Record Keeping | Peter Chalk & Co

We are pleased to acquaint you with our in house Mortgage Advisers, Shaun Ashley Mortgages an Appointed Representative of Julian Harris Mortgages Ltd, authorised and regulated by the Financial Conduct Authority no 304155. Ashley Mortgage Services specialises in Mortgages for the Clergy, and guides you through the complete mortgage process.

If you would like to speak to a member of the Shaun Ashley Mortgages team, please contact the office on 01476 591333.

Peter Chalk - Chairman

Peter is the chairman of the firm and has over 31 years of tax experience. Since gaining a HND in Business and Finance, Peter has worked in the taxation field. He is a Fellow Member of the Association of Accounting Technicians licensed to provide self employed services in accordance with Licence No 0445. As the son of the Rev F H Chalk, who started the business in the early 1960s to help out local clergy with their tax problems, he well understands clergy life and finance. He is also a member of the local Rotary Club and also a Churchwarden of his local church.

E Mail: peter@peterchalkco.co.uk

Tel: 01476 512420 or 01476 591333 option 2

Nicola Argent - Managing Director

Nicola has been at the firm for over 20 years, and during that time has progressed to Managing Director. Although Nicola wears many hats, her specialities include both personal and property tax. Even though Nicola has gained most of her experience in the last 21 years from clergy tax, she does not shy away from other areas of taxation.

E Mail: nic@peterchalkco.co.uk

Tel: 01476 512421 or 01476 591333 option 1

Jamie Serplus - Company Director

Jamie joined the firm back in 2007. Like the other advisers Jamie is also a Company Director and he also takes on many roles within the company. He is the tour manager, and although the firm no longer operate the grand tour, the planning side is still a large part of the role which does not go unnoticed.

E Mail: jamie@peterchalkco.co.uk

Tel: 01476 512424 or 01476 591333 option 3

Charlie Blow - Consultant

Charlie is the newest member to the team. He started in the support team in November 2016, and since has worked his way up from being a taxation adviser, before notably being promoted to Company Director at the end of 2022.

E Mail: charlie@peterchalkco.co.uk

Tel: 01476 512425

Sally Eldred - Office Administrator

Sally has run the support department for the past 14 years. Behind every letter sent, email typed and appointment booked is Sally. She is the first point of contact when you call the Peter Chalk and Co office. Sally is a highly respected member of the team, and it is easy to say that every office needs a Sally!

E Mail: sally@peterchalkco.co.uk

Tel: 01476 512425

We would like to take this time to re-introduce our in-house financial advisers, Andy Roe Financial Services Limited an appointed representative of DB Wood Limited which is authorised and regulated by the Financial Conduct Authority for the purposes of advising on life assurance, pensions and investment products.

If you would like to speak to a member of the Andy Roe Financial Services team, please contact the office on 01476 591333.

Andy Roe Financial Services Limited

We would like to take this time to re-introduce our in-house financial advisers, Andy Roe Financial Services Limited an appointed representative of DB Wood Limited which is authorised and regulated by the Financial Conduct Authority for the purposes of advising on life assurance, pensions and investment products. If you would like to speak to a member of the Andy Roe Financial Services team, please contact the office on 01476 591333.“

Our Brochure

Click the link below to download a copy of our brochure detailing our fees for service

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Click on the file name to view the file, or right-click on the file and choose ‘Save As…’ to save the file to your computer. Please print it out and then fold like a chinese menu.

Payments to partners and children

Where deductions are claimed for payments to partners and children, e.g. for clerical assistance, cleaning and gardening, we recommend that a payment is physically made to a bank account in their name.

The amount paid should be commensurate with the duties undertaken and we recommend that details be kept of the duties undertaken and the pay rates.

Failure to meet with these criteria could be challenged by the HM Revenue & Customs.

Where children under 16 are paid for work, there are very strict rules to be followed. Firstly, a work permit must be obtained from the education department of your local authority. Secondly, the hours children are permitted to work are strictly limited. We recommend that anyone considering this option speaks with Peter Chalk or Nicola Argent.

