Cynthia Spencer Hospice seeks headline sponsor

Funding deal boosts fight against security threats

Demand is growing for crisis, emergency and incident management software as businesses seek improved safety and security to counter both natural and man-made threats.

Now one of the UK’s most active investors has agreed an undisclosed sum in a Northamptonshire company as it develops and markets a new product designed to become a global incident and threat intelligence platform for use by major organisations worldwide.

Zinc Digital Business Solutions is a Software-asa-Service solutions provider, specialising in safety, security and critical event management. Its products help organisations to optimise decision-making, mitigate risk and streamline business processes. The business, based at Little Houghton, works with public sector agencies including the Environment Agency as well as blue chip clients.

The funding announcement by Maven Capital Partners will enable Zinc to expand its sales and marketing teams as well as invest in further product development, including the launch of its new SaaS product SYNAPSE Analyst, a global incident and

Manufacturers complete acquisition negotiations

Brackley-based Custom Design Technologies has been acquired by discoverIE Group plc, an international designer and manufacturer of customised electronics.

The deal is worth a total cash consideration of £5 million. CDT, which designs and manufactures customised plastic enclosures for circuit boards, membrane keypads and associated electronics components, marked its 36th anniversary in March.

Nick Jefferies, group chief executive of discoverIE, said: “The acquisition of the CDT group continues our strategy of building a high-quality, higher-margin international group.”

n Industrial thread

manufacturer Coats has acquired footwear producer Texon, which has a facility at Rushden’s Sanders Lodge industrial estate.

The company has a long heritage as a supplier to the world’s leading brands including the premium athleisure footwear market.

threat intelligence platform.

The incident and emergency management market globally is growing at a compound annual rate of 6.7 per cent and is expected to be worth $171.8 billion by 2026.

“We believe that Zinc offers an excellent opportunity for investment into a scaling business that is operating in a market supported by positive sector dynamics,” said Maven partner Melanie Goward. “The company is led by a very capable team and they have made good commercial progress to date. Revenues are backed up by strong recurring revenues and a positive deal pipeline of prospective new clients.”

Zinc’s chief executive Joe Zielinski said the company’s ambition is to be a global provider of security and safety incident and risk management software. “The Maven team have demonstrated great commitment to our business.”

Charity’s cycle fundraiser seeks headline sponsor

Cynthia Spencer Hospice is seeking a prominent local business to come to the rescue as its headline sponsor for Cycle4Cynthia, the flagship fundraising cycle event returning to Althorp Estate next month.

Goodrich Consulting is joining the sponsorship line-up for the first time this year and property and letting sales company Chelton Brown are staying in the sponsorship saddle for the eighth year running. Flour miller Heygates and Milton Keynes law firm EMW have also renewed their sponsorship for this year.

Now the charity is looking for one local company to take up the mantle of being the event’s headline sponsor.

Cynthia Spencer’s corporate partnerships fundraiser Nina Gandy said: “We are incredibly grateful for the ongoing support from local businesses for Cycle4Cynthia which helps us continue providing amazing care to the people of Northamptonshire.” Property company Chelton Brown are among the sponsors of this year’s Cycle4Cynthia event

A new ten-mile route has been introduced this year alongside the five-mile route which this year is on completely closed roads, making it even safer for younger cyclists. Last year’s event - the first since the pandemic- raised more than £40,000 for the hospice.

Olivia Smith, of Goodrich Consulting, said: “Cynthia Spencer Hospice is a charity that has touched the hearts of so many over the years, which is why Goodrich Consulting is immensely proud to be supporting them for another year. We are thrilled to be putting on the Cycle4Cynthia jersey again and riding alongside our clients and colleagues across the Northamptonshire countryside for such an incredible cause.”

Chelton Brown director Edward Chelton Brown said: “Cynthia Spencer does so much fantastic work locally giving care to those who need it. Cycle4Cynthia is always such a fantastic day that the team look forward to taking part in.”

Traditional values, modern strategies, unparallelled service

At Motum, we pride ourselves on being a value-based service provider. We provide insurance solutions to a wide range of businesses, including sole traders, small and medium-sized enteroprises and large corporates.

Motum Insurance Services launched in 2021 and sits as part of a wider group, 100 per cent owner managed. Founded five years ago, we have developed a claims proposition, vehicle repair proposition, recovery proposition and of course our insurance broking services.

Each individual service sits behind our broking services, which enables us to greatly enhance our overall service. Traditional values, combined with modern strategies allows us to provide unparalleled value and service to our clients.

