In Focus Issue 11

in focus turn your business strategies into reality

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issue eleven: Winter 2017

Leadership in 2025 – are you ready?

More Award Success for our Trainees

Changes to the Flat Rate VAT

www.randall-payne.co.uk business advice accountancy & audit

The Autumn Statement tax advice

Academies Update

wealth management

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welcome

welcome to issue eleven

in this issue

Hello, Happy New Year and welcome to the eleventh issue of ‘in focus’ magazine.

As I reflect on 2016, it brings to mind how much has changed, in a year which seems to have passed by really quickly.

Nationally, we have a new Prime Minister, a new cabinet, a yet to be decided future trading relationship with our European neighbours and, on the international scene, changes in the American party of Government and Italy without a Prime Minister. Plenty to talk about and plenty more changes, I expect, throughout the New Year.

Internally we have had a lot to tell you about too: we recruited and restructured our accounts department, expanded our Tax department and increased the skills and knowledge in our business advisory team by obtaining qualifications in Everything Disc and Motivational maps, as well as being one of the first Auditors locally to become ATOL qualified.

As Managing Partner, I am looking forward to watching our 2016 changes bear fruit and growing and developing our business for even greater success in 2017, as we look to help our clients move forward in this ever changing world.

Tim Watkins, Managing Partner

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04 04 – 05 Staff News Head of Tax; More awards for our trainees; We pledge to be part of the solution;

06 06 – 09 Tax Advice Changing team for a changing world; Changes to the Flat Rate VAT Scheme

10 – 13 Autumn Statement

04 Changes that may affect you from the Autumn Statement

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staff news

14 – Leadership in 2025 – are you ready?

It has been said many times that change is the new normal...

16 – Baby Boomers ready to exit 16

Ollie Newbold tells us why exiting your business is not simply about arriving at a value and finding a buyer.

17 – Does the thought of a 4 day week sound attractive?

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business advice accountancy & audit tax advice wealth management financing business startups valuations buyouts debt factoring

Richard Gray asks the big questions.

18 – 19 Academies Update 10 tips to consider when planning financial health checks

20 – 21 In the community Pied Piper’s first 25 years; Halloween dress down day; Christmas Bazaar; Hamper Scamper

22 – Dates for the diary 23 – Tax Reference

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staff news

news focus turn your business strategies into reality

your guide to what’s new in the world of business...

Staff News More Awards Success for our Trainees.

Congratulations to Ben Humeniuk on being a Silver Winner of the Outstanding Work Experience Student 2016 at The Grow Gloucestershire Showcase Awards.

Ben, whilst a student at Rednock School, came to Randall & Payne as part of our work experience scheme in June 2015. Finishing school, Ben applied to us as part of our Apprenticeship Trainee programme and joined our Team as an AAT Trainee in August 2016. Jo Byrd, HR Director says: “Randall & Payne are pleased to work closely with schools to help students discover a future career path and Ben is an excellent example of why work experience can have a positive result for the student, as well, as it is in this case, for an employer. Ben demonstrated an eagerness and a practical ability whilst he was here, so we were pleased when he applied to be part of our Trainee Programme. His award is duly deserved and we look forward to watching his skills develop as part of our dynamic Accounts Team.” if

Ben Humeniuk

We Pledge to be Part of the Solution The C2S Work Placement Pledge enables employers to demonstrate their commitment to the value of providing effective and constructive work placements, which enhance employability and life skills and create a positive impact in the community.

There is national recognition that we need to bridge the gap between employers and education to ensure that we better equip our future workforce with the skills required in modern day business in order to future-proof the success of our businesses.

At Randall & Payne we are pleased to display the C2S Work Placement pledge Logo and be part of this valuable scheme.

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Clare Long, Practice Administration Manager, agrees: “We are committed to supporting this scheme and have pleasure in offering young people the opportunities to develop skills to help them get into employment. Whether its apprenticeships, work experience, short term contracts or summer schemes, we work with schools, colleges and universities and are happy to look at bespoke work placements that are tailored to the individual’s needs”. if

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staff news

Head of Tax structure, resources and the knowledge to move forward successfully. Rob’s knowledge and experience make him ideally suited to become Head of Tax and gave me the assurance to step away and manage our business more effectively, although, as I still have my own portfolio of clients, I will still be working closely with the brilliant Tax team I have had the pleasure to be the Head of for many years.”

