In Focus issue 24 Winter 2022 | Randall & Payne Accountants & Business Advisors

Issue 24 | winter 2022 randall-payne.co.uk

We make your success our priority

TM

Autumn Statement What’s included in the Chancellor’s tax changes?

Sale Success For Ryeford Cleaning Services

How to optimise your resources for 2023 ACCOUNTS

Improve your cash flow with Direct Debit

- BUSINESS ADVISORY PAGES 10 & 11

MEDICAL

Better financial data for GP Practices

TIM’S VIEW

AUDIT

OUR NEWS

GUEST ARTICLE

RIDING THE WAVES OF CHANGE

TRUSTEES REPORT TOP TIPS

STAFF SUCCESSES & FUNDRAISING

TAX BENEFITS FOR E-BIKES

WELCOME

MEET OUR SENIOR TEAM Tim Watkins Managing Partner

Will Abbott Ollie Newbold | Partner

Partner Specialism: Business Advisory

Rob Case Partner Specialism: Tax & VAT

Ollie Newbold

Welcome to issue 24 of In Focus.

The World Cup is, unusually, currently providing the backdrop of our Winter. Whether or not you like football, this is an interesting analogy for some of the challenges that are currently faced by business.

Teams are operating in unchartered territory in an imperfect environment where the landscape keeps changing.

It’s not always the teams that have the best players in the world that succeed, it’s those that have developed a cohesive team ethic and work selflessly to deliver for the good of the whole team. It has rarely ever been more important for teams within business to come together and work relentlessly towards a common goal – this is what can make the difference between surviving and thriving.

We hope that our In Focus can provide some hints and tips for areas to consider.

Standing still at the moment is not an option and Will’s article on pages 10-11 ‘How to optimise resources for 2023’ will give you his insights on steps you can take to maximise results, regardless of the pressures.

Shaun’s article on pages 13-14 provides advice on how to embrace technology to improve credit control, thus improving

the cash cycle which is always business critical.

With so much being announced by the chancellor (Jeremy Hunt at the time of writing!) during the Autumn Statement, Rob and James simplify this to provide an overview on how this affects you and your business on pages 4-6. Incidentally our guest article from Edemo, in Stroud, on page 18, offers great advice on how buying electric bikes can reduce your personal and your business’ tax.

I am also very pleased to share our case study regarding the successful sale of Ryeford Cleaning Services Limited on pages 8-9. Despite the doom and gloom that is peddled on the news there is plenty of good news going on in the real world too and businesses large and small are still hungry for growth.

A final thought - problems can often be opportunities in disguise!

Happy reading.

Subscribe at www.randall-payne.co.uk/news/subscribe-to-in-focus T: 01242 776000 @RandallPayne Randall & Payne LLP E: marketing@randall-payne.co.uk Chargrove House, Shurdington Road, randall-payne.co.uk Cheltenham GL51 4GA 2

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Partner Specialism: Corporate Finance

Ryan Moore Partner Specialism: Audit

Simon Dudfield Director Specialism: Medical Services

Nikki Cairns Client Director Specialism: Accounts

James Geary Client Director Specialism: Corporate Tax

Nicholas Gratton Client Director Specialism: Accounts

Shaun Pegler Client Director Specialism: Accounts

Ben Burch Client Director Specialism: Audit

Printed on Carbon Captured paper.

Supporting the

CONTENTS

In this issue news FOCUS | 4 – 5 What you need to know following the Autumn Statement

P4 The Chancellor’s tax changes

Business Tax | 6 Changes to R&D Tax Relief schemes

Tim’s view | 7 Riding the waves of change

CORPORATE FINANCE | 8 – 9 Sale success for Ryeford Cleaning Services Ltd

Business Advisory | 10 – 11 How to optimise your resources for 2023

AUDIT | 12 Top tips for preparing a Trustees’ Report

MEDICAL | 13 Better financial data for your practice

ACCOUNTS | 14

P10 Optimising your resources

How Direct Debits can help your business with its cash flow

Randall & Payne News | 15 Celebrating the success of our people

In the Community | 16 – 17 The winners of the 24th GloucestershireLive Business Awards and our fantastic first year of fundraising

Guest Article | 18 Tax savings when buying an e-bike through your company

EVENTS | 19 Key dates for your diary

P14 Improve your cash flow

randall-payne.co.uk 3

AUTUMN STATEMENT 2022

Autumn Statement 2022

Everything you need to know about changes to tax Rob Case | Partner

After the U-Turn announced when the Chancellor, Jeremy Hunt, was initially appointed, the Autumn Statement was the announcement of his and the current government’s plan to address their plans for economic stability, growth and public sector spending.

The pledge was to deal with the estimated economic shortfall, half by taxation and half by spending cuts.

The first announcements were around taxation and the need for fiscal responsibility. There has been a lot of talk in recent weeks about fiscal drag and we have seen the implementation of that with many taxation thresholds remaining the same until 2028, albeit that will be after the next general election. He has also reduced with effect from April 2023 the allowances for tax free dividends and the Capital Gains Tax Annual Exemption.

This coupled with the increase in state pension will bring many more individuals into the Self-Assessment system.

The freezing of the VAT registration threshold will also bring many more businesses into the VAT regime.