WHAT WE DO

Our strategy is outlined in four areas: Get to know the client This is so important to us. We can only advise and recommend the best service and product once we know you, your business and your aspirations. Prepare the story Insurance broking is often about demonstrating the ‘right’ type of risk to an insurer. By taking the time to understand your business, we can demonstrate a strong understanding of the risk, provide appropriate advice and ultimately, secure the best cover and value premium. Go to market We guarantee to always complete a whole of market exercise to obtain the best value and cover for our clients. Provide our recommendations As a FCAregulated insurance broker, regulated to advise, you can trust in the advice we provide and we are accountable for this.

WHY USE MOTUM

In a nutshell, because of our expertise. As a business we have in excess of 50 years’ experience within insurance, partnered with a very clear offering: n Appointed client director or account manager; n Northamptonshire-based insurance broker and claims service; n 24-7-365 in-business claims service, always here when you need us; n Board level insurance and risk advice; n Owner Managed.

MAKING THE COMPLEX SIMPLE

n Board level risk management advice and solutions n Value based insurance... the right cover at the right price n Commercial insurance experts

With more than two decades of experience, we work with an array of clients from private individuals to SMEs, large fleets and the public sector. We are dedicated to providing insurance that provides real value. We are part of a larger group of companies specialising specifically in commercial insurance. Every element of our group of companies has been built to provide service behind the premium you pay, ensuring your policy is there when you need it most. Everyone on our team has the professional experience required to give you the very best service and advice in all areas of commercial risk management.

With recent updates to the regulations and more coming in 2023, Leona Bateman, partner at chartered accountancy practice Elsby & Co, examines whether tax-motivated incorporation still has a place.

Rule changes will impact on decision to incorporate

Historically, business owners and directors could make savings on tax and National Insurance by transferring a sole trader business to a limited company. In 2016 a sole trader with profits of £100,000 would keep just over £66,200 after tax and NI, however a director shareholder of a single person company would keep just over £71,000.

As accountants, our advice was simple and straightforward. In 2022-23 a sole trader would keep £66,800 and the director shareholder would keep £68,600 but the saving has been reduced.

In 2023, corporation tax increases to 25 per cent, though companies with profits of £50,000 or less will continue with the 19pc rate. Where profits don’t exceed £250,000, marginal relief can be deducted to reduce the effective rate of tax.

This change has a significant impact on the decision to incorporate.

Assuming the accounting period falls wholly after April 1 2023, the sole trader is in a similar position as 2022-23, keeping just under £67,000 after tax and NI. This makes sense as sole trade profits are not subject to corporation tax.

However, the director shareholder’s position is affected as profits after deducting the director salary of £12,570 - the optimum position due to increases in the primary threshold - fall into the marginal relief band.

The corporation tax bill increases, leaving less distributable profits to take as a dividend. The result is that our director shareholder retains £67,000, putting them on a par with a sole trader.

When considering whether to incorporate following the 2023 rate increase, it’s unlikely to be worth doing from a tax angle alone, unless there’s certainty that profits will remain around £50,000 to £75,000.

The tax efficiency could increase depending on circumstances. If the director shareholder doesn’t require all the profit to be extracted every year, profits can be left undrawn as dividends but won’t be subject to income tax until withdrawn. If this takes place in a later year when profits are lower, they could be subject to a lower rate of dividend tax.

The company could also use any undrawn profits to make investments in its own name. This doesn’t solve the tax efficiency issue but could increase the distributable profits going forward.

Another option is using undrawn profits to make pension contributions as the employer. These would be deductible for corporation tax but has the downside of money being locked away.

If these options aren’t suitable, a good strategy is to bring a spouse or civil partner as a second director shareholder. This would eliminate secondary class 1 NI contributions and would have a big effect on the corporation and income tax charged

Assuming no other income, both directors would withdraw a salary, saving corporation tax of up to 25pc, with income paid enjoying the benefits of two personal allowances, basic rate bands and dividend allowances.

In a company with profits of £100,000 and assuming director salaries of £12,570, corporation tax falls by over £3,000. Assuming an equal dividend split, neither director shareholder breaches the higher rate threshold and the income tax bill is less than £5,000.

Overall, the change to a twoperson company saves over £12,000, leaving our happy couple with £79,200.

The days of the old ‘one-man (or woman) band’ companies may be numbered but there’s still a place for incorporation with tax savings in mind.

Leona Bateman

A sole trader changing to a two-person company could mean a significant uplift in profits

n For a free consultation or to hear how Elsby can help mitigate your tax, e-mail leona.bateman@ elsbyandco.co.uk.

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