Operating Manual
Contents
1. Rempldoc14 doc doc a word file containing many letters minutes and other proformas relating to the correct application of the spreadsheet Remplidoc14 doc pdf a pdf version of the above file which is accessed from the spreadsheet If you require any assistance installing the templates please consult the user manual which will also be installed as a Word document in the C sorpaid remplan14 folder on your computer Alternatively you can email Alternatively you can email info sorpaid com Please ensure you put sorpaid in the subject line to overcome our spam filter The manual and the quick installation guide can now be used These are located in the folder C sorpaid aremplan14 on your computer We would suggest you read these documents before proceeding further Refer also to the section in the manual on How the files are installed and located on your computer Your files will have now installed refer to the section on Your files will have now be ready to be used sorpal decom from Peter Brown amp Co It might be useful to create a shortcut to both the manual and the excel templates in the working folders and place them on your desktop If by accident you overwrite the template or it becomes corrupt you can download another copy by accessing your account on www shop sorpaid com using your email address and password When loaded by left clicking 105 rempl14 xlt will behave like any other Excel temp2. section of this manual Future upgrades will address this issue PAY Individuals income already included in draft acs for this company As noted above the corporation tax profits entered should include any salary already provided via PAYE or by creditor in the draft accounts In order to allow for this in the personal taxation section the salaries already accounted for and included in the corporation tax profits should be scheduled and entered in this data entry section This should be broken down by individual for each of the accounting years involved showing gross tax deducted NI deducted and employer s NI all as included in the corporation tax profits already entered RES Reserves available for dividend Dividends can only be voted if there are reserves available to fund them As bonuses and salaries are entered to the template this may have the effect of reducing reserves to nil so there is a validation test built in to ensure that a dividend is lawful To make this validation test work correctly the reserves position must be entered Enter the amount of reserves available for dividend per the draft accounts ending in the fiscal ye 31 03 2014 arrived at BEFORE deducting any dividends already paid for the year but AFTER INCLUDING AND DEDUCTING the remuneration already provided in the section above but EXCLUDING any Corporation Tax provision You might wish to prepare a supporting schedule on the Schedules worksheet
3. April 2013 Similarly dividends could be paid in the company accounting period ended in the fiscal year 31 March 2015 year 2 and the dividend payment dates could fall into the income tax year ended 5th April 2015 or 2014 For example a company with a year end of 31 August 2014 falls in the fiscal year ended 31 March 2015 but it could have paid a dividend on 31 October 2013 which will fall within the income tax year ended 5th April 2014 You should enter the dividend payments for each individual participator and for any third party outsiders in aggregate analysing them to each of the four input areas by reference to the dividend date You may need to prepare a supporting schedule Because shareholdings can change in a way that is unpredictable we have deliberately not automated this analysis by reference to share capital etc Dates that have already passed For dates that have already passed you MUST use the actual dates of the dividend payments as the data source for the input In the bundle of documents is a guidance note on the law relating to dividends Click here You CANNOT backdate or amend past dividend minutes You have to live with what has already happened sorpalducom from Peter Brown amp Co Dates in the future This is where the true strength of this analysis tool comes into its own and where you can be creative and flexible to your client s benefit By entering future dividends and varying the dates
4. legislative data and should not normally be altered It should be checked periodically to see that it is up to date However with care it can be altered provided no rows or columns are deleted This can be done by unlocking the cells for data entry using the Excel protection commands under tools You should be very careful to ensure that you are aware of the effects of any changes Any data should be entered exactly in the form shown in the original template ie 20 or 20 etc After update relock the data using the tools protection command For fuller details see Changing parameters following legislative changes and changes in allowances and bands Completion of Data Entry The Data Entry is now complete you should now return to the top of the Front page Effect of Data entered to this point Before proceeding you will now note that the total projected tax liabilities over the two years is shown on the basis of the data already entered As you proceed this total will change A breakdown of the total can be viewed by clicking on the link 5 Proceeding with the analysis entering salaries Until this point we have suggested that a junior might be entering the data We would now suggest that a more senior staff member should review the data entered to date and should now proceed with the subsequent stages of the analysis Entering salary and bonus details We would suggest that this data and the subsequent dividend da
5. section of the data input you will have to give details of what is included in the profits for such items However do NOT subsequenily adjust these figures for bonuses etc to be paid the template itself will make the necessary adjustments when you enter the underlying data PART Names of shareholders and directors participators You enter here the names of up to six participators who are involved over the two tax years 2013 14 and 2014 125 This will cover most situations but if you have more than six then aggregate the excess over five and enter them as the sixth entry preparing a supporting schedule which can be recorded on the schedules worksheet You might then need subsequently to make manual adjustments to the tax calculations for this sixth individual sorpalducom from Peter Brown amp Co You also enter the NIC letters for each tax year and indicate whether the individuals are exempt from NIC The defaults are letter A and N for not exempt The default NI letter is A but it can be overridden however this will not alter the inbuilt calculations This template provides for Class A contributions only and does not allow for age exemptions any other class or exemption will require a manual adjustment to be entered The difference may not be material in many cases but a manual adjustment can be calculated and inserted These are noted as limitations in the template in the Limitations and Parameters
