<html> <head> <meta http-equiv=Content-Type content="text/html; charset=unicode"> <link rel=Edit-Time-Data href="Sept09_files/editdata.mso"> <link rel=themeData href="Sept09_files/themedata.thmx"> <link rel=colorSchemeMapping href="Sept09_files/colorschememapping.xml"> <style> <!-- .Section1 {page:Section1;} --> </style> </head> <body bgcolor="#FFFFFF" link=blue vlink=purple class="Normal" lang=EN-GB> <div class=Section1> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width="100%" class="Normal"><p><a name=top></a><b><span style='font-size:14.0pt; font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;&quot;Times New Roman&quot;'>Northams Chartered Accountants</span></b></p></td> <td class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman"'><img id="_x0000_i1025" src="406.jpg"></span></p></td> </tr> </table> <div style='border:solid gray 1.0pt;padding:1.0pt 1.0pt 1.0pt 1.0pt' width="100%"> <div style='border:solid black 1.0pt;padding:4.0pt 4.0pt 4.0pt 4.0pt' width="100%"> </div> </div> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1026" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>Newsletter September 2009</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1027" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>This month we have included a note of possible future changes in the Construction Industry, details of what happens to your pension fund when you die, notice of a tax amnesty for US citizens in the UK and an update regarding further changes at Companies House.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The next newsletter will be published on Tuesday 6 October 2009.</span></p><br></td> <td width=1 class="Normal"></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1034" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>Northams - about us</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1035" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Northams&nbsp;are Chartered Accountants and Chartered Tax Advisers who specialise in providing a comprehensive range of services to</span><span style='font-size:4.5pt; font-family:&quot;Arial&quot;,&quot;sans-serif&quot;'> </span><span style='font-size:10.0pt; font-family:&quot;Arial&quot;,&quot;sans-serif&quot;'>small to medium size owner managed businesses.</span><span style='font-size:11.0pt;'> </span><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'><u1:p></u1:p></span></p> <p><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>We understand that today's business owners expect more than basic accountancy services.</span><span style='font-size:11.0pt;'>&nbsp; </span><span lang=EN style='font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; '>This is why in every case we tailor our services to our client's specific requirements. We provide proactive support and advice to enable them to maximise what they get out of their businesses.&nbsp; We have listened to our clients and as a result have developed our services to help with all their financial needs and to add value to their businesses.</span><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'><u1:p></u1:p></span></p> <p><span lang=EN style='font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; '>We offer a fixed fee service whereby all recurring services are provided for an annual fee agreed in advance. We include unlimited telephone calls at no extra cost which means clients can speak to us whenever they need to without worrying about cost.</span><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;'><u1:p></u1:p></span></p> <p><span lang=EN style='font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; '>We aim to minimise tax liabilities and maximise profits by using our own 'Health-checklists' - provided to new clients and reviewed by us at no extra cost. </span><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'><u1:p></u1:p></span></p> <p><span lang=EN style='font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; '>We are always happy to talk to business owners without obligation. If you would like to know more about how we can help you, e-mail our principal Colin Gillard in strictest confidence at <a href="mailto:colin@northams.com">colin@northams.com</a> or give him a ring on 07977 272333.</span><span style='font-size:9.0pt; font-family:&quot;Arial&quot;,&quot;sans-serif&quot;'><u1:p></u1:p></span></p> <br></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1037" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>Construction subcontractors beware!</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1038" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>HMRC have indicated that they are considering reclassifying self-employed construction workers as employed. They have actually launched a consultation process with interested parties.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Reclassified workers would be taxed through the PAYE system regardless of the length or brevity of each employment assignment.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>HMRC are convinced that a significant number of construction workers are taxed as if self-employed even though they are providing their services to contractors effectively as if they were employees. </span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>HMRC are calling this status issue &quot;false self-employment&quot;. HMRC plan to introduce legislation to protect income tax and national insurance revenue that they feel is being lost. </span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The consultation document that HMRC have published assumes that these changes will happen and simply seeks input as to how such changes should be introduced.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Comments on this proposal have to be sent to HMRC before the 12 October 2009; so change, if it is coming, may not be that far away!</span></p><br></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1041" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>What happens to your pension fund when you die?</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1042" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The quick, or perhaps not so quick answer to this question can be found in the small print of your pension fund rules and regulations. The tax position and the practical answers tend to fall into the following broad headings.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Up to age 75 you will have a degree of flexibility in the way in which you choose to take benefits from your fund. After age 75 you will be required to crystallise your fund - draw an income from your fund or buy an annuity. Interestingly after age 75 you also lose the right to take a tax free lump sum.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Usually you can crystallise your pension fund from age 50 (until 5 April 2010), 55 after 5 April 2010. Once you have crystallised your fund, then in the event of your death before age 75 your dependents have two choices:</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>. your spouse, civil partner or other dependants can use your fund to provide a pension. Any pension received would be taxed as earned income in the usual way, or</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>. your beneficiaries could elect to take the entire fund less a tax charge of 35%. (If you die before you have crystallised your fund, there would be no tax charge.)</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Once you have taken an annuity (i.e. you have purchased the right to a guaranteed income for the rest of your life) when you do die the right to the income ceases unless:</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>. the annuity provides for a guaranteed minimum period of payment and part of that minimum period is unexpired, or</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>. the annuity provides for a spouse or civil partner's pension.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>In all cases once an annuity is purchased the right to recover any of the pension fund surrendered is lost.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>After age 75 the situation is a little more complex!