Tim Watkins You may recall several articles we have written, in our own issues of in focus magazine and in the local press, about the volume of changes in Tax and the positive steps we have been taking internally to future proof our Tax team all designed to ensure our clients receive the best advice and support possible.

With the growth of the Tax department and, indeed, the growth of the Randall & Payne business, Tim Watkins is handing the baton as Head of Tax on to Rob Case. Rob is already situated within the Tax team as Head of VAT so heading up the entire department is a logical step, both for our business and for Rob himself.

This change will allow Tim to concentrate on his role of driving the firm’s growth strategy as Managing Partner more effectively and allow him to retain his focus on his existing portfolio of clients.

Tim Watkins says: “We are seeing a lot of changes in the Tax world which not only affect our clients, but our own business too. We need to be more prepared than our clients for all of the changes, so that we are ready to help their businesses make a seamless change with the new age of tax reporting.

That said, it is not just Tax that is changing, it is accountancy practices as a whole and my role as Managing Partner is to make sure our business has the

Rob Case says: “I was pleased to have been given the opportunity to become Head of the Tax Department as I already work closely with them with my VAT specialism.

It is an enthusiastic capable and hard working team. I will still be working to grow the VAT work, but now as part of the overall tax department, which obviously includes all of the tax work we do. I embrace the challenges put on accountants by the Government and will be looking to take the required steps to shape and develop our existing offering to ensure Randall & Payne can continue to offer the high standard of advice our clients expect. I am privileged that Tim has established a strong and competent team and confident that Tim’s contribution in taking Randall & Payne forward is a positive step towards ensuring we carry on providing the expert services across the firm.” if

ROB CASE Partner BA (Hons) FCA CTA AIIT Rob is a VAT specialist.

“I seek to provide a sound interpretation of peoples’ VAT situation, taking an informative approach to what is often seen as an unpopular and overcomplicated tax.”

For more information call Rob on: 01242 776000 www.randall-payne.co.uk

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tax advice

Tax Team

Changing Team for a Changing World

It is the nature of working in tax that things are constantly changing. This has been the case for centuries but perhaps seldom more so than today, where the pace of change in this new digital age is relentless, with no signs of slowing.

As we move ever closer to a digital tax world with the ‘Making Tax Digital’ project, it is vital for both businesses and individuals to engage with advisers who are equipped to guide them through these changes and plan effectively for the future, as well as to ensure that they are doing everything required of them in the present.

At Randall & Payne we have always worked hard to keep at the forefront of changes to the tax system and we are seeing a period of significant growth, not

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just in numbers but also in the breadth of knowledge and expertise.

We have taken the time to review the provision and support our clients will require and are pleased to celebrate the growth of our Tax team.

With the addition of 4 Trainee Tax Accountants, working across Corporate Tax, VAT and Private Client Taxes, we feel confident we can offer our clients the support they need to deal with the changes before they happen.

James Geary James Geary heads up Randall & Payne’s Corporate Tax team and has 18 years experience in the tax profession. He has recently been joined by Gina

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tax advice Gardner who is a 2016 winner at the Gloucestershire Apprenticeship Awards.

By far the biggest success for the team has been Research & Development Tax Relief.

Since we started to keep track in Summer 2014, our clients have achieved savings of £3million from this valuable relief, which is so much wider than most of the business world realises. The team also has a great track record in advising on other areas, including corporate reorganisations, Capital Allowances, share incentives, business structuring, remuneration planning and tax incentives for external investors.

Our corporate clients range from individuals operating through a limited company, through to medium-sized audited companies turning over in excess of £30 million.

Trish Clements

The Private Client team is headed up by Trish Clements, who has over 16 years experience in dealing with private clients. Trish has recently qualified as a member of the Society of Trust and Estate Practitioners as well as already being a Chartered Tax Adviser. Trish is one of the few Chartered Tax Advisers and Trust and Estate Practitioners in Gloucestershire which puts her in an excellent place to advise clients in relation to all aspects of estate

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planning and Inheritance tax, which is tailored to each client’s individual needs and family arrangements.