6. users would be welcomed by email to info sorpaid com sorpaid som from Peter Brown amp Co Changing parameters when legislation changes This template is drawn up under legislation as it applies at 28 February 2014 In this period of economic uncertainty there are emergency budgets in addition to the regular annual budgets that could change some of the parameters and assumptions on which this spread sheet is built Some changes may be far reaching in which case we would advise users of the implications at the time Others may be simple changes in rates and allowances These can be accommodated within the spreadsheet but great care must be taken Guidance on how to do this will be issued by Sorpaid at the time if appropriate but users can make the relevant changes themselves WITH CARE The standard template which is used as the working master This will be a file ending in the suffix xit should be copied as a backup for safety reasons and then should be opened up as a template Go to the tab marked Data Go to the tools menu and click on Protection Unprotect the worksheet Then go to the link at Row 28 and click on PERM Tax and NI Data This will take you to the parameters that are used for the spreadsheet There are various columns containing data for different years Select the particular parameter that has changed for example it might be the Employers NI contribution for 2014 15 whic
7. when they are made and by toggling the related salaries etc you can vary the amount of income tax corporation tax and NIC payable by all involved Before you do this however bear in mind the following aspects that are not covered by this tool a Salaries just over the NIC threshold are deemed to be low earnings and for state pension purposes only and for no other purpose the recipient is deemed to receive double the NI threshold and can obtain a larger state pension as a result This deemed payment is not affected by other sources of income bad parliamentary drafting b Dividend and salary levels can have an impact on state benefits be relevant in divorce proceedings or obtaining a mortgage or affect pension contributions for tax purposes Review the notes on dividends which look at these aspects in a little more details Click here All these and similar areas are beyond the scope of this tool but a wise professional advisor will keep these points in mind Having considered these points enter into the input areas the details of the dividends you wish to pay and toggle the salaries and the allocation of salaries to produce the best overall result for your client by keeping the overall tax liability under review as the data changes 7 Reporting to the client and seeking sanctions and minutes Having arrived at the best result for your client by going to the Reports page of the template you can see a report
8. which is drafted based on the figures in the spread sheet By editing the contents of the text boxes you can alter the text in the report and by altering the print parameters you can print a suitably presented report to you client However that is NOT the end of the matter HMRC are becoming keener and keener on examining supporting documentation relating to salaries bonuses and dividends and also to the allocation to respective years Your paperwork has to be precise and accurate if your client is ever challenged Remember that interim dividends are only effective on the date they are paid not the date they are approved Interim dividends are approved by directors This is why a transfer to a loan account is not ideal and why minutes should make it clear that any such transfer is irrevocable Only final dividends approved by the shareholders are effective on the date they are approved sorpalducom from Peter Brown amp Co All stages in the process even the adjustment of accounts by the accountants to reflect the allocation of dividends should be fully documented In the bundle of documents that is attached to this package is a series of letters minutes and other documents that will help to validate the transactions that have occurred Omission of any part of that documentation is in our view unwise and could lead an accountant open to a negligence claim Summary work sheet The summary worksheet shows the det
9. Note that the hyperlinks in this document may not work if the document is viewed through certain internet browsers They will work if the document is downloaded to disk They also may not work on pdf versions but will work on the Word version which is on your disk 02 14 001 05 sorpaid com 4 sorpai from Peter Brown amp Co Spreadsheet for planning the optimum Combination of dividend and salaries For company participators For the years 2013 14 and 2014 15 Operating Manual February 2014 Peter Brown amp Co Chartered Certified Accountants and Registered Auditors Acomb Grange Grange Lane York YO23 3QZ Tel Fax 0871 288 2391 Sorpaid Shop Product code TAX 0105 14 Peter Brown amp Co is a trading name of Undershot Ltd Registered in England Co no 4114468 Director P Brown Bsc Hons FCCA FCIE DchA Peter Brown amp Co has been awarded the ACCA Quality Assurance Mark NOTE Excel 2007 compatibility Vista compatibility and Windows 7 AND 8 compatibility We are not aware of any compatibility issues with recent or proposed upgrades to Excel or to Vista Windows 7 or Windows 8 but if any problems are experienced by users then please bring them to our attention 4 sorp paid com from Peter Brown amp Co Spreadsheet for planning the optimum Combination of dividend and salaries For company participators For the years 2013 14 and 2014 15 Operating Manual Contents Overview Log in to your account at_the S
10. ailed tax calculations for you to inspect and if necessary form the basis for revising the data input sorpaid som from Peter Brown amp Co Limitations and parameters The template permits data entry or calculation relating to the vast majority of taxation situations It does not however cover some very rare situations eg NIC for mariners There is a facility whereby manual adjustments can be entered to allow for such situations by adjusting the total of in the case of mariners the NIC liability There are also some more common situations not catered for for which a manual adjustment will have to be entered The intention is that these will be dealt with in future releases and include e Age allowance and married man s allowance a manual adjustment under tax payable will have to be made with a supporting schedule e Restrictions to pension reliefs to higher earners under the new legislation coming into force in 2011 12 The reason for this is that there are factors such as prior year earnings which have an effect on this which cannot be computed without considerably more data entry A manual adjustment to the relief claimed and or the tax payable will have to be made with a supporting schedule e Only NIC contributions under contribution letter A are provided for A manual adjustment to NIC payable will have to be made with a supporting schedule e Employer s NIC rebate for occupational pension schemes are n
11. al issues and taxation considerations for charities engaged in trading activities Consultancy We offer a consultancy service Telephone help line to charities other accountants and trustees on a fee basis that is agreed at the For a fee of 100 per year another firm of accountants can have telephone support on technical charity issues terms and conditions apply Audit If a charity is subject to audit and you are not a registered auditor we can take instructions to act as auditors where you still do the underlying accountancy work and we carry outa pure audit on terms to be agreed directly with the client There is no geographical limit to this service 4 sorp paid com from Peter Brown amp Co Appendix 3 Known problems and conflicts The following are known issues and solutions are set out in this appendix Conflict with operating systems error message contact vendor click here Error message workbook is read only click here A conflict between Excel and the templates that can occur on rare occasions with certain operating systems and how to deal with it It appears there may be a conflict between certain of the macro commands used in the templates with certain versions of Windows and Excel This only applies to our charity templates and does not affect the remuneration planner template The following problem has been identified on certain Excel installations and comes to light when you first attempt to s
12. ave a workbook using a template Occasionally due to security routines built into Excel the templates are flagged as read only on a computer installed from CD This only applies to our charity templates and does not affect the remuneration planner template sorpail decom from Peter Brown amp Co Terms and conditions upon which the templates are supplied These terms are detailed in the document sorpaidterms14 pdf the terms and conditions disclaimer copyright and other technical matters in PDF form By using the spreadsheet you will be acknowledging you have read and agreed with every item in that document We would therefore suggest you do this before proceeding This document was displayed on our website prior to your purchasing this product and was downloaded to your computer in the archive subfolder of this product where it can be examined
13. come Earned income from all other sources this is the aggregate gross figure and will include self Employed income etc holiday lets etc Savings income Gross before tax deducted from all savings sources Dividend income Net of tax credits ie the amount actually paid Taxable lump sums Gross Taxable Gains on life policies The gross amount subject to INCOME tax Tax deducted Tax deducted from savings the default is automatically calculated but can be overwritten Tax credits from dividends the default is automatically calculated but can be overwritten Class 4 NIC as included in the SA NIC as deducted from earned income PAYE as deducted from earned income If any income tax was deducted from lump sums or from gains on life policies then include that in the tax deducted from earned income Reliefs Net personal pension contributions paid if pension contributions are restricted in any way then enter the amount eligible for tax relief or enter a manual adjustment to the tax liability subsequently a supporting schedule may be required Gift Aid payments enter the NET amount paid Retirement annuity payments enter the GROSS amount paid and deal with any restrictions in the same way as for personal pensions Accountant s name and address enter the details sorpail decom from Peter Brown amp Co PERM Tax and NI Data see link from row 28 on the Data sheet on the spreadsheet This is
14. dates or reinstallations of your products When the expiry or renewal date of any product is approaching you will be sent an email inviting you to renew Expiry and renewal details e Free upgrades for the life of the 2014 version to 31 12 14 covering planning for the years 2013 14 and 2014 15 You can make sure you have the benefit of any upgrades by logging in to your account on the Sorpaid Shop website e 2015 version enabling planning for 2014 15 and 2015 16 available for purchase in January 2015 The update to the 2015 version valid until 31 12 15 can be purchased when available and may be run alongside the 2014 version This software is specific to the tax years 2013 14 and 2014 15 the 2014 version and will need to be updated to the version for 2014 15 and 2015 16 the 2015 version before 31 March 2015 Users of the 2014 version will be entitled to free upgrades until 31 December 2014 Such free upgrades will only relate to the 2014 version The 2015 version will have to be purchased separately This is expected to be released in January 2015 We will issue reminders to users suggesting they purchase the 2015 version in January 2015 sorpaid som from Peter Brown amp Co Frequently asked Questions and news of updates On the website www sorpaid com you will find news bulletins posted which deal with frequently asked questions and also details of any corrections or updates that have been issued and how
15. ders in companies With all the recent major taxation changes computing what is the best combination of salary bonus and dividends to achieve the most tax effective result can be quite complicated This spreadsheet assists in the task and can be downloaded for 13 plus VAT A range of bookkeeping and analysis tools for those clients who are too small for a computerised accounting system or for use by staff when working from incomplete records Rented property analysis and CGT record for use when preparing rental statements This is a file that can be downloaded to help calculate profits ion property rentals and retain permanent data for CGT purposes Model file for preparing a solicitor s client money report Money laundering checks and procedures documents and model files New client procedures bundle of documents Bundle of model engagement letters Bundle of documents and letters for managing the accounts production process Bundle of documents and letters for managing the audit process Electronic working paper files linking into VT accounts production files sorpal decom from Peter Brown amp Co Courses We have a programme of courses on practice management and technical issues We can organise bespoke courses for an individual firm or a group of firms tailored to their specific training requirements on a very cost effective basis Costs start from 300 per day plus travelling costs Charity based products The follo
