Being the proud father of 2 great children i was kindly reminded by one of my professional colleagues that i had a third child. Third child? This was news to me, as far as i knew i only have 2 children, not 3 (honest missus). But then he pointed out to me that HMRC are my third child, the unwanted child. Children are very expensive to bring up these days, however, when one of my children requires up to 40% of what i earn, you realise this is the child that will always be with you, even after the other two have left home. This third child will see you right through to your death bed, what a nice kid!?

Recently, the third child, HMRC, have been changing the games they play and have now introduced new investigation powers, sadly, the parents, i.e. you and me, have no say in the matter. These new powers can be split into 3 main categories:

1. Single query: HMRC issue a letter stating bank interest as per the Tax Return and bank interest as per their third party source differ, and enquire as to the difference. HMRC are not always comparing like with like so a robust response is required by your representative accountant.
2. Specific queries: HMRC issue a letter raising a range of queries, it looks like an aspect enquiry but the questions look at the current year as well as the year that has already been submitted and there are no references to the usual statutory notices.
3. Multi tax review: HMRC advise of their intention to attend the business site, they wish to meet with the person responsible for the financial records and issue a list of records they would like available for review. They state the review will cover all taxes and they may have further questions.

This change in approach will in my opinion raise further revenue for the tax man, so now even more than ever, having accurate and clear records is paramount to ensure the tax man does not come after you, and if he does, you can defend yourself easily. Through Samera's Ultimate Financial Control Service, our clients financial affairs are always accurate and up to date, so if the tax man does come knocking, we have a clear audit trail to defend.

In addition, having some form of professional fee protection with your accountants would be prudent, to ensure any fees charged are covered. Any type of investigation can be time consuming and stressful, but we have a team of experts that know how to handle the most complex of dental cases, so please get in touch if you need assistance.

Cutting The Cost of the Third Child

Being a parent is no easy job, in fact it is extremely tough to get right. In addition managing your third child, HMRC, is no easy feat either. However, there are always certain approaches that will enable you to bring up your third child at a lower cost. Incorporation (get our incorporation report here) is one such vehicle, whereby, it could reduce your tax liability, in addition, there are always certain tax planning opportunities that exist, but naturally they have to be considered in depth for your individual needs.

Over the last 12 months, with the advent of a 50% tax rate from next tax year, we have been looking and meeting with many tax specialist boutiques. Some have interesting tax planning strategies, whilst others would be considered pretty off the wall high risk strategies. As ever, they are not for everyone, but if you want more information on some interesting tax strategies please get in touch with me directly.

DIY Associate Accounts

As the 31st January deadline gets nearer, you will need to get your Associate accounts and tax return prepared and submitted on time. For just £40+VAT you can download our guide on how to do your own DIY Associate Accounts and Tax Return here. Alternatively, you can opt for our silver service, use the spreadsheet provided and just pay £250+VAtT for us to prepare and submit your Associate accounts and Tax Return.

For more information and to sign up just click here. Please note, the DIY Associate Accounts and Tax package increases in price to £80+VAT from 1st December 2009, so get downloading now if you want to take advantage of this service.

Master your Wealth- 4th December 2009- 100% Money Back Guarantee

Finally, this is your last chance this year to learn about how to take control of your own financial investments and destiny in my "Master your Wealth" course. From 2010, i will be increasing the fee significantly from £250+VAT to well over £1000+VAT in 2010, and i will only be doing it once in 2010. Why? Well I know the content is priceless, but ultimately it is about stepping up in your own life and implementing change to grow your wealth. A few have already started off on this journey, if you want to come along for the ride, book your space, before the big price rise in 2010. Take a look at this recent blog post of mine which details some of the tools and techniques i personally use to manage my own money.

To make your booking click here. I am so certain you will find such value, that i am happy to even offer a 100% money back guarantee if after the morning session you feel you are not on the right course. At the lunchtime break you just need to hand your course notes back and we will offer you a full refund there and then if you wish for a full refund. Go on step up, you will not regret it!

Can't make it fairer than that!

Give a Little Love 2009

The momentum is gathering, the gifts are slowly beginning to trickle in, we just now need you to help us put as a many smiles on disadvantaged kids faces this Christmas. To get involved, inspire your team and community and find out more how this all works, visit www.givealittlelove.org.uk.

Why Get Involved? Simply, to help others less fortunate, BUT also help your team forge even stronger alliances amongst themselves and your patients. You can read and watch how our team greatly benefitted from this campaign in 2008 here! Go on get involved, and have a laugh at me make a fool of myself online with my kick off video!

Sponsor me to do the London Marathon in April 2010

I am very fortunate to have bagged myself a space at the London Marathon in 2010. This will be my first marathon which i will be running for The British Heart Foundation, an organisation that is very close to my heart. (literally) To read why i am doing the marathon and to give a donation (all are welcome) please click on the button below. I know this newsletter is read by a lot of you, and i am sure some of the tips have saved you or made you money, so if you can find some spare money to sponsor me that would be greatly appreciated.

We have over 1000 readers of this newsletter, so if you just donated £10 each, i would hit my target very easily. Go on, make that donation today, it is going to a great organisation!

Just click on the button below.

Have a brilliant week ahead!

Arun Mehra FCA