June 2006 Newsletter
CONTENTS:
- WE'RE (NOT) ALL GOING ON A SUMMER HOLIDAY
- WHO GOT ALL THE PERKS?
- THE FINAL DODGE
- MORE RIGHTS FOR THE TAXMAN - CONTINUED
- TOO SHY BY HALF
The long hot summer is almost upon us! And with regular nine to fivers packing up and taking off on their holidays, it's a busy time for freelancers. But are freelancers at risk of burning out before they ever get to the beaches and sizzle in the sun?
If you're a freelancer, don't forget to take a holiday. That's the advice of Barclays Bank; although your G.P. and your travel agent will no doubt be in compete accord! According to Barclays about a fifth of all freelancers find creative inspiration on their holidays. It doesn't just give you the opportunity you need to recharge and refocus it gives you rich, productive thinking time. It gives you the opportunity to sort out your strategies and plan ahead. Most of all, it gives you the best reason of all for not fretting about the here and now.
CPM endorses holidays too! We're determined to make your working life easier, and that means giving you every opportunity to take a break. We'll still be here, ensuring your payment admin is up to date and your legislative responsibilities are all take care of. Just give us a call if you want to discuss arrangements for your pre-holiday pay and we'll do everything we can to send you on your way with a smile on your face!
So think about it. Can you afford to take the time out of your busy schedule for a week or two? Can you afford not to? Look at it this way: a couple of weeks in the sun will actually enable you to redouble your efforts when you get home. You'll make up for lost time in no time!
And if you just can't manage a holiday we're told any major life affirming experience will do. So, it's either a few weeks on the beach or having a baby! Your call!
So if the summer's here, the World Cup can't be far behind. You may have noticed! And that means as sure as eggs is eggs and as sure as a few million football fans' hearts will be broken come July 9th; workplace absenteeism is going to rise.
Human Resources gurus Croner have conducted a survey to determine just how bad it's going to get. Stress and metatarsal strains may well be the order of the day as the UKs young male workforce stay off in their droves. Of the 2000+ workers polled by Croner, it is thought that one in seven of them (mostly men) will be pulling a 'sicky' or two during the four week festival of football!
For freelancers passionate about their football, the World Cup could serve as yet another reason in the long list of reasons why self employment is such a very good idea. For all the hard work and long hours, at least being freelance gives you a little more latitude than most office workers. It's one of the advantages of working in conjunction with CPM. Leave the admin to us and sit yourself down for a couple of hours, secure in the knowledge that youve earned it; secure in the knowledge that it's business as usual for us.
So whether you take that deserved summer holiday or not, it's comforting to know that its a good life being a freelancer. After all, you get all the perks!
One man who won't be enjoying the footballing festivities this summer is Gregory Huggett; now embarking on a five year prison sentence for defrauding HMRC. The 39 year old accountant was convicted of six offences, ranging from theft of clients' money, through submission of false tax returns, to conspiracy to defraud.
Specifically he defrauded friends and clients out of almost £600 000, which he invested on their behalf in a bogus investment scheme. Not only that; he understated his clients' tax liabilities, and pocketed the resulting sum of £790 000, whilst assuring them he was forwarding all monies to HMRC. The cost to HMRC of this little scam alone was £485 000!
Huggett enjoyed an increasingly elaborate lifestyle funded by his duplicitous activities. His family were treated to lavish holidays and he lived a life beyond the means of the common or garden tax man! Huggett treated himself to an Aston Martin, and, not content with one Ferrari, bought two!
Huggett's many underhand activities netted him hundreds of thousands of pounds over a four year period. But he just couldn't sustain the lifestyle hed created. His empire finally imploded and Huggett was declared bankrupt in 2004, by which time he was in hock to the tune of £4.5 million.
In sentencing Huggett, Judge Mathieson spoke of the loss and suffering brought on his victims, many of whom had lost their businesses as a direct result of his misdealings. Some of Huggett's clients even had to return to work, having previously retired.
HMRC and CPM are united in their condemnation of this repellent behaviour. We know how hard it can be to manage your responsibilities to the taxman - and how hard it can be finding the right specialist to manage your accounts. That's why we're here. We maintain the very highest standards of equity and integrity in our dealings with clients. Our aim is to lessen the administrative and financial burden on our tax payers and that is what we will continue to do. If you have any concerns about any aspect of your tax responsibilities, or if youre finding out about the benefits that a tax umbrella company can give; talk to us. We'll be happy to help.
You might remember that back in January we reported that HMRC had been granted further powers in their quest to see and know everything about everyone! As if their powers of investigation didn't go far enough, HMRCs victory over Barclays Bank at a recent tax tribunal means they now go a lot further! Barclays have been compelled to disclose details of their customers' offshore accounts to HMRC. That information in itself could be worth up to £347m in revenue for the taxman!
But don't underestimate HMRCs ambitions. If the ruling in this case (to all intents and purposes a test case) is then extended to all major British banks it could eventually net them a cool £4bn in unpaid taxes. Offshore accounts have seemingly been synonymous with underhand dealings and tax evasion for as long as HMRC have had eye to see it. And now that overseas accounts are commonplace, HMRC couldnt have picked a better time to strike.
HMRC will likely leave no stone unturned in their quest for the missing millions in undeclared interest. Not only that, but wherever there is evidence of non declaration of interest, there will in turn be a full blooded and exhaustive examination into the provenance of those funds; even whether those monies have been legitimately taxed too.
In other words, it's time for everyone to get their financial houses in order. Any undeclared interest found in overseas accounts will be traced, taxed and investigated. Anyone with any doubts as to their offshore accounts and tax affairs should take immediate ameliorative action. Get in touch with CPM and take advantage of our expertise. We can advise you on the very best ways to get your affairs in perfect order before the tax man comes sniffing.
Are UK freelancers too shy for their own good? That seems to be the message of new research by @UKPLC suggesting that our freelancers are far too polite to sing their own praises!
Apparently were chock-full of money making schemes and inventive wheezes, but, in the main, we don't really think of ourselves as trailblazing entrepreneurs or business people. This is in spite of the government drive to promote self employment and highlight the ideas and creativity of the existing self employed workforce.
Perhaps the government are fighting a losing battle. After all, what chance have they got in swaying the public perception of what it means to be an entrepreneur in the face of Sir Alan Sugar's bombastic antics on the BBC? Somehow we need to get back to basics. Entrepreneurial behaviour is a lot less about sharp suits and attitude and a lot more about initiative, guile and good ideas.
So what can the government do to inspire us to take greater pride in our entrepreneurial spirit? It has been suggested that a single overriding policy governing any and all creative enterprises, irrespective of size, would encourage more potential freelancers to cash in on their creativity and give in to their freelancing and entrepreneurial ambitions. Presently, freelancers tend to miss out on the sort of government benefits that are awarded to small businesses, in spite of the fact that they offer an enterprising service to a wide range of clients.
Essentially being an entrepreneur is about taking considered risks and utilising innate skills in a way that conventional nine to five employment doesnt afford us. Freelancers are the true face of entrepreneurial Britain; taking opportunities, going it alone and leading the working life that's right for them; right for business and right for the UK economy.
Don't be shy: "remember you're a freelancer" (with apologies to Mike Batt!)