Trish is supported by an enthusiastic and growing team including Vicky Bowden who is ATT qualified and has worked in the Tax team for a number of years. Courtney Way, Dani Longney and Katie Frost have had experience working across the firm, but have decided to specialise in Tax. They have developed a sound knowledge in their time to date and understand how the firm works and importantly our emphasis on good client service. As existing members of the team, moving across into Tax has enabled them to swiftly become a practicable asset to the department.

The team deal with a broad range of clients, from those with a variety of rental income, savings and investment income through to larger unincorporated businesses and directors of multinational companies. Building long term relationships with their Private Clients enables them to identify changes in circumstances both within the family and tax legislation providing clients with the services they require over generations.

The pace of change in private client tax is significant, with the introduction of new rules in the taxation of dividends from April 2016, significant restrictions on tax reliefs for landlords from April 2017, changes in the Inheritance tax allowances and the issues surrounding Making Tax Digital. Our team began advising clients on these changes before they were implemented which enabled our clients to fully understand how these upcoming changes will affect them and helping them to plan effectively.

Rob Case Randall & Payne Partner, Rob Case, is a dedicated VAT expert and has considerable experience in the nuances of this ever present tax. He has also acquired an enviable level of experience in dealing with HMRC challenges and representing clients in tax tribunals concerning VAT disputes.

Our growing tax team is involved in the local branch of the CIOT (James is currently in his third year as Chairman of the branch and Trish in her fourth year as Secretary). In addition, both James and Rob are involved in technical sub-committees of the CIOT (James for OwnerManaged Businesses and Rob for VAT) – these are groups of tax professionals who provide input into government proposed changes in legislation and have a strong voice identifying real life issues and modifications to these before they become law. This keeps Randall & Payne on the forefront of tax changes and ensures we’re prepared for the challenges or opportunities any Government announcement may present for our clients.

The existing and new members, with their varied expertise, make the Randall & Payne Tax Team a strong, confident, knowledgeable asset to the firm as well as to its clients.

If you have concerns about your tax situation now or in the future please feel free to call our Tax team on 01242 776000. if

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tax advice

Rob Case

Changes to the Flat Rate VAT Scheme

Announced in the Autumn Statement was a significant change to the Flat Rate Scheme for VAT. Taking effect from 1 April 2017 this will mean the introduction of a new 16.5% VAT flat rate for businesses with limited costs. A “Limited Cost Trader”, as labelled by the Government, is defined as one that spends less than 2% of its Total Sales on goods (not services) in any accounting period. Rob Case, VAT Partner and Head of Tax, explains what this means to small businesses.

What is a “Limited Cost Trader?

This change will increase the Flat Rate VAT payment for labour intensive businesses where very little is spent on goods, For example, IT Specialists, Contractors, Consultants, Authors, Hairdressers and Accountants but could also affect Construction Workers where the majority of the materials used are provided by the main contractor. The list goes on!

A limited cost trader is defined as one whose expenditure incurred on goods they purchase are either: • less than 2% of their total VAT inclusive turnover in any given accounting period; or • greater than 2% of their total VAT inclusive turnover but less than £1000 per annum.

Goods, for the purposes of this measure, must be used exclusively for the business but excludes the following items: • capital expenditure, • food or drink for consumption by the flat rate business or its employees, • vehicles, vehicle parts and fuel (except where the business is one that carries out transport services, e.g a taxi business) These exclusions are part of the test to prevent traders buying either low value everyday items

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or one off purchases in order to inflate their costs beyond 2%.

How will this affect a “Limited Cost Trader” The announcement stated that HMRC are trying to tackle the misuse of the scheme, but in our experience this scheme is widely used by many small business to aid administration, the small financial gain is an added benefit. Businesses using the Flat Rate Scheme will be expected to ensure that, for each accounting period, they use the appropriate flat rate percentage.

The amount of the impact will depend upon the individual business but is likely to be in the region of £1,000 - £4,000 per annum.

Anti-avoidance provisions have also been put in place to avoid early invoicing securing a reduce rate for those affected.

“We will be sharing our VAT expertise and offering our clients support and information on how this will affect them and, where required, will carry our a VAT FRS review with them to ensure they are ready for the changes in April 2017.

Good advice is now key to ensure you too are compliant” advised Rob. If you think you might be affected by this change, or know someone else that may be, please do get in touch to seek confirmation and also discuss its likely impact. Call us on 01242 77600. if

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tax advice

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autumn statement

The Autumn Statement This Autumn Statement has been eagerly anticipated for two main reasons. Firstly it is the first Autumn Statement from the new cabinet and from new Chancellor, Philip Hammond.