</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>If an annuity is purchased the above comments still apply. However it is possible to take an alternatively secured pension, an ASP, This provides for an income, a pension, but does not require you to part company with your pension fund. If you die whilst taking an ASP the following choices apply:</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>. the fund may be used to provide a pension for a spouse, civil partner or other dependent, subject to tax.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>. on the subsequent death of the spouse, civil partner or other dependent the fund can be passed to a charity with no tax charge.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>. if the fund is not passed to a charity it is subject to inheritance tax (at 40%). The residual 60% then remains unallocated. The legislation is unclear on how the unallocated fund can be used or indeed how long it remains unallocated. However if the pension scheme rules allow, it may be possible to add additional members and benefit them accordingly.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>So the answer to the question, what happens to your pension fund when you die, is complicated. If you need clarification regarding your own scheme have a word with an Independent Financial Advisor, who we can recommend. If you need advice on the tax consequences we would be happy to take a look for you.</span></p><br></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1045" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>Tax Amnesty - United States of America</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1046" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>On the 23 March 2009 the IRS launched a 6 month voluntary disclosure process that allows US citizens to bring their tax affairs up to date in the US without triggering the full impact of the penalties normally levied when non-disclosure is discovered. The following commentary is quoted from the IRS web site at <a href="http://www.irs.gov/newsroom/article/0,,id=210027,00.html"><span style='font-size:10.0pt'>http://www.irs.gov/newsroom/article/0,,id=210027,00.html</span></a> </span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>&quot;Taxpayers with undisclosed foreign accounts or entities should make a voluntary disclosure because it enables them to become compliant, avoid substantial civil penalties and generally eliminate the risk of criminal prosecution.&nbsp; Making a voluntary disclosure also provides the opportunity to calculate, with a reasonable degree of certainty, the total cost of resolving all offshore tax issues.&nbsp; Taxpayers who do not submit a voluntary disclosure run the risk of detection by the IRS and the imposition of substantial penalties, including the fraud penalty and foreign information return penalties, and an increased risk of criminal prosecution.&quot;</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>US citizens are required to file a US tax return each year even if they have no tax liability. They should also include details of their interests in the UK whether they be limited companies, UK bank accounts or other UK investments, or interests in trusts.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The present amnesty ceases on the 22 September 2009.</span></p><br></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1049" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>More changes at Companies House</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1050" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>From the 1 October 2009 a director's home address can be protected from disclosure. If you would like take advantage of this new concession you need to register a service address, which could be your registered office address, with Companies House. This can be done online <a href="http://www.companieshouse.gov.uk"><span style='font-size:10.0pt'>www.companieshouse.gov.uk</span></a> from the 1 October 2009.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>If you take no action your home address will be taken as your service address until changed.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Just a quick reminder that other recent changes include:</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>1. You must be aged 16 or over to be appointed as a director.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>2. You no longer have to appoint a company secretary, although you can do so if you wish.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>3. You no longer need to hold an AGM unless you opt to do so.</span></p><br></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1053" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>Tax Diary September/October 2009</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1054" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>1 September 2009 - Due date for corporation tax due for the year ended 30 November 2008.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 September 2009 - PAYE and NIC deductions due for month ended 5 September 2009. (If you pay your tax electronically the due date is 22 September 2009)</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 September 2009 - Filing deadline for the CIS300 monthly return for the month ended 5 September 2009. </span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 September 2009 - CIS tax deducted for the month ended 5 September 2009 is payable by today.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>1 October 2009 - Due date for corporation tax due for the year ended 31 December 2008.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 October 2009 - PAYE and NIC deductions due for month ended 5 October 2009. (If you pay your tax electronically the due date is 22 October 2009)</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 October 2009 - Filing deadline for the CIS300 monthly return for the month ended 5 October 2009. </span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 October 2009 - CIS tax deducted for the month ended 5 October 2009 is payable by today.</span></p><br></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td colspan=3 class="Normal"></td> </tr> <tr> <td width=1 class="Normal"></td> <td valign=top class="Normal"><p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>DISCLAIMER - PLEASE NOTE:</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> The ideas shared with you in this email are intended to inform rather than advise. Taxpayers circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this newsletter, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.</span></p></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=3 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td colspan=3 class="Normal"></td> </tr> <tr> <td width=1 class="Normal"></td> <td valign=top class="Normal"><p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>Northams</span></p> <u1:p></u1:p> <p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>21-23 New Street</span></p> <p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>Devon&nbsp; EX14 1HD</span></p> <p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>Tel: 01404 45994  Fax: 01404 46470 web: </span><span style='font-size:10.0pt'><a href="http://www.northams.com/"><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif";color:purple'>www.northams.com</span></a><u1:p></u1:p></span></p> <p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>Northams is registered for VAT under reference no 540590849.</span></p> <u1:p></u1:p> <p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>The Principal of the firm is a member of the Institute of Chartered Accountants of England and Wales (ICAEW) and the Chartered Institute of Taxation.  These bodies have their headquarters in the <st1:country-region u2:st="on"><st1:place u2:st="on">UK</st1:country-region> and their rules of professional conduct can be obtained from their web sites.</span></p></td> <u1:p></u1:p> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=3 class="Normal"></td> </tr> </table> </div> </body> </html>