Many of these allowances and thresholds were originally set to try to exclude many from the tax system unnecessarily, there is no doubt that these measures will produce an extra compliance burden on 4

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taxpayers and HM Revenue & Customs (HMRC).

with inflationary pressures caused by global issues.

The government also announced that it is investing a further £79 million over the next five years to enable HMRC to allocate additional staff to tackle more cases of serious tax fraud and address tax compliance risks among wealthy taxpayers, albeit there is no mention of additional resource to help them with customer services or existing compliance needs.

There was a focus on investment in our public services and also infrastructure projects and it was announced before the budget that the Air Balloon Roundabout A417 missing link work will go ahead, which will be a welcome investment in the county.

I don’t believe anyone expected there to be tax cuts as previously proposed, but at a time of high inflation and the associated impact on the cost of living these announcements will be to the detriment of very many individuals.

However, the Chancellor has looked to help those people who require the most support, keeping the pensions triple lock and those on the lowest incomes with specific and more targeted measures.

Meanwhile there is investment in growth and innovation to improve the overall economy in the long term and assist

Changes to Tax on Electric Cars There were two main announcements made in the Autumn Statement which directly relate to electric cars.

The first of these was that from April 2025 electric vehicles will no longer be exempt from road tax, which will increase the annual running cost of owning an electric vehicle. The second announcement was an increase in the Benefit In Kind (BIK) percentages for electric cars, which will affect how much tax directors and employees pay each year on electric vehicles provided to them through a business to use personally.

NEWS FOCUS

Road tax (VED) The amount of road tax electric car owners will be liable to pay from April 2025 will depend on when the vehicle was first registered and how much the car was worth new: Registered from 1 April 2017 onwards From April 2025 electric car owners will pay VED at the standard rate, currently £165 p.a.. However, for cars registered on or after 1 April 2025 this is reduced to the lowest rate in year one only, currently £10 p.a.

Registered between 1 March 2001 and 30 March 2017 Electric vehicles registered between these dates who are currently in Band A, will move to Band B. The rate of Band B is currently £20 p.a. This also applies to low emission cars.

Expensive Car Supplement Electric cars were previously exempt from the Expensive Car Supplement, which currently requires other car owners whose car has a list price of over £40,000 to pay the supplement for five years.

that this will be increasing to 3% in 2025/26, to 4% in 2026/27 and to 5% in 2027/28.

Whilst this will increase the amount of tax paid by directors/employees, the same one percentage point increase is also being applied to the BIK rates on all other non-electric cars, which still makes electric cars far more tax efficient than their petrol or diesel counterparts, whose BIK percentages can reach 37%.

Changes to Personal Tax Jeremy Hunt started his budget by extending the freezing of many personal tax thresholds, inclusive of Income Tax, National Insurance (NICs) and Inheritance Tax for a further two years to April 2028. Given current levels of inflation, this will result in additional tax being paid by most individuals.

Furthermore the Autumn Statement reduces the generosity of certain other thresholds and allowances, including the Dividend Allowance, the Capital Gains Tax (CGT) annual exemption, and the threshold at which the Additional Rate (45%) of tax applies.

However, from April 2025 the exemption for electric cars will end and any new zero emission cars registered on or after 1 April 2025 will be liable for the supplement.

There has been no confirmation yet on the rate electric cars will pay, however, the rate for petrol or diesel cars is currently £165 p.a., which is paid in addition to the road tax.

Dividend Allowance

Road tax on other electric vehicles

Also significantly cut is the Annual Exempt Amount for CGT. This will be more than halved to £6,000 in April 2023, and then halved again to £3,000 in April 2024. However, the reporting limit for proceeds has been set at £50,000 from April 2023, rather than the current limit of four times the AEA. Overall this is expected to generate revenue of £1.6bn by 2027-28.

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Electric vans will move to the rate for petrol and diesel light goods vehicles from April 2025, currently £290 a year for most vans.

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Electric motorcycles and tricycles will move to the rate for the smallest engine from April 2015, currently £22 p.a.

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Alternative fuel vehicles and hybrids will also be equalised.

Benefits In Kind on Electric Cars When an employee is provided with a company car, and they are able to use this car for personal journeys, they will be charged tax on it, known as a BIK. The BIK on electric cars is currently 2% of the list price, however, it was announced

The tax free dividend allowance will be halved to £1,000 in April 2023, and then further reduced in April 2024 to £500.

This means that an additional £1,500 of dividends will be taxable income, generating upwards of £3bn of tax by the 2027-28 fiscal year.

Capital Gains Tax

In additional support to couples who are in the process of divorcing, no gain/ no loss transfers are confirmed to be extended for three years following separation, which should allow for most settlements.

Additional Rate In the past few months, the additional rate of tax has been removed altogether, reintroduced, and now it has been

announced that the threshold at which it commences will be reduced from £150,000 to £125,140 in April 2023.

This means that after you lose your entire personal allowance, you now also begin to pay Income Tax at a 45% marginal rate (39.35% for dividends) too. This reflects Hunt’s statement that those with more will contribute more towards the UK’s financial recovery, generating more than £3.7bn in the next five years.

National Minimum and Living Wages In an effort to stimulate income for workers and combat low pay, rates of National Minimum and National Living Wages were increased by an average of 9.9%. With National Living Wage increasing for those over the age of 23 by 9.7% to £10.42. This represents an increase of over £1,600 to the annual earnings of a full time worker paid at this level, however many more workers on the lowest wages will have additional Income Tax and National Insurance Contributions due as a result in the aforementioned freezing of tax thresholds.