Secondly, and probably more significantly, it is the first statement of this kind since the Brexit vote and subsequent announcement that the UK will leave the EU.

Randall & Payne held an Autumn Statement event, watching and discussing the speech with a roomful of clients and local business leaders, to highlight the challenges and opportunities of the changes to their clients and to get immediate feedback from Gloucestershire businesses on how the statement will affect them, their industry and the county.

The way the government will announce changes is to move from next year, with the full Budget being in Autumn each year in place of the existing Autumn Statement. From Spring 2018 there will be a “Spring Statement” which will exist principally to respond to the half year budget forecasts from the OBR. What is not quite clear, therefore, is whether

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this means there will be two Budgets in 2017 as we transition to the new timetable.

The following summarises the key changes affecting businesses and individuals from the 51 minutes 15 second speech and the accompanying documentation.

Borrowing Previous Chancellor George Osborne’s pledge to balance the books by the end of this parliament was abandoned shortly after the Brexit vote.

The new Chancellor has adopted the stance that efforts will be made to balance the books “as soon as practical” in the next parliament but that it would be wrong to cut back

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autumn statement

on public spending during the period of uncertainty following the EU referendum vote.

development and rollout of 5G internet and digital infrastructure.

National Living Wage

Housing

The National Living Wage is set to increase to £7.50 from April 2017. This 30p increase is good news for those on the NLW, but the increase falls short of the £7.68 the last Chancellor promised in previous statements. The impact of this increase on employers has been discussed before, and many employers will be relieved by the lower than expected increase.

Letting agent fees to tenants will be banned. The move will save money for tenants, but will increase costs for landlords, so the reality is that landlords may simply adjust their rents to tenants to absorb the increased cost, so this

change may in practice make little or no difference.

Stamp Duty There have been a number of calls for the Chancellor to revisit Stamp Duty, with many pointing to the slowdown in the housing market and the lower than expected revenue from the additional second property surcharge as evidence of its shortcomings.

Infrastructure Before the statement Hammond announced that any stimulus would be focused on improving roads and railways. £683 million has been earmarked for the South East, South West and London but details of how this will be divided between the LEPs is to be announced in due course.

Investment in internet was also a highlight, with £1 billion going towards the

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autumn statement However Stamp Duty has not featured at all in the speech or the accompanying documents, so it appears the additional charge is here to stay.

Personal Tax Allowance The government reaffirmed its intention to bring the tax free allowance up to £12,500 by the end of the government, along with increasing the higher rate tax threshold to £50,000.

Further, they have undertaken to increase the allowance thereafter in line with inflation.

National Insurance As expected, Class 2 National Insurance is to be abolished from April 2018. Business owners will therefore have to access contributory State Benefits through Class 3 and Class 4 contributions.

This could, however, be an unwelcome and costly change for owners of small unincorporated businesses with profits falling below the previous small earnings threshold (around £6,000)

because these individuals could previously accrue benefits entitlement by voluntarily registering to pay Class 2 contributions, currently £2.80 per week. Instead they face having to pay Class 3 contributions which are currently £14.10 per week.

The government documentation states that “There will be provision to support self employed individuals with low profits during the transition” so it may be that there will be measures to counter this negative impact, but we will need to await the detail.

Separately the thresholds for primary and secondary (employee and employer) Class 1 National Insurance will be aligned from next year.

This is a minor change as the difference was only £1 per week.

Incorporations There is again growing concern in the government about the number of businesses incorporating, and therefore

an announcement that a review of the tax system will take place. This is surprising given that research carried out earlier this year by the Office of Tax Simplification strongly indicated that tax was not a major driver for incorporations – the principal reasons being limitation of personal liability, enhanced credibility and customers requiring them to be a limited company.

Corporation Tax Osborne left having proposed that Corporation Tax should be cut to 15% to boost the economy. The new Chancellor has abandoned this plan as a “suggestion” but has mandated to stick to the existing plan to reduce rates of Corporation Tax to 19% from April 2017, and then to 17% from April 2020.

Expected changes to simplify the Corporation Tax loss rules from April 2017 will go ahead, as will