Fees Insurance Scheme: Cover Summary
i) Income Tax Self Assessment Full Enquiries
The "trigger point" is the issue of the S9A or S12AC TMA 70 Notice by the Inspector of Taxes together with a request to examine all of the business books and records or, in the case of a personal taxpayer, all of the underlying documents used in the preparation of the Self Assessment Return.
ii) Corporation Tax Self Assessment Full Enquiries
The "trigger point" is the issue of the Notice under S24 (1) Schedule 18 Finance Act 1998 together with a request to examine all of the business books and records.
iii) Income Tax Self Assessment Aspect Enquiries
The "trigger point" is the issue of the S9A or S12AC TMA 70 Notice by the Inspector of Taxes where only certain "aspects" of the Self Assessment Return are being considered; these enquiries are subject to a £150 Excess and a £1500 Limit of Indemnity.
iv) Employer Compliance Disputes
The cover is in respect of PAYE, P11D and NIC disputes and the trigger point is the issue of a letter, assessment or notice by the Inland Revenue, following an Audit visit, providing there is a prospect of disputing the alleged liabilities. The cover, however, does not extend to the reimbursement of the fees incurred attending the initial Audit visit or in merely gathering together information where no dispute is in existence.
v) HM Customs & Excise VAT Disputes
The trigger point is the issue of a written decision, assessment, or statement of alleged arrears by HM Customs & Excise, following a Control visit, providing there is a prospect of disputing the alleged VAT liabilities.
vi) IR35 Disputes
Cover is also available where the Inland Revenue are disputing the declaration on an IR35 Return. However, there must be a written Contract for Services in respect of the liabilities which are being disputed. The Contract must also have been strictly followed and there must be a reasonable prospect of successfully contesting the Revenue's allegations.
GENERAL: The insurance is placed with Lloyds of London and pays up to £50,000 professional expenses in the event of an accepted claim.
The main exclusions are as follows:
- Claims arising where the annual Returns/accounts are submitted "late"; i.e. outside the time parameters set out in Taxes Management Act 1970.
- Special Compliance Office, Special Investigations Section and HM Customs & Excise Investigations Division cases.
- Fees incurred prior to the written acceptance of a claim.
- Existing investigations and disputes at the time the insurance is taken out.
- Attendance at routine VAT and Employer Compliance visits.
- Corporation Tax Aspect Enquiries where the Inspector of Taxes is merely raising a routine enquiry into a part of the Self Assessment Return. This may occasionally involve the Inspector requesting sight of the records or prime documents pertaining to the areas of the Return which are being checked, but should not be confused with a Full Enquiry when all records will be required.
|
