An asset that has highly appreciated and owned in joint names can cause a challenge when it comes to IHT planning. Here we take a look at some careful IHT planning we assisted a client with in relation to a jointly owned asset.
Xero Cloud Accounting: Transforming Accounting for Compliance
A client’s year-end accounts were incomplete, and their accounting system had errors in the bank reconciliation.
Additionally, an incorrect VAT return had been submitted to HMRC, requesting a large refund instead of declaring a liability, due to multiple errors and duplications, including missing sales for the quarter.
This raised the risk of an HMRC investigation. Several CIS returns were also overdue, leading to penalties.
Task
We needed to :
- Correct the accounting system errors and reconcile the bank
- Submit a VAT error correction form to HMRC
- Bring all CIS returns up to date
Action
Correction and Reconciliation
We first corrected the accounting system errors, reconciled the bank, and calculated the correct VAT figures.
We submitted an error correction form to HMRC, along with the overdue CIS returns, to ensure compliance and remove penalties.
System Upgrade
To prevent future issues, we transitioned the client to Xero cloud accounting.
We set up automatic bank feeds and integrated Dext software to reduce manual input and we also linked the client’s internal sales system to Xero to eliminate data duplication.
Training and Support
We provided the client with comprehensive training on the new system and implemented ongoing support for VAT and CIS returns, conducting regular checks at the client’s premises.
Result
Updated and Correct VAT Returns
All VAT returns are now up to date and correct, ensuring compliance with HMRC.
Resolved CIS Returns
All CIS returns are current and accurate, eliminating penalties.
Improved Efficiency
Monthly bank reconciliations ensure no duplications or omissions. Xero and Dext integration has reduced manual input, errors, and data duplication.
Peace of Mind
The client now has peace of mind, knowing there is no risk of an HMRC investigation and that their tax liabilities are managed effectively.
Summary
We transformed a client’s accounting from confusion and errors to clarity and compliance.
By correcting VAT and CIS discrepancies, upgrading to Xero and Dext for efficient, accurate financial management, and providing ongoing support, we eliminated penalties and reduced manual errors.
Our proactive approach, including monthly reconciliations and tailored training, ensured the client had peace of mind with a streamlined system that improved their business operations and safeguarded them from future compliance risks.
Getting in touch with us
Our team are highly experienced in finding solutions to your accounting needs and are dedicated to assisting you in identifying opportunities to save time.
If you would like to talk to us about Xero cloud accounting or how we can assist you please take the next step and request a call back or call us on 01634 731390
Our services
If you would like to find out more about some of our services that might help you please take a look at our related pages:
