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SOFTWARE
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Written by Mark McLaughlin CTA (Fellow) ATT TEP
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Friday, 10 October 2008 14:14 |
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Reviewed by Mark McLaughlin ATII ATT TEP The 'Car Benefit Workbook' by Payexcel Limited is not the first product to compare the cost of running a company car against the cost of an employee using his or her own vehicle, and it probably won't be the last. However, like Payexcel's other products ('PAYExcel' and the 'Business Tax Comparison Workbook'), one of its big attractions for me is that it is built on Microsoft's Excel spreadsheet software, with which I am reasonably familiar both at home and in the office environment. And possibly you will be, too. Summary Anyone who has performed 'company vs own car' comparisons manually will appreciate that the calculations are fairly complex and laborious. They are not the easiest computations to set out in a comprehensible way, either. The 'Car Benefit Workbook' tries to make the process as painless and presentable as possible"! The Contents As indicated, the format is an .xls spreadsheet, with a number of worksheets across the bottom of the page. I would recommend that the user reads the 'Quick Tour' first, to get a feel for the workbook and its capabilities. Using the Car Benefit Workbook There is a 'summary' sheet, which shows the company car / own car comparison not only for the year under review, but for the following two years as well. As the name suggests, this worksheet summarises and compares the costs for a company car against a private car. The calculations (even for a summary) may well appear slightly daunting for uninitiated taxpayers (or their advisers!). However, this is mainly due to the complex nature of the calculations. On the 'plus' side, it shows the 'bottom line' clearly, i.e. whether a company car is an advantage or a disadvantage in financial terms, both for the employee and the employer. A 'taxable benefits' worksheet requires the user's input. This is where the company car details are entered, including the carbon dioxide emissions figure (if appropriate). This sheet calculates the employee's car and fuel benefits for the company car, for any three consecutive tax years between 2002/03 and 2008/09. This is a useful benefits calculator, even if comparisons with the employee's own vehicle are not necessary. A separate worksheet ('company car costs') calculates the cost to the employer of providing the employee with a company car, again for a three year period. This sheet requires an amount of input from the user (and for certain assumptions to be made, of necessity). A clear breakdown of the cost components is given, which makes potentially interesting reading. An 'own car alternative' worksheet calculates the cost to the employee of running his (or her) own car. In many cases, employers will offer the employee additional salary in lieu of a company car. The user can factor this information into the calculations as well. The figures also cover a 3 year period. There is also a 'scale charges' worksheet, which includes various tables used in the comparison calculations (e.g. the car benefit tables, and approved mileage rates for business use in the employee's own car). This sheet allows the user to input the various rates and allowances up to and including 2008/09 as they become known, and to estimate them in the meantime for 'what if?' scenarios. The Verdict This is a comprehensive, well thought out and comparatively straightforward product. It removes the necessity for complex and time consuming manual calculations, and is easy to use. It is a difficult task for any software developer to present the information and calculations in a way that the average taxpayer can follow (e.g. where accountants are printing the pages as reports to their clients). The workbook makes a good job of trying to do so, particularly the summary page. Further information For further information on PAYExcel software and the cost, visit www.PAYExcel.co.uk. Read our review on their other products: - PAYExcel Software - Business Tax Comparison Workbook Disclaimer The views expressed in this review are those of the writer only and not necessarily those of TaxationWeb. No responsibility can be accepted by the writer or TaxationWeb for any loss arising from action undertaken or refrained from as a result of this review. Mark McLaughlin
August 2002
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SOFTWARE
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Written by Mark McLaughlin CTA (Fellow) ATT TEP
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Friday, 10 October 2008 14:13 |
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Reviewed by Mark McLaughlin ATII ATT TEP There is some comfort in familiarity! Even before opening this software, it was reassuring to know that I would be familiar with the Microsoft Excel spreadsheet format on which this product is based. And so should most other users, as Excel is an extremely popular and commonly used piece of software. Summary I really enjoyed the simplicity of PAYExcel. It is very easy to use. The trial version allowed for the input of 2 employees. It would be interesting to see how PAYExcel could be used for larger employers. Certainly, for the vast majority of smaller employers, this software should be perfectly adequate, and for payroll technology 'luddites' (like me!) it is ideal! The Contents The format is an .xls spreadsheet. There are a number of sheets across the bottom of the page. I would recommend that the user reads the 'Quick Tour' and 'Notes' sheets first, as they contain some useful information on the product and the way in which it operates. Using PAYExcel Of course, like any payroll software, it is necessary to input a certain amount of information before proceeding. There is a 'records' section for this data, which is straightforward for entering basic information (e.g. name, national insurance number, tax code etc). On another sheet, there is a P45 'checker', which conveniently checks the P45 information of new employees. I really like the 'input' page. This is