Specialist accountants Danbro – one of the fastest growing companies in the UK, according the latest Sunday Times Fast Track 100 league table – is on the move to new offices.

The Tax Authorities are channeling additional resources into collecting more Tax and VAT. As a result, all businesses are now much more likely than ever before to face an enquiry, whether random or targeted. Defending clients in these circumstances is an area in which we have considerable expertise but the costs can be extensive, as enquiries and disputes can drag on for many months. Even if no additional tax is found to be due, your business would be faced with these costs which could be quite significant.

The chancellor’s inclusion in this year’s Budget of the government’s concern about the tax benefits being sought by users of umbrella companies was not unexpected. It has been widely acknowledged that HMRC have recently been focusing on umbrella companies that are abusing their dispensations.

Despite its noticeable absence in the Budget speech, the government’s decision to delay legislation on ‘income shifting’ and the proposed Family Business Tax (FBT), has been widely celebrated. Allowing for an extended period of consultation, the chancellor has postponed decision making until 2009.

On Friday the 22nd of February MP’s gathered to discuss the controversial “agency workers directive”, which aims to give temporary workers the same rights as permanent staff.

It is no secret that HMR&C have actively begun to crack down on umbrella companies who are viewed to be abusing their dispensations.

The Agency Workers Directive was published on the 05/02/2008, which aims to give temporary workers the same terms and conditions as permanent staff. This could have negative implications as study by the Confederation of British Industry (CBI) has shown that it would raise the cost of contracting to a point that would cost about 250,000 jobs.

There is now growing pressure on the Treasury to backpedal on its controversial plans to ramp up tax on family firms in the recently announced income shifting proposals.

Everybody who works incurs a certain amount in work related expenses, whether it is the pub lunch you buy each day, or the train fair to get to and from work during the week. There is however a considerable benefit for contractors over permanent employees in regards to the expenses they incur.

The Government is planning to launch a new Family Business Tax in this year's Budget, which it claims is intended to tackle "income shifting"

Blackpool based accountants Danbro have been named among the top accountancy firms and top umbrella services in the country, according to an online survey.

A survey of Danbro’s clients has revealed that the firm are providing a first-rate service overall.  The survey took into account responses from a cross section of contractors and agency representatives that employ Danbro’s umbrella company services.

Blackpool based accountants Danbro are celebrating their appearance in this year’s Fast Track 100 league table.  The table is published as a colour supplement annually in December, in the Sunday Times.

We would like to thank all of our clients that took part in our recent Client Satisfaction Survey.  The survey was very encouraging, as it allowed us to see the areas of our service that you are happy with, thus allowing us to maintain our high standards.  Two thirds of the aspects of the Danbro service were rated by more than 80% of you as 4 or 5 on our 1-5 scale, with 5 denoting extreme satisfaction.

Aspiring Tin-Top racer, Joe Hopkins has demonstrated his growing talent by finishing 3rd in the 2007 MSVR T-Car Championship, with Danbro Hoppo Racing!

Chancellor Alistair Darling announced in his Pre-Budget speech a change to the way in which the inheritance tax (IHT) nil rate band of £300,000 can be used for married couples and civil partners.

We have previously reported the case of Mr and Mrs Jones who finally won their case in the House of Lords in July this year. You may remember that the profits of Arctic Systems (their company) were paid equally to them by means of dividends. HMRC had tried to have the income assessed solely on Mr Jones rather than between them but failed in their attempt.

The postal workers union, the Communication Workers Union (CWU), may be planning more postal disputes.

With Gordon Brown now in the top seat, the eyes of the nation were on Alistair Darling as he delivered his first pre-budget report. The will-they-won’t-they speculation surrounding the election, plus some tax cuts promises from the opposition meant that Darling had to deliver some potentially vote-winning changes.

Contractor accountancy specialists Danbro have changed their company name from Danbro IT Limited to Danbro Limited. The name change allows a more generic approach to all their target markets, as they serve a wide variety of clients within fields such as engineering, construction, petro-chemical and entertainment as well as the IT industry.

