Phil Munk on Lion's Head Mountain

Accountants from TWP are preparing to tax themselves by scaling the British Isles’ three highest mountains to raise funds for a local hospice charity.

The firm is taking part in the Three Peaks Challenge, where participants are required to climb Ben Nevis (4,409ft), Scafell Pike (3,209ft) and Snowdon (3,560ft) in just 24 hours, with the team starting the gruelling challenge at 5pm on 22 June and aiming to complete it by 5pm the following day.

Money raised will go to Princess Alice Hospice, in Esher, which provides free end of life care to adult patients and support to their families and friends across a large part of Surrey, South West London and Middlesex.

Organised by corporate tax manager Sarah Gardner, the rest of the TWP team will consist of managing partner Philip Munk, partner Andy Goddon, associate Paul Hawksley and tax assistant Anika Kambo. They will be joined by David Carter and Mike Head from TWP Wealth Management, along with one of Philip Munk’s clients, Darren Jones of Stricklands Dental Fitness Centre.

In preparation for the challenge, the team has been busy training, including a practice climb up Snowdon. In addition to this, Philip Munk took the opportunity to climb 2,195ft to the summit of Lion’s Head Mountain in Cape Town, South Africa, while visiting a client there.

Commenting on the challenge, he said: “This is certainly going to be one of the toughest challenges any of us have faced, but it is going to be worth it to raise valuable funds for such a worthy cause.

“As a firm, we are committed to doing our bit for our local community which is why we are delighted to be able to support Princess Alice Hospice, which makes a real difference to the lives of so many.”

Sarah Gardner said: “This is the first time we have undertaken such a challenge as a firm, but I know that everyone is really looking forward to it – even if some of us are wondering what we have gotten ourselves into!”

Donations can be made via TWP‘s fund-raising page on the JustGiving website, which can be found at www.justgiving.com/twp

The team, sponsored by Weybridge-based chartered accountancy firm TWP, came face-to-face with old rivals Surrey Health and Racquets in the Premier Squash League (PSL) final on Tuesday, 8 May, in a repeat of last year’s all-Surrey showdown.

TWP St George’s Hill put in a valiant effort, keeping Surrey Health and Racquets’ players on their toes throughout. However, the Weybridge team narrowly missed out on the title, with a 3-2 victory to the defending champions.

Reigning British champion Laura Massaro overcame a leg injury to secure the first win of the night for TWP St George’s Hill, beating England team-mate Alison Walters in 51 minutes. There were close losses for Joe Lee and Nick Mueller and an epic 87-minute match between fellow England internationals Tom Richards and Adrian Grant, with Adrian sneaking the deciding fifth game and therefore the overall match. The second TWP win came courtesy of world No 10 Daryl Selby, who beat world No 7 and fellow England team-mate Peter Barker in a 25-minute battle.

Philip Munk, managing partner at TWP, said: “Having sponsored TWP St George’s Hill for four years now, we know how hard they have worked to get where they are today.

“I hope that the team know that, after the initial disappointment dissipates, we at TWP are very proud to be associated with a truly world class team. We know that they are disappointed but the gulf between the two teams has narrowed hugely in the last 12 months and the games hinged on a few points here and there. They have shown without doubt that they are a force to be reckoned with and we look forward to sponsoring the team next year.”

A win against Benz-Bavarian Duffield would potentially set up a repeat of last year’s final showdown with local rivals Integrity Surrey Health and Racquets, and a chance to avenge their defeat.

Despite Benz-Bavarian Duffield boasting the world number one, Nick Matthew and the woman’s world number two, Jenny Duncalf, the TWP St George’s Hill team was back to full strength and therefore slight favourites heading into the match.

The strength across the squad was evident as straight games wins for Joe Lee and Nicolas Mueller were complemented by a good tactical game from women’s world number three, Laura Massaro to beat Jenny Duncalf.

This gave TWP St George’s Hill an unassailable 3-0 lead over their hosts and former PSL champions. While Benz-Bavarian Duffield staged a comeback to win the last two ties, it was too little, too late, leaving our team with a clear path to the final.

With Integrity Surrey Health and Racquets disposing of MB Nottingham in equally quick fashion, the scene is now set for a thrilling all-Surrey showdown on 8th May.

Therefore, we would welcome your continued support for this all important final match. If you would like to attend, please contact your TWP partner.

It is estimated that there are more than 30,000 nannies working in England alone – and a survey found that a fifth of them worked without tax or NICs being deducted. In theory, this adds up to a loss in tax totalling approximately £57m a year.

Please contact us for details if you have any concerns in this area.

This idea may not necessarily be good news for you, as there will be plenty of losers as well as winners. We will discuss this with you nearer the time as matters progress. We will also help you choose the best option, taking all factors into account including circumstances when you might need to have a full set of accounts produced for non-tax reasons.

The scope for deferring income and/or accelerating expenditure can require a long lead-in time. In addition, if profits of a sole trader or partner are based on an accounting period ending near the start of the tax year, the options need to be looked at now. A year end of 30 April means that the year to 30/4/12 is taxed in 2012/13 with a top rate of 50%, whereas the accounting year starting on 1 May 2012 is taxed in 2013/14 with a top rate of 45%.

Changing your accounting date may create advantages – it all depends on the profit pattern, both actual and likely, and we will be pleased to undertake a fresh exercise for you on this.

HMRC estimate that, based on their assumptions of the income shifted from 2010/11 to 2009/10, to avoid the 50% charge, income of £6.25 billion is likely to be shifted from 2012/13 to 2013/14. Let us see the scope for you!

Currently you can, in theory, offset your entire income against income tax reliefs, and as a result pay no income tax at all. As unlikely a scenario as that is for most of us, we will have to plan by reference to limits to the amount of income tax relief individuals can claim.

This cap will apply only to reliefs which are currently unlimited and will be the greater of 25% of income or £50,000. The principal reliefs affected are loss reliefs that can be claimed against total income, qualifying loan interest relief and reliefs for charitable giving. There will also be a number of smaller reliefs which are currently uncapped that will be affected.

If you think you might be affected, please contact us for some preliminary advice so that you can consider possible acceleration of tax deductibles before the new rules comes in.

• Increase in income tax charge of 1% of list price for 2013/14
• Another 1% increase for 2014/15
• A further 2% increase for 2015/16, and no longer will there be a nil tax charge for an electric company car
• Another 2% increase for 2016/17, but the 3% diesel supplement is due to go
• 100% tax write-off on buying a low emission company car due to end on 31 March 2015, and from April 2013 the maximum emissions to qualify for 100% tax relief goes down to 95 g/km

As always, plenty of notice has been given but forward planning is essential in this area. We are ready to discuss the company car policies with employers of all sizes and with the car users.

You might assume that we take a cynical view of the information supply chain from HMRC, thinking that it treads on our toes and could stop you asking us tax questions. In fact, on your behalf we welcome HMRC guidance and see our role as using some of what they now publish as a way of bolstering the service we provide. Please be assured that we also cast a critical eye over some of the information provided by HMRC, as they do sometimes over-simplify. We will always adapt and adopt their information by reference to your own circumstances.

Currently individuals can offset their entire income against income tax reliefs, and as a result may pay no income tax at all. It was announced in the Budget 2012 that from 6 April 2013 there will be limits to the amount of income tax relief individuals can claim.

This cap will apply only to reliefs which are currently unlimited. This cap will be set at 25% of income (or £50,000, whichever is greater).

HMRC propose to issue a consultation document on the detail of the policy, including the implications for philanthropic giving, in the summer. We will keep you informed of developments.

Internet link: HMRC press release