Here at Mazuma we’re always looking to get feedback from our customers, contacts and the small business community. Over the last few weeks we extended the invitation to thousands of small businesses to complete a short survey about the role of their accounts.
At Mazuma HQ we know that we preach a lot about the importance of keeping your accounts up to date and using them to help run your business, but we were genuinely shocked by the results of our survey.
100% of respondents said that they think that keeping on top of your accounts is important for a business. We were thrilled with this result; it means that all the years of nagging about the importance of accounts is starting to pay off!
94% of respondents agreed that many small business owners find accounts daunting. This figure was not a surprise to us at Mazuma and was the entire reason that Mazuma was created. We think that you should spend time running your business, not faffing around with a piece of bookkeeping software or a spreadsheet.
Finally, drum roll please... 100% of respondents said that a monthly accounts service like Mazuma’s Purpleforce service would be beneficial for a small business, especially during a recession. Obviously we were thrilled with that statistic for entirely selfish reasons, but we were also delighted that the small business community recognises the benefits of having access to your accountants monthly and not just annually.
So there we have it folks, Mazuma would be a good investment for you in the current climate!
Wednesday 16 December 2009
Tuesday 1 December 2009
Tax Tips for December
Welcome...
To December's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.
If you need further assistance just let us know or you can send us a question for our Question and Answer Corner.
We are committed to ensuring all our clients don't pay a penny more in tax than is necessary.
Please contact us for advice in your own specific circumstances. We're here to help!
Tax Deductions for Franchise Fees
One of the easiest ways to step into the world of business is to acquire the right to operate a franchise. To do this the franchisor, (the person providing the franchise), and the franchisee (the person who is to run the franchised business), will sign a franchise agreement.
A typical franchise agreement will cover various matters each with different tax effects such as:
- the right to operate the franchise for a period, often at specified premises or within a defined geographical area;
- initial services, such as advice on site selection and staff recruitment, training and assistance with the management of the unit;
- ongoing services including marketing, advertising, updating of the franchise and provision of stock and plant.
The grant of the right to operate the franchise and the provision of initial services will normally be covered by a lump sum payment from the franchisee. Ongoing services will be charged for by means of a periodic fee, paid monthly or weekly. Stock and plant items will usually be charged for as required by the franchisee.
The Taxman views the right to operate the franchise as an intangible capital asset. Where the franchisee is a company it can claim the cost of this intangible asset in its accounts, spread over an appropriate period. However, a franchise business operated as a sole trader or partnership will NOT generally get a tax deduction for the cost of an intangible asset. However, where the intangible asset includes know-how relating to industrial processes, mining, agricultural or forestry, the payment can qualify for capital allowances. Both incorporated and unincorporated businesses can claim capital allowances covering the cost of industrial know-how.
Amounts paid for on-going services will be treated as operating costs of the franchise business, and will be tax allowable in all cases. Items of plant will normally qualify for capital allowances, which will give a 100% allowance for the first £50,000 of plant purchased each year.
The tax treatment of the sums payable by the franchisee and received by the franchisor will not necessarily mirror each other. Similar items may also attract different tax treatment under different franchise agreements, it largely depends on the individual circumstances of the deal. In all cases the amounts paid need to be allocated against the different goods, services, and rights provided for under the franchise agreement to determine the correct tax treatment.
If you are looking at a franchise we can advise you on the tax consequences of the deal you are looking at and perhaps how you restructure matters to your maximum advantage.
Christmas Gift Time Mr Taxman!
Many firms are foregoing expensive Christmas parties this year and as an alternative are giving small seasonal gifts to staff and customers. But before you break open the hampers consider what may be allowable for income or corporation tax purposes, and what VAT you can reclaim.
- Gifts to customers of the products or services you normally sell are tax allowable, as long as you are not in the food business.
- Small promotional gifts of any item are also treated as tax allowable for your business if they cost less than £50 each and carry a clear advertisement for the business. However, you cannot get income tax or corporation tax relief for the cost of gifts of food, drink, tobacco and gift tokens of any value.
- A number of gifts worth more than £50 in total should not be made to the same person in any 12-month period.
- If you are VAT registered you can reclaim the VAT on small gifts that cost up to £50 each, including gifts comprising of tobacco and alcohol.
- If the gift cost more than £50 (net of VAT) you must account for the VAT on the item as if you had sold it at cost.
Gifts to your staff are tax allowable, but your employees could be taxed on the value of the gift as a benefit in kind. In that case you would also have to pay Class 1A NI on the value of those gifts. The Taxman does consider some small items to be trivial benefits, which can be given as tax-free gifts to staff members. Trivial items can include seasonal gifts such as a turkey, an ordinary bottle of plonk (not fine vintage or champagne), or a box of chocolates.
Where you are considering making larger gifts to each employee such as a Christmas hamper, you can include the cost of those gifts in a PAYE Settlement Agreement (PSA) with the tax office. The PSA allows you pay the tax and NI due on behalf of your employees.
Avoid the Higher VAT Rate
The standard rate of VAT is due to rise from 15% to 17.5% on 1 January 2010. This small rise in VAT may encourage people to make large value purchases in December 2009 rather than in January 2010, but there are other ways to take advantage of the lower VAT rate.
Where services or goods are invoiced for in advance, the VAT rate applies according to the date of the invoice. Say an organisation normally raises invoices for its annual membership fees on 2 January each year. If the 2010 membership invoices are raised on 1 December 2009 the members don't have the VAT increase and the organisation would receive at least some of its membership income earlier.
The VAT rate to be applied to a sale normally depends on the tax point for that transaction. This tax point is usually when the customer receives the goods or services. However, that tax point is superseded by an earlier date if the money is received before the supply of goods or services, or by the invoice date if that invoice is raised within 14 days of the goods or services being supplied.
When the VAT rate changes in the middle of these dates, you can choose whether to apply VAT at the date when the goods were supplied, or the date the invoice is raised. If you supply goods on say 24 December 2009, but raise the invoice on 4 January 2010, you have the option of charging 17.5% VAT rate based on the invoice date of 4 January 2010, or 15% VAT based on the date the goods were physically supplied.
Where you are supplying a service over a period that straddles the VAT increase, the VAT man will, by concession, allow you to charge VAT at 15% for the portion of the work done before 1 January 2010 and 17.5% VAT for work done on or after that date. Alternatively you can apply the usual rules and charge VAT according to the date the invoice is raised, or the payment is received, which ever happens first.
There are tax-avoidance rules which will add an extra 2.5% supplementary VAT charge where the value of the sale (and connected sales) total more than £100,000, or the customer and supplier are connected, or the payment is due more than six months after the date of the invoice. Talk to us if your sales are likely to fall into any of these categories.
Tax Relief on Accountant Fees!
Certain MPs got into hot water recently for including the cost of preparing their personal tax returns in their expense claims. Employees and company directors, including MPs, are not permitted to claim the cost of personal tax advice, or the cost of preparing their personal tax return as a deduction from their taxable income. If those costs are born by their employer, the cost should be treated as a benefit in kind, reported on the form P11D and taxed accordingly.
Where an individual runs his own business as a sole-trader, his personal tax return must include details of the turnover, expenses and profits of his business. The cost of preparing and completing that part of the tax return is tax allowable as that cost relates to the business and not to the individual's personal affairs. Where the remainder of the personal tax return requires little effort to complete the Taxman will, by concession, allow the whole of the cost of preparing the sole-trader's tax return to be treated as a tax allowable business cost.
