Peters Elworthy and Moore (PEM) and fellow Kreston member firms were among the winners at last week’s International Accounting Bulletin’s inaugural industry awards

The Awards attracted over 100 nominations from around the world across 13 categories and were judged by an independent panel of specialists drawn from the accounting profession. Only two of the awards related to networks of independent accounting firms: Kreston was awarded ‘Rising Star Network’ and PwC won ‘Network of the Year’, having regained its position as the world’s largest network.

At the London ceremony, IAB Editor, Arvind Hickman, said: “Kreston posted solid growth of 5% but what really impressed judges is Kreston’s successful transition from an association to a network. This involves rolling a common audit methodology, common quality control and an audit firm inspection programme. It’s a massive undertaking, and Kreston and its global membership was recently welcomed to the Forum of Firms for its efforts”.

Paul Chapman, Managing Partner for PEM, said: “This is the first time ever that awards have been directed at global performance. There are over 20 international accounting networks and we are delighted Kreston International was selected. The Award recognises the commitment of PEM and all the Kreston member firms to delivering high quality transnational services in an efficient and seamless manner”.

The Award was collected by members of the Kreston International Executive Team – pictured are Andrew Collier, Joanne Morris, Emma Perkins, Melloney Pritchard and Jon Lisby, CEO.

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Notes to Editors: • Peters Elworthy & Moore (PEM) is one of the leading independent firms of accountants, tax and business advisers in the East Anglia region, with 14 Partners and 140 staff. www.pem.co.uk

• PEM is within the top 60 in the UK, providing financial strategies for success.

• Kreston International is a global network of accounting firms, each of which is a separate and independent entity and as such has no liability for the acts or omissions of any member firms. Currently ranking as the 13th largest in the world, Kreston now covers 98 countries with 600 offices providing a resource of over 19 000 professional and support staff and generating aggregate fee revenues of US$1.8b.

Leading independent accountancy firm, Peters Elworthy & Moore (PEM), has been named as a finalist in the 2012 Taxation Awards.

The prestigious LexisNexis Taxation Awards are much sought-after by tax professionals throughout the country and stand testament to the highest standard of excellence in the UK tax industry. This year saw a record-breaking number of entries undergo a vigorous submission process, with only a selection shortlisted for the final stage. Cambridge-based accountancy firm, PEM, has been recognised as a finalist in the Best International Tax Team category. The PEM International Tax Team is headed-up by Chris Walklett, Business and International Tax Partner. Chris, who is also the representative partner for Kreston International, says: “I’m incredibly proud that we have been shortlisted for this prestigious award. The UK really needs to up its game internationally and we are committed to playing our part in supporting UK businesses on the international stage. The PEM International Tax Team work hard to give clients the international support they need and it is fantastic for us that those efforts have been recognised in this way”.

PEM is accredited for its work with clients on an international stage and in providing expertise that addresses all the risks, opportunities and obligations that different tax regimes bring – ensuring that successful UK businesses can take full advantage of global markets. PEM has one of the widest service offerings in Cambridge with 18 service lines and eight sector specific business development teams. The combined tax team alone has over 30 staff, with Business Tax, Employment Tax, Private Clients and VAT teams, headed by three partners and a VAT director.
Other nominees in the Best International Tax Team category include Deloitte, Grant Thornton and Milestone International Tax Partners. The winner of this esteemed award will be announced at a gala ceremony on 24 May at the London Hilton.

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Notes to Editors: • Peters Elworthy & Moore (PEM) is one of the leading independent firms of accountants, tax and business advisers in the East Anglia region, with 14 Partners and 140 staff. www.pem.co.uk

• PEM is within the top 60 in the UK, providing financial strategies for success.

• PEM has been awarded the Kreston International Business Referrer of the Year Award for 2010. Founded in 1971, the Kreston organisation offers reliable and convenient access to quality services through its member firms located around the globe. To learn more, visit www.kreston.com

• Further information on the LexisNexis Taxation Awards 2012 can be found at: www.taxationawards.co.uk

With many businesses unaware that RTI (Real Time Information) PAYE will be with us next year, the Peters Elworthy & Moore Payroll Team is choosing to bite the bullet by embracing the HMRC pilot scheme now.

