Access Accounting - Blog

Time is ticking but it’s not too late

We’ve been pushing for businesses that will be affected by the changes to the Construction Industry Scheme (CIS) to update their software since last year and we've continued to push ever since then. There’s also been much publicity in the press recently - Pay Magazine covered the topic in its January and February editions and Accountingweb has been covering the topic for a while with Accountancy Age recently reporting on the lack of readiness for the changes according to a survey undertaken by KMPG.

There are of course, many questions still being asked so I thought it might be worthwhile to recap on what the CIS changes mean for the industry:

• Vouchers will no longer be required – this refers to the monthly CIS23, CIS24 and CIS25

• The subcontractor cards and certificates are also no longer required (CIS4, CIS5, and CIS6)

• You’ll need to keep detailed records of all subcontractors for payments and deductions. There will be no annual returns but instead there will be a monthly return to HM Revenue & Customs (you’ll have the choice of electronic or paper format) including the new monthly Subcontractor Payment & Deduction Statement

• Any subcontractor verification will be done by phone or online

• TTQT - or Tax Treatment Qualification Test as it is known - will determine if a subcontractor may be paid gross or have tax deducted at either the standard or higher tax rate before they’re paid.

For more information on Access CIS or a copy of the BASDA guide visit: www.access-accounts.com/cis

Kevin Misselbrook, customer services director

Business vision! What’s that all about?

One of the greatest truths of life is that pro-active people are far more effective than re-active ones. Pro-active people make things happen because they take action; re-active people see things happen around them because others have taken action. The same is true for any business or organisation.

It’s common for some companies to feel like they are forced to spend money on business and IT solutions. The driving force behind the spending is generally a negative push away from an undesired state or pain. In business this pain can take on many forms. For example:

- Realisation that a critical leadership tool like reports is totally unreliable and inaccurate

- The high cost of maintaining an outdated and inadequate system

- Constant interruptions because of speed issues and system failures

Ignoring these vital signs of a failing system will end in disaster. Staff will leave, sales will drop, costs will sky rocket and the end will be in sight.

Changing your system because of these failings is necessary and unavoidable, if the business is to survive in today’s market. However, the issue here is that the implementation of the new system is re-active rather than pro-active based on design and planning.

Having a clear company vision with goals and aspirations set out from day one is vital and will align every action and spend. The business has to act every day with the end result in mind. Investment in human resources, IT, new capital equipment and research will all make sense if it can be mentally validated against the vision of the business.

Having a vision becomes ultimately beneficial when the leaders of the business plan investment accurately to achieve their goals. Information and the technology that stores and presents this information is a crucial aspect of any business. When the future of the business is planned, investment in the accuracy and reliability of the information which the business needs should be considered carefully.

Pro-active organisations will consider their business system needs for the future, validated against a clear vision. I propose a new phrase for the proactive business: “If it isn’t broke, that’s great! However, will this system provide us with what we need to achieve our goals?”

Mark Fermor, Sales Manager

Sustainable businesses 'should receive tax cuts'

Firms which use sustainable practices in business should be rewarded by the chancellor with cuts in corporation tax, an accountancy company has said.

The Guildford branch of PFK is calling for the cuts as an incentive for other companies to become more eco-friendly, with a proposal of reducing tax to 25 per cent for businesses which are carbon neutral, the Surrey Advertiser reports.

"Business is tired of being harangued over its environmental performance by a government that has increased its tax burden and the level of red tape but given no financial incentive to improve," said Peter Jun Tai, PKF's tax partner.

He added that the government should provide more incentives for companies to make green investments and give them a target to aim for.

Gordon Brown sent a message to homeowners through the announcement of a stamp duty exemption for carbon-neutral houses; it is now time for him to do the same for businesses, Mr Jun Tai concluded.

Earlier this month, head of PC building company Dell told the Consumer Electronics Show in Las Vegas that IT should take the lead in environmental issues.

Do you agree that a cut in corporation tax goes far enough? Are there any other incentives that you'd also like to see implemented? Post your comments.