Business Information and Support Market
Date: 23 February 2012
Time: Call in anytime between 11am and 1pm.
Venue: Burrendale Hotel, Newcastle
Cost: Free!

Those exhibiting on 23 February are:

• The Beyond programme,
• Beyond expert mentors,
• Down Business Centre,
• South Eastern Regional College Business Support Unit,
• Invest NI,
• Department for Employment and Learning,
• Log on NI,
• Labour Relations Agency,
• Belfast Central Library (Business Department),
• Crime Prevention Officer,
• Local chamber of commerce.

This event, organised through the Beyond business programme and network is open to existing businesses across all sectors within the Down District Council area. 

Small and medium sized businesses (SME’s) from one person businesses to those employing up to 250 persons are encouraged to attend. 

The event is suitable for those running a business from business premises or from home on a full time or part time basis. 

For more information on any of the events above please contact the Beyond team on Tel: 028 4461 0800 or email beyondni@downdc.gov.uk

 

HMRC is set to launch various new campaigns throughout the coming year as it continues its drive to clamp down on those who attempt to dodge the taxman.

Higher rate taxpayers and those failing to make tax returns will come under HMRC's spotlight, as will trades people in the home improvement market and e-marketplace traders selling direct to others.

The tax authority will use new web technology to scour the internet for any liable information about specific targeted groups and businesses.

In addition to existing and ongoing campaigns that have targeted offshore investments, medical professionals and private tutors, HMRC will now focus on:

• An extension of its plumber's campaign that will target traders - specifically builders and electricians - allowing them to come forward and declare unpaid tax.
• An E Marketplaces campaign focusing on those who buy and sell bulk goods direct online as a trade or business but fail to pay the tax owed.
• An on-going drive to tackle missing tax returns and those who are liable to pay higher tax rates.

As usual, the authority is giving these workers the option to come forward voluntary and settle any outstanding tax, or risk facing heavier fines when the campaign ends.

Marian Wilson, of HMRC's Risk and Intelligence, said: "Using new technology, we have been able to analyse returns to HMRC covering a range of taxes and to cross-reference these with other information to build a picture of where we believe we have taxpayers with missing returns.

"We are offering all the people targeted the opportunity to come forward. Penalties will be higher if we come and find people after the opportunity. A criminal investigation may also result. I therefore urge them to disclose unpaid tax voluntarily."

HMRC's clamp down coincides with an announcement made by the Treasury today who, in a joint statement with the Governments of the United States and some EU countries, will aim to combat cross-border tax evasion.

Question.

I pay my staff their wages under the normal PAYE system.  My accountant looks after this for me by calculating and deducting income tax and national insurance from their earnings before processing their wages.  In our line of business many of the employees regularly receive tips and gratuities from the customers and this can often supplement their earnings significantly.  Should I be operating PAYE on these tips?

Answer.

This is an area of tax which is frequently checked by HMRC, especially during a PAYE audit or enquiry.  If the taxation of tips received by employees is not operated and disclosed correctly, it can result in onerous penalties and interest charges for the employer.  All tips are taxable.  The way a tip is given by a customer and the person responsible for paying it to the employee, determines its tax treatment. 

If the customer gives a tip directly to the employee then this payment is categorised as employment income but it is not subject to Pay as You Earn (PAYE).  In this circumstance the employee is obliged to inform HMRC of the amounts received and the tax is generally collected by an adjustment to the employees PAYE code.  The employee also has the option of disclosing tips on their annual self assessment return.  If the employee receives the tip directly from the customer you, as an employer, have no tax obligations at all in respect of this employment income paid to your employee.

If however you operate a scheme under which you collect and distribute out the employee tips (which includes gratuities and service charges) you must include these as part of the employee’s remuneration and operate PAYE and National Insurance Contributions, in the same way you would when paying the weekly or monthly salaries.

In some industries such as the catering industry it is very common for tips to be collected and dealt with under a tronc scheme.  This situation arises when an employee is responsible for collecting and distributing the gratuitous tips given by customers.  The employee who takes on this responsibility is known as the tronc master.  As long as the tronc master operates independently of the employer when distributing the tips to the employees, there is no National Insurance liability, but the tronc master must operate his own PAYE scheme to deduct the appropriate income tax from the payments.  This is an onerous and difficult task for most employees and therefore very few employees are willing to take on this role.  There is often a level of uncertainty in respect of the tax rates which apply to tronc income and specific guidance from your accountant on this matter is recommended.

 

Answer.

Continual late payments and the ability of large customers to decide to pay as and when they want to, can contribute to cash-flow difficulties in any business.  At the outset it is therefore very important for all businesses to choose the right customers and be selective about the organisations with which they intend to do business.

It is quite possible for a business to be in the position of having to pay over VAT to HMRC while not having received payment from its customers.  Bad debt relief allows businesses that have made supplies on which they have accounted for and paid VAT, but for which they have not received payment from their customers, to claim a refund of the VAT from HM Revenue & Customs. In order to make a claim a business must satisfy several conditions however.  Firstly, the goods and services must have been supplied or delivered and the VAT in question must have been accounted for and paid.  It is only possible to claim back the VAT if six months has elapsed since the date of supply or, if later, the date the customer was due to pay you.  It is also important that all or part of the outstanding amount must have been written off in the business accounting records as a bad debt.  A claim is made by entering the appropriate amount in Box 4 of the VAT return for the period in which entitlement to the claim arises (or any permissible later period).