All businesses will have implemented RTI PAYE by October 2013 and the key for any business preparing for it will be getting employee data straight. The PEM Payroll team is a professional service line provided by leading accountancy firm Peters Elworthy & Moore. Elaine Hall, an experienced Payroll Manager, heads up PEM Payroll and her team of seven payroll specialists have agreed to work with HMRC and one hand-picked client as part of a pilot project, a year early. She says “This is a bold move but one that PEM believes will put them ahead of the game and well placed to see where some of the practical issues may need ironing out.”

What is it and why is it needed?
Introducing Real Time Information is the biggest change to the PAYE system (for the deduction of income tax and National Insurance) since its introduction to the UK in 1944. HMRC is making significant changes to the way that all payroll-related deductions will be reported by employers. At present, employers submit an annual year end return; however, under RTI, employers and pension providers will be required to inform HMRC about deductions as they are made each week / month – or in other words, in ‘real time’. Some processes and documentation such as payslips, P45s, P60s and employee benefit reports will not be altered at this time but may do at a later stage. The RTI system will be introduced concurrently with the new Universal Credit System that the Department for Work & Pensions will be introducing nationally in 2013. It has been designed to swiftly process all the necessary information for handling tax credit claims and the government is moving quickly on this implementation. HMRC believe that employees should notice a visible reduction in tax and/or tax credit payment discrepancies, which is something that HMRC has commonly been blamed for. No-one wants to pay the incorrect amount of tax and there are still too many nightmare stories about people who have been overpaid/underpaid tax credits. The current system has meant that HMRC is always working a year behind and, therefore, has no idea how much tax, National Insurance or student loan deductions have been paid and how much gross pay has been received until after the end of each tax year. Paula Frame is the Payroll Development Manager for PEM Payroll and she has direct experience of when things can go badly wrong:

“In one instance HMRC incorrectly believed that an employee was working for two companies and put him on the wrong tax code. If PEM hadn’t investigated this in a timely manner, their salary would have been reduced to virtually nothing. In a second example, an employee earned a large bonus on a particular month. Student loans are paid as a proportion of the individual’s monthly income (without being able to take account of how much is actually owed). In this case, if we had not intervened, it would have meant that the employee would have overpaid the whole of their debt to the student loan company. In both cases, the ramifications for these individuals could have been very serious indeed.”

There have been understandable concerns about ‘hidden government agendas’ and ‘Big Brother-style monitoring’, however PEM Payroll see the new RTI system as a positive change. As long as the transition is managed sensitively for the payroll bureaus and the employers, individual employees should benefit from a fairer system overcoming the problems of incorrect tax codes and some of the complexities of the tax credit system. Employers need to realise how quickly this is all going to change so that they can be properly prepared.

The pilot scheme:
The PEM client involved in the HMRC pilot scheme is going to be one of only 300 such guinea pigs across the country who will be participating at this early stage. As part of the pilot, PEM will be supported by a designated relationship manager from HMRC, who will guide them over the next 12 months; helping them to troubleshoot problems. PEM Payroll is different because it isn’t a typical standalone payroll bureau. With access to the whole of PEM’s resources it is able to offer an integrated and holistic approach to its clients’ needs (such as advice from PEM’s employment tax specialists). PEM will be upgrading its software systems, which is an additional expense but one that is justified as it will allow PEM to better serve its clients during this period of change. By the time RTI becomes a mandatory requirement, PEM Payroll will have accrued 18 months of proactive and productive experience which should enable the real time reporting to be done smoothly and seamlessly. How can employers prepare?
Employers can take steps in advance of the RTI deadline to make sure that their payroll and/or HR systems have the necessary functionality. The need to make sure all payroll data is correct will be essential. Even the slightest data discrepancies, such as the misspelling of names, will cause disruption to the smooth implementation of RTI – so it is worth carrying out a quality control data review. Where employers use outsourced payroll services (like PEM Payroll), this can be a straightforward matter, but for other employers it could be a meticulous and painstaking process with the entire onus on the employer.

What are the benefits?
The 5th of April is currently an extremely important and highly stressful day in the payroll calendar as it is the end of the tax year, but only until the RTI system is introduced; as this date will no longer have the same significance. The average employee may not be aware of the complexities of their employer’s payroll system; often simply receiving a payslip – so for them the benefits may not become immediately apparent – but they should see an improvement in the operation of the tax credit system. For other individuals that have more complex tax affairs requiring an annual tax return, the changes will hopefully make their PAYE tax payments more accurate, fairer and with less potential for errors and surprise underpayments.

www.pem.co.uk

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Notes to Editors:

• Peters Elworthy & Moore (PEM) is one of the leading independent firms of accountants, tax and business advisers in the East Anglia region, with 14 Partners and 140 staff.