Triple Lock The Chancellor spoke significantly about compassion within his statement, including supporting those on fixed incomes and income support. Benefits will be uprated by September Consumer Price Index (CPI), being 10.1%, and the triple lock has been honoured to include state pension. The benefit cap and pension credit will also be uprated by the same. CPI, ensuring those on the lowest incomes will be protected from the effects of inflation on their incomes.

Stamp Duty Land Tax Stamp Duty Land Tax measures remain unchanged until 31 March 2025, with the nil rate threshold for all purchases at £250,000 and for first time buyers at £425,000. With the Office of Budget Responsibility predicting a fall in house prices of up to 10% over the next two years and mortgage interest rates continuing to increase, reducing these thresholds immediately could further stifle the housing market.

To discuss your situation in more detail contact your advisor on 01242 776000, or email tax@randallpayne.co.uk randall-payne.co.uk 5

TAX

Changes to R&D Tax Relief schemes announced in the Autumn Statement While there were some rule changes expected for April 2023, we were not expecting cuts to the rates of R&D Tax Relief to be announced by the Chancellor.

James Geary Client Director and Head of Corporate Tax The SME (Small and Medium-sized Enterprise) Scheme has involved an additional deduction of 130% of qualifying spend from taxable profits for many years, but from April 2023 this additional deduction will be cut to 86%.

Of course, the main rate of Corporation Tax is also increasing from 19% to 25% at the same time which in itself would ordinarily result in an increase in the value of the relief. However overall this is still a cut in effective relief – broadly speaking, the Corporation Tax saving arising from the additional deduction will decrease from 24.7% to 21.5% of qualifying spend.

The payable tax credit rate will also reduce from 14.5% to 10% from April 2023. This applies where a loss making company opts to surrender its R&D tax losses for a cash payment rather than carry them forward against future profits.

The effect of this for these companies is 6

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to reduce the maximum tax credit of 33.3% of qualifying spend down to just 18.6%.

At the same time as both of these changes, the rate of relief for the R&D Expenditure Credit (RDEC) is being increased from 13% to 20%. This is the scheme that applies to much larger companies, but it also applies to SME companies that are carrying out subcontracted or subsidised R&D (including where the project is grant funded). The RDEC itself is liable to Corporation Tax, so with the main CT rate increasing to 25%, this means the net RDEC (i.e. the cash benefit) will be 15% of qualifying spend from April 2023 (increased from the current net RDEC of 10.53%).

The government has stated that this is a first move towards unifying the two R&D schemes into a single one, and it can be clearly seen that the relief rates are converging. We therefore expect further changes, probably from April 2024 in due course, to move the rates closer together, or possibly to abolish the SME scheme altogether from that point.

While there were some rule changes expected for April 2023, we were not expecting cuts to the rates of R&D Tax Relief to be announced by the Chancellor This is a disappointing move by the government, because even though they have been considering moving to a single scheme for some time, the tax professional bodies have strongly objected to such a move, on the basis that the decision is backed up by unreliable data the government holds on the “additionality” of the SME scheme – by which we mean the amount of additional R&D activity stimulated in the economy as a result of the scheme’s existence.

Contact James Geary for more information by emailing james.geary@randall-payne.co.uk or call 01242 776000.

Tim’s VIEW

Tim Watkins | Managing Partner

Riding the waves of change One day I may be able to write my view with everything looking rosy in the outside world!

This time last year we were cancelling Christmas parties and shutting ourselves away again as another wave of covid spread.

This year covid seems to be taking more of a back seat and instead we now have to contend with high inflation, difficulties with recruiting, frightening energy prices, a war in Europe and industrial unrest in the public sector. Sitting back and thinking about all the negatives out there isn’t a comfortable experience! All these things though are out of our control.

Business thrives on confidence and there are plenty of things that are within our control that can give each of us confidence that we can weather the storm and come out the other side.

Planning and budgeting for a range of scenarios, from worst case to best, can help tell us that we will get through. If it doesn’t then it gives us the information to start thinking about changes we can make that will make a difference.

Change isn’t something to be frightened of. It could be as simple as reviewing

costs and cutting out what might be unnecessary, it could be looking at processes and making them more streamlined for better efficiency, it could be making sure you are pricing your product or service correctly. There are many aspects of the business that can be looked at and the trick is not to try and change everything at the same time. Work out where you can make the biggest difference first and then do it, you will feel better and it will give you the confidence that the future can be rosy.

Sometimes it is difficult to sit back on your own and do that business review.

That’s why we are here, we have all seen different businesses and different situations and have experience to share.

We run advice clinics if you want to come along for just an initial free chat. Your success is our priority, even more so in these tricky times.

I am fortunate to have my fellow Partners and an experienced senior leadership team to meet with regularly, sharing thoughts, and concerns, and using this dialogue to adapt our strategy to

move forward confidently. Remember we are all in this together, so share your circumstances with fellow business owners and colleagues, the chances are they will be just as relieved to share their troubles, and maybe have some insight that you hadn’t considered.

Our quarterly Business Bootcamps bring together business owners and managers to challenge thinking, help develop new perspectives and deliver results. By bringing business leaders together these Bootcamps create the opportunity to benefit from interacting with each other and sharing ideas and experiences. To join in the next one contact us to find out more.