Tax Credits

Child Tax Credit

The Child Tax credit is available to anybody with children under 20 (if still in certain full time education) and residing with them, but is income related. The income limit before it is totally withdrawn depends upon the number of children you have eg 1 child income limit is £26188 and 2 children £32968. This allowance is enhanced for low to average earners if they have more than one child and further enhancements occur if any children are registered disabled. Low earners may qualify for Working Tax Credit in addition to Child Tax Credit (see below). Child Tax Credit is now restricted to a maximum of two children unless it has been received for more children previously.

Working Tax Credit

Working Tax Credit is for low paid earners. If the income is below approximately £13,176.00 for a single person and £18,078 for a married couple some eligibility for Working Tax Credit will occur.

Both these Tax Credits are now paid direct into your nominated bank account. As both of these Tax Credits have been in force since 6 April 2003, many of you will already be in receipt of these payments. For those of you who feel that you may qualify and have not applied this can only be backdated for up to 1 month. If you need to apply, call the Revenue helpline, telephone number 0845 300 3900, or you may wish to complete the application form over the Internet by visiting the Revenue website at www.gov.uk/browse/tax-credits

For those who been in receipt of Tax Credits, you will be aware that there is an annual review form to complete. We will supply the correct figures for the purpose free of charge and even assist in filling in the form if required. Again, these figures can be submitted on the review form itself, by telephoning the helpline or online, details for both are as above.

Useful Templates

Principal Private Residence Election

For people who are required to live in job related accommodation by virtue of their occupation e.g.Clergy you are entitled to nominate one other property to be regarded as your principal private residence for Capital Gains Tax purposes, even if it has been let out for the whole period of ownership. This means that when this property is disposed of there will be no capital gains tax to pay. You are however required to submit an election to this effect within 3 years of acquiring the property although late elections are considered by the Revenue usually favourably.

This should then be sent to the respective tax offices of each partner and for our registered clients the election should be sent to ourselves for onward transmission to your tax office so we may note our file accordingly.

Obviously where the property is owned by just one person the tense of the above letter would need altering and details altering as appropriate.

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Child Tax Credit

The Child Tax credit is available to anybody with children under 20 (if still in certain full time education) and residing with them, but is income related. The income limit before it is totally withdrawn depends upon the number of children you have eg 1 child income limit is £26188 and 2 children £32968. This allowance is enhanced for low to average earners if they have more than one child and further enhancements occur if any children are registered disabled. Low earners may qualify for Working Tax Credit in addition to Child Tax Credit (see below). Child Tax Credit is now restricted to a maximum of two children unless it has been received for more children previously.

Working Tax Credit

Working Tax Credit is for low paid earners. If the income is below approximately £13,176.00 for a single person and £18,078 for a married couple some eligibility for Working Tax Credit will occur.

Both these Tax Credits are now paid direct into your nominated bank account. As both of these Tax Credits have been in force since 6 April 2003, many of you will already be in receipt of these payments. For those of you who feel that you may qualify and have not applied this can only be backdated for up to 1 month. If you need to apply, call the Revenue helpline, telephone number 0845 300 3900, or you may wish to complete the application form over the Internet by visiting the Revenue website at www.gov.uk/browse/tax-credits

For those who been in receipt of Tax Credits, you will be aware that there is an annual review form to complete. We will supply the correct figures for the purpose free of charge and even assist in filling in the form if required. Again, these figures can be submitted on the review form itself, by telephoning the helpline or online (also currently unavailable), details for both are as above.

Enquiries

The introduction of Self Assessment (SA) brought in a “process now check later” system of dealing with Tax Returns whereby Returns received by HM Revenue & Customs are deemed to be correct at the time of submission. The SA system is policed by them using powers under Section 9A Taxes Management Act 1970 and they have 12 months from the date the Return is filed to enquire into a Return, thus a tax year cannot be said to be closed until that period of time has expired. The vast majority of enquiries are chosen at random and it should be remembered that it does not mean there is anything wrong with your Return. The Revenue will often look at the underlying records and, if these are poor or certain figures cannot be substantiated, this may mean additional tax is due for the year, or you may have to pay back part of a tax repayment that you have already received. This “window of opportunity” the Revenue has, should be born in mind when receiving repayments of tax, particularly if they are large.