16. ding in the fiscal year 31 March 2014 to include the salary figures already entered in the accounts sorpail decom from Peter Brown amp Co This figure would normally EXCEED the figure already provided in the accounts which is shown in column E as this will have been accounted for under PAYE This figure will have been already entered in the data entry section However under company law a directors salary unless covered by a service agreement only becomes lawfully available when approved by the shareholders It is therefore possible to reverse salary already provided so the figure in column A can in principle be less than the figure in column E However care should be taken to see that there is no conflict between the PAYE rules and the Company Act procedures as there is a difference in the meaning of becoming available between the two areas of legislation Similar details should be entered in column F for the accounts ending in the fiscal year 31st March 2015 Column J is the equivalent of column E Effect of these entries Before proceeding you will now note that the total projected tax liabilities over the two years is shown on the basis of the data already entered and this will probably different from the previous time you looked at it As you proceed this total will change A breakdown of the total can be viewed by clicking on the link You can go back and alter the figures if you do not like the result Enterin
17. dsheet from SORPaid Before installation you must first have installed Excel 2000 or above The templates will not operate if this programme has not been installed Most users will be able to download these files from the Internet with no problem However the zip files on the Internet are quite large and if you do not have broadband it is possible in some cases that your Internet service provider may have not supplied you with a big enough buffer to download If you are unable to download from the Internet then please contact us by telephone An installation file called will be downloaded which you can save to be run at some time in the future or which you can run immediately The files will be located in a folder C sorpaid remplan14 Previous year s versions of the templates will not be overwritten and can be reused on future occasions but the current year templates will be updated as required During downloading you may receive a security alert Please be assured that these files have been virus tested and are known to be safe for installation To install Do not change the default folders in the unzipping process 1 Download the file from the Sorpaid shop This will be automatic on clicking the download button associated with your product 2 Click Run when invited to do so Do not press Save unless you want to save the file for future installation If you do save then save it with a memorable name to a locatio
18. eneral use subject to the licensing and other legal terms described elsewhere in these notes Because it is assumed that any users of these templates and documents not only have a good working knowledge of Excel and Word but also are qualified accountants then the help and support on the technical aspects of these templates is limited We are able to offer limited telephone support on initial installation but after that Peter Brown amp Co reserve the right to charge a professional fee for the time engaged Any purchaser of the templates and documents would be advised when it was felt that a fee basis would be appropriate and the fee basis would be discussed and agreed before proceeding Fuller details of Peter Brown amp Co can be found on www sorpaid com 4 sorp paid com from Peter Brown amp Co Appendix 1 28 02 14 Other products from SORPAID available from the SORPaid shop www shop sorpaid com See our website for full particulars www sorpaid com or contact us for details on 0871 288 2391 or email us at info sorpaid com General Practice Products all of these are very low cost products see below for charity based products A technical procedures handbook and guide for technical and junior staff when preparing accounts of sole traders and small companies Bundles of documents to manage and control a tax practice preparing and submitting tax returns A dividend and remuneration planning tool for directors and sharehol
19. es or projected figures This data excludes any bonuses or additional salary to be paid through the company and any dividend payments by the company This will then give a base tax position over the two years forecasting tax payments in different categories and their due dates The spreadsheet is programmed to calculate these payments on the basis of all known tax rates bands etc excluding certain identifiable items which can be manually adjusted For example age allowance is not presently catered for and neither is the pension relief clawback for higher earners These will be incorporated in future releases but at present a manual adjustment will be required Having arrived at this base tax position you can then enter as many combinations of dividends and salaries as you wish apportioned over differing tax years and allowing for the various allocation elections that are available You will be alerted if you attempt to enter a dividend figure which is greater than the available reserves You will then be able to establish a combination that will produce the aggregate lowest possible combination of NIC Income Tax and Corporation Tax and identify how payment due dates may be varied It may be that higher taxes but paid at a later date may be preferable to the lowest overall tax bill It might also be necessary to factor in other reasons why a particular type of income may need to be maximised or minimised A report is then automatically d
20. g salaries the second stage Allocating salaries to years This is optional there is no requirement to do this but it can have beneficial effects Return to the top of the Front page Click on the link next to the narrative 2b Allocating income to tax years This allocation utilises the possibility that if detailed and specific resolutions are made by the board then tax relief on salary payments are deductible in a company accounts and will be permitted as such by HMRC so long as they are paid and made available to the individual within nine months of the accounting year end The salaries so allocated are accounted for under PAYE and in the SA returns on the date they are made available which may be a different tax year to the company accounts Clearly salaries in an accounting year end of 30 June or earlier cannot benefit from this concession The bundle of documents attached to this package contains resolutions and minutes to enable this to be properly documented Firstly deal with any allocation brought forward form 2013 Enter this in column M Then if you wish to defer part of year 1 ie ending in the fiscal year ended 31 March 2014 into the self assessment year ended 5th April 2015 enter the details in column N Ensure you are legally able to do this ie was the income made available less than nine months after the year end and did it fall into the year ended 5th April 2015 and not 2014 Then if you wish to defer par