Doing nothing is easy, which is why so many people do it, but doing nothing in business can be the difference between riding the waves or drowning in the sea.

Contact Tim Watkins for more information by emailing tim.watkins@randall-payne.co.uk or call 01242 776000. randall-payne.co.uk 7

CORPORATE FINANCE

Ollie Newbold | Partner

Sale Success for Ryeford Cleaning Services Ltd Having been longstanding clients of Little and Co, which we successfully acquired in 2020, we were approached by business owner Doug Salmon and Managing Director John Clements for corporate finance support and advice on their plan to exit.

Having a clear understanding of their aspirations thereafter, the sale process formally commenced in April 2022 and, in just four months, was completed with the sale of ‘Ryefords’ to Atlas Facilities Management.

Established in 1988 and incorporated in 2003 by Doug Salmon, Ryefords began as a ‘one-man band’ providing cleaning services to a handful of commercial clients. The company grew rapidly and quickly gained an unwavering reputation within the marketplace which can be attributed to the steadfast focus on customer and team relationships, as well as the continual assessment of service provision.

As the company grew Doug was conscious that in order to continue growing the business to its full potential he needed to integrate logical systems and streamline processes. This led to the employment of John Clements as 8

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Managing Director who was able to draw on his experience in the banking sector, allowing him to review the business more objectively and to implement key changes within the business. Throughout his role, John has worked closely with the team, customers and, of course, Doug to present the business as it is today.

Making a decision to sell a business is never easy, especially when there are the emotional ties of starting the business from scratch. It was important to both Doug and John that the friendly and approachable culture which has been at the heart of the business was protected allowing the Ryefords legacy to continue to thrive.

At Randall & Payne, we firmly believe that preparation, collaboration and energy are the components of a successful transaction. Preparation allows a smoother, speedier transaction

process whilst also reducing any vendor anxiety. When Doug and John first approached us regarding the sale of Ryefords, we explained that our role (and what we do best) is to provide the buyer with relevant and timely information, to provide a sole point of contact and to troubleshoot any issues in order to provide transaction momentum.

From the initial sale preparation and identification of potential purchasers, to reviewing completion agreements, our objective is to keep the deal running smoothly and work collaboratively with all parties to ensure the sale objective is met.

Having received multiple offers from interested parties, Doug and John where able to recognise Atlas Facilities Management as the buyer who would continue the Ryefords legacy and be the best fit for the company. Nick Earley,

CORPORATE FINANCE

The process that Randall & Payne implemented was exemplary. We were provided with many more offers than we had anticipated and we completed in record time. Doug and I put this down to the quality of the team and their ability to work to deliver a common result. co-owner of Atlas Facilities Management met with Doug, John and ourselves at the earliest opportunity, following receipt of the Information Memorandum (IM).

Nick Earley remarked “The IM brought the business alive, along with providing all the critical information I needed to make a thorough assessment of the opportunity. The document provided me with confidence early on in the transaction process”.

When it was agreed by all parties that we should aim to complete the transaction within a month of the initial meeting, there was confidence between both parties that this was a reasonable expectation that could be met.

Doug and I put this down to the quality of the team and their ability to work to deliver a common result”.

Preparation + Collaboration + Energy = Success!

Contact Ollie Newbold for more information by emailing corporatefinance@randall-payne. co.uk or call 01242 776000.

By using a carefully structured, organised approach, we were able to provide Nick with all the documentation required in the pre-prepared data room which not only assisted in deal speed, it also provided Nick strong levels of confidence in Doug, John and of course Ryefords as a business.

Upon completion we were truly delighted for both parties that the suggested timescales were met without any delay and provided both parties with their respective versions of success.

Following completion John Clements remarked “The process that Randall & Payne implemented was exemplary.

We were provided with many more offers than we had anticipated and we completed in record time”. randall-payne.co.uk 9

BUSINESS ADVISORY

Will Abbott | Partner

How to optimise your resources for 2023 Whether sales are growing or slowing, optimising use of resources is an ongoing opportunity for most businesses and one we should revisit regularly.

It really is an interesting time to be an advisor, where the businesses I work with consistently have more sales than they have people to do the work. We have spent our lives generating sales to keep people busy and now we find sales are flying in and we need more people! It just feels like the opposite of what we are used to.

We need to be very clear how we plan to win in our market. This is our “sustainable competitive advantage” and it is based on what we believe are the most important things for our customers when they make their buying decision about our product or service.

To add to this pressure, there is the current uncertainty and some increasing concerns about what might happen next. The most powerful strategies are ones that work in multiple scenarios and operational efficiency is one of the most ubiquitous. Whether sales are growing or slowing, optimising use of resources is an ongoing opportunity for most businesses and one we should revisit regularly.

in your market?

Where to start this process?

My experience is that too often we dive into the detail of processes and miss the fundamental question about what we, as a business, are trying to do.

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How will you win

How do we answer this question?

The way we respond absolutely determines how our business should operate and a lack of clarity on this leads to wasted resources and conflict within, and between, teams. A simple example is where businesses promise exceptional customer service but believe the customer buys only on price, so they cut costs to win business, and it is likely to compromise the quality of the service.

SUSTAINABLE COMPETITIVE ADVANTAGE

MARKETING STRATEGY

OPERATIONS STRATEGY

INNOVATION STRATEGY

HUMAN RESOURCE STRATEGY

FINANCIAL STRATEGY

The most powerful strategies are ones that work in multiple scenarios and operational efficiency is one of the most ubiquitous.

BUSINESS ADVISORY

The reality is it costs money to deliver consistent exceptional customer service, so if we promise that but quote to be the cheapest we are bound to under deliver and lose trust (and customers).

Once we are clear on our strategy to win, we can start to consider our operational activities, especially if there are ways to offer exceptional client service coupled with competitive pricing without negatively impacting on our promise.

What to start doing, stop doing, do more of or less of?

A great tool that works for both our competitive advantage and our operations is the ERRC grid from Blue Ocean Strategy; Chan Kim, Renee Mauborgne 2015, (I’ll admit this may be a slightly repurposed tool but we all like an innovative accountant).

The grid is asking us to consider four things, which I paraphrase as Start, Stop, More, Less. In simple terms, if we want to win, what do we need to start doing, stop doing, do more of or less of?

We can apply this to our competitive advantage, take it down to our processes and then take it further down into the steps in each process. Every step in every process should be supporting our competitive advantage.

Linking operations to competitive advantage DO LESS OF

STOP

A NEW OPERATING MODEL

DO MORE OF

We find this process works best for clients when you have an independent third party in the room to facilitate the discussion and drive to action.

Contact Will Abbott for more information by emailing will.abbott@randall-payne.co.uk or call 01242 776000.

START

Bite-Sized Thinking

Should we choose customer service as our competitive advantage both our processes and each step in those processes will be different to a business that plans to win on cost. Until we have clarified that strategy and everyone in the team understands their role, we are likely to be bloated and just wasting time and resource doing things our customers neither value nor appreciate.

Work this out though and you really will add value to your business and improve the work life balance of you and your team.

›› Have a clear sustainable competitive advantage ›› Ensure your operational activities fit with this ›› Identify what to start doing, stop doing, do more of or less of ›› Every step in every process should be supporting our competitive advantage To find out more about any of the topics discussed in this article, visit randall-payne.co.uk

randall-payne.co.uk 11

AUDIT

Top tips for preparing a Trustees’ Report – 2022 The production of the Trustees’ report is a critical part of the academy accounts process. Our top tips for preparing are aimed at making these reports more informative for readers of the accounts.

Ryan Moore Partner

ESFA) and have compiled our top tips for preparation of your Annual Trustee report: 1 Move away from being boiler

The Trustees’ report provides a description of the objectives set, the activities undertaken and the performance against objectives for the academy trust as a whole.

It serves as an opportunity for trustees to communicate with stakeholders in their own words, how the Academy has operated in the period being reported on, including the impact of internal and external contributory factors.

Preparation of the Trustees’ report can be a time-consuming endeavour for those involved.

Over the last few years, auditors and the ESFA have increased their focus on the contents of these reports.

We know that this area is becoming increasingly important to the users of financial statements (including the 12

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plate – whilst there are some items included in the Trustees’ report which are required by legislation and the wording will change very little, we encourage all of our clients to move away from preparing boiler plate statements and to consider carefully the theme and style they would like to use in writing their reports.

2 Recognise that risks can change

over time – the principal risks of the Academy will change over time and we would expect them to at least be reviewed annually.

For example, the impact of the pandemic was considered a significant risk for many academies in previous periods, but this risk has reduced moderately this year and we would expect the Trustees’ report to reflect this.

3 Challenge the appropriateness

of policies – The reserves policy of the Academy is a key section of the Trustees’ report and we have noted historically that client policies in this area have become outdated as academies have grown or changed in structure. We would expect reserve policies to be fluid and change over time. Trustees should clearly detail why any policy has been selected and report on how it has been monitored throughout the year.

Finally, take a step back and consider what you are obliged to report on and what will be of interest to your stakeholders. If you need help or advice please do get in touch.

For more information on our academy audit process, please contact Ryan Moore by emailing ryan.moore@randall-payne.co.uk or call 01242 776000.

MEDICAL

Better financial data for your practice Despite there being many high achieving practices who are getting the most out of their financial reporting having embraced cloud-based accounts software, there are still a surprising number who haven’t. tighter practice.

Shaun Pegler Client Director Making Tax Digital (MTD) for medical partnerships with individuals as partners, commences in 2025-26. This will require quarterly reporting of financial information to HM Revenue and Customs (HMRC) using accredited software packages approved for this purpose.

There are still many practices who would not be prepared for the deadline because they are using outdated accounting software, with a small number even maintaining records via Excel spreadsheets. Practices could gain a more timely insight into how they are performing financially if they invested in cloud-based accounts software before MTD makes it necessary.

In these challenging times, using the right software is very important for a practice’s efficient running. Having access to timely and accurate financial information will mean being better equipped to run a

Using software such as Xero or QuickBooks, your bank statements automatically feed into the software so there is no need to manually retype the information which, once set up correctly, could save hours of valuable time. There are apps which take different sources of income and automatically direct it into the software. The groundwork involved in setting up the bank feed is very important and in some cases can be time consuming, however we can help with that with expert training and assistance.

There are so many benefits for both your practice and your accountant. It allows us to be able to give you proactive advice and generate accurate management reports and cash flow reports with the press of a button.