where the employee's salary details for the week or month are entered. The reason I like it is because it has the appearance of a payslip, and in fact it can be printed off and used as such. Salary calculations can be performed with the minimum amount of information (normally only the pay date, gross pay and tax code). In addition, there is a helpful facility for 'net to gross' calculations. When the salary input is finalised (it can be changed as many times as is needed), the information is transferred to the employee's Tax Deduction Working Sheet (or form P11, for those payroll experts among you!). There are separate sheets for tax and national insurance contributions, which can also be printed out. The total of employees' payroll deductions are transferred to a 'P30BC', or the Inland Revenue Payslip Booklet, which will also be very familiar to many payroll operators. This page shows the amount payable to the Revenue for each tax month, and in total. Some of the fields may need to be manually entered (i.e. those relating to Statutory Sick Pay (SSP) or Statutory Maternity Pay (SMP)), as the system does not calculate those pay items (or at least not yet). Payslips can be directly printed out, or alternatively can be sent to a 'Payslips' page which can accommodate up to 4 payslips at a time. The Verdict As mentioned in the summary, I would certainly recommend that small businesses have a good look at this software. I commend it to smaller businesses in particular because as mentioned the software does not presently calculate SSP or SMP, although I understand that future versions may do so. It would be interesting to see what 'pay day' would be like for a payroll of (say) 50 employees. As someone who used to operate a payroll of 10 for a local Conservative Club, I honestly wish that I had discovered PAYExcel sooner! Why not download a trial version from PAYExcel's website, and give it a try? Further information For further information on PAYExcel software and the cost, visit www.PAYExcel.co.uk. Read our review on their other products: - Car Benefit Workbook - Business Tax Comparison Workbook Disclaimer The views expressed in this review are those of the writer only and not necessarily those of TaxationWeb. No responsibility can be accepted by the writer or TaxationWeb for any loss arising from action undertaken or refrained from as a result of this review. Mark McLaughlin
August 2002
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SOFTWARE
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Written by Mark McLaughlin CTA (Fellow) ATT TEP
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Friday, 10 October 2008 14:12 |
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They've done it again! It seems that PTP have done it again! They have identified a gap in the market for a piece of tax software that will be useful to a huge professional market, and introduced a helpful, time saving product at an affordable price, that can be exploited as an 'added value' marketing tool by firms offering tax services. Introduction Inheritance Tax (IHT) is an area of tax planning with which many practitioners may not previously have been too concerned. However, with the recent escalation in property prices, the value of the family home alone is likely to give many clients a potential IHT problem. And let's face it, clients are becoming increasingly demanding as far as service from their professional advisers is concerned. This is where IHT planning can help. The Product As you might expect, PTP's 'IHT Planner' has the facility to save information for multiple clients. There are three main sections to the planner, namely 'Lifetime Transfers', 'Chargeable Estate' and 'Calculations'. A customised report can be prepared and printed for each client. Different IHT planning scenarios can also be saved for the same client. The 'Lifetime Transfers' section allows the user to input details of past and possible future transfers, both chargeable and potentially exempt, and to specify whether any relief from IHT is available in respect of them (e.g. payments to charity or gifts in consideration of marriage). The IHT position is calculated and can be viewed on a cumulative basis for each transfer, showing any IHT payable (at the time of a lifetime transfer and/or on death) or the remaining nil rate band. The 'Chargeable Estate' section allows for the addition of assets and liabilities (including pecuniary liabilities), and the allocation of the residuary estate between beneficiaries. Specific assets can be allocated to particular beneficiaries in accordance with the client's will, and account taken of any gifts with reservation of benefit, available relief (e.g. business property relief) and tax attributable to successive transfers ('Quick Succession Relief'). For those clients without a will, it is possible to set up the software as an intestacy planner. The 'Calculations' section gives amounts and a full breakdown of tax on the chargeable estate, and also additional tax in respect of failed PETs. The IHT Planner produces a selection of reports, which can be edited for individual clients. The full report I printed off ran to an impressive 10 pages, and contained summary and detailed IHT calculations, breakdowns of lifetime transfers, assets, liabilities and so on. Rather disappointingly, the version of the IHT Planner sent to me was only a demonstration version, and I was unable to have a proper 'play' with it in order to evaluate the software fully. However, overall I was quite impressed with what I did see. Do I have any criticisms or reservations about the IHT Planner? Not really, such as it is. However, it would be really helpful if PTP could develop IHT software to produce Inland Revenue returns in respect of the death estate (IHT 200) and also chargeable lifetime transfers (having said that, a version of the software dealing with the IHT 200 return is understood to be on its way). But for planning purposes, as the phrase goes, "it does exactly what it says on the tin"! The Cost As with all PTP tax software products in my opinion, the IHT planner is good value for money, a 12 month single user licence costing just £99 and a multi-user licence costing £199 (both plus VAT). To order your