21. h has changed from 13 8 to 24 8 Overwrite the relevant data in the yellow cells being very careful about what you alter and how Go to the tools menu and click on Protection Protect the worksheet choose a password if you wish but if you do ensure you have a note of it Save the revised template 4 sorp paid com from Peter Brown amp Co Changing parameters following legislative changes The spreadsheet is up to date and covers the legislative position at the date of purchase However the law can change and indeed taxation law is EXPECTED to change with the annual budget and Finance Act If there are fundamental changes in the underlying principles then it is possible that these spreadsheets may need major change However assuming that is not the case it is still to be expected that a number of the taxation parameters will change while the spreadsheet is still current In order to deal with this the particular parameters where it is possible they may change between the date of purchase and the end of the relevant tax years the following procedures should be followed The legislation worksheet should be unlocked using the Excel locking facility on the tools menu This may be in a different location depending on the version of Excel and after changing them should be relocked again using the tools menu Changing these parameters will affect all related calculations 47 sorp paid com fro
22. ill be marked with buff text sorpalducom from Peter Brown amp Co 1 Using the file to analyse future tax liabilities Using the file is easy and intuitive once the structure of the file is understood However a working knowledge of both Excel and taxation law is required The spreadsheet is locked to prevent incorrect data entry or deletions so that data can only be entered into blue cells If the spreadsheet is unlocked for any reason NEVER delete any rows or columns even if they appear blank as they may contain hidden data 2 Loading a new file Using the shortcut to the template open up a new Excel file and save it as a worksheet with a name that is meaningful and in a location where you can find it Do not modify the original template As you work on the file load it and reload it from the location in which you saved it When working on the file start on the home page which is marked with the tab Front 3 Contents of the file There are the following tabs on the work sheet Front Data Summary Report Schedules The Front sheet contains the main instructions on using the template and has the working area in which dividends and bonuses can be entered to identify the various taxation payments The Data sheet contains two sections The first is the client specific data which is input by the operator The second is the data to be found in legislation which drives the tax calculations eg tax rates and bands NIC
23. ing in the fiscal years ended 31 March 2014 and 2015 eg 31 08 2013 and 31 08 2014 The format MUST be 31 08 2013 to be picked up correctly by data formula AS1 Number of associated companies Enter the number of associated companies excluding the company being analysed le if there are no other associated companies enter 0 if there is one other associated company then enter 1 and so on PROF Taxable profits and franked investment income For the first accounting period you may well have accounts taken to an advanced draft stage that only needs the final bonuses and dividends to be decided For the second period you will need to make informed estimates as to what the figures are going to be If it is a year end that is early in the fiscal year you might have a good idea of these estimated profits from management accounts otherwise you might have to use budgets and projections You enter here the corporation tax profits as drafted estimated for each of the two accounting years The profits to enter are the TAXABLE profits after adjustment for depreciation non allowables capital allowances etc Franked investment income should not be included in the profits figure but should be entered separately in the box provided Your draft figures may be arrived at AFTER already entering salaries etc to participators If so you enter the profits after charging these items as if they were a normal business expense but in a later
24. late and will allocate a name to a new file with xls as the suffix and will suggest a location where this will be saved We would recommend a systematic method of naming and saving your spreadsheets so that these may be retrieved for future use 4 sorpaid som from Peter Brown amp Co Conventions used in the templates A system of colour coding of text and spreadsheet cells has been used throughout the templates to indicate various matters to the user In all versions the following conventions apply All cells shaded in blU may have data entered into them Some cells shaded blue are prepopulated with suggested default entries but these may be overwritten with care Such cells are unlocked for data entry All cells shaded yellow contain formulae and data should not be entered into such cells unless there is a very clear and specific reason why the formulae should be overwritten If data is entered into the cell then very great care should be taken there is not a consequential amendment to other cells in the workbook Such cells are locked for data entry so to make any changes would require the cells to be unlocked Instructions and guidance on data entry are entered in red bold text or occasionally in black bold text All hyperlinks to text websites or other data are shown with a blue underlined text and with a pale straw background These will all autohide auomatically Any cross references to elsehwere in the spreadsheet w
25. m Peter Brown amp Co Support from SORPaid and annual renewal charges Technical support with the templates Because it is assumed that many users of these templates not only have a good working knowledge of Excel but also are qualified accountants with detailed taxation knowledge then the help and support on the technical aspects of these templates is limited We are very willing to offer limited telephone support on initial installation and advice on technical difficulties with the operation of the software itself In practice as the templates are Excel based we have found that very rarely has there been the necessity for any detailed support However in the past we have found that some small firms feel they need the benefit of technical taxation assistance Peter Brown amp Co are able to offer an annual retainer for telephone support on technical taxation matters for 100 per annum plus VAT This will entitle a user to up to four hours technical discussion per annum On more complex matters specific instructions would be taken If any user who did not take advantage of the annual retainer required assistance on technical taxation Peter Brown amp Co reserve the right to charge a professional fee for the time engaged Any purchaser of the templates would be advised when it was felt that a fee basis would be appropriate and the fee basis would be discussed and agreed before proceeding Annual maintenance charge The templates are o