Businesses making bad debt relief claims must keep records for four years from the date of the claim to show the time and nature of supply, the customer’s name and the amount which remains unpaid. Normally a VAT invoice will show this.  The tax authorities will often request this information before approving the repayment of VAT.

Where a customer has not paid a supplier within six months of the date of the supply, or if later, the date payment is due, VAT previously claimed as input tax must be repaid. This puts a burden on all VAT registered traders to monitor their transactions to anticipate whether they need to reverse any input tax recovered on goods received from their suppliers.

Denis O’Brien was the Keynote Speaker at today’s FPM 20^th Anniversary Leadership Talk, held as part of the Management Leadership Network, Management Month initiative in association with the Ulster Business School, at the University of Ulster, Belfast Campus.   

 

Mr O’Brien, one of the world’s leading entrepreneurs with extensive investments across several sectors, is a serial investor renowned for his ability to invest in difficult and often unstable developing countries.  O’Brien suggested his business model in these markets is simple – more for less, with his group typically going head-to-head with state owned companies or market leaders, and overtaking their market share within two years, by offering better networks, better service and lower prices.    

 

It was very evident as he talked to Broadcaster Gerry Kelly, that Denis O’Brien is a unique individual, whose impatient entrepreneurial drive is balanced by a deep seated belief in helping people in less fortunate situations.

 

His commitment to help people less fortunate than himself, such as Special Olympics Ireland, was illustrated throughout the Talk and is currently manifest in Haiti, where he has pledged $5m of his personal money in aid following the 2010 earthquake.  A strong sense of social conscience has resulted in O’Brien overseeing the opening of over 50 schools in Haiti since the earthquake.  Rather than retreating from the earthquake zone, he and his business interests have spent close to $250m since the event, on further business investment in the region.

 

 Speaking at the event, which attracted a “full house”, FPM’s Managing Partner, Feargal McCormack stated, that Denis’s entrepreneurial experiences, vision and views, which were shared during a par excellence chat with Gerry Kelly, were inspirational, and that he was confident that the Denis O’Brien Leadership Talk, would provide stimulus for the creation of further significant economic and social capital growth. 

 

Reviewing the FPM life journey, over the past 20 years, McCormack, a Visiting Professor, at the Ulster Business School,  stated that the FPM brand was associated with a desire “to serve and care”, to deliver service excellence.  He added that FPM’s motivation as trusted business advisors, was to help others to win, and therefore achieve their dreams and quality of life aspirations. 

 

Telecoms entrepreneur Denis O’Brien will give an inspirational talk at the University of Ulster’s Belfast campus tomorrow.

 

The Irish businessman will be guest speaker at Belfast-based chartered accountants, FPM’s 20th Anniversary Leadership Lecture, hosted by broadcaster Gerry Kelly.

 

Denis O'Brien is one of Ireland's and indeed the world's leading entrepreneurs with extensive investments across several sectors including international telecoms, radio, media, property, aircraft leasing, golf and other leisure interests. 

 

Feargal McCormack, Managing Partner at FPM and Visiting Professor at the Ulster Business School said: “We are greatly honoured that Denis O’Brien agreed to be guest speaker at this special anniversary event.”

 

The guest lecture, being held in association with the University’s Ulster Business School, is part of the Management Leadership Network (MLN), Management February 2012.

 

Professor Marie McHugh, Dean of the Ulster Business School, said: “We are delighted that our Visiting Professor, Feargal McCormack, and his team at FPM have chosen to work with the Ulster Business School in organising this special event in the firm’s history.  Denis O’Brien is someone who, time and time again, has demonstrated expert management, leadership and business acumen and he is an excellent role model for our students.”

 

Chairman of the privately owned Digicel Group, one of the fastest growing mobile telephone operators in the world, Denis O’Brien founded the company in 2001. Since then the company has extended its operations to 32 markets with over 11 million subscribers in the Caribbean, Central America and the Pacific regions. 

 

Denis is also founder and Chairman of the Communicorp Group, which owns and manages a portfolio of media and broadcasting related companies in Ireland and other European countries.

 

Outside of his extensive business interests, Denis chaired the 2003 Special Olympic World Games in Ireland. He serves as a Director on the US Board of Concern Worldwide and is the Chairman and Co-founder of Frontline, the International Foundation for the Protection of Human Rights Defenders based in Dublin.

FPM are hosting two finance workshops on Wednesday 8th February

FPM Managing Partner, Feargal McCormack has confirmed that the forthcoming Denis O’Brien FPM 20^th Anniversary Leadership Talk scheduled to take place as part of the 2012 MLN Management Month in association with the Ulster Business School at the University of Ulster Belfast Campus, York Street, Belfast, BT15 1ED on Friday 3 February 2012 with registration commencing at 1015am has been fully booked for some time and that a waiting list is currently being maintained.

 

Denis O’Brien, one of Ireland’s and indeed the world’s leading entrepreneurs with extensive investments across several sectors including international telecoms, radio, media, property, aircraft leasing, golf and other leisure interests will be interviewed by TV and radio personality Gerry Kelly.

 

Professor Marie McHugh, Dean of the Ulster Business School at University of Ulster stated that the Business School was looking forward to hosting the FPM Denis O’Brien Leadership Talk with Gerry Kelly on Friday 3 February and that much excitement had been created about the event within the business and academic communities.

New Edition of the ROI Newsletter 2012