What’s more, cloud accounting not only helps your practice to operate more efficiently but also more sustainably.

Using the cloud and its remote IT infrastructure, and being able to reduce the need for paper record keeping, helps reduce energy usage, carbon emissions and save you money.

Using cloud-based software also eliminates the need for back-ups meaning your accountant can have secure instant access to your live system to assist with transactions, make adjustments or complete essential year end maintenance without delay.

We have considerable experience with all the main cloud-based software providers, particularly Xero, QuickBooks and Sage, so are well placed to offer free demonstrations to help make the right choice and get set up. If you would like to explore moving to cloud-based software and understand how it could benefit your practice please contact us.

There is no need to keep any physical copies of invoices – you can just take a photo or scan it and the app will feed it into the software.

Contact Shaun Pegler for more information by emailing shaun.pegler@randall-payne.co.uk or call 01242 776000. randall-payne.co.uk 13

Accountancy

How Direct Debits can help your business with its cash flow Business owners are feeling the strain from the rising cost of living and uncertain financial markets so realising cash and ensuring customers pay in a timely manner is more important now than ever before.

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Direct Debit allows cash flow to be forecasted more accurately, greatly reducing the likelihood of errors and issues within the business

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When compared to other payment methods, Direct Debit can cut costs because you don’t have to wait a number of days for the funds to be available in your account.

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Using cloud based software, you don’t need to the spend time reconciling collections manually

Shaun Pegler Client Director

What is a Direct Debit and why do we advise our clients to use them?

Put simply a Direct Debit is an instruction from a customer to their bank or building society which authorises the service user to collect varying amounts from their bank account on an agreed frequency.

We advise our clients to set up Direct Debits as it can improve business cash flow because: 1

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Direct Debit cuts down the risk of bad debts, since the longer you are owed, the harder debt is to collect and the more time consuming it will become.

Invoicing with a Direct Debit authority can allow you to be paid for services as you go, rather than waiting for a client to pay when they are ready.

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Setting up a Direct Debit system is easy, you just need to ensure you have a secure system and you understand the rules around how you take payments from customers and submit them to BACS for processing.

One of the biggest advantages is that by automating the process, there’s no need to approve invoices or authorise payments, as funds automatically leave the customer’s account helping businesses speed up their cash collection.

Direct Debit works well for your customers, saving them time and effort too.

We use Xero to invoice our clients automatically via email, offering card payments as well as Direct Debit, with a link to pay by card online to take care of the transaction easily and securely.

Once paid this automatically updates the client account on Xero Some of our clients pay equal Direct Debit instalments for the work agreed upfront when they come on board, whilst for others the amount taken varies as and when the work is completed throughout the year.

If you are a client and not on Direct Debit with us, give your usual contact a call to discuss setting one up or explore your options.

Contact Shaun Pegler for more information by emailing shaun.pegler@randall-payne.co.uk or call 01242 776000.

RANDALL & PAYNE NEWS

Celebrating success: promotions and qualifying We are delighted to announce that Ben Burch has been promoted to Audit Director and has also obtained his status as a Responsible Individual (“RI”) within the firm. Ben will join the firm’s Senior Leadership Team with effect of 1 December 2022 and brings with him a wealth of technical auditing knowledge.

Audit Partner, Ryan Moore said “We are thrilled with Ben’s appointment to Audit Director and RI. Ben is a committed member of the audit team and has personally worked extremely hard over the last 12 months to achieve this career milestone.”

Ben originally joined us as an audit trainee in 2012. He works with a variety of clients, and has significant experience with the firm’s academy clients.

Over the last year we have been delighted to promote Carrie Dailly and Jo Horton to Client Managers, Alexandra Sidaway to Management Services Assistant Manager, Ethan King and Alice Prout to Semi-Senior Accountants, and Adam Smith to Personal Tax Accountant.

Congratulations to the following staff for qualifying this year: � Joe Lock in corporate tax is ATT qualified � James Cook in accounts and James Cook in audit are AAT

qualified

Special mention to Rhia Hill who was awarded the Kimmer Medal which is given to the candidate obtaining the highest mark in ATT Paper 5: Inheritance Tax, Trusts and Estates.

� Sophie Price and Shelley Tomkins passed their ICAEW exams

Firm ranked #12 in the

Ryan ranked #25 in the

The Mid-Tier Power Index recognises the UK’s top 40 mid-tier firms that strive for excellence in the industry.

The ‘35 under 35’ list spotlights young talent in the industry who have made significant contributions to their firms and field.

Accountancy Age Mid-Tier Power Index

We demonstrated that we are achieving our 5-year strategy and the importance of clarifying our vision to help to bring the whole team with us on our journey.

We are proud of this feedback from the judges: “Your application demonstrated professional excellence with a high quality of service to clients and added a significant competitive advantage to others. Our judging panel of board level executives admired the degree to which you showcased your practice’s excellence in accountancy, to educate, motivate and inspire.”

Accountancy Age ‘35 under 35’ list

Ryan Moore became Audit partner in May 2022, the youngest partner in our 143-year history at the age of 30. Ryan is an enthusiastic and driven leader who is committed and passionate about changing the public perception of the audit industry. He has redefined the firm’s audit strategy and delivered on a series of audit technology projects, including creating an interactive impairment analyser in Power Bi which has been well received by our larger corporate clients.