Contractor accountant specialists Danbro got off to a racing start with a “getting to know you” event for recruitment agencies.

Danbro has created a useful guide to help contractors and temporary workers affected by changes introduced in Gordon Brown’s March Budget.

Following the decision in the Arctic Systems case HMRC have provided guidance on how tax returns are to be dealt with following the House of Lords’ decision.

The Office of Fair Trading (OFT) is taking a case to the High Court to decide whether or not the level of unauthorised overdraft charges made by banks are legal. According to the OFT, tens of thousands of complaints that these charges are unfair have been received by the County Courts and the Financial Ombudsman Service.

The long running saga of Geoff and Diana Jones and their company, Arctic Systems Limited, has recently been back to the courts for the final time to the House of Lords.

HMRC have started a consultation on the way in which they pursue individuals who do not pay their tax liabilities on time. The proposal, which would result in HMRC taking money owed directly from an individual’s bank accounts, would aim to tackle the problem of approximately 200,000 people who are pursued through the courts each year for outstanding tax.

HMRC have been made aware of certain so-called 'Phishing' scams targeting taxpayers in an effort to fraudulently obtain personal information from them.

Danbro has created a useful guide to help contractors and temporary workers affected by changes introduced in Gordon Brown’s March Budget.

Contractor specialist accountants Danbro have welcomed the news that Geoff and Diana Jones have won their case against HM Revenue and Customs.

Danbro, is delighted to announce the promotion of John Thornburn to the position of director.

We are delighted to announce that we have been awarded with the much-coveted supplier status for the brand new Professional Contractor Group (PCG) OneStop solution.

Blackpool based specialist contractor accountants and business advisors, Danbro, are delighted to announce details of their brand new podcast.

HMRC have announced new rules applying to people coming to or leaving the UK. From 15 June 2007, people travelling to or from a country outside the European Union (EU) will need to declare any sums of cash of 10,000 Euros or more (or the equivalent in another currency) to HMRC. There is no requirement to declare cash if travel is to or from another EU country.

Blackpool based Danbro is delighted to announce that it is one of only three accountancy practices to have been awarded with the much-coveted supplier status for the brand new Professional Contractor Group (PCG) OneStop solution.

Most people in the Contractor/Freelancer sector will now be aware that the Budget announcement significantly changed the way that HMRC will be ‘Tackling Managed Service Companies’ from the draft legislation in December 2006.

Gordon Brown has delivered his eleventh, and what is expected to be his final, Budget. This year’s measures contained a few shocks, with the Chancellor’s tax cut provoking an uproarious reaction from Labour and Conservative benches alike. The Budget has been described as ‘substantial’, no surprise if Mr Brown has his eye firmly on Number Ten.

The Professional Contractors Group has submitted its response to the government's consultation on proposed measures to tackle managed service companies (MSCs).

Before 6 April 2006 the first £500 of the benefit in kind charge arising on the private use of employer provided computer equipment was exempt from tax. As the ‘annual value’ benefit in kind on the use of an asset is calculated as 20% of the market value of the asset when first used to provide the benefit, this exemption generally covered any potential benefit in kind.

Recruitment agencies are insisting that they should not be liable for outstanding tax owed to HM Revenue & Customs (HMRC) by contractors.

Clients are advised to check that the correct postage is attached to any envelope sending documents to Companies House.

As the end of the financial year fast approaches, now is the perfect time to take stock of personal financial affairs.

The government has recently issued new legislation extending the requirements for companies and Limited Liability Partnerships (LLPs) to provide certain particulars about themselves on their websites and in electronic versions of all documents.

Transport Secretary Douglas Alexander has announced that motorists face tough new penalties for breaking the law by using a hand-held mobile phone while driving from 27 February 2007. From that date, the fixed penalty will include the award of three penalty points as well as doubling the fine to £60.

A 65 year old today has a 50:50 chance of reaching 87 and a couple retiring at age 65 face a one in six chance that one of them will live to a 100. This means that a retirement of upto 35 years will not be uncommon in the future.

We are constantly striving to improve our services and would welcome your comments as to how we are doing.

