Steve Knowles
Member Since: 6th Mar 2000
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Steve set up his own practice working out of a back bedroom in 1978. The business grew and now employs 25 people. The foundation of our business is the relationship we have with our clients, and our commitment to their success. He has other business interests including financial services, property development and a software company based in America. Steve served as a Governor at the Sheffield College for five years before being asked to become Chairman of the Board of Governors. He is a past Chairman of the Sheffield Business Club and was President of the Sheffield & District Society of Chartered Accountants. He has been married to Christine for over 40 years, and they have two daughters. In his spare time he is an armchair sportsman, epecially F1.
My answers
Condemning your career choice based on your job, colleagues and clients is too heavy.
I would say this:
Job... You are volunteering to work at the employer you have, it is in your power to change that.
Colleagues... You are volunteering to work at the employer you have, it is in your power to change that.
Clients... You are volunteering to work at the employer you have, it is in your power to change that.
Accountancy is a wonderful opportunity to change peoples lives for the better. Informed clients know that we can make a positive difference to their world. Building trust and mutual respect in the relationship is so rewarding.
Change your employer, but in the interview process find out about the culture of the business before you accept any offers. Look at the 3rd sector, work in charity.
You have the power to change your world, the wonderful thing about your qualification is that it is wanted and needed in all types of situations all around the world.
Raise you head and look over the horizon.
Tax free status
does not depend on salary sacrifice - there is nothing to prevent any company offering such benefits in addition to normal salary, but logically that would not happen except in the case of directors or family members.
There are no reporting requirements of any sort for childcare vouchers - to show them on the payslips would possibly cause confusion.
Higher rate
calculation applies only to salary etc provided by the employer - presumably the directors do not draw salary to take them above the HR threshold? Investment income(dividends) is ignored for this purpose - see http://www.hmrc.gov.uk/thelibrary/employer-qa.pdf for what is included in the basic earnings assessment.
Employees who were "eligible" for an existing scheme before April 2011 are not affected by the HR restriction
What is the intention?
If the band is performing "with a view to profit" it would be a business, whether or not it actually makes a profit. This would mean going all out to get the best gigs, signing up with an agent etc, not to mention keeping proper records. On the other hand, if all they want to do is cover their costs (as far as possible), it is more likley to be a hobby
Do you mean Maternity Allowance?
ie payable by benefits office?
Assuming the rules are the same as for SMP, she can do no paid work while claiming, but if she is a director there would be nothing to stop the salary from being rolled up and paid at the end of the maternity period.
Still time
to file a P11D if you have all the figures - just make sure that in future either you get a dispensation in place (preferable) or P11Ds are fully completed.
Wife's input
Does the wife genuinely contribute to the business? if she does, as would be indicated by her being paid a salary, there is no reason why she should not be a partner - partners do not necessarily contribute in equal shares.
losses Claimed
The 2006/07 losses have been claimed correctly and should still be available to carry forward, although if there was a profit for 2007/08 they should be offset against that year whether the reurn was filed or not.
If there were further losses in 2007/08 that year has gone, but you can still carry forward 2006/07 to 2008/09.
Date of receipt
is what counts, as this is the point at which the funds are paid into the pot. If HMRC require confirmation of contributions, the pension provider will have no way of checking when the payments were actually deducted from salary.
Same rules where an individual pays a cheque direct - it is the date the funds are received which is the qualifying date.
Temporary Workplace?
Normal rules apply as for any employee, so the flat will be a benefit unless the temporary workplace rules fit the situation. If not, then all travel to London & subsistence there should also be disallowed, just as it would be for an employee working in London who chooses to continue to live elsewhere.