Mazuma’s New Head Office
Mazuma are delighted to announce the new Head Office (The Hub) for Mazuma has now opened in Bridgend, South Wales.
Located in newly refurbished offices within handy reach of Junction 35 of the M4, The Hub will act as the Head Office facility for Mazuma and the Mazuma Associates.
Sophie Hughes, Operations Director of Mazuma comments: "We are delighted to have a designated Head Office for Mazuma and to welcome aboard a new team of staff members. We are excited to have found such ideal premises and we look forward to many happy years here and welcoming further new members to our team".
The Hub will provide affordable and excellent accountancy services to small businesses throughout the UK that are not currently served by a local Mazuma office. The Hub will create over 30 jobs within the next twelve months and will have the facility to provide Mazuma's award-winning Purpleforce service to all areas of the UK.
Question and Answer Corner
Q. I have acquired a personalised number plate that spells out the name of my business. Can I put it on my business vehicle and claim tax relief for the cost?
A. The Taxman views the cost of a personalised number-plate, over and above what you have to pay to register the car, as an intangible capital asset. Companies can claim a deduction in their accounts for intangible assets acquired since 1 April 2002, but unincorporated businesses cannot. If your business is a company it can write-off the cost of the number plate over a reasonable period, which the Taxman will normally accept to be up to 20 years. If you trade in your own name or as a partnership, your business cannot claim a deduction for the cost, as the number plate does not qualify for capital allowances.
Q. My employer has just paid me a substantial sum described as 'damages' to compensate me for an injury I received at work. Will this payment be taxable?
A. Any payment to compensate for personal injury is not taxable. This applies whether the compensation is paid in one lump sum or as a series of periodic payments. Interest paid as part of the damages award is also tax free but interest paid because of the late payment of the award will be taxable.
Q. Can I set-off the losses from my sole-trader business against my employed income for the year?
A. Yes you can set the losses from your sole-trader business against your earnings from your employment from the same tax year, or from the previous tax year. If you started your sole trader business in the last four years, you can set-off the loss against your other income from the previous three tax years. However, the Taxman will need to be convinced that your sole-trader business is a real commercial business and not just a personal interest that you don't expect to generate a profit from. You will need to submit a personal tax return showing the business turnover, expenses and resulting loss. If your business turnover for tax year 2008/09 is £30,000 or more you will need to provide details on your tax return of the various categories of tax allowable expenses.
Key Tax Dates for December 2009
19/22 PAYE/NIC and CIS deductions due for month to 5/12/2009
30 Deadline for 2008/09 self assessment online returns to be filed if you are an employee and want tax underpaid to be collected by adjustment to your 2010/11 PAYE code (for underpayments of up to £2000 only).
VAT reclaim deadline for submission of all claims for non EU traders wanting to reclaim VAT in the UK
New Clients Welcome
In addition, if there's anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list. If you are not already a client and are interested in becoming one, we would love to come to meet with you to discuss how we can help and provide you with a competitive quote for our services.
All new client consultations are provided free of charge and without obligation.
Disclaimer
The information contained in this newsletter is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.
To December's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.
If you need further assistance just let us know or you can send us a question for our Question and Answer Corner.
We are committed to ensuring all our clients don't pay a penny more in tax than is necessary.
Please contact us for advice in your own specific circumstances. We're here to help!
Tax Deductions for Franchise Fees
One of the easiest ways to step into the world of business is to acquire the right to operate a franchise. To do this the franchisor, (the person providing the franchise), and the franchisee (the person who is to run the franchised business), will sign a franchise agreement.
A typical franchise agreement will cover various matters each with different tax effects such as:
- the right to operate the franchise for a period, often at specified premises or within a defined geographical area;
- initial services, such as advice on site selection and staff recruitment, training and assistance with the management of the unit;
- ongoing services including marketing, advertising, updating of the franchise and provision of stock and plant.
The grant of the right to operate the franchise and the provision of initial services will normally be covered by a lump sum payment from the franchisee. Ongoing services will be charged for by means of a periodic fee, paid monthly or weekly. Stock and plant items will usually be charged for as required by the franchisee.
The Taxman views the right to operate the franchise as an intangible capital asset. Where the franchisee is a company it can claim the cost of this intangible asset in its accounts, spread over an appropriate period. However, a franchise business operated as a sole trader or partnership will NOT generally get a tax deduction for the cost of an intangible asset. However, where the intangible asset includes know-how relating to industrial processes, mining, agricultural or forestry, the payment can qualify for capital allowances. Both incorporated and unincorporated businesses can claim capital allowances covering the cost of industrial know-how.
Amounts paid for on-going services will be treated as operating costs of the franchise business, and will be tax allowable in all cases. Items of plant will normally qualify for capital allowances, which will give a 100% allowance for the first £50,000 of plant purchased each year.
The tax treatment of the sums payable by the franchisee and received by the franchisor will not necessarily mirror each other. Similar items may also attract different tax treatment under different franchise agreements, it largely depends on the individual circumstances of the deal. In all cases the amounts paid need to be allocated against the different goods, services, and rights provided for under the franchise agreement to determine the correct tax treatment.
If you are looking at a franchise we can advise you on the tax consequences of the deal you are looking at and perhaps how you restructure matters to your maximum advantage.
Christmas Gift Time Mr Taxman!
Many firms are foregoing expensive Christmas parties this year and as an alternative are giving small seasonal gifts to staff and customers. But before you break open the hampers consider what may be allowable for income or corporation tax purposes, and what VAT you can reclaim.
- Gifts to customers of the products or services you normally sell are tax allowable, as long as you are not in the food business.
- Small promotional gifts of any item are also treated as tax allowable for your business if they cost less than £50 each and carry a clear advertisement for the business. However, you cannot get income tax or corporation tax relief for the cost of gifts of food, drink, tobacco and gift tokens of any value.
- A number of gifts worth more than £50 in total should not be made to the same person in any 12-month period.
- If you are VAT registered you can reclaim the VAT on small gifts that cost up to £50 each, including gifts comprising of tobacco and alcohol.
- If the gift cost more than £50 (net of VAT) you must account for the VAT on the item as if you had sold it at cost.
Gifts to your staff are tax allowable, but your employees could be taxed on the value of the gift as a benefit in kind. In that case you would also have to pay Class 1A NI on the value of those gifts. The Taxman does consider some small items to be trivial benefits, which can be given as tax-free gifts to staff members. Trivial items can include seasonal gifts such as a turkey, an ordinary bottle of plonk (not fine vintage or champagne), or a box of chocolates.
Where you are considering making larger gifts to each employee such as a Christmas hamper, you can include the cost of those gifts in a PAYE Settlement Agreement (PSA) with the tax office. The PSA allows you pay the tax and NI due on behalf of your employees.
Avoid the Higher VAT Rate
The standard rate of VAT is due to rise from 15% to 17.5% on 1 January 2010. This small rise in VAT may encourage people to make large value purchases in December 2009 rather than in January 2010, but there are other ways to take advantage of the lower VAT rate.
Where services or goods are invoiced for in advance, the VAT rate applies according to the date of the invoice. Say an organisation normally raises invoices for its annual membership fees on 2 January each year. If the 2010 membership invoices are raised on 1 December 2009 the members don't have the VAT increase and the organisation would receive at least some of its membership income earlier.