26. n you remember for future use 3 If amessage appears Could not verify publisher click Run again 4 A Winzip screen will appear Left click on the box Unzip 5 When prompted if you are prompted click OK to overwrite all existing files 6 After the files have unzipped left click on the box close 7 Navigate to the folder C sorpaid remplan14 You do this by a double clicking on my computer b then selecting and double left clicking the C drive c then selecting and double left clicking the sorpaid folder d then selecting an double left clicking the remplan14 folder 8 10 sorpal decom from Peter Brown amp Co When you have downloaded and unzipped your installation files the following files will be in your folder C sorpaid remplan14_ Tax105 remuneration manual pdf ie this file Tax105 remuneration manual doc ie this file in word format with active hyperlinks Tax 105 Quick installguide pdf A file which summarises this section of the manual 105 remp 14 xit this is an Excel template which you can then use to prepare as many Excel workbooks as you wish 105 rempl14 xls this is an Excel workbook which you can then for one of your clients Legal guidance notes pdf A file setting out the law and paperwork in relation to correctly processing dividends Sorpaidterms 14 pdf a file setting out our trading terms and the terms of your licence
27. nly valid until 31 March 2015 Taxation law is always changing and the template will have little value thereafter In January 2015 we will be issuing the 2015 16 version and this will be purchased on similar terms to this year s release subject to inflationary increases if felt necessary Any user purchasing the 2014 15 version after 31 December 2014 will receive a free upgrade to the 2015 16 version sorpal decom from Peter Brown amp Co Notifying SORPaid of errors improvements enhancements and suggestions These templates have been carefully researched and structured However there may be certain situations we have not envisaged that may give rise to unexpected errors and feedback would be helpful to enable us to update the templates It is also possible that there are errors in the logic of the spreadsheets we hope not but with such a complex project it is possible There is also the possibility of ambiguity or lack of clarity as to how a particular situation should be treated In any of these cases it would be helpful to have in writing or by email the following A description of the problem giving details of the formulae and cells involved The circumstances that gave rise to the problem Confirmation of which of the templates gave rise to the problem If it is a matter of technical application of taxation legislation your views on the issues concerned with precise technical references 225 2 If p
28. orpaid Shop Expiry and renewal details Frequently asked Questions and news of updates On line operating manual and the manual on disk Installation Conventions used in the templates How to use the template Limitations and parameters Carry Forward of data from one year to the next Changing parameters following legislative changes and changes in allowances and bands Support from SORPaid and annual maintenance charges Notifying SORPaid of errors improvements enhancements and suggestions About SORPaid and Peter Brown amp Co Appendix 1 Other general practice products and services from SORPAID Appendix 1 Other charity based products and services from SORPAID Appendix 2 Blank Appendix 3 Known conflicts and problems Terms and conditions of the use of the templates NOTE it is important that the tax parameters are kept up to date with current legislation See also the bundle of documents minutes and other formal requirements required to validate your planning and protect your from HMRC challenges click here sorpailducom from Peter Brown amp Co Overview This spreadsheet template has two prime purposes in relation to personal tax corporation tax and NI payable in the various classes of NI a To plan tax and NI for the next two years ahead to minimise tax and NI as much as possible b To predict and plan the timings of tax payments Last year this year and next much more so than in years gone by the in
29. ossible please email us a copy of the entire file that has the problem within it Alternatively a printout of the relevant page would help We recognise there is a confidentiality issue here and would quite understand if the file were anonymised by the removal of distinguishing items such as client name etc However we are an ACCA firm and would regard ourselves as having the status of consultants in this regard and would therefore be bound by the relevant ACCA rules We would also welcome suggestions for improvements and enhancements to the templates We would also be delighted to receive testimonials and recommendations for the templates Finally we would welcome news of additional links to websites that we can add to the links page sorpail decom from Peter Brown amp Co About SORPaid and Peter Brown amp Co Peter Brown amp Co is the trading name of Undershot Ltd a practising firm of Chartered Certified Accountants and Registered Auditors SORPaid is the brand name under which these templates are marketed Peter Brown amp Co has been awarded the ACCA Quality Assured Mark The contact details are Peter Brown amp Co Acomb Grange Grange Lane York YO23 3QZ Telephone 0871 288 2391 Fax 0871 288 2391 Email info sorpaid com The firm has a number of clients who are practising firms and has developed these templates for use by them in managing their practices These templates and documents are available for g
