Monthly Archives: April 2015

The VAT law on prompt payment discounts changes with effect from 1st April 2015

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Drummond Laurie Chartered AccountantsThe current position is that where a supplier offers a prompt payment discount (‘PPD’), they are allowed to account for VAT on the discounted price even if the discount is never taken up.  From 1st April 2015, VAT will be payable on the consideration actually paid. This is to protect the loss of revenue under the current rules and ensure compliance with EU law. However it is going to increase the administrative burden for both suppliers and customers.

For suppliers, they will have to now account for VAT on the full price at the time of issuing the invoice.  If offering a PPD the rate of discount offered must be shown on the invoice.  The supplier must decide at the time the invoice is raised which method of accounting to adopt if the PPD is taken up.  The first option is to raise a credit note to reflect the reduction in consideration.  Read More

Charitable Donations Popular Among Estate Planners

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Drummond Laurie Chartered AccountantsAlmost a fifth of people plan to leave money to charity when they die, according to research by the AA.

Of the 1,500 people surveyed, 18% intend to use part of their estate to make charitable donations. It suggests a gender gap between the amount of men and women planning to give to charity: 22% of women said they would give part of their estate to charity, compared to 14% of men.

There is also a gap between the number of men and women who have not written a will. 36% of women are yet to write one, compared to 26% of men.

Of those who haven’t yet written a will:

  • 51% said they hadn’t gotten around to it
  • 28% want their estate passed to their children or surviving partner
  • 12% don’t think the value of their estate justifies making a will
  • 5% think it’s too expensive.

Reduce your inheritance tax bill with charitable donations

Giving assets to charity can make a huge difference to your inheritance tax (IHT) bill. Leaving 10% or more of the net value of your estate to charity will reduce the rate of IHT on some assets from 40% to 36%.

Talk to us about lowering you inheritance tax bill. For an initial chat, please call Ian Bilsland on 01738 450415 or email ian.bilsland@drummmondlaurie.co.uk

Marriage Allowance

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Drummond Laurie Chartered Accountants

From April 2015 married couples and civil partners will be able to transfer up to 10% of their personal allowance to their spouse.  This new allowance will be known as the ‘marriage allowance’.

The Government has estimated that up to 4 million couples could be eligible for this new tax break where Tax savings of up to £212 per year could be realised. It will not be available to couples born before April 1935 as a separate Married Couples Allowance applies.  Read More

Swimming Above Budget for Charity!

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Drummond Laurie Chartered Accountants

Drummond Laurie has recently taken part in the Polmont Rotary Swimarathon helping to raise funds for various local charities with in the Falkirk area.

The team, David Wheeler, Jane Wheeler, Gillian Miller, Margaret Bunyan, Graeme Kelly and Cara Hamilton were delighted with their effort.

They raised an impressive £465 and managed 135 lengths of Grangemouth swimming pool in the allocated 55 minutes, this was all well above budget and is now our target to beat for next year!

swimarathon feb15

P11D Employee Benefit in Kind

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Drummond Laurie Chartered Accountants

BACKGROUND

Employers who provide taxable benefits to their staff will be aware that they have a   responsibility to report these to HM Revenue & Customs (HMRC) at the end of each tax year. This is done through the P11d form. The typical benefits which are reported include;

  • Private medical insurance
  • Company cars and fuel
  • Employee loans
  • Employee living accommodation

PROBLEM

Where taxable benefits such as these are provided to a large number of staff, the preparation of the P11d forms can be onerous and can result in a very heavy administration burden. This burden normally falls on the already busy HR or Finance department of the employer and must be completed within a tight deadline to avoid potentially large penalties.

SOLUTION

Drummond Laurie Chartered Accountants have built an expertise in the preparation and submission of P11d returns. For many of our clients, this removes from them a huge administration “headache”!

COSTS

We are preparing P11d forms in bulk and so we benefit greatly from economies of scale. As a result, our costs for providing this service can be extremely competitive. These are dependent on the number of staff receiving taxable benefits and on the quantity and type of benefits provided.

NEXT STEPS

Please contact our P11d co-ordinator Alastair Herbert for a no obligation quotation.       Alastair can be contacted by phone on 01324 441254 or by email at alastair.herbert@drummondlaurie.co.uk

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