The VAT rate to be applied to a sale normally depends on the tax point for that transaction. This tax point is usually when the customer receives the goods or services. However, that tax point is superseded by an earlier date if the money is received before the supply of goods or services, or by the invoice date if that invoice is raised within 14 days of the goods or services being supplied.
When the VAT rate changes in the middle of these dates, you can choose whether to apply VAT at the date when the goods were supplied, or the date the invoice is raised. If you supply goods on say 24 December 2009, but raise the invoice on 4 January 2010, you have the option of charging 17.5% VAT rate based on the invoice date of 4 January 2010, or 15% VAT based on the date the goods were physically supplied.
Where you are supplying a service over a period that straddles the VAT increase, the VAT man will, by concession, allow you to charge VAT at 15% for the portion of the work done before 1 January 2010 and 17.5% VAT for work done on or after that date. Alternatively you can apply the usual rules and charge VAT according to the date the invoice is raised, or the payment is received, which ever happens first.
There are tax-avoidance rules which will add an extra 2.5% supplementary VAT charge where the value of the sale (and connected sales) total more than £100,000, or the customer and supplier are connected, or the payment is due more than six months after the date of the invoice. Talk to us if your sales are likely to fall into any of these categories.
Tax Relief on Accountant Fees!
Certain MPs got into hot water recently for including the cost of preparing their personal tax returns in their expense claims. Employees and company directors, including MPs, are not permitted to claim the cost of personal tax advice, or the cost of preparing their personal tax return as a deduction from their taxable income. If those costs are born by their employer, the cost should be treated as a benefit in kind, reported on the form P11D and taxed accordingly.
Where an individual runs his own business as a sole-trader, his personal tax return must include details of the turnover, expenses and profits of his business. The cost of preparing and completing that part of the tax return is tax allowable as that cost relates to the business and not to the individual's personal affairs. Where the remainder of the personal tax return requires little effort to complete the Taxman will, by concession, allow the whole of the cost of preparing the sole-trader's tax return to be treated as a tax allowable business cost.
Mazuma’s New Head Office
Mazuma are delighted to announce the new Head Office (The Hub) for Mazuma has now opened in Bridgend, South Wales.
Located in newly refurbished offices within handy reach of Junction 35 of the M4, The Hub will act as the Head Office facility for Mazuma and the Mazuma Associates.
Sophie Hughes, Operations Director of Mazuma comments: "We are delighted to have a designated Head Office for Mazuma and to welcome aboard a new team of staff members. We are excited to have found such ideal premises and we look forward to many happy years here and welcoming further new members to our team".
The Hub will provide affordable and excellent accountancy services to small businesses throughout the UK that are not currently served by a local Mazuma office. The Hub will create over 30 jobs within the next twelve months and will have the facility to provide Mazuma's award-winning Purpleforce service to all areas of the UK.
Question and Answer Corner
Q. I have acquired a personalised number plate that spells out the name of my business. Can I put it on my business vehicle and claim tax relief for the cost?
A. The Taxman views the cost of a personalised number-plate, over and above what you have to pay to register the car, as an intangible capital asset. Companies can claim a deduction in their accounts for intangible assets acquired since 1 April 2002, but unincorporated businesses cannot. If your business is a company it can write-off the cost of the number plate over a reasonable period, which the Taxman will normally accept to be up to 20 years. If you trade in your own name or as a partnership, your business cannot claim a deduction for the cost, as the number plate does not qualify for capital allowances.
Q. My employer has just paid me a substantial sum described as 'damages' to compensate me for an injury I received at work. Will this payment be taxable?
A. Any payment to compensate for personal injury is not taxable. This applies whether the compensation is paid in one lump sum or as a series of periodic payments. Interest paid as part of the damages award is also tax free but interest paid because of the late payment of the award will be taxable.
Q. Can I set-off the losses from my sole-trader business against my employed income for the year?
A. Yes you can set the losses from your sole-trader business against your earnings from your employment from the same tax year, or from the previous tax year. If you started your sole trader business in the last four years, you can set-off the loss against your other income from the previous three tax years. However, the Taxman will need to be convinced that your sole-trader business is a real commercial business and not just a personal interest that you don't expect to generate a profit from. You will need to submit a personal tax return showing the business turnover, expenses and resulting loss. If your business turnover for tax year 2008/09 is £30,000 or more you will need to provide details on your tax return of the various categories of tax allowable expenses.
Key Tax Dates for December 2009
19/22 PAYE/NIC and CIS deductions due for month to 5/12/2009
30 Deadline for 2008/09 self assessment online returns to be filed if you are an employee and want tax underpaid to be collected by adjustment to your 2010/11 PAYE code (for underpayments of up to £2000 only).
VAT reclaim deadline for submission of all claims for non EU traders wanting to reclaim VAT in the UK
New Clients Welcome
In addition, if there's anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list. If you are not already a client and are interested in becoming one, we would love to come to meet with you to discuss how we can help and provide you with a competitive quote for our services.
All new client consultations are provided free of charge and without obligation.
Disclaimer
The information contained in this newsletter is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.
Monday 16 November 2009
Field Sales Executive
£17,000 - £22,000 p.a.
£25,500 - £33,000 p.a OTE
Plus Bonus & Incentives
Mazuma provides outsourced accountancy, tax and bookkeeping services to the small business market through our innovative Purpleforce service. Continued success has brought about the need for a full-time Field Sales Executive to join the Sales Team and play a key role in the development of the business.
This role will involve generating leads and selling Mazuma’s innovative and award-winning outsourced accountancy services throughout South Wales and surrounding areas, reporting to the Commercial Director in the Head Office in Bridgend. This is a new role in the company due to expansion and you will focus on generating a high level of new business.
Working towards set sales targets, you will have autonomy in the role, with the opportunity to progress into a senior role in the company. You will be required to take a strategic approach to developing sales, helping develop new ideas and processes for the sales function. You will be proactive in your search for new business and you will be provided with the tools to do this. You will be rewarded financially with an uncapped bonus structure and incentive schemes.
Requirements
• A proven track record of generating new business in a similar Field Sales business to business role
• Strong new business winner and relationship builder
• Excellent experience in generating business from cold leads
• Extremely target driven and motivated by financial reward
• Accounting or finance background is desired but not essential
• An outgoing, confident, enthusiastic, tenacious and proactive individual who works well under pressure and has the ability to multi-task is sought for this role
Benefits
• £17,000 - £22,000 salary per annum (37.5 hours per week)
• £25,500 - £33,000 OTE per annum
• Bonuses and incentives
• 24 days holiday a year plus bank holidays
• Expenses, laptop, mobile phone and use of company car after probationary period
If you are interested in this position and would like further information or request an application form please contact Sophie Hughes on shughes@mazumamoney.co.uk. Alternatively, please call 0845 310 5654.
Click here for more info
CLOSING DATE: MONDAY 30TH NOVEMBER 2009
£17,000 - £22,000 p.a.
£25,500 - £33,000 p.a OTE
Plus Bonus & Incentives
Mazuma provides outsourced accountancy, tax and bookkeeping services to the small business market through our innovative Purpleforce service. Continued success has brought about the need for a full-time Field Sales Executive to join the Sales Team and play a key role in the development of the business.