• PEM is within the top 60 in the UK, providing financial strategies for success.

• PEM has a large and varied client base including a substantial portfolio of technology and owner managed business clients. Visit http://www.pem.co.uk and www.pemtechnology.co.uk

Thousands of people have been hit by a tax fine error after they were told that they no longer needed to fill in self-assessment tax forms.

According to HM Revenue & Customs, 12,000 Britons have been sent penalty notices by mistake after they were told that they did not need to complete the forms because it could be dealt with through PAYE.

Millions of people in the UK fill in the self-assessment tax forms every year and the deadline for online returns this year was 2^nd February. Anyone who has still not filed their form has received a letter sent by HMRC with a fixed penalty of £100 even if they do not owe any tax ahead of the £10 daily fines which start on 1^st May. A further £300 can be demanded after six months and another £300 after 12 months.

Recently hundreds of thousands of people were taken off the self-assessment process because they no longer needed to be in it and all the records were changed; however it seems 12,000 have now received penalty notices as an oversight.

The taxman has issued an apology for the blunder, saying: “We are very sorry and can reassure these customers that we know who they are and that this letter is incorrect – they do not owe a penalty. We are writing to all of them to apologise and to explain this error.

“It is very unfortunate that this process error has taken the shine off the good news that we have taken 130,000 people out of self-assessment.”

Around 850,000 Britons were sent penalty notices this year for failing to submit their tax returns on time.

Save the hassle and strain of filing your tax return by hiring Nixon Williams Accountants to manage all of your taxes. The experts can help with all aspects of taxing from handling all of the paperwork to returning tax return forms to HMRC.

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Tax inequality slammed as working people in Leeds and Bradford urged to reclaim what’s theirs – but watch out for the costly phone calls £2.8m of annual tax refunds could be going unclaimed by workers in Leeds and Bradford construction industry, according to figures released today.

The research, conducted by RIFT, a tax refund specialist, found that up to 4,680 permanent construction employees in Leeds and Bradford could be eligible for tax refunds on travel between temporary workplaces. On a national scale, the RIFT research also shows that £180 million of annual tax refunds could be going unclaimed by workers in the UK construction industry as a whole.

RIFT is concerned that at a time when tax-avoidance by the wealthy is in the news more than ever before, some workers on comparatively low incomes are losing out on millions of pounds they desperately need.

Unlike self-employed workers who deduct travel expenses as part of their annual self-assessment tax returns, many PAYE construction operatives like labourers, ground workers and brick layers are failing to claim these expenses back.
HMRC were further criticised after it emerged that they make £5 million from the 0845 numbers if the public must call to contact them. Worse, over £500,000 is generated from calls that do not end up being connected to an HMRC agent.

Jan Post, Managing Director of RIFT, said: “It’s not just a scandal affecting honest workers in Leeds and Bradford, it’s a national scandal that thousands of hard working people are missing out on tax refunds that are rightfully theirs while a handful of the richest people get away without paying their fair share. We estimate that there could be as much as £180 million pounds floating around HMRC that could be putting food on peoples’ tables. These are people without the luxury of expensive accountants and offshore bank accounts. “Hard working people are seeing their wage packets stretched more than ever before, and deserve to be able to claw back this money from HMRC. To add insult to injury HMRC then draw in millions more from people phoning them about the refunds.”

A builder said: “We hear every day how we are all supposed to be ‘in it together’. Money is tight at the moment, and we should be able to get back any tax that we are entitled too. Its galling to read about the rich paying a smaller proportion of their income in tax than I do when they’re earning millions.”

eFileReady, a leading e-filing specialist providing an exceptionally user friendly system to e-file to HMRC and Companies House has announced that they are the very first company to have gained PAYE Recognition for Real Time Information (RTI) from the UK tax authority, HMRC. HMRC have published the list of commercial software tested and gained PAYE- RTI Recognition on their website http://www.hmrc.gov.uk/softwaredevelopers/paye/rti-software-forms.htm.

RTI requires you to e-file various documents to HMRC from April 2013 onwards. The good news is that www.eFileReady.com has simplified the e-filing process for you. The eFileReady system is now fully ready for both the current End of Year (EOY) and for RTI return services. You can do your current EOY with eFileReady, the same as in previous years, and from April 2012 you can also use the eFileReady system for RTI returns if you are participating in the HMRC pilot scheme.

