Introducing Mr P!

Introducing Mr P!

At Mazuma we are famed for our Purple Envelopes and the relief that they bring to small businesses.

Our Purple Envelopes are responsible for the relaxed demeanours and timely accounts of many small businesses across the UK!

With this in mind we thought that it was about time we introduced you to Mr P, our chief Purple Envelope!





Mr P has been with Mazuma from day one and if you ever asked him he’d tell you he’s the real brains behind the operation (although we know he’s just an envelope!).

He has, however, been instrumental in shaking up the accountancy industry and forcing less forthcoming accountancy practices to focus on customer service, just like Mazuma do. It’s made him very popular with Mazuma and our clients, but a little less popular with some more traditional accountants, which is why he’s hidden his light under a bushel until now!

Mr P will be introducing lots of snazzy new features like the online Refer A Friend scheme. (Don’t forget if you refer a friend and they sign up, you’ll get £25 of retail vouchers!)

You can also follow him on Twitter or read his blog.

Mr P will be making a regular appearance in newsletters, on the website and across the UK over the coming months so look out for him. He might just have a rather fantastic competition in the pipeline too, so watch this space!

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.

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.