On the subject of repayments it has come to our attention that many clients are of the opinion they should get a repayment of tax every year and are dissatisfied with our service if they do not. There are many variables in determining your tax liability including office expenses paid and reimbursements received. Ordinarily, the Revenue will assume that the amounts paid and received in one year will be broadly similar the next and will issue a tax code appropriately. Changes do occur, however, resulting in underpayments of tax, which we will do our utmost to minimise within the framework of legislation in place at the time.

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Other Services

Completion / help with the Tax Credit Form
Checking PAYE Coding Notices and Statements of Account
Handling formal enquiries by HMRC under Section 9A Taxes Management Act 1970
A FREE review of earlier years Tax Returns
Completion of Diocesan Return (Church of England Clergy only)

Other Matters

Capital Gains: Please remember to keep all contract notes where shares are bought or sold. When a disposal occurs you should be able to present to us both sale and purchase notes to enable any potential Capital Gains Tax liability to be accurately calculated.

Computers: There are two types of expenditure you might incur in connection with your computer- capital and revenue.

Capital expenses include the hardware- both the original cost and the cost of upgrades such as more memory, new printers etc.

Revenue expenses include software (although this should be included in office equipment), small amounts of cabling and small amounts of a minor nature.

The difference for tax purposes is that revenue expenditure is claimable in full for the year it is incurred, while relief for capital expenditure is generally spread over a number of years.

We have experienced problems in the past with capital expenditure being claimed as revenue- the golden rule is, if in doubt, ask!

Telephone

Where telephone bills are in the name of yourself, we require details of the total bills and the amount of private use.

If the parish have paid any contribution towards the business proportion please include this amount in your reimbursements.

Where the bills are in the name of the parish, we require no details provided you have paid your private share to the parish.

Entertaining

Generally the cost of reasonable entertaining on official occasions is regarded as deductible. Such occasions have been given to include entertaining visiting clergy, officers of the church or members of church organisations. It also includes the entertainment of couples receiving pre marital instruction, parents at pre baptismal meetings and members of the PCC assuming the visit was not purely social.

Bible study and alpha groups are also allowable. HM Revenue & Customs originally wanted to disallow these two groups but we have pursued this point vigorously and they have finally conceded. Entertaining on informal occasions or social gatherings is not allowable, neither are your own costs i.e. you cannot entertain yourself or your partner.

Where possible records should be kept of the actual costs. We advise that such records should include the date of the event, who was invited, their position within the church and the actual cost of the event.

Obviously we do not expect you to keep separate supplies of tea and coffee for entertaining purposes, these small costs may be estimated.

Recording Log of Official Mileage

HM Revenue & Customs frequently challenge mileage claims, so it is important that you keep accurate records of your travel.

Two types of journey count as Official Mileage for tax relief purposes:

Those you have to make in the course of doing your job.
Those you make to or from a place you have to attend in order to do your job. This does not include mileage on journeys such as ordinary commuting or private travel.

Relief is available only where travel is in the actual performance of the duties or where it is necessary – in a real sense – for you to attend the particular place on that occasion to perform the duties.

There is no relief for private travel or travel which may seem official but is undertaken on journeys which are not necessarily undertaken in the course of your duties. An example might be a trip to attend a committee meeting of a local charity- the dividing line is very fine!

A suggested form for a mileage log is available on request.

If in doubt whether a particular journey qualifies as business mileage, please ask.

Record keeping and suggested methods

There are many different ways to keep records. Probably the easiest way is in an analysis book or computer spreadsheet format- do remember to make regular backup copies if you use the latter method!

Where possible, receipts should be retained. If this is not possible, for example because they are submitted to the PCC for reimbursement, please note your records to this effect.

If you are meeting up with us to prepare your return, please bring all information requested; otherwise please only send us what we require.

A copy of a suggested expenses record sheet is available on request.

Record Keeping and Suggested Methods

Keeping Records

Enquiries

Recording Mileage

Entertaining

payment to others

TELEPHONE

Other Matters

Useful Links

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