Monthly Archives: July 2015

PM+M Scores New Contract with Blackburn Rovers

PM+MBRFCPM+M has been appointed by Blackburn Rovers FC as its new audit and tax compliance advisers.

The deal will also see PM+M supply Venky’s London Limited – the club’s parent company – with ad hoc advisory services as and when required.

The PM+M team will be headed up by David Gorton, partner and head of corporate services. He will be supported by Neil Jones, manager; Ceri Dixon, audit senior; and Claire Astley, tax manager.

PM+M has a long association with Blackburn Rovers FC as it acted for the club over several decades before parting company in 2011 when KPMG, the group auditors for Venky’s London Limited, was appointed.

David Gorton commented: “We are delighted to be working with Blackburn Rovers FC once again – especially as it’s a local institution and many of our team members are lifelong Rovers fans. Our focus is now firmly on providing a first class service to the club and being part of its future.”

Mike Cheston, finance director at Blackburn Rovers, added: “Blackburn Rovers is committed to engaging with the community and that includes building commercial ties with businesses in the town. The club and PM+M go back a long way so this appointment was a natural fit for us.”

How Well Does The Taxman Know You?

How well does the taxman know you

 

Do you ever wonder what the taxman actually knows about you? The answer is quite a lot. HMRC have spent years developing software that scours banks of data for personal and commercial information. The software (known as Connect) seeks links between individual taxpayers and businesses, income, assets and transactions. Connect will then match its findings against the information the taxpayer has provided through their tax return. Discrepancies are flagged and could prompt a tax investigation.

This all happens in a matter of seconds and searches are undertaken repeatedly to capture new information. Here’s what the taxman knows about you:

Your income and pensions – The main feature of Connect is to hunt for income discrepancies. It will have information on your bank balances and income and it will match this with other information detailed in your tax return and PAYE data submitted by your employer.

Your property – HMRC has access to Land Registry databases. This means they know the price you paid for a property and who your mortgage lender is, if you have one. By having access to these records, HMRC can cross-reference stamp duty records and identify where capital gains have arisen and not been reported.

Your business – HMRC have the ability to look through a four year credit card history of small businesses.  This means that the taxman can check that your disclosed expenses match up with your electronic record.

Your bank accounts, savings and investments – banks and financial institutions report the interest paid to individuals across millions of accounts to HMRC. This data will then be analysed by HMRC’s Connect to detect undeclared, taxable savings income.

The taxman will also have eyes on your pension contributions. If you are claiming tax relief and you are disclosing this on your tax return, Connect will want to see a parallel increase in the balance held by your pension provider.

Connect’s powers don’t just end in the UK. From September 2016, HMRC will have access to files held by banks and financial institutions based in British overseas territories, such as the Channel Islands. This will expand to global accessibility by 2017.

Will it be successful? – It has been so far, as the number of tax investigations triggered by Connect is increasing, however, can this continue to be efficient on a global scale? Many do have their doubts as there is a possibility that some of the data could be inaccurate, potentially causing an increase in the numbers of pointless and costly tax investigations.

Ever heard of Fee Protection? – Fee protection insurance protects you from fees you may have to pay if HMRC launch an investigation into you or your business. It’s that simple. With some enquiries running into tens of thousands of pounds, it’s better to be safe than sorry.

For more information or advice on Fee Protection insurance, please get in touch with our tax team by emailing tax@pmm.co.uk or call Julie Walsh on 01254 679131.

Blackburn Rugby Club Try To Smash A Guinness World Record

shutterstock_124748542On 15 and 16 August, Daniel McAreavey, a player at Blackburn Rugby Club, will be attempting to break the Guinness World Record for the longest game of rugby. The current record stands at 26 hours but Daniel and the team are hoping to break the 30 hour mark. The challenge is being undertaken to raise money for Scotty’s Little Soldiers, a charity dedicated to supporting children who have lost parents whilst serving in the British Armed Forces. If you would like to sponsor Daniel and the team, the button below will redirect you to his fundraising page.

PM+M are proud sponsors of Blackburn Rugby Club and wish Daniel and the club luck in completing the challenge!

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Your Guide To George Osborne’s Dividend Tax Reform

shutterstock_180753281One of the biggest changes to emerge from the Post-Election Budget last week is the taxation of dividends. Many, including small business owners, have historically paid themselves modest salaries and make up the difference in a dividend, giving them a tax advantage. From April 2016, this all changes.

Following this shock introduction, we have put together this useful helpsheet. Please click the button below for the PM+M guide to the April 2016 dividend tax reform.

HELPSHEET

 

VIDEO: Post-Election Budget Reactions and Full Commentary

Following our Post-Election Budget seminar yesterday, we have now had time to digest George Osborne’s announcements. What has become apparent is the Chancellor wanted to make some significant changes and he did just that in the first all Conservative Budget in almost 20 years.

During our Post-Election Budget seminar on Thursday 9 July, the PM+M team highlighted some key points from the Chancellor’s budget speech and these are outlined in the video below. Full commentary on the Budget is now available by clicking the button below.

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If you have any questions regarding the Post-Election Budget, please get in touch by email at info@pmm.co.uk or call 01254 679131. Our team will be happy to help with any questions or concerns you may have.

The Chancellor Throws Some Curve Balls In Today’s Budget Speech

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George Osborne delivered his Post-Election Budget to Parliament today and there were some major curve balls that are likely to have a huge impact on many businesses and their owners.

The first curve ball the Chancellor announced was a major reform of the tax treatment of dividends.  The reform aims at removing the tax advantage that company owners have in taking their income in the form of dividends, particularly in light of reductions in corporation tax rates. From 2016, the tax credits attaching to dividends will be removed and replaced with a £5,000 tax free dividend allowance.  This will mean that many shareholders will need to reassess how they extract income from their companies.  It may also trigger a surge of dividend payments before April 2016.

The other curve ball from the Chancellor was for buy to let residential landlords. They were the major losers from today’s Budget announcements, seeing both restrictions in tax relief for mortgage interest payments as well as reductions in social housing rents by 1% per annum over the next 4 years.

For more information on these measures and to understand the detail behind the many other announcements made by the Chancellor, please come along to our free Post-Election Budget seminar tomorrow morning.  Places are limited but there are some still available – please follow the link below to reserve a place.

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