30. ot provided for A manual adjustment to NIC payable will have to be made with a supporting schedule e Capital Gains tax liabilities will have to be entered as a manual adjustment These items if not manually adjusted will affect the figures for tax and NI liability but when comparing two years one with another will not affect the results materially and therefore are unlikely to materially affect the outcome of the overall analysis and decisions on salaries and dividends particularly as some parts of the analysis already involve estimates and projections However the higher rates of corporation tax marginal relief the 45 rate the clawback of personal allowances over 100 000 and all other common situations are catered for Following the recent changes in the Corporation Tax rates it is now necessary to allocate profits to corporation tax accounting periods within a fiscal year This was not necessary when rates remained unchanged from year to year The spreadhseet does this allocation automatically 49 sSorpaid som from Peter Brown amp Co Carry Forward of figures from one year to the next If data is entered for this year there is the possibility that it will be required next year in the template to be used next year However the volume of data to enter is small and we have decided at present that there will be little demand to carry figures forward from one year to next However this is under review and the views of
31. rafted for the client sorpail decom from Peter Brown amp Co Documentation But this is not the end of the planning work It is all very well to plan the optimum tax payments but it must then be documented and validated HMRC will attack dividends where the paperwork is not correct or challenge PAYE allocations on the basis of dates when income became available Our package therefore includes all the standard letters and minutes necessary to document the combination of salaries and dividends in a way that will be acceptable to HMRC However this manual and the spreadsheet itself is not intended to do any more than point users in the direction of more technically based information and should not be regarded as being in any way a comprehensive guide to law or practice sorpailducom from Peter Brown amp Co Logging into your account at the Sorpaid Shop When you first purchased products from the Sorpaid Shop you will have created an account with specific log in details You should keep these log in details for future use as you may need them To log into your account at the Sorpaid Shop go to the login area on the Sorpaid Shop home page on www shop sorpaid com and log into your account This will display all the products you have purchased from the Sorpaid Shop and the expiry date or next renewal date of your product It will enable you to download manuals for the products you have purchased and you can also download up
32. rates etc The summary sheet contains the detailed workings of the tax liabilities showing how the figures in the resultant reports have been arrived at The Report sheet contains the draft of various reports to the client and links to various word documents that are required at various stages of the process eg dividend minutes etc The schedules sheet contains any working schedules or summaries that you create in normal Excel format to back up or substantiate figures you have entered in the data of the file 4 Starting an analysis Go to the Front sheet Click on the link next to the narrative 1 Enter all relevant data on the work sheet Data in the blue data cells This takes you to the top of the Data sheet sorpal decom from Peter Brown amp Co You will notice two sections Data entry and Manual adjustments The Manual Adjustments give links to data cells in the tax calculations where you are able to make manual adjustments to allow for special circumstances At this stage concentrate only on the Data entry section Most of this data entry can be entered by a junior member of staff suitably briefed and need not require a significant time cost After entering the client s name and reference enter the data relating to the client as follows for each data section enter Y in the box provided when data entry is complete AC1 Accounting dates Enter the accounting reference dates end
33. t of year 2 ie ending in the fiscal year ended 31 March 2015 into the self assessment year ended 5 April 2016 enter the details in column Q Ensure you are legally able to do this ie was the i income made available less than nine months after the year end and did it fall into the year ended 5M April 2015 and not 2014 You can go back and alter the figures in stage 1 and in this stage if you do not like the result sorpal decom from Peter Brown amp Co 6 Proceeding with the analysis entering dividends After reviewing your work you can now proceed to look at dividends In the bundle of documents is a guidance note on the law relating to dividends Click here Return to the top of the Front page Click on the link next to the narrative 3 Enter details of the dividends to be paid The first schedule you see is a header schedule which summarises the input elsewhere You cannot enter data to this header schedule Four input areas Below this are four separate input areas to cover the four possible scenarios Dividends could be paid in the company accounting period ended in the fiscal year 31 March 2014 year 1 and the dividend payment dates could fall into the income tax year ended 5 April 2013 or 2015 For example a company with a year end of 31 August 2013 falls in the fiscal year ended 31 March 2014 but it could have paid a dividend on 31 October 2012 which will fall within the income tax year ended 5
34. ta be entered on a trial and error basis to arrive at either the lowest aggregate tax possible or the most attractive combination of payment dates depending on whether the lowest tax bill or the most beneficial cash flow is the important concern to the client The salary details can be entered in two stages firstly by allocating the salaries to the company accounting year and secondly by allocating the salaries to actual tax years This latter analysis can have a dramatic effect non tax bills This allocation utilises the possibility that if detailed and specific resolutions are made by the board then tax relief on salary payments are deductible in a company accounts and will be permitted as such by HMRC so long as they are paid and made available to the individual within nine months of the accounting year end The salaries so allocated are accounted for under PAYE and in the SA returns on the date they are made available which may be a different tax year to the company accounts Clearly salaries in an accounting year end of 30 June or earlier cannot benefit from this concession The bundle of documents attached to this package contains resolutions and minutes to enable this to be properly documented Entering salaries the first stage Click on the link next to the narrative 2a Enter the salaries bonuses etc to be paid to participators In column A enter the total salary figure you wish to include in the first year accounts en