The process for e-filing RTI returns using eFileReady is simple. You do not need any knowledge of the underlying technology, as the system is accessed via a normal web browser. You simply download a spreadsheet template which defines all the data you require, then extract the data from your system and place it into the spreadsheet and further upload it back to the www.efileready.com server. The server will then automatically convert your data into HMRC’s required XML format and e-file it for you automatically.

eFileReady’s CEO, Juan Ho, commented: “We are delighted that we are the first company to be recognised by HMRC for PAYE- RTI Recognition. Over recent years we had been able to demonstrate our products full potential by gaining various HMRC Recognitions for CIS, CT, iXBRL, Pension Returns etc., which has provoked very positive feedback from our existing customers. With this recognition in the background, the Company will strive further to exceed our customers expectations by providing other high quality, user-friendly e-filing products and services”

About eFileReady Ltd.
eFileReady is an e-filing specialist providing an exceptionally user friendly e-filing system allowing you to e-file almost every document you need to the HMRC and Companies House with ease. The system saves you from complicated XML e-filing processes because it is equipped with data conversion intelligence that can automatically convert your data to the HMRC and Companies House required XML or iXBRL formats.

See http://www.eFileReady.com for more details.

A bank in the UK has had its tax dodges halted by the Government and been forced to pay more than half a billion pounds.

The UK bank, whose identity has been revealed as Barclays, had used “highly abusive” tax avoidance schemes which have today been stopped. The schemes were designed to work around legislation that has been introduced in the past to block similar attempts at tax avoidance.

One of the tax dodge schemes which was frozen involved the  bank claiming that it should not have to pay  corporation tax on commercial profits made when buying back  its own debt. For the very first time, legislation is being introduced retrospectively and immediately that will not prevent anyone else using the scheme in the future as well as block any recent usage.

The second tax avoidance scheme involved investment finds claiming that non-taxable income entitled the funds to tax credits that could be reclaimed from HMRC.

Barclays disclosed the schemes to HM Revenue & Customs but had adopted the Banking Code of Practice on Taxation which contains a commitment not to engage in tax avoidance. The Government has rebutted this and said that the recent actions are not that of a bank that has adopted the Code.

David Gauke, Exchequer Secretary to the Treasury, said: “The Government wants to ensure that the tax system is fair for all and we will not allow those who seek to benefit from this aggressive avoidance to get an unfair advantage.  We do not take today’s action lightly, but the potential tax loss from this scheme and the history of previous abuse in this area mean that this is a circumstance where the decision to change the law with full retrospective effect is justified.”

He added: “The Government is committed to creating a competitive tax system and we have brought in a range of corporate tax reforms, but we are absolutely clear that business must pay the tax they owe when they owe it.”

Over 2,000 schemes have been disclosed to the tax authorities in the past eight years. The Banking Code, which was introduced in June 2009, demands that banks which sign up ensure that their tax obligations of their customers are observed and that they should not engage in tax avoidance themselves.

Nixon Williams can manage all the books and tax work for contractors and freelancers, leaving you to simply get on with what you specialise in.

Freelancers can evade HMRC ‘tracking’ them down by employing expert accountancy services to help them maintain all their finances properly and legally.

Stress is a major part of any job, regardless of the industry, and from time to time many workers suffer from it. Rising pressures in working environments such as staff and budget cuts mean that many workforces have more responsibilities and duties to fulfil, with not enough hours in the day or manpower to complete it in.

However, it has been said that self-employed contractors can be more prone to stress than people in regular employment due to the fact that they have the sole liability for delivering projects, as opposed to being part of a team. Moreover, freelancers often have even tighter deadlines to finish work and therefore the strain can become demanding.

PCG is the leading UK professional association supporting, protecting and promoting the interests of consultants, contractors and freelancers and they have published some expert guidance to contractors to tackle the issue of stress.

A top tip is not to let the problem become overwhelming. There are several techniques that contractors can use to stay calm but first and foremost, one needs to be self-aware of when they are becoming stressed so that they can deal with it from the first instance before things get out of hand.

Being frazzled only affects work productivity and causes health risks so if you are suffering from constant worry, temper outbreaks, a lack of concentration and irritability, these may possibly be the warning signs to seeking help. Further physical indications of pressure include dizziness, headaches, breathlessness and sweating.

Why not work out your stress by doing some exercise? Just going for a gentle walk outside can offer relief and the fresh air will ease you of any tension.

