8 minute read
Financial Matters
from SE21 November 2022
by SE Magazines
With David Frederick FCCA | Marcus Bishop Associates | marcus-bishop.com
Is it your money?
It has become abundantly apparent that an army of aspirant small business owners who set up limited companies are oblivious to the world into which they are entering. Moreover, they are often reluctant to seek professional advice of any description because they believe they know it all! Otherwise, they would seek advice. Their naivety, neglect of the law or sheer arrogance becomes self-evident when they eventually realise, they cannot produce company financial statements for either Companies House or HMRC. Furthermore, they often fail to recognise that Companies House and HMRC are two different agencies and they each require different financial statements. It is amazing.
Perhaps the reason for UK small company failure is the obsession with the ease and cheapness in the
UK of company formation. Too many people think they can do it because it is so easy. One may understand their inability to recognise that company directors do not own any company. Shareholders own companies.
Furthermore, one may even forgive them for using directors and shareholders interchangeably.
However, there must be no understanding, tolerance or forgiveness for the extraction of company funds without either a payroll or knowledge of profit reserves. Too often one hears variations of this sob story, “I just paid myself from the company by transferring the money to my personal account.” Let’s be quite clear, the funds in a company does not belong to any individual irrespective of what they think or have been advised by any adviser in their local public house or they have researched and misunderstood on the internet.
Whether you are a sole shareholder-director or one of many shareholder-directors the company funds are not and never shall be yours. In short, the action of transferring funds from a limited company to a personal account without appropriate, sufficient, relevant, verifiable evidence is theft. If this sounds unfair, just ask yourself, as an employee would you ever just take money from your employer’s bank account? If the answer is, no, theft is fair.
Such behaviour by shareholder-directors is selfevident that they have failed to fully understand and abide by the seven core principles of a company director. Remuneration of any employed director or employee of a UK limited company must be undertaken via a HMRC registered payroll. This is not optional or something you can overlook and justify non-compliance. A payroll should be setup in advance of any desire to remunerate any employed director or employee. Some small company shareholder-directors champion being rewarded by dividends. This is an alternative to salary, but the two are not synonymous and they do not have the same accounting and taxation treatment in company financial statements. This subtle differentiation is often ignored, overlooked or misunderstood by the vocal champions of dividends. Dividends are distributed to shareholders from the company’s post tax profit and accumulated profit reserves. Therefore, before a dividend can be declared, the company must have distributable profits after corporation tax. To know if the company has distributable profits, financial statements for the month or quarter must be produced. This may be a shock to the army of small companies who rush to find an accountant after 12 months of trading. Vocalising the words is very much easier than understanding its meaning and the process. To close the door on dividends, if the company does not generate a profit, it cannot make any “lawful” dividend distribution. The payment of a salary does not require a company to have made a profit but does require a HMRC registered payroll. Salaries are an allowable business expense before the charging of corporation tax. Dividend payments are payable after corporation tax if the company has any distributable profit. The remuneration of shareholder-directors requires stopping and reflection before any decision.
Thursday 17 November: Talk on the history of Jazz (with music) - Dulwich & District u3a
2pm – 4pm. Introduction to the history of Jazz (with musical interludes). An intergenerational session from Pat Wright and her grandson Max, a professional jazz drummer.u3a members and non-members welcome. Tickets via:
www.u3asites.org.uk/dulwich/events
Saturday 19 November: The Illusioneer: Magic Mix
7.30pm-10pm. Puzzlements, Curiosities, Parlor, Street and Cabaret Magic from The Illusioneer team and guests in a fun and relaxed setting: A seated theatre style show back by popular demand. Bring your own liquid refreshments. We have the drinking vessels. Sorry no food allowed in the venue but there are a variety of eating places close by. Performers are from our resident team and guest artists, they will vary each show. All artists give their performances free and profits are donated to our special children's charity Breathe. Tickets via eventbrite. co.uk. Fison Fitness Centre 280 Milkwood Road, Herne Hill Railway Arches, Herne Hill, SE24 0EZ
Saturday 19 November: Smartphone Filmmaking
10am – 4pm. A one-day workshop, ‘Smartphone Filmmaking’ will introduce people to the fundamental concepts of filmmaking and provide them with the tools they need to be able to shoot their own films on their smartphone Places are £80 or £50 if you are in full-time education. Tickets: www.bellhouse.co.uk/events Bell House Dulwich, 21 College Road, SE21 7BG.