35. teraction between different bands and rates of corporation tax income tax and national insurance can have a dramatic effect on the overall tax to be paid by an owner operated limited company and its shareholders and directors Careful planning can produce significant savings The main purpose is to toggle various combinations of dividend and salary payments to company directors shareholders in order to identify that combination of dividend and salary over a two year tax period that will produce the aggregate lowest possible combination of NIC Income Tax and Corporation Tax and identify how payment due dates may be varied Because such a series of calculations can only be done with a knowledge of the other income and tax details of the individuals there is a de facto second use which is as a tax payment predictor and planning tool for two years ahead The spreadsheet works by first entering the corporation profits and tax data for a company based on draft or finalised accounts ending during the corporation tax year to 31 March 2014 and predictions based on budgets for the year ending during 31 March 2015 This will include the income taxable under PAYE that has already been provided to the individual directors shareholders before consideration of any bonuses Secondly income and reliefs data is entered for the individual directors and shareholders for the years ended 5th April 2014 and 2015 based on either actual known figur
36. these may be dealt with If you encounter a difficulty with the templates please check the web site Each bulletin has a brief description of the nature of the problem in the contents which can be found by clicking on Resources and then News Bulletins Any updates arising during your licence period as a result of a bulletin can be downloaded using the link and password with which you have been supplied sorpaid som from Peter Brown amp Co Online operating manual An up to date copy of the manual can be downloaded to your computer over the Internet The manual can be downloaded as a Word file by following the steps below 6 7 Ensure your computer is switched on Load your web browser and go to the Sorpaid shop www shop sorpaid com In the keyword box at the top of the home page enter the Sorpaid Shop Product code TAX 0105 11 and click on the search button When the product is located click on the Manuals Resources tab and download the manual When the file is opened click on the File menu and save the file using the Save as Command You will be invited to unzip the file No password is needed Unzip the file and save it into the folder c sorpaid remplan14 8 When prompted click OK to overwrite the existing file for the manual This manual will be up to date at all times sorpalducom from Peter Brown amp Co Installation of remuneration planning sprea
37. to show how these figures have been arrived at The default is the CT profits for the year but this is unlikely to be correct use the correct figure After entering the figure for the draft accounts ending in the fiscal year ended 31 03 2014 then enter the estimated projected profits for the year per the projected accounts ending in ye 31 03 2015 arrived at BEFORE deducting any dividends already paid for the year but AFTER INCLUDING AND DEDUCTING the remuneration already provided in the section above but EXCLUDING any Corporation Tax provision You might wish to prepare a supporting schedule on the Schedules worksheet to show how these figures have been arrived at The default is the CT profits for the year sorpaildicom from Peter Brown amp Co INC Income details of participators In order to get a full picture of tax liabilities and due dates for payments it is necessary to enter the income and reliefs available to each participator from sources other than this company for both the years ended 5th April 2011 and 2012 No detail is required for these items simply the totals and it might be helpful to prepare a supporting schedule on the Schedules worksheet The information required for each individual is DO NOT INCLUDE ANY ITEM OF INCOME OR DIVIDEND FROM THE COMPANY BEING ANALYSED Tax payments Balancing payments due for 2013 on 31 01 14 Estimated payments on account due 31 01 14 and 31 07 14 In
38. ustees Annual Report The annual report by the trustees is required by all charities no matter how small and to comply with the legal requirements must contain specified information disclosed in specific ways This proforma can be downloaded for as little as 12 plus VAT from www sorpaid com and will ensure that your charity work is fully compliant The download can be used for an unlimited number of charities and can be emailed back and forth between the charity and the accountant sorpaldicom from Peter Brown amp Co Money Laundering Compliance A simple set of procedures for complying with Money Laundering requirements when acting for a charity 30 plus VAT for an unlimited number of charities renewable annually Working Paper files Independent Examination is a very specialist area and there is little professional guidance Available We publish a model working paper file in electronic form that meets all the requirements of CC31 and CC32 Directions and Guidance and meets all the current professional and good practice standards The 2011 version is available to download at a cost of 30 plus VAT Users of the IE file who have also purchased a licence for the VT Charity Templates will be supplied with a free software link between the two applications There is no limit to how many charities the file may be used for but it is time limited and must be renewed annually Trading by Charities A Guide A guide to the practic
39. wing range of services is available to accountants who work with charities and their clients and to charity trustees and administrators Templates for producing SORP compliant charity accounts For many years we have produced Excel based templates to work seamlessly with VT Accounts production software to produce SORP compliant charity accounts We have over 300 users of these templates These include templates which cover the law in England amp Wales and also in Scotland There are also optional templates for charities with trading subsidiaries who need to prepare consolidated accounts and also for those with endowment funds The templates include Receipts and Payments versions where these are permitted Courses We have a programme of courses on charity issues We can organise bespoke courses for an individual firm or a group of firms tailored to their specific training requirements on a very cost effective basis Costs start from 300 per day plus travelling costs A Bundle of documents to use when a charity appoints an independent examiner The statutory basis of the new independent examination regime for charities requires a number of formal documents and processes in order to fully comply with the law This bundle of documents can be downloaded for as little as 8 plus VAT from www sorpaid com and will ensure that your charity work is fully compliant The download can be used for an unlimited number of charities A pro forma Tr
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