An accountancy firm which specialises in dealing with contractors, has now launched a dedicated service for those working in the construction industry.

The New Year is not only a good time to lose pounds off the waist line, it is also time to gain pounds by refreshing your finances by doing those things that you have probably been putting off for months and maybe even years. Make 2007 the year that you get your finances in order!

In last month’s enews we reported that HMRC had launched their press campaign on the introduction of the new Construction Industry Scheme (CIS) which will be introduced on 6 April 2007. In the Pre-Budget Report the government made two announcements regarding CIS tax rates.

The Christmas rush may be over but for many that means the start of the self assessment rush. The January 31st self-assessment deadline is often approached with dread, however, completing your tax return form within the given time constraints can be achieved with the right amount of preparation and some simple, solid, professional advice.

At last, it has been announced that the Arctic Systems case will be heard in the House of Lords from 5 to 7 June 2007. The case, and the subsequent uncertainty, has now been running for more than two years and it is to be hoped that some sort of finality to this issue can be obtained before the end of 2007.

This year's Pre-Budget Report is almost certainly Gordon Brown's last as Chancellor. On this occasion, his March 2006 Budget predictions for growth and borrowing have proved reasonably accurate, even if overall borrowing is still at an uncomfortably high level. While Mr Brown's speech itself contained very few surprises, the supporting material issued by the Treasury and HM Revenue & Customs (HMRC) revealed a wide variety of important tax measures.

Blackpool based specialist contractor accountants and business advisors, Danbro, have this week launched their very first podcast.

Offering an insightful slide show and narrative on current market trends, the podcast will provide useful information to contractors around the UK.

Life Assurance has been voted the most important type of insurance a family can have. Bright Grey, a life assurance specialist recently surveyed 2000 consumers on what they believed to be the most important form of insurance and the top answer with 40% was life assurance.

The legal test case for Section 660 - the married couple's business tax - will not be heard before the income tax self-assessment deadline of January 31, 2007. This could leave thousands of small businesses in a state of limbo as they are unsure of the legal situation before having to complete their tax returns.

Blackpool based specialist contractor accountants, Danbro, have this week completed an investment in its IT solutions worth more than £30,000. The new GEL software which has been introduced will enable the firm’s large client base, primarily made up of contractors, to handle their accountants and finances quickly and easily online.

Millions of pounds worth of PEP and ISA savings could be wiped out by inheritance tax (IHT) bills as many people cling onto their tax efficient savings without realising that 40% tax would still potentially apply on death. It is estimated that around £0.5bn or one sixth of the annual IHT take of around £3bn comes from PEPs and ISAs.

A Blackpool based firm of Chartered Accountants has successfully acquired the much coveted Subcontractors Tax Certificate (CIS6) from HM Revenue and Customs which will allow their client subcontractors to pay less tax.

Nine out of ten people now approaching retirement risk using up all their savings before they die, suffering pension 'burn out' New research by Fund Manager, Fidelity highlights that 70% of individuals aged over 55 who have not yet retired have no idea how much they might withdraw from their savings, while most of the remainder are set to dip into their savings at potentially unsustainable rates.

When it comes to pension and investment decisions I believe very strongly in the simple concept of not putting all your eggs in one basket and limiting your exposure to risk using asset allocation.

Danbro has received accreditation from the prestigious nationwide Professional Contractors Group (PCG).

National Savings and Investments (NS&I) have announced that to celebrate the 50th anniversary of Premium Bonds that there will be 5 chances to win £1m tax free in both December 2006 and July 2007 instead of the usual 2.

When it comes to pension and investment decisions I believe very strongly in the simple concept of not putting all your eggs in one basket and limiting your exposure to risk using asset allocation.

Danbro has welcomed the latest recommendation by Lord Carter of Coles, that the filing dates for personal self assessment tax returns should be 31 January for returns filed electronically and 31 October for paper returns.

HMRC have announced new rates for journeys on or after 1 July 2006. These rates apply to company car drivers who are reimbursed for business miles driven. The rates can also be used by company car drivers who claim all their fuel costs and then reimburse their employer for their private mileage.

With offset mortgages you not only gain long term advantage by offsetting savings, ISAs and current accounts against the mortgage, you also get a flexible tax efficient investment vehicle.

In April 2006 Pensions Simplification came into effect with the purpose of streamlining the many different pension rules. However, one of the benefits of the rule changes was to re-vitalise the life assurance market. As it is now possible to take out a life assurance policy and obtain tax relief on the premiums.

Last month we updated you on reaction to the surprise announcement, made on Budget Day, of the proposal to bring forward the tax return submission deadline from 31 January to 30 September for paper returns and 30 November for electronic ones. The professional bodies have been campaigning against the recommendations made as part of Lord Carter’s review.

The long awaited White Paper was released on 25 May. It contains many proposals which would change the pensions system quite radically.

In recent months, HMRC have begun to take a very hard line with the reclassification of subcontractors to employment status. The effects of this can be bad enough for a business but it now appears that HMRC are taking a much harder line.

If you were planning to retire early, now may be the time to re-assess your pension arrangements.

There is some confusion in the Contractor marketplace about the differences of working in a Managed Limited Company versus a Composite Company.

The chancellor, Gordon Brown has revised his proposed Budget measures in respect of trusts, following protests by the life assurance industry and MPs amongst others.

Danbro is advising composite companies to check they are paying the correct tax and national insurance contributions following an announcement by the Chancellor.

It is time to start gathering together the information to complete the forms P11D which report to HMRC details of benefits and expenses provided to employees and directors in the tax year to 5 April 2006. The forms have to be submitted to HMRC by 6 July so you have some time to track down the relevant information and to complete the forms.

The chancellor, Gordon Brown has revised his proposed Budget measures in respect of trusts, following protests by the life assurance industry and MPs amongst others.

HMRC have been given leave to appeal to the House of Lords so the saga continues.

You can take advantage of HMRC’s new web tool that enables you to determine your employment status.

The new tax regime for pensions finally takes effect from 6 April 2006, referred to as ‘A’ day. There will be a single set of rules for all registered pension schemes.

The Budget report refers to employment income being disguised as dividends by mass-marketed managed service company schemes, which almost certainly means composite companies. The Government will bring forward proposals for discussion to consider how, in this context, it can make sure that everyone pays their fair share of tax and NICs, irrespective of legal form. This means that the Government is preparing to attack "disguised employment" via managed service companies.

Gordon Brown presented his tenth Budget on Wednesday 22 March 2006. Will it prove to be his last? Has he won public and parliamentary support for his bid to become Prime Minister?

Running a company can be a lonely business. Our clients often tell us how they feel isolated.
Recent statistics have actually revealed that a large proportion of business owners share a common concern that business decisions, which can have an impact on their company, have to be made independently.

As pensions become more and more of a worry, we are warning clients to avoid getting caught up in “pensions recycling”.

The Revenue have produced updated guidance in the Employment Income Manual on how car benefits are calculated. The guidance sets out the basis for the calculation using the list price of the car and an appropriate percentage normally based on the CO2 emissions of the car. There are lower benefits, and therefore less tax to pay, on energy efficient or ‘green’ cars and the guidance for the benefit calculation for these cars is also included.

In last month’s enews we reported on the changes to the procedures for input VAT recovery by employers on employees’ mileage allowances. Customs have issued further clarification of the evidence required to support a claim for input VAT recovery.

The small business service (sbs) has announced the development of a new opportunities portal for lower-value public sector contracts. the new portal, to be launched in spring 2006, is the first uk government-backed online service for publicising lower-value public sector contracts, typically under â£100,000. all public sector organisations will be able to publicise their contracts on the portal and, for the first time, all businesses will have access to these contracts in a single place. http://www.supplyinggovernment.gov.uk/

Article re-produced with kind permission of the PCG

In reaction to this advert Clive Dickin, the Chief Executive Officer of the Association of Plumbing & Heating Contractors Ltd (APHC), commented, “Whilst APHC fully supports the message in the advert, we do feel the Inland Revenue has been unfair in using an unrepresentative stereotype of a plumber to depict a person who evades paying tax.