CACM Accountants — Certified Public Accountants

Dear Reader

Welcome to our March e-zine. If there is anyone else that you feel may benefit from any of the articles in this month’s issue, please feel free to pass it on to them.

Would you like a facility where you are reminded of important dates in the Business Calendar by email? CACM Accountants provides this facility by embracing Social Networking sites. Already established on LinkedIn, this month saw the launch of CACM Accountants on Twitter and Facebook. We will send important reminders only, and dates for your diary out to anyone who registers, even if you are not a client.

Visit www.CACMaccountants.ie to register for the free facility of your choice, LinkedIn, Ezine and Twitter and become a fan on Facebook.

If you have any queries or require further information or assistance with any of the topics below, please do not hesitate to contact me to arrange your free initial consultation on 021 421 7474 or e-mail: info@CACMaccountants.ie

Carla Manning ADCA CPA 

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PROTECTING YOUR BUSINESS SERIES

Cash is King - how to manage your cashflow.

Do you actively manage your business cash flow or does the lack of cash govern the way you manage your business? All businesses, regardless of their stage of development require working capital. Now, more than ever, cash flow is critical for all businesses and where there is a danger that a business might exceed its financing facilities, a short term cash flow forecast can help plan a way forward. It is advisable for businesses with cash flow problems to prepare a daily forecast of receipts and payments. A cash flow statement can be very useful for banks to assess whether the business has enough cash to generate cash to repay a loan.

Steps can be taken by management in order to try to maintain a steady cash flow. Some examples include – incentives for early or immediate payment, negotiate terms with your suppliers, ask for deposits if you are in a business where you provide custom made goods and maintain a tight credit control system. A tighter credit control system can help a business to identify potential bad debts and take appropriate steps to reduce them.

While trying to manage cash flow, don’t forget to review your tax situation. In respect of VAT, subject to certain conditions being met, you may qualify to account for VAT on a cash receipts basis instead of invoice basis. Budget 2010 also introduced a scheme where employers may not be required to pay ER’s PRSI. All areas should be reviewed to ensure that you are availing of all relevant schemes, credits and reliefs that maybe available to you. It can have a significant impact on your cash flow.
The problem of insufficient cash to pay immediate creditors has brought down many a profitable and innovative business. With the assistance of cash flow forecasting, management can often steer the business through a cash crisis until the situation has stabilised or until it can devise appropriate longer term solutions.

For further information or for assistance please contact CACM Accountants on 021 421 7474 or e-mail info@CACMaccountants.ie

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KBC Ireland/ESRI Consumer Price Index results for February 2010

The overall KBC Ireland/ESRI Consumer Sentiment Index was weaker in February at 59.4. This compares to a figure of 64.6 in January and at its all time low in July 2008 when the index was at 39.6.

Commenting on the results David Duffy, ESRI, said;

· “The results for consumer sentiment indicate a weakening in February, following an improvement in January.”
· “Some weakening of consumer sentiment was anticipated at the time of the improvement in January. In the past consumers have become more positive about purchasing major household items every January, reflecting, at least in part, the winter sales, followed by a more subdued figure in February. This pattern has continued, contributing to the moderation in consumer sentiment.”
· “Although the decline in sentiment reflects in part a post-sales effect, it is noticeable that the decline is also driven by consumers becoming more negative in their perception of the outlook for the labour market and the economy.


In addition, Austin Hughes, KBC Ireland, noted:

· “The surprise in the February survey is that consumer sentiment seems to have held up reasonably well. A poorer buying climate was responsible for about three quarters of the drop in the Index last month. It was inevitable that consumers spending intentions would weaken once the sales ended and bills related to Christmas spending began to arrive. However, the buying climate was still stronger in February than in the latter stages of 2009. So, the sharp decline in Irish consumer spending may be coming to an end although the survey doesn’t point towards any prospect of a dramatic rebound anytime soon.”
· “The February consumer sentiment reading at 59.4 is still well below the 14 year survey average of 91.8. So, Irish consumers are still fairly downbeat about the broad economic outlook and their personal finances. However, the underlying trend seems to be improving marginally. The February results suggest consumers expect conditions will remain tough in 2010 but not quite as terrible as they were in 2009. It is very obvious that consumers do not expect the Irish economy to be strong or to recover in a straight line but the message from the February report implies they still expect economic conditions to get better rather than worse in the coming year.”