Sunday 20 November - Mid-century Modern®
10am – 4pm. 65 top mid-century dealers and 28 contemporary designers come together at this celebrated interior show. Expect an eclectic mix of collectables with all you need for your home and more including furniture, ceramics, glassware, industrial, metal smalls, vintage posters, art, Danish silver jewellery, lighting, fabrics, rugs and more. Make a day of it with Dulwich Picture Gallery, Dulwich Park and village all within walking distance. Tickets via: www.modernshows.com. Dulwich College, Dulwich Common, Dulwich SE21 7LD.
Sunday 20 November: Classic Orchestral Concert
7.30pm – 9:00pm. Join us in the lovely surroundings of St Stephen’s Church for this beautiful concert, given by the local professional musicians of the Tamino Orchestra. The programme includes tuneful works by Purcell and Boyce and Finzi’s evocative Romance. Douglas Reith (as seen in Downton Abbey) will introduce dances from Stravinsky’s ballet Apollon Musagète and a new work by local composer Nicholas AnsdellEvans, who conducts, with mezzo-soprano Stephanie Marshall. Tickets £15 on the door and online: www.ststephensdulwich.org/concerts. St Stephen’s Church, College Road SE21 7HW.
Monday 21 November: Change your mindset to lead a happier, healthier life -
online event
7pm – 8pm. It’s not what happens to us in life that really matters, it’s how we react to it. We can all learn from unwelcome challenges and, more often than not, become better as a result of them. By learning strategies to change our mindset we can build resilience, gratitude and humility. The session will include practical tools to utilise in your everyday life which can lead to lasting change. Tickets are £5. There are bursary places available. Email info@bellhouse.co.uk. Tickets: www.bellhouse.co.uk/events Bell House Dulwich, 21 College Road, Dulwich SE21 7BG.
7.30pm – 8.30pm. Village Books and The MCT at Alleyn’s are delighted to announce An Evening with Hugh Bonneville! Tickets can be purchased from https://mct.alleyns.org.uk. Alleyn’s School, Alleyn’s School, Townley Road, SE22 8SU, UK.
Friday 25 November: Creative Arts Club for Older Adults (60+): a Burst of Colour
10am -12pm Hanging tissue Pom Poms can transform a space for any occasion. Simple, effective and fun to make, it always feels like a party when making these so come and join in! Tickets: www.eventbrite.co.uk. Bell House Dulwich, 27 College Road, Dulwich SE21 7BG.
Friday 25 November: Mark Evison Foundation Carol Concert @6pm
With the Dulwich College choir, celebrity readers Celia and Angus Imrie, Julian Ovenden, Iain Glen, and Lesley Sharp, and singers Kate Royal and Clare Presland (with help from Julian Ovenden). There will be a champagne reception afterwards in the Linley Room at Dulwich Picture Gallery. Tickets are £15 a head, under 16s free, book tickets at events@markevisonfoundation.org.
www.markevisonfoundation.org/events.
Christ’s Chapel, SE21 7AD
Friday 25 November: Granny’s Attic, Liam Cooper, Phil Stevens 7pm – 11pm
With exceptional musicianship and boundless energy, Granny’s Attic are going from strength to strength. Cohen Braithwaite-Kilcoyne (melodeon, anglo concertina, vocals), George Sansome (guitar, vocals) and Lewis Wood (violin, vocals) have honed their skills touring the UK and Europe since 2009. The Ivy House, 40 Stuart Road, Nunhead, SE15 3BE Tickets at:
www.wegottickets.com/thegooseisout
Saturday 26 November: Love West Dulwich Christmas Fair
10am – 4pm Enjoy Santa’s grotto at Wigwam Toy Shop, the arts & crafts market, a kids Christmas trail, kids story time, face painting and much more! There will also be lots of offers and promotions at the West Dulwich shops and businesses. The fair takes place throughout West Dulwich on Croxted and Rosendale Roads, SE21. Wigwam, 109
Rosendale Road, SE21 8EZ. Dulwich Christmas Market
11am – 4pm. SoLo Craft Fair is delighted to be back in the heart of beautiful Dulwich for their Christmas market this year. Start your Christmas shopping by supporting small businesses and finding unique gifts. St. Barnabas Parish Hall, 23 Dulwich Village, SE21 7BT. ww.solocraftfair.com
Saturday 26 November: Dulwich Choral Society
7.30pm – 9:30pm - The Dulwich Choral Society is very pleased to bring you a performance of J.S. Bach’s wonderful and exuberant Christmas Oratorio, originally written for the yuletide of 1734. So come along and start the Christmas season with us in style with the abiding beauty of Bach. St. John the Evangelist Church, 1 Sylvan Road SE19 2RX. Tickets in advance via ticket source and: http://www.dulwichchoral.com
Wednesday 30 November: Cooking with Scissors
6.45pm-8pm. An opportunity for local business professionals to meet, make new contacts and gain new business. www.cookingwithscissors.co.uk.