This role will involve generating leads and selling Mazuma’s innovative and award-winning outsourced accountancy services throughout South Wales and surrounding areas, reporting to the Commercial Director in the Head Office in Bridgend. This is a new role in the company due to expansion and you will focus on generating a high level of new business.
Working towards set sales targets, you will have autonomy in the role, with the opportunity to progress into a senior role in the company. You will be required to take a strategic approach to developing sales, helping develop new ideas and processes for the sales function. You will be proactive in your search for new business and you will be provided with the tools to do this. You will be rewarded financially with an uncapped bonus structure and incentive schemes.
Requirements
• A proven track record of generating new business in a similar Field Sales business to business role
• Strong new business winner and relationship builder
• Excellent experience in generating business from cold leads
• Extremely target driven and motivated by financial reward
• Accounting or finance background is desired but not essential
• An outgoing, confident, enthusiastic, tenacious and proactive individual who works well under pressure and has the ability to multi-task is sought for this role
Benefits
• £17,000 - £22,000 salary per annum (37.5 hours per week)
• £25,500 - £33,000 OTE per annum
• Bonuses and incentives
• 24 days holiday a year plus bank holidays
• Expenses, laptop, mobile phone and use of company car after probationary period
If you are interested in this position and would like further information or request an application form please contact Sophie Hughes on shughes@mazumamoney.co.uk. Alternatively, please call 0845 310 5654.
Click here for more info
CLOSING DATE: MONDAY 30TH NOVEMBER 2009
Thursday 12 November 2009
Mazuma Opens 7th Office!
Mazuma are pleased to announce the launch of Mazuma in Preston.
Mazuma is an accountancy practice serving the needs of small businesses and sole traders that has steadily grown into a national business since its formation in Cardiff in 2006. The franchise, The Mazuma Associate Scheme, was launched in October 2008 and seven Associates are now in operation across the UK.
Mubin Mohammed operates from Preston and is delighted to be the first Mazuma franchise operating in the North of England. Mubin comments: Mazuma is a fantastic accountancy practice to join. It is a company which understands and can fulfil the high expectations of fast paced modern society. As Mazuma associates our aim is to provide a stress free service which is great value for money.
Mubin joins after the successful trial of the first Associate that took place over two years, based in the North of Cardiff.
Sophie Hughes, Operations Director of Mazuma GB who operates the franchise, comments: "We have been overwhelmed with the interest that we have received since the launch of our exciting franchise. It is a unique offering and provides people with the opportunity to operate their own business under the vibrant and nationally recognised brand of Mazuma. With the launch of the seventh franchisee and more due to launch early 2010, we aim to reach and better our targets of launching 12 franchisees by the end of 2010. Despite the recession, franchising is set to boom and the Mazuma franchise is a terrific opportunity to take up at this time. We are thrilled to have an Associate based further North".
Various areas of the UK are still available and separated by postal regions and population in the areas. You must be a qualified accountant and hold (or be able to apply for) a practising licence through your accountancy body before you commence trading as a Mazuma Associate. We hold extensive training courses on how to build, manage and grow your business and market yourself when you become an Associate so you are not "thrown in at the deep end", and we are on hand for you once you are an Associate to help you along the way with tips and guidance.
If you, or someone you know are interested in this exciting opportunity please call us on 0845 310 5654 or email us at info@mazumamoney.co.uk to request a prospectus and application form.
Mazuma is an accountancy practice serving the needs of small businesses and sole traders that has steadily grown into a national business since its formation in Cardiff in 2006. The franchise, The Mazuma Associate Scheme, was launched in October 2008 and seven Associates are now in operation across the UK.
Mubin Mohammed operates from Preston and is delighted to be the first Mazuma franchise operating in the North of England. Mubin comments: Mazuma is a fantastic accountancy practice to join. It is a company which understands and can fulfil the high expectations of fast paced modern society. As Mazuma associates our aim is to provide a stress free service which is great value for money.
Mubin joins after the successful trial of the first Associate that took place over two years, based in the North of Cardiff.
Sophie Hughes, Operations Director of Mazuma GB who operates the franchise, comments: "We have been overwhelmed with the interest that we have received since the launch of our exciting franchise. It is a unique offering and provides people with the opportunity to operate their own business under the vibrant and nationally recognised brand of Mazuma. With the launch of the seventh franchisee and more due to launch early 2010, we aim to reach and better our targets of launching 12 franchisees by the end of 2010. Despite the recession, franchising is set to boom and the Mazuma franchise is a terrific opportunity to take up at this time. We are thrilled to have an Associate based further North".
Various areas of the UK are still available and separated by postal regions and population in the areas. You must be a qualified accountant and hold (or be able to apply for) a practising licence through your accountancy body before you commence trading as a Mazuma Associate. We hold extensive training courses on how to build, manage and grow your business and market yourself when you become an Associate so you are not "thrown in at the deep end", and we are on hand for you once you are an Associate to help you along the way with tips and guidance.
If you, or someone you know are interested in this exciting opportunity please call us on 0845 310 5654 or email us at info@mazumamoney.co.uk to request a prospectus and application form.
Wednesday 4 November 2009
A little something to help with Christmas!
It's that time of year again!
The kids are back in school...
Halloween is over...
Summer is but a distant memory...
And Christmas is looming!
Well, to help out with the inevitable burden of Christmas shopping Mazuma is running a special offer.
If you successfully introduce a friend (or even sign up yourself!) to Mazuma and our Purpleforce package before 18th December 2009, then we'll give you £20 worth of Love2shop vouchers which are accepted at 85 leading retailers!
Better still, if you successfully introduce more people than anyone else, not only will you get £20 of Love2shop vouchers for each one, but you'll be in with a chance of winning a bonus £100 worth of Love2shop vouchers! Just imagine how much that would help with the Christmas shopping!
So thinking caps on folks!
Do you work in a serviced office with other small businesses?
Are you based on a building site with tradespeople in need of a tax return?
Is your customer base brimming with sole traders and small Ltd companies?
Why not recommend Mazuma to them?
Don't forget, Mazuma operates Nationwide so there's no need to be close to one of our offices to take advantage of our award winning Purpleforce service!
Think you could recommend us to someone and get your £20 Love2shop voucher right now? Just forward this email to them and ask them to fill out the Get a Quote form here using promo code L2S"yourname" (so we know who to send the vouchers to!).
Once they've signed up we'll pop your voucher in the post to you and you can enjoy a stress free Christmas!
We look forward to hearing from you!
Please note: This offer is not available in conjunction with any other offers or referral schemes. Mazuma GB Ltd reserves the right to offer a different retail voucher of the same value in replacement for the stated Love2shop voucher. Vouchers will only be awarded where the person(s) introduced to Mazuma GB Ltd enters into a contract for Mazuma's Purpleforce service under the terms and conditions described in their letter of engagement. Bonus £100 voucher competition is for individuals who have successfully introduced more than 5 new clients to Mazuma under the conditions previosuly described and who have introduced more clients than any other participant. In the event of a tie a draw will take place.
The kids are back in school...
Halloween is over...
Summer is but a distant memory...
And Christmas is looming!
Well, to help out with the inevitable burden of Christmas shopping Mazuma is running a special offer.