copy, go to http://www.ptpgroup.co.uk/softorder.htm. Summary I envisage the IHT planner being useful in a variety of situations. For example, practitioners not previously involved in estate planning to a significant degree could use the planner to prepare inventories of their clients' estates for IHT purposes as a starting point in the tax planning process. This estate inventory (with tax calculations) could be given to the client as a basis for IHT planning. A revised report could then be produced following this planning exercise, illustrating the potential IHT savings achievable from implementing the planning recommendations. The IHT Planner should save much time and number crunching when dealing with "what if?" scenarios of this nature. The relatively modest expense of buying the IHT Planner is likely to be recovered very quickly after it is brought into use on behalf of clients who are eager to reduce their potential IHT exposure. Who knows - it may help to generate additional fees in a largely untapped area of tax planning. Why not give it a try? Disclaimer The views expressed in this review are those of the writer only and not necessarily those of TaxationWeb. No responsibility can be accepted by the writer or TaxationWeb for any loss arising from action undertaken or refrained from as a result of this review. Mark McLaughlin
September 2003
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PUBLICATIONS
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Written by Mark McLaughlin CTA (Fellow) ATT TEP
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Friday, 10 October 2008 14:10 |
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Reviewed by Mark McLaughlin CTA (Fellow) ATT TEP, Editor of TaxationWeb Introduction Tolley's Tax Planning (TTP) is one of those publications which has seemingly been around forever. Longevity is normally a fair indicator of a book's quality and popularity, so in the case of a well-established book such as TTP is a good initial sign! Contents TTP is big! It comes in two volumes. The first volume alone comprises 1,260 pages, while volume two contains 1,355 pages. TTP is made up of 66 Chapters in total. The book features a number of different authors. The list of authors makes impressive reading, as many of them are very well known and respected names in the tax profession, including Malcolm Gunn, James Kessler QC, Matthew Hutton, Robert Maas, Patrick Way and Giles Clarke. TTP covers a vast array of tax subjects. The book not only covers specific categories of taxpayers and entities (foreign domiciliaries, Discretionary Trusts, Charities, etc), but includes Chapters on specific situations and particular transactions. For example, there are Chapters on emigration, company reorganisations, incorporation of a business and management buyouts. Pensions are well represented, with separate Chapters dealing with the 'new regime' from 6 April 2006, and the 'old regimes' which preceded it. The Chapters in TTP are ordered alphabetically, in terms of subject matter. For example, Chapter 1 is 'Accumulation and Maintenance Trusts', while Chapter 66 is 'Year End Tax Planning for Individuals'. I am not convinced that a book on tax planning lends itself to an alphabetical order (as does, say, 'Tolley's Income Tax'). Ordering in terms of taxes (e.g. business tax, capital taxes, indirect taxes etc) seems (to me at least) to be more logical, and should perhaps be considered. As indicated, TTP covers very large and diverse areas of tax. It should be borne in mind that the Chapters are relatively short. For example, Chapter 30 'Incorporation of a Business' is 30 pages in length, yet at least one entire book has been written on this subject. However, the book provides a very useful overview by attempting to cover the main considerations in each area. Paragraphs are generally short and succinct, and many Chapters feature a summary outlining the main points covered. There are also examples in some Chapters of the book where they are needed to illustrate the points raised. I was drawn to some of the Chapters in TTP that were of particular interest to me. The Chapter on 'Company Reorganisations' summarises the legislation in that area quite well, but a case study or two would make it even better for future editions to assist the reader in understanding a potentially complex area. The Chapter on 'Family Companies' features many worked examples illustrating the taxation of family companies, including the extraction of profits by salary or dividend. The Chapter on 'National Insurance Planning' includes commentary on the tricky areas of employment status and employment-related securities. The Chapter on 'Selling a Company' includes sections on hive-downs, advantages and disadvantages of asset sales and pre-sale tax planning. Overall, these Chapters provide a useful summary of wide ranging subjects. Cost The normal cost of 'Tolley's Tax Planning' is £208.95. However, there is 20% off if you order the publication on TaxationWeb before 28 February 2006, in which case the cost is only £167.16. If you miss out on this offer, watch out for possible special offers on TaxationWeb! The Verdict A price in excess of £200 is a considerable sum to pay for a single book. However, TTP is a huge tome, containing 2,615 pages. The main areas of tax planning seem to be covered. Despite such a large book, the Chapters in TTP are relatively short, bearing in mind the subjects covered. TTP should therefore benefit, for example, the busy accountant or tax practitioner who needs an overview of planning considerations on a particular subject prior to a meeting. Further research will no doubt be required in many cases, so TTP should not necessarily be looked upon as a definitive solution to all tax planning. However, as mentioned, entire books have been written on the subject matter of certain Chapters, so it is perhaps unrealistic to expect TTP to be a complete solution in any event. Overall, TTP should prove to be a very helpful source of information on tax planning considerations, which should make a useful addition to any tax library. To Order
To order Tolley's Tax Planning 2005-06, click here. Mark McLaughlin
TaxationWeb
February 2006
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