On the seventh day of Moore and Smalley’s Sage Christmas – CIS with Sage Accounts


With Sage 50 CIS you can automatically produce your monthly CIS return and calculate any CIS tax due.  It will check your details prior to submission, making sure you get it right each time.


If you would like to know more or would like any pricing information on Sage products, please contact  me on 01772 821021.

What can be done to boost the manufacturing sector?


Manufacturers are calling for a government-backed autumn of action on business growth – and they have put forward some compelling arguments.


The industry group EEF believes removing barriers to investment and expansion should be pivotal to government policy. The call to action follows Lord Heseltine’s independent review of how government departments deliver growth policies and financial support.


Removing hurdles to growth


The EEF says the review should spur the government to remove hurdles facing dynamic companies that can drive sustained growth through trade and investment.


It wants to see action to deliver funding, a ‘systematic attack’ on the cost and regulatory burden on businesses and improve export support services to manufacturers aiming to enter new markets.


Terry Scuoler, chief executive of EEF describes the Heseltine Review as welcome recognition that all parts of government must back companies aiming to expand to create a more prosperous economy.


Manufacturers will also applaud the review’s opinion that support for exports needs to be better resourced and more accessible. In addition, the report advances some thought-provoking views on how business can play a greater role in influencing the way government budgets are spent and how business support is delivered.


Making it easier to take on new employees


The report chimes with Moore and Smalley’s research with SMEs which found that cutting the rate of employer National Insurance contributions would stimulate businesses and the economy. Our online survey found that 40 per cent of business owners would prefer a cut in the rate of employer NICs to other tax cuts because they believe lower NICs would encourage businesses to create new jobs at a time when company finances are stretched.


The report also reflects our conviction that growth simply won’t happen on its own. Something needs to be done to galvanise investment, invigorate entrepreneurial activity, and activate job creation.


Lord Heseltine has produced insightful analysis of how we can generate a more competitive economy. His report provides some useful ammunition and it is now for the government to look into ways of firing it.


Taxman’s construction clampdown can be challenged


Contractors are being encouraged to challenge potentially “unfair” penalties imposed under stricter enforcement of tax rules for the construction industry.


HM Revenue & Customs (HMRC) launched a consultation in 2009 on proposals to tackle what it saw as an abuse of the Construction Industry Scheme (CIS), a system that ensures construction firms and subcontractors pay the correct amount of tax.


This clampdown has led to cases where the taxman has rescinded a contractors’ gross payment status if they have failed to meet strict new compliance obligations.


Gross payment status allows subcontractors to be paid in full without having any deductions taken from their payment. Loss of the status can result in a serious impact on business cashflow, possible breaches of contract with the main contractor, and lost opportunities to tender for future work.


However, Carol Watters of Moore and Smalley Chartered Accountants and Business Advisors, has helped some subcontractors successfully challenge the removal of gross payment status.


Carol Watters, a tax manager at Moore and Smalley, said: “The removal of gross payment status can be potentially ruinous for some subcontractors, especially in these fragile economic conditions and depressed property sector.


“In a number of cases, we have successfully appealed against the HMRC’s decision and had the subcontractor’s gross payment status re-instated, particularly where the subcontractors’ failure to pay tax on time was caused by a third party or some other unforeseen circumstance.


“Because of these scenarios, it has been problematic for HMRC to draw the line and each case is likely to be judged on its own set of circumstances. I would urge subcontractors who have been threatened with the removal of gross payment status to contact a professional advisor, as it may be possible to successfully appeal the decision.”


According to Carol tax inspectors have to follow a strict set of rules that have very little leeway, which has led to some cash-stricken subcontractors having their gross status removed after just one failed payment.


Carol says contractors and subcontractors can minimise the tax risks to themselves in these difficult financial times by working with HMRC to ensure compliance with CIS rules and seeking professional advice when required.