If you successfully introduce a friend (or even sign up yourself!) to Mazuma and our Purpleforce package before 18th December 2009, then we'll give you £20 worth of Love2shop vouchers which are accepted at 85 leading retailers!
Better still, if you successfully introduce more people than anyone else, not only will you get £20 of Love2shop vouchers for each one, but you'll be in with a chance of winning a bonus £100 worth of Love2shop vouchers! Just imagine how much that would help with the Christmas shopping!
So thinking caps on folks!
Do you work in a serviced office with other small businesses?
Are you based on a building site with tradespeople in need of a tax return?
Is your customer base brimming with sole traders and small Ltd companies?
Why not recommend Mazuma to them?
Don't forget, Mazuma operates Nationwide so there's no need to be close to one of our offices to take advantage of our award winning Purpleforce service!
Think you could recommend us to someone and get your £20 Love2shop voucher right now? Just forward this email to them and ask them to fill out the Get a Quote form here using promo code L2S"yourname" (so we know who to send the vouchers to!).
Once they've signed up we'll pop your voucher in the post to you and you can enjoy a stress free Christmas!
We look forward to hearing from you!
Please note: This offer is not available in conjunction with any other offers or referral schemes. Mazuma GB Ltd reserves the right to offer a different retail voucher of the same value in replacement for the stated Love2shop voucher. Vouchers will only be awarded where the person(s) introduced to Mazuma GB Ltd enters into a contract for Mazuma's Purpleforce service under the terms and conditions described in their letter of engagement. Bonus £100 voucher competition is for individuals who have successfully introduced more than 5 new clients to Mazuma under the conditions previosuly described and who have introduced more clients than any other participant. In the event of a tie a draw will take place.
Monday 2 November 2009
Beware verbal tax advice!
Tax is complex! It is not always clear which particular tax, or what rate of tax applies to a transaction. The Taxman realises that businesses often have tax questions that need urgent answers, so he has set up a range of telephone help lines that each deal with specific areas of tax, such as VAT or the construction industry scheme.
Unfortunately these telephone help lines do not always give the correct answer. You may rely on a verbal assurance from a telephone helpline, but later get inspected by a Tax Officer who takes a different view of the situation and raises a penalty for the incorrect tax treatment. This does happen, and two recent cases have shown it is the taxpayer that suffers where there is a disagreement between the helpline advice and the Tax Inspector.
Case 1: In the first case Corkteck Ltd exported soft drinks to Poland through a third person: Sintra SA. The VAT help line told Corkteck that the exported drinks would be zero-rated for VAT. However, the VAT Inspector decided the drinks should have been standard rated as Sintra SA was not registered for VAT within the EU.
Case2: In the second case Acrylux Ltd hired out a private residential property for various functions, some of which lasted several days. The VAT helpline told Acrylux that the hire of the property would be exempt from VAT as it was not a commercial property. However, the VAT inspector said the hire of the property was similar to short-term holiday lettings and VAT should be charged at the standard rate.
In both cases the taxpayer could not prove exactly what facts had been presented to the helpline, or exactly what the helpline had given as its advice. If the advice had been requested in writing the outcome for the taxpayer may have been different. If you have a tax question, please ask us before reaching for the HMRC help lines. If you act on advice that later proves to be incorrect, you could pay a high penalty!
Unfortunately these telephone help lines do not always give the correct answer. You may rely on a verbal assurance from a telephone helpline, but later get inspected by a Tax Officer who takes a different view of the situation and raises a penalty for the incorrect tax treatment. This does happen, and two recent cases have shown it is the taxpayer that suffers where there is a disagreement between the helpline advice and the Tax Inspector.
Case 1: In the first case Corkteck Ltd exported soft drinks to Poland through a third person: Sintra SA. The VAT help line told Corkteck that the exported drinks would be zero-rated for VAT. However, the VAT Inspector decided the drinks should have been standard rated as Sintra SA was not registered for VAT within the EU.
Case2: In the second case Acrylux Ltd hired out a private residential property for various functions, some of which lasted several days. The VAT helpline told Acrylux that the hire of the property would be exempt from VAT as it was not a commercial property. However, the VAT inspector said the hire of the property was similar to short-term holiday lettings and VAT should be charged at the standard rate.
In both cases the taxpayer could not prove exactly what facts had been presented to the helpline, or exactly what the helpline had given as its advice. If the advice had been requested in writing the outcome for the taxpayer may have been different. If you have a tax question, please ask us before reaching for the HMRC help lines. If you act on advice that later proves to be incorrect, you could pay a high penalty!
Tuesday 20 October 2009
Guest Blog from James Daniel of EarthMonkey Creative Media!
Don’t steal Mazuma’s web copy – or anyone else’s!
Hello, and sorry for not being Lucy. But she’s asked me (as a copywriter) to throw my tuppence in, cos right now Mazuma is suffering a torrent of copycat writers – a gang of brazen hussies who’ve stolen the copy from the Mazuma website and pasted it (keywords and all) into their own humble pages.
OK, I guess Mazuma deserve some acclaim for being the target of choice for the scummy accountancy underclass. But you have to wonder who’d pull a scam like this – and what else would they happily swipe?
Would they copy and paste someone’s tax return and hope no-one notices that?
Who knows – but clearly these people are too daft to fulfil the business they’re trying to siphon off!
So why is this such a bad idea? Well here’s half a dozen good reasons:
1.Your copy is the voice of your business – an expression of your brand - and someone else’s copy will sound like them. NOT YOU!
2.You won’t get away with it – like Mazuma, any website owner will spot you in an instant and get their legal bods on the case. Then like the dimwits in question, you’ll face the trauma of your website going offline...
3.You’re adding to your workload. After the strenuous task of nicking someone else’s content, you’ll have to write something original before your site can re-launch!
4.Google hates duplicate content: they’re unlikely to penalise the original source, but they’ll probably omit your site from the search results.
5.If you do a straight cut & paste job, you could be pasting internal links from the original site – so you might end up sending traffic back to the site you’re ripping off!!
6.When (not if) your website is taken offline, you drop off Google’s radar – and that means climbing the greasy pole all over again. (Game over?)
So - all things considered, it’s not a great idea to use someone else’s content! Better to write your own...and if you’re stuck for ideas, I know a great course on writing for the web!
James Daniel is a copywriter and MD of EarthMonkey Creative Media. In his spare time he co-runs training events in South Wales for non-techie people who want to learn search engine optimisation.
Hello, and sorry for not being Lucy. But she’s asked me (as a copywriter) to throw my tuppence in, cos right now Mazuma is suffering a torrent of copycat writers – a gang of brazen hussies who’ve stolen the copy from the Mazuma website and pasted it (keywords and all) into their own humble pages.
OK, I guess Mazuma deserve some acclaim for being the target of choice for the scummy accountancy underclass. But you have to wonder who’d pull a scam like this – and what else would they happily swipe?
Would they copy and paste someone’s tax return and hope no-one notices that?
Who knows – but clearly these people are too daft to fulfil the business they’re trying to siphon off!
So why is this such a bad idea? Well here’s half a dozen good reasons:
1.Your copy is the voice of your business – an expression of your brand - and someone else’s copy will sound like them. NOT YOU!
2.You won’t get away with it – like Mazuma, any website owner will spot you in an instant and get their legal bods on the case. Then like the dimwits in question, you’ll face the trauma of your website going offline...
