Employers P35 Return

If you’re an accountant, February 14th isn’t all about flowers and chocolates. It’s an important day for Employers because it’s the last day before the deadline (15th February) for the submission and payment of the 2010 P35 Returns to the Revenue Commissioners.

What is a P35?

A P35 Return is the annual summary of all amounts (Income Tax, Employers and Employees PRSI together with the Income Levy) payable by an Employer to the Revenue Commissioners for the 2010 tax year. These are listed by Employee and the total amount on the P35 Return should equal the sum of the P30 Returns submitted during 2010. Any shortfall in the amount paid during the year is to be paid with the P35 Return. The P35 return also gives the Revenue the required information about each individual employee and will correspond with the P60 form, together with the Income Levy Cert that is issued to each employee at this time.

The P35 Return can be submitted in paper format or electronically via ROS. In order to avail of the electronic submission facility, you must be registered with your accountant as a ROS client. Registration is straightforward and can be done very quickly. We recommend electronic submission of the P35 return, and all other Revenue tax forms, as it ensures you beat the deadline and there are no issues with delays in the post etc. A late submission of a P35 Return will automatically result in a fine.

The most common mistake relating to the failure to submit a correct P35 Return is the use of incorrect PPS numbers for Employees. If a PPS number is invalid, the P35 Return will be rejected by ROS so it’s a good idea to check all employees PPS numbers well in advance of the submission date.

As always, if you have any other queries re the submission of your p35 Return, please don’t hesitate to contact the office.

The Similarities between changing your engine oil and maintaining your accounting system…

No, this is not an article about motor maintenance; however, maintaining your accounting system is similar to changing the oil in your car. In short, if you don’t maintain them both, they will cost you more money in the long run. Why? I hear you ask. Well, it’s simple. As the oil becomes old and more water like, the lubrication is less effective and the engine wears prematurely as a result. The same could be said for your accounting system. If your books of accounts are not maintained, they will cost you more in the long term especially if used for management accounting purposes.

For example, we were recently approached by a lady who had been successfully running her company for the previous twelve months and needed her accounts filed. Her bookkeeping was completed by her husband. “Everything is complete”, she said. “All you need to do is sign and file the accounts with the Companies Registration Office.” Nothing could have been further from the truth. We received the ‘shoe box’ of receipts along with a folder of bank statements, minus two months! As for the accounts, well let’s just say that unfortunately the Companies Registration Office don’t accept multiple sheets of handwritten notes with figures! After reviewing the file we quickly came to the conclusion that the only way to proceed was to start the whole job again. Of course, this work has to be reflected in the price, much to the consternation of the client who believed that “everything is complete”.

In summary, the point that I’m trying to make is, don’t waste your time trying to cut corners on accounting fees, as it really is a waste of time! It also leads you into a false sense of security, thinking that everything is fine when, in some cases it’s not!

Managing Your VAT to Improve Your Cash Flow

In today’s market where cash is king it’s important to have a greater control over your cash flow and to look at ways to improve it. One way to improve cash flow is to look at your system of recording and paying VAT.

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Out With The Old And In With The New – Economy!

Shock and horror as the government announce the details of the €85 billion bail-out by the IMF & EU but is it all as bad as the media are making out? Do we need to draw down the full amount of the contingency fund? What does contingency mean? How many zeros make up a billion? All these questions and no answers…

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Vince Cable (UK Business Secretary) Backs Monthly Management Accounts

Article from Accountancy Age

A campaign to persuade more small businesses to undertake monthly management accounts has received the backing of business secretary Vince Cable.

The Doing Business Together (DBT) campaign, which includes the CBI and the British Bankers Association, received the boost as Cable was preparing to launch a series of forums today to generate support.

The campaign has at its centre Chris Poll, the entrepreneur behind Future Route/CreditPal, the company with software designed to aid the production of monthly accounts.

He founded the campaign “in an attempt to close the gap between SMEs and the finance and credit industry by facilitating an increase in awareness that will hopefully result in improved trust and understanding,” according to the DBT website.

In short DBT aims to make it easier to access credit through the creation of more up to the minute accounts.

The Financial Times reports today that Vince Cable had remarked that the campaign “sounds eminently sensible”. He is reported saying DBT would bring “together lots of different groups with an interest in small business financing, a sector where there are serious problems”.

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Tax Return Season – The Worst Thing To Do Is Nothing!

It comes but once a year and no, it’s not Christmas! Yes, tax season is upon us once again. This is the time when all proprietary directors must file a form 11 by the 31st October 2010 for the tax period ending 31st December 2009. However, this is not just limited to proprietary directors! Anyone with additional income will need to file a tax return also. This includes rental income and even if you believe you have made a loss on the rental property, you must still file a return by the deadline. Also included are deposit interest and all worldwide incomes. So, if you have a U.S or European bank account accruing interest, you’ll need to make a return for this also.

Where Do I Start?

You can start today by sending us your contact details and a brief summary of your investments. We will return to you within a few hours. If you own investment property or possess high interest bank accounts, THE WORST THING YOU CAN DO IS NOTHING! Contact us today and give yourself peace of mind.

When Spending Money Saves You Money – The Values of Management Accounting

An uncomfortable silence spread through the board room as the directors mulled over the presented year end financials until the managing director spoke up with a strong rhetorical question… “Why have we produced a seventy thousand euro loss?”

About fourteen months previously the company had some cash flow problems and thought the best way to deal with them was to cut back on their overheads or as we refer to in the business, non-value adding activities and unfortunately for this company, that included the management accounting & reporting!

Obviously, the reduced overheads left the company in a better position but they weren’t able to tell because they didn’t have up-to-date management reports. Now, don’t get me wrong on this, the client were by no means stupid. They were senior qualified professionals with multiple years of business experience behind them but this doesn’t mean that they were management accounting experts!

After finishing the meeting I felt compelled to write this article as it really brought home to me the value of the management accounting and management reporting work that I do. The non-value adding activities have some value after all!

The point is that year end financial statements are produced months after the end of the financial year. Therefore, the reports produced are history. The value of the information from them will only cause heart ache or vanity from a director’s point of view. If the company had continued to invest in their management accounting and management reporting structure, they could have tackled the problems within days of them happening. If corrective action was taken, they would have reduced the loss and possibly produced a profit. After all, isn’t that what they are employed to do?!

Warning! Bogus Phone Calls and eMail Contact

Revenue has issued a further warning to taxpayers to be vigilant of individuals claiming to be Revenue officials and seeking personal information (e.g. PPSN numbers or addresses, details of earnings) and/or demanding payment of tax.  Readers are advised that, if they receive a telephone call purporting to be from Revenue, or receive an email or other contact demanding payment, of about which they have doubts, they should contact their local Revenue Office or Revenue’s Collector General’s Division.

Income Tax Deadline… What are you waiting for?

October 31st 2010 is the deadline for the self employed, Directors and people declaring other forms of income outside of PAYE, for example, Investment rental properties!

The reason why I’m writing this article is as follows, I have been a practicing accountant for over eight years and every year I am baffled by the amount of people that come to me in a panic on or around the 31st Oct, needing to complete their tax returns from the previous year. Yes, you read correctly, from the previous year!

This means that the 31st Oct 2010 is the deadline for all worldwide incomes to be declared to the Revenue Commissioners for the year ending 31st December 2009. Therefore, you have ten months to get your act together.

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