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IN THE COMMUNITY

The GloucestershireLive Business Awards winners 2022 The prestigious black-tie event was hosted by BBC Points West presenter Alex Lovell, and took place at Cheltenham Racecourse, on Thursday 13 October, when the winners were revealed for 2022.

Fiona Hughes Marketing Manager

Once again, we were proud to be headline sponsor of the event and have been recognising the county’s best businesses from across a wide range of industries for 10 years now.

This year, family-owned Leeway’s Packaging Services – a supplier of thermoformed plastic packaging – scooped Business of the Year, while Clare Seed Co-Founder of Cheltenham’s Tidal Training and the Public Hearts Campaign picked up Local Business Hero having facilitated over 30 defibrillators in Cheltenham town centre.

The charity partner was the Hollie Gazzard Trust, which was set up following the murder of 20-year-old Hollie Gazzard in 2014 by her ex-partner.

The charity works to reduce domestic violence by delivering programmes on domestic abuse and promoting healthy 16

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relationships to schools and colleges.

We are delighted that an incredible £8,341.70 was raised which will go towards their continued work in schools in Gloucestershire, to deliver workshops on healthy relationships for free.

Sarah Pullen, Reach Plc’s Commercial Director of Regionals, organiser of the event, addressed the room: “There’s something unique and special about the county of Gloucestershire. Whether you are living here as well as setting up business here – the warmth, the co-opetition, the collaboration and the imagination of businesses in Gloucestershire is outstanding.”

Contact Fiona Hughes for more information by emailing marketing@randall-payne.co.uk or call 01242 776000.

The Winners • GloucestershireLive Small Business of the Year – Every Cloud Play Therapy and Creative Arts Therapy • GloucestershireLive Family Business of the Year – Printwaste Recycling & Shredding • GloucestershireLive Start-Up Business of the Year – Kalex Films Ltd • GloucestershireLive Start-Up Business Innovation Award – Protrack Solutions • GloucestershireLive Best Place to Work Award – Prosperity Care and Wellbeing • GloucestershireLive Corporate Social Responsibility Award – Spirax Sarco • GloucestershireLive Best Employee Award – Josh Boiles, Nicks & Company (Timber) • GloucestershireLive Lifetime Achievement Award – Ian Mean, Business West • GloucestershireLive Business Local Business Hero – Clare Seed, Tidal Training • GloucestershireLive Young Business Person of the Year – James Markey, Nutrition X • GloucestershireLive Charity of the Year Award – Cheltenham and Gloucester Hospitals Charity • GloucestershireLive Sustainability Award (joint winner) – Commercial Corporate Services and Sanctus Ltd • GloucestershireLive Business Of The Year – Leeway’s Packaging Services

iN THE COMMUNITY

Bumper first year of support for our corporate charity January saw Maggie’s Centre Cheltenham become our corporate charity for two years, and to date we have raised over £11,000 through different challenges and activities.

Jo Kline Client Experience Officer

We hit the ground running, literally, with the first fundraiser, as ten members of our team beat the winter blues by taking part in the 50 miles for Maggie’s challenge in January, collectively ‘travelling’ over 1000 miles and raising an outstanding £1353.

And as if this wasn’t enough miles, in June four members of our team took on the cycle for Maggie’s challenge, between them cycling 1000 miles and raising a phenomenal £2500.

In March, to coincide with Maggie’s Kitchen Table day, we held our first charity bake off, when 12 delicious entries were judged by three selfless judges, then sold for donations to the charity, rawising not only £316 but also the profile of their event.

July saw the welcome return of our annual quiz, held jointly with WSP solicitors, hosted once again by BBC Radio Gloucestershire Faye Hatcher.

We were supported by 26 teams from the Gloucestershire business community, whose generosity raised a truly fabulous £2400 for our two corporate charities.

The final two fundraising events of this year have not only helped fundraise but also challenged some of our team’s fears.

The first was an Abseil challenge, which we co-sponsored, and four members of our team bravely took the plunge to participate in scaling 50 feet down the Ecotricity building. The event was organised to raise money for four other amazing charities, however two team members were allowed to allocate their fundraising to Maggie’s.

Will Abbott said “Supporting our local community is a key driver for our business.

We were therefore delighted to support this super abseil challenge organised for four amazing charities in Stroud.”

Then there was our first Fire walk hosted in our grounds of Chargrove House, raising over £2700.

18 valiant supporters of Maggie’s, including me and one of our new starters Jamie Moss, faced our fears and bravely walked through the fire pit, which was safely managed and maintained by the professionals from Blaze.

Everyone who took part would agree the pre-walk training session was uplifting and motivational and gave you the encouragement and positivity to walk the fire.

With the return of monthly breakfast butty days and cake sales we have already made an amazing start for this two year charity partnership.

www.maggies.org

Contact Jo Kline for more information by emailing marketing@randall-payne.co.uk or call 01242 776000.

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GUEST ARTICLE

Jen Rolls, Operations Director | Edemo

Can I save money by buying an e-bike through my company?

Business owners often ask us if they can purchase their e-bike through their company. The good news is you can and there are a couple of ways to do it which offer some great tax savings.

Company purchase The easiest way is for the business to purchase your e-bike directly. You simply need a VAT invoice from us in your company’s name. This will allow you to reclaim the VAT and reduce your corporation tax liability too. For example, buying a £6,000 bike, you can reclaim £1,000 of VAT and another £950 of corporation tax using your capital allowances annual investment allowance.