3.You’re adding to your workload. After the strenuous task of nicking someone else’s content, you’ll have to write something original before your site can re-launch!
4.Google hates duplicate content: they’re unlikely to penalise the original source, but they’ll probably omit your site from the search results.
5.If you do a straight cut & paste job, you could be pasting internal links from the original site – so you might end up sending traffic back to the site you’re ripping off!!
6.When (not if) your website is taken offline, you drop off Google’s radar – and that means climbing the greasy pole all over again. (Game over?)
So - all things considered, it’s not a great idea to use someone else’s content! Better to write your own...and if you’re stuck for ideas, I know a great course on writing for the web!
James Daniel is a copywriter and MD of EarthMonkey Creative Media. In his spare time he co-runs training events in South Wales for non-techie people who want to learn search engine optimisation.
Friday 9 October 2009
Beware email tax scams
Please note that HMRC is warning of a significant rise in email scams that offer a tax refund. These emails are designed to throw recipients off their guard by warning that the refunds are subject to a deadline which expires in the near future.
Some emails direct you to a website that looks just like HMRC's official one. Others invite you to either complete an online application or to dowload, complete, sign and then fax it to the number given. Both versions request your full bank or credit card details.
An alternative scam asks you to call a number to check your eligibility to the refund. Callers will hear a dialling tone but while waiting for an answer they will be charged £6 a minute!
Please note:
HMRC has not yet adpoted email as a way of communicating with the public, so treat any email offering you a tax refund as suspicious and report it to HMRC.
We have seen a significant number of our clients receiving these emails. They look very realistic and it would be very easy to be fooled by them.
As a general rule, if you are even slightly concerned that an email may be malicious, don't open any files attached to it, click on any links it contains, or telephone any numbers given within it.
Some emails direct you to a website that looks just like HMRC's official one. Others invite you to either complete an online application or to dowload, complete, sign and then fax it to the number given. Both versions request your full bank or credit card details.
An alternative scam asks you to call a number to check your eligibility to the refund. Callers will hear a dialling tone but while waiting for an answer they will be charged £6 a minute!
Please note:
HMRC has not yet adpoted email as a way of communicating with the public, so treat any email offering you a tax refund as suspicious and report it to HMRC.
We have seen a significant number of our clients receiving these emails. They look very realistic and it would be very easy to be fooled by them.
As a general rule, if you are even slightly concerned that an email may be malicious, don't open any files attached to it, click on any links it contains, or telephone any numbers given within it.
Thursday 8 October 2009
First Minister Offically Opens Office!
The First Minister for Wales, Rhodri Morgan, has helped accountancy firm Mazuma officially open its new Cardiff office.
Mazuma, a Cardiff based accountancy firm, which serves the needs of small businesses and sole traders, has opened a larger office in Rhiwbina in order to expand its offering to the Welsh business community.
Established in 2006 by Lucy Cohen and Sophie Hughes, the opening of the new shop front premises marks the next stage in their ambitious growth plans as they continue to franchise the company across the UK under the Mazuma Associate Scheme.
The business, which has witnessed a rapid growth in recent months, will double its number of Cardiff based staff and use the new location as a model office for potential franchisees to visit.
Said Sophie Hughes, Operations director of Mazuma: “Since launching Mazuma the business has grown rapidly over the last three years. We franchised the business in 2008 and currently have six offices throughout the UK with two based in South Wales. The move will be beneficial to all involved, allowing us to build on the range of services we can offer.
“As our business undergoes dynamic development in the months ahead, it is important for us to not only offer a wide variety of services but also become more easily available to our clients, allowing us in turn to conveniently service our growing customer base.”
On officially opening the new office, First Minister Rhodri Morgan said: “It is a pleasure to see a local Welsh business defy the recent economic downturn and expand its offering within the capital. The company has an outstanding reputation and I wish them well.”
Danielle Lewis has been appointed branch manager of the new Mazuma office. With over two year’s experience Danielle will head up the five strong team as she looks to grow the number of clients by a third over the next year.
Mazuma specialises in accountancy, bookkeeping, payroll. For more information visit www.mazumamoney.co.uk
Thursday 1 October 2009
Mazuma Congratulates a Livewire of a Client!
Mazuma would like to say a big congratulations to Michael Turner of Turnkey IT Solutions who has made the finals of the Shell Livewire Young Entrepreneur of the Year Award 2009. As finalists in 2007, Mazuma know all the hard work that went into getting there!
Michael Turner, 17 year-old proprietor of Weston Super Mare-based TurnKey I.T Solutions, has been selected from some of Britain's most talented young business people to be in with a chance of winning Shell Livewire's Young Entrepreneur of the Year Award 2009.
The award, hosted by one of the UK's longest-running youth enterprise schemes, offers young entrepreneurs, aged 16-30, the chance to win a cash prize of £10,000 and gain some great publicity.
Previous winners of this prestigious award, including Christian Arno of the hugely successful translation agency ‘Lingo24' and James Murray-Wells of multi-million pound GlassesDirect.co.uk have gone on to achieve phenomenal success in business.
Seventeen may seem, to most people, a very young age to be running a company, but Michael is already somewhat of a veteran to the business world.
Aged just 11, he set his own web venture up, building websites for small businesses in the local area.
Five years on, and after running numerous other successful ventures throughout his school days Michael left school at 16 and enrolled on a computing course at a local college. After just two weeks, he quit the course to set his own IT helpdesk, web consultancy, and business voice over IP technology to SMEs and public sector clients across the country.
‘The things they were teaching us were already three years out of date' Michael said. ‘With the rapidly changing nature of the IT industry, I knew that if I was going to get anywhere I needed to be at the forefront of any developments, not lagging behind. The only way I could see to do this was to go out there and immerse myself in the industry, and set my own company up'.
In the 8 months that followed, Michael developed his business from nothing, to an enterprise turning over £60,000+ with 3 members of staff.
Thanks to this extraordinarily fast growth, Michael has already been recognised for his business acumen and entrepreneurial style amongst local media and the Shell Livewire community.
He now hopes that he can achieve even more recognition for his achievements, an opportunity to expand his company even further, by winning the Shell Livewire Young Entrepreneur of the Year Award 2009.
‘It's a great opportunity for me to further the success of my company' Michael explained. ‘Being young is often looked upon as an obstacle in business and it's great that organisations like Shell Livewire celebrate and support young entrepreneurs, and spur them on to do even greater things'.
Michael is one of just 8 young entrepreneurs from across the UK to have been shortlisted for The Young Entrepreneur of the Year Award 2009. He and seven others were selected from 29 finalists to attend the final in London at Shell HQ.
The winner will be announced and awarded on Tuesday the 27th October at the Shell Livewire LIVE event.
The award, hosted by one of the UK's longest-running youth enterprise schemes, offers young entrepreneurs, aged 16-30, the chance to win a cash prize of £10,000 and gain some great publicity.
Previous winners of this prestigious award, including Christian Arno of the hugely successful translation agency ‘Lingo24' and James Murray-Wells of multi-million pound GlassesDirect.co.uk have gone on to achieve phenomenal success in business.
Seventeen may seem, to most people, a very young age to be running a company, but Michael is already somewhat of a veteran to the business world.
Aged just 11, he set his own web venture up, building websites for small businesses in the local area.