  Download the latest report here.

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RETURN AND PAYMENT DATES FOR THE MONTH OF APRIL 2010

April 14
PAYE/PRSI:
P30 monthly return and payment for March 2010
P30 quarterly return and payment for January/March 2010

DWT:

Return and payment of DWT for March 2010

PSWT:

F30 monthly return and payment for March 2010

RCT:

RCT30 monthly return and payment for March 2010

April 21
Corporation Tax:

Preliminary Tax for Accounting Periods ending between 1st -31st May 2010

Returns for Accounting Periods ending between 1st -31st July 2009

Pay balance due on Accounting Periods ending between 1st – 31st July 2009

April 30
Returns of Third Party Information for Accounting Periods ending between 1st – 31st July 2009
 

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Tax Treatment of Married Couples

Married Couples can be assessed in either of the following ways:

• Joint Assessment
• Separate Assessment.
• Separate Treatment/Assessment as Single Individuals.

The deadline for claiming separate assessment and nominating an assessable spouse for 2010 is 31st March 2010.

Joint Assessment

Joint Assessment is usually the most favourable basis of assessment for a married couple. One of the spouses assumes the responsibility for the joint tax liability. The credits and reliefs can be split between the couple in whatever way they wish - (certain credits are not transferrable) If both spouses are in employment, both will re ceive a certificate of tax credits and standard rate cut off point. The flexibility that Joint Assessment offers can be very convenient where one spouse is an employee and the other spouse is self employed and pays tax under the Self Assessment system.
Election must be made on or before 1st April in the tax year.

 Separate Assessment

This Basis of Assessment is available to couples who opt for this treatment. Each spouses tax affairs are independent of the other spouse. Tax credits are divided equally between the spouses (with some exceptions such as PAYE credit). Any unused credits or standard rate bands may be transferred to the other spouse - but only at the end of the tax year by review.
A claim must be made within 6 months before 1 April in that year. Separate Treatment: (Single Individual)
Under Separate Treatment each spouse is treated as a single person for tax purposes. Each spouse receives tax credits and rate bands appropriate to a single person and cannot claim relief for payment made by the other spouse.

Don’t know what the best option is for you? Then contact CACM Accountants today.

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RCT 35 for 2009

The filing deadline for the Form RCT 35 2009 was 15th February 2010 (23rd February if filed on ROS)

When completing the Form RCT 35 for 2009, principal contractors may have come across circumstances where gross payments were made to a subcontractor who had a valid C2, but where the principal contractor did not have a payments card for that subcontractor. Where the error is exceptional and a qualifying disclosure is made to Revenue within one month of the filing date, Revenue will not seek to impose the normal tax, interest or tax-geared penalties. Instead, a fixed penalty (currently €3,000) will apply to each instance of the failure to deduct the correct tax.

Revenue is extending the time limit for making a disclosure in relation to the 2009 RCT 35 return by a further month to 15th April (23rd April for ROS customers). You may wish to review your RCT 35 return for 2009 and if necessary make a qualifying disclosure of any errors made, along with the accompanying payment, to your local Revenue Office.

This extended deadline does not refer to an extension to the actual filing date of the RCT 35 for 2009, but only to the time in which is available to make a qualifying disclosure for the return already filed.

If you have any queries or require further information on any of the above, please do not hesitate to contact CACM Accountants on 021 4217474 or by e-mail on info@CACMaccountants.ie

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 SERVICES CACM Accountants PROVIDE

• Taxation Service & Advice
• Accounts Preparation
• Audit
• Payroll Services
• New Business Start Up
• Company Secretarial
• Outsourced Accounting Services
• Management and Business Advisory Service -
• Litigation & Forensic Accounting

CACM Accountants strive to offer the best possible service for its clients. With vast business experience, across many business sectors, we will always keep our clients at the heart of our firm.

CACM Accountants, Atrium Business Centre, Blackpool,Cork. To ensure our emails reach your inbox please add News@CACMaccountants.ie to your address book. To unsubscribe from our ezine send us a reply e-mail by clicking here. This E-zine is intended to provide a general guide to the subject matter and is in a condensed form. Advice should be sought from a professional advisor before acting on any information in it.
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CACM Accountants strive to offer the best possible service for its clients. With vast business experience, across many business sectors, we will always keep our clients at the heart of our firm.

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