Cycle to work schemes The cycle to work scheme is designed to encourage companies to lend bikes to employees as a tax-free benefit.

Company directors can benefit from this scheme too, even if the director is the sole employee.

There is no taxable Benefit In Kind (BIK) incurred, so there is no need for any reduction in salary to offset the bike’s cost. Directors can also potentially save on income tax, as the bike is being funded by income earned before tax 18

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and national insurance, meaning they could save between 20-45%, depending on their salary.

for journeys to and from a temporary workplace, HMRC allows a cyclist to claim 20p per mile for business journeys.

HMRC Rules

But that’s not the only benefit of using a bike. Cycling an extra five miles to work and back every week on an e-bike will burn calories and reduce your carbon footprint. These environmental and health benefits, combined with the generous tax breaks available, make it well worth thinking about swapping your car for a bike to get to work or travelling between meetings!

HMRC states that the bike should mainly be used for work, meaning at least 50% of the mileage on the bike is workrelated. HMRC does not require the bike user to keep a mileage log, nor do they require employers to monitor employees’ usage. However, if the bike is mainly used for leisure, then BIK charges will apply.

The bike must remain owned by the company and ownership should not be transferred to the employee during the period of the loan. As the company retains ownership of the bike, it’s important to remember that the cost of any repairs remains the responsibility of the company.

Mileage allowances One final thing worth noting is that it is possible to claim mileage for bikes that are personally owned but still used

If you’re thinking about buying an e-bike through your company, please get in touch to arrange a test ride on 01453 834300 or info@edemo.bike. www.edemo.bike

EVENTS

Key Events

KEY DEADLINES

Jo to cover Nikki’s maternity leave As most of her clients will already be aware, Nikki Cairns will soon be going on Maternity Leave. Her Client Manager, Jo Horton, will be overseeing Nikki’s clients, working alongside Tim whilst she is off.

Jo has been working with Nikki for several months now and many of you may have already met her, those who haven’t will do over the coming months. We wish Nikki the best of luck and look forward to her return in due course. In the meantime, if you need anything please do not hesitate to contact Jo by emailing Jo.horton@randallpayne.co.uk

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1 19 Jo Horton Client Manager

BUSINESS BOOTCAMP

Solve your business or personal finance conundrums and get on the right path.

Our peer-to-peer workshops are designed for Owner Managed businesses and aim to challenge thinking, help develop new perspectives and deliver results.

We’ll match you up to one of our experts for a complimentary session (30 mins or an hour), where they’ll be able to answer your questions and provide you with the right advice. All of our clinics are private and confidential with no obligation – even if we’re not your accountant To book, or for more information, call 01242 776000 or email clinics@ randall-payne.co.uk

orporation Tax due C period ended 28/02/22 Due date for 2022/23 PAYE month 8 PAYE & Class 1 NIC payments (electronic) SA Tax Return 2021-22 – tax to be coded out Accounts deadline to Companies House – periods to 31/03/22 Corporation Tax return deadline to HMRC – periods to 31/12/21

JAN 23

FREE ADVICE CLINIC

Got a tricky business question or need some help to move forward? Whether you want to raise finance, tackle your profit and growth issues or get some tips on saving tax or investing wealth, our expert team can provide the right professional guidance at our next Advice Clinic.

DEC 22

Held quarterly and facilitated by Will Abbott, who has almost 30 years’ experience in helping business owners and managers solve problems, ensuring their teams and their businesses are the best they can be. Each workshop topic is unique and there will be useful insights and the chance to hear from, and work with, your business peers.

Dates for 2023 are: 7 March 6 June 12 September 5 December If you are interested in receiving more information, or attending a 2023 Bootcamp, please email Marketing@ randall-payne.co.uk

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Corporation Tax due – period ended 31/03/22 Due date for 2022/23 PAYE month 9 PAYE & Class 1 NIC payments (electronic) Accounts deadline to Companies House – periods to 30/04/22 Corporation Tax return deadline to HMRC – periods to 31/01/22 SA Tax Return deadline 2021-22 Due date for Income Tax 2021/22 and first payment on account 2022/23

FEB 23

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Corporation Tax due – period ended 30/04/22 Due for 2022/23 PAYE month 10 PAYE & Class 1 NIC payments (electronic) Accounts deadline to Companies House – periods to 31/05/22 Corporation tax return deadline to HMRC – periods to 28/02/22

MAR 23

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C orporation Tax due – period ended 31/05/22 Due for 2022/23 PAYE month 11 PAYE & Class 1 NIC payments (electronic) Accounts deadline to Companies House – periods to 30/06/22 Corporation tax return deadline to HMRC – periods to 31/03/22

randall-payne.co.uk 19

HMRC can target you at any time

HMRC conducted 337,000 tax enquiries last year, showing just how many UK taxpayers it suspects of underpaying tax.

From the agricultural industry to the ownership of rental property, it doesn’t matter what sector you operate in.

HMRC do not discriminate between big and small and anyone who submits a tax return can be at risk of investigation.

Call us on 01242 776 000 or visit randall-payne.co.uk to take advantage of the benefits included with our Tax Investigation Service.

Renewal date 1 April 2023

Tax Investigation Service