Five years on, and after running numerous other successful ventures throughout his school days Michael left school at 16 and enrolled on a computing course at a local college. After just two weeks, he quit the course to set his own IT helpdesk, web consultancy, and business voice over IP technology to SMEs and public sector clients across the country.
‘The things they were teaching us were already three years out of date' Michael said. ‘With the rapidly changing nature of the IT industry, I knew that if I was going to get anywhere I needed to be at the forefront of any developments, not lagging behind. The only way I could see to do this was to go out there and immerse myself in the industry, and set my own company up'.
In the 8 months that followed, Michael developed his business from nothing, to an enterprise turning over £60,000+ with 3 members of staff.
Thanks to this extraordinarily fast growth, Michael has already been recognised for his business acumen and entrepreneurial style amongst local media and the Shell Livewire community.
He now hopes that he can achieve even more recognition for his achievements, an opportunity to expand his company even further, by winning the Shell Livewire Young Entrepreneur of the Year Award 2009.
‘It's a great opportunity for me to further the success of my company' Michael explained. ‘Being young is often looked upon as an obstacle in business and it's great that organisations like Shell Livewire celebrate and support young entrepreneurs, and spur them on to do even greater things'.
Michael is one of just 8 young entrepreneurs from across the UK to have been shortlisted for The Young Entrepreneur of the Year Award 2009. He and seven others were selected from 29 finalists to attend the final in London at Shell HQ.
The winner will be announced and awarded on Tuesday the 27th October at the Shell Livewire LIVE event.
Michael Turner, 17 year-old proprietor of Weston Super Mare-based TurnKey I.T Solutions, has been selected from some of Britain's most talented young business people to be in with a chance of winning Shell Livewire's Young Entrepreneur of the Year Award 2009.
The award, hosted by one of the UK's longest-running youth enterprise schemes, offers young entrepreneurs, aged 16-30, the chance to win a cash prize of £10,000 and gain some great publicity.
Previous winners of this prestigious award, including Christian Arno of the hugely successful translation agency ‘Lingo24' and James Murray-Wells of multi-million pound GlassesDirect.co.uk have gone on to achieve phenomenal success in business.
Seventeen may seem, to most people, a very young age to be running a company, but Michael is already somewhat of a veteran to the business world.
Aged just 11, he set his own web venture up, building websites for small businesses in the local area.
Five years on, and after running numerous other successful ventures throughout his school days Michael left school at 16 and enrolled on a computing course at a local college. After just two weeks, he quit the course to set his own IT helpdesk, web consultancy, and business voice over IP technology to SMEs and public sector clients across the country.
‘The things they were teaching us were already three years out of date' Michael said. ‘With the rapidly changing nature of the IT industry, I knew that if I was going to get anywhere I needed to be at the forefront of any developments, not lagging behind. The only way I could see to do this was to go out there and immerse myself in the industry, and set my own company up'.
In the 8 months that followed, Michael developed his business from nothing, to an enterprise turning over £60,000+ with 3 members of staff.
Thanks to this extraordinarily fast growth, Michael has already been recognised for his business acumen and entrepreneurial style amongst local media and the Shell Livewire community.
He now hopes that he can achieve even more recognition for his achievements, an opportunity to expand his company even further, by winning the Shell Livewire Young Entrepreneur of the Year Award 2009.
‘It's a great opportunity for me to further the success of my company' Michael explained. ‘Being young is often looked upon as an obstacle in business and it's great that organisations like Shell Livewire celebrate and support young entrepreneurs, and spur them on to do even greater things'.
Michael is one of just 8 young entrepreneurs from across the UK to have been shortlisted for The Young Entrepreneur of the Year Award 2009. He and seven others were selected from 29 finalists to attend the final in London at Shell HQ.
The winner will be announced and awarded on Tuesday the 27th October at the Shell Livewire LIVE event.
The award, hosted by one of the UK's longest-running youth enterprise schemes, offers young entrepreneurs, aged 16-30, the chance to win a cash prize of £10,000 and gain some great publicity.
Previous winners of this prestigious award, including Christian Arno of the hugely successful translation agency ‘Lingo24' and James Murray-Wells of multi-million pound GlassesDirect.co.uk have gone on to achieve phenomenal success in business.
Seventeen may seem, to most people, a very young age to be running a company, but Michael is already somewhat of a veteran to the business world.
Aged just 11, he set his own web venture up, building websites for small businesses in the local area.
Five years on, and after running numerous other successful ventures throughout his school days Michael left school at 16 and enrolled on a computing course at a local college. After just two weeks, he quit the course to set his own IT helpdesk, web consultancy, and business voice over IP technology to SMEs and public sector clients across the country.
‘The things they were teaching us were already three years out of date' Michael said. ‘With the rapidly changing nature of the IT industry, I knew that if I was going to get anywhere I needed to be at the forefront of any developments, not lagging behind. The only way I could see to do this was to go out there and immerse myself in the industry, and set my own company up'.
In the 8 months that followed, Michael developed his business from nothing, to an enterprise turning over £60,000+ with 3 members of staff.
Thanks to this extraordinarily fast growth, Michael has already been recognised for his business acumen and entrepreneurial style amongst local media and the Shell Livewire community.
He now hopes that he can achieve even more recognition for his achievements, an opportunity to expand his company even further, by winning the Shell Livewire Young Entrepreneur of the Year Award 2009.
‘It's a great opportunity for me to further the success of my company' Michael explained. ‘Being young is often looked upon as an obstacle in business and it's great that organisations like Shell Livewire celebrate and support young entrepreneurs, and spur them on to do even greater things'.
Michael is one of just 8 young entrepreneurs from across the UK to have been shortlisted for The Young Entrepreneur of the Year Award 2009. He and seven others were selected from 29 finalists to attend the final in London at Shell HQ.
The winner will be announced and awarded on Tuesday the 27th October at the Shell Livewire LIVE event.
Tuesday 29 September 2009
We can Tweet, but can we say Cheap?
There has been a debate raging in Mazuma HQ this week about the use of the word “cheap”. Essentially the service that we provide at Mazuma is extremely good quality for an even better price, but should we describe it as cheap ourselves? If we are looking for a cheap product on the internet then we may well type that phrase into the search engine e.g. cheap accountant, cheap bookkeeping, cheap envelopes etc. Yet, were we to find a website that described its own product as “cheap”, would we put off it?
The answers I’ve had to the question from the folks at Mazuma are as varied as Gordon Brown’s tax changes; however, we are yet to reach an agreement!
The best answer I can divulge is that we may be looking for something cheap but implicitly the word cheap now seems to mean poor quality and none of us want to be classified as cheap by association. So what do we do? I’m a “call a spade a spade” type of person but I’m not sure I can lead the revolution on the word cheap alone!
I do however also hold a grudge against the phrases cost effective, good value, low cost and the like. I think they are poorly disguised substitutes for the word cheap!
So the debate at Mazuma HQ rages on. Cheap accountant anyone?
The answers I’ve had to the question from the folks at Mazuma are as varied as Gordon Brown’s tax changes; however, we are yet to reach an agreement!
The best answer I can divulge is that we may be looking for something cheap but implicitly the word cheap now seems to mean poor quality and none of us want to be classified as cheap by association. So what do we do? I’m a “call a spade a spade” type of person but I’m not sure I can lead the revolution on the word cheap alone!