Another tip is to plan your day in advance to prioritise your work schedule. An organised agenda is a clear mind and by setting yourself a plan of things to do, you are more likely to be able to tick them off completed than be muddled.

Hiring a professional accounting company such as Nixon Williams can help alleviate any built-up stress because they can manage all the books for you, leaving you to simply get on with what you specialise in.

Nixon Williams assist contractors with all aspects of taxing from the initial steps of setting up as a freelancer, to running their own business and handling all the paperwork, to advice about IR35 legislation.

Don’t get anxious or stressed out this year, call the expert contractor accountancy services today on 01253 362000.

The Big Pitch 2012 launches today – and if last year’s successful search for the university’s brightest entrepreneurial students is any measure, the competition will be inventive, passionate and pioneering.

The Big Pitch mission is to provide entrepreneurial Anglia Ruskin students with capital, opportunities and expert advice to help realise their business dreams.

Peters Elworthy & Moore (PEM) is backing this year’s competition with two highly regarded partners providing specialist knowledge in the accountancy sector.

Chris Walklett, Business Tax Partner and Head of the Technology Team, and Laragh Jeanroy, Audit Partner and Head of the Corporates Team, will join the panel of judges and also share their wealth of knowledge as mentors to support the winners.

Chris comments: “The Big Pitch presents a potentially life-changing opportunity for the next generation of genius. Working with Anglia Ruskin to inspire entrepreneurial spirit in the pursuit of excellence gives us a chance to help cultivate forward-thinking business minds of the future. We are proud to share our professional insight and hope that it will be a valuable asset to this inspirational project.

Sights are set high as this year’s phenomenal £30K prize fund will be shared between three winners with a £15K first prize, £10K second prize and £5K third prize. In addition, there is also a ‘people’s prize’ of £2,500 for the team judged to have given the best pitch by the grand final audience.

The competition is driven by Ben Mumby-Croft, Senior Lecturer, Centre for Enterprise Development at Anglia Ruskin, and jointly run by the Centre for Enterprise Development and Research (CEDAR) and Research, Development and Commercial Services (RDCS) at Anglia Ruskin in order to promote student enterprise and entrepreneurship across the University.

Says Ben: “We’re delighted to be running The Big Pitch again in 2012, last year’s event was a tremendous success and it’s great to build on this to reach even more students with this year’s competition. We’re also delighted to have PEM onboard again as sponsors: getting the support of external business entrepreneurs and professional advisers adds huge value to the competition and is critical to its ongoing success. I very much look forward to working with Chris and Laragh from the PEM team and I’m sure they’re looking forward to seeing this year’s video entries”.

The Big Pitch is for bold and innovative business ideas – these could be anything from a new technology or internet business to a new consumer product, business service, social enterprise or an iPhone app. Ideas should be original and inventive demonstrating a viable market and significant growth potential.

The competition will run over three months from 9 February to 31 May 2012 and is divided into three phases of activity: the Video Pitch, The Big Pitch Boot Camp and the Grand Final. For more information on how to get involved visit www.thebigpitch.co.uk

Contractor accountants Nixon Williams has had continued growth over the past year and is going from strength-to-strength. The Lancashire-based accountancy firm has recruited 21 new staff members in the past 12 month displaying success and rapid expansion.

In 2011 Nixon Williams accountants expanded its flourishing workforce with more accountants, admin personnel and a marketing team. What is more, the industry experts created an app that has been specially created for contractors and it is now featured in the ‘What’s Hot’ finance section in both the iPad and iPhone app stores.

Directors Andrew Nixon and Alan Williams expressed their delight at the unrelenting achievement of the organisation, saying: “This is great recognition for our company since it was co-founded in 1995 and a real tribute to the hard work and determination of our fantastic team.

“Despite the difficult economic period, Nixon Williams is growing fast and carrying out some excellent work for all the self-employed contractors that have come on board.”

Nixon Williams can help you with all aspects of taxing from the initial steps of setting up as a contractor, to running your own business and handling all the paperwork. The specialists can ease you of all the time and strain needed with, payroll, returning tax return forms to HMRC and dealing with more complicated aspects of contractor tax like IR35 legislation.

The leading accountancy practice serves freelance contractors, consultants and interim managers throughout the UK and the experienced team are on-hand to assist you whatever problem you may have.

Their extensive knowledge spans throughout various industries including IT, Finance, Management, Journalism and Locums; so don’t let numbers mind boggle you anymore. Contact the professionals today by visiting the site or calling them on 01253 362000.