I do however also hold a grudge against the phrases cost effective, good value, low cost and the like. I think they are poorly disguised substitutes for the word cheap!
So the debate at Mazuma HQ rages on. Cheap accountant anyone?
Monday 28 September 2009
National Minimum Wage rates 2009
National Minimum wage rates normally change on 1 October each year.
If you need to change your payroll, start thinking about it now!
In spite of negative inflation, there will be increases to the rates of minimum wage on 1 October 2009.
The new rates of minimum wage will apply from 1 October 2009. These show a small increase from the 2008 rates, the increases having been proposed while the rate of inflation was considerably higher than now.
The new rates and rates of increase are :
Full rate (age 22 and over) - new rate £5.80 per hour; old rate £5.73 per hour; increase 1.2%
18 - 21 rate - new rate £4.83 per hour; old rate £4.77 per hour; increase 1.25%
Youth rate - new rate £3.57 per hour; old rate £3.53 per hour; increase 1.1%
Don't forget to tell your accountant if you intend changing the salary of a member of staff.
If you struggle with the constant changes in the PAYE system it may be worth getting your accountant to process your payroll for you.
Help on the minimum wage is available from the HMRC website which has a dedicated National Minimum Wage area.
If you need to change your payroll, start thinking about it now!
In spite of negative inflation, there will be increases to the rates of minimum wage on 1 October 2009.
The new rates of minimum wage will apply from 1 October 2009. These show a small increase from the 2008 rates, the increases having been proposed while the rate of inflation was considerably higher than now.
The new rates and rates of increase are :
Full rate (age 22 and over) - new rate £5.80 per hour; old rate £5.73 per hour; increase 1.2%
18 - 21 rate - new rate £4.83 per hour; old rate £4.77 per hour; increase 1.25%
Youth rate - new rate £3.57 per hour; old rate £3.53 per hour; increase 1.1%
Don't forget to tell your accountant if you intend changing the salary of a member of staff.
If you struggle with the constant changes in the PAYE system it may be worth getting your accountant to process your payroll for you.
Help on the minimum wage is available from the HMRC website which has a dedicated National Minimum Wage area.
Friday 25 September 2009
Award Winning Customer Service!
Mazuma is named the regional winner of ‘Excellence in Customer Service' Category at The Chamber of Commerce Awards 2009!
Mazuma is an accountancy practice serving the needs of small businesses and sole traders, which has grown to a national business since its formation in Cardiff in 2006 by Sophie Hughes and Lucy Cohen. Mazuma has recently successfully launched its accountancy franchise throughout the UK and has recently embarked on a large expansion plan.
Sophie Hughes, Operations Director, Mazuma comments: "This is the second year in a row that we have won this catagory, and the third year in a row that we have been a regional winner in these prestigious awards. We are delighted to have won the Wales region and are looking forward to finding out the national winner in November".
"Accountants have been known to have a poor reputation for customer service so we are delighted that our accountancy and bookkeeping services have received such a good review!" says Lucy Cohen, Commercial Director, Mazuma.
The awards are to be held at a black tie event in the National Martime Museum in London on the 26th November.
Mazuma is an accountancy practice serving the needs of small businesses and sole traders, which has grown to a national business since its formation in Cardiff in 2006 by Sophie Hughes and Lucy Cohen. Mazuma has recently successfully launched its accountancy franchise throughout the UK and has recently embarked on a large expansion plan.
Sophie Hughes, Operations Director, Mazuma comments: "This is the second year in a row that we have won this catagory, and the third year in a row that we have been a regional winner in these prestigious awards. We are delighted to have won the Wales region and are looking forward to finding out the national winner in November".
"Accountants have been known to have a poor reputation for customer service so we are delighted that our accountancy and bookkeeping services have received such a good review!" says Lucy Cohen, Commercial Director, Mazuma.
The awards are to be held at a black tie event in the National Martime Museum in London on the 26th November.
Thursday 24 September 2009
When is paying a dividend illegal?
At Mazuma we see many clients who have a small limited company and use the dividends/salary split to maximise their tax efficiency. However, it can be tricky to know when you can pay a dividend and when it can look, well, a bit dodgy! Here is a low down on the main points to consider.
A dividend may be 'illegal', in that it is contrary to Company Law, when the proper procedures are not followed. If the Taxman examines the paperwork and decides the payment from your company was not a legal dividend he may treat the amount paid as a loan, or even as a bonus payment.
In both cases additional tax may be due from the company and sometimes from you.
To pay a legal dividend it is not sufficient just to write 'dividend' on the cheque stub or against the entry in director's loan account.
We recommend following these steps when paying dividends...
1. The directors should first review the profits available for interim dividends. This is not the same thing as funds in the bank account, as you have to take account of other assets and liabilities. Those deliberations should be recorded as a formal board minute, so if the Taxman ever asks, you can prove the profits were there when the decision to pay an interim dividend was made. If you are signed up for our Purpleforce service your monthly management accounts will assist you in making this decision!
2. If the final accounts for the year are complete and show the accumulated profit and loss account is positive, the directors can recommend the profits, which are not required for investment, can be paid out as a final dividend to the shareholders. The shareholders can either accept the directors' recommendation or suggest a lower figure of dividend. Both these decisions also need to be properly recorded at the time they are made.
3. Dividend vouchers need to be prepared when either a final or interim dividend is paid, for each shareholder showing the total due, the tax credit attached to the dividend and the date of payment.
4. The dividend should be paid. The payment can be transferred from the company's account by cheque or bank transfer into the shareholder's own bank account. If the shareholder is a director his account in the company books may be credited with the dividend due to him or her, but this needs to be done as soon as possible after the decision to pay a dividend is taken.
We can help you with all this paperwork, but it is important that the decision to pay a dividend is made in advance of any payment being paid out of the company.
A dividend may be 'illegal', in that it is contrary to Company Law, when the proper procedures are not followed. If the Taxman examines the paperwork and decides the payment from your company was not a legal dividend he may treat the amount paid as a loan, or even as a bonus payment.
In both cases additional tax may be due from the company and sometimes from you.
To pay a legal dividend it is not sufficient just to write 'dividend' on the cheque stub or against the entry in director's loan account.
We recommend following these steps when paying dividends...
1. The directors should first review the profits available for interim dividends. This is not the same thing as funds in the bank account, as you have to take account of other assets and liabilities. Those deliberations should be recorded as a formal board minute, so if the Taxman ever asks, you can prove the profits were there when the decision to pay an interim dividend was made. If you are signed up for our Purpleforce service your monthly management accounts will assist you in making this decision!
2. If the final accounts for the year are complete and show the accumulated profit and loss account is positive, the directors can recommend the profits, which are not required for investment, can be paid out as a final dividend to the shareholders. The shareholders can either accept the directors' recommendation or suggest a lower figure of dividend. Both these decisions also need to be properly recorded at the time they are made.
3. Dividend vouchers need to be prepared when either a final or interim dividend is paid, for each shareholder showing the total due, the tax credit attached to the dividend and the date of payment.
4. The dividend should be paid. The payment can be transferred from the company's account by cheque or bank transfer into the shareholder's own bank account. If the shareholder is a director his account in the company books may be credited with the dividend due to him or her, but this needs to be done as soon as possible after the decision to pay a dividend is taken.
We can help you with all this paperwork, but it is important that the decision to pay a dividend is made in advance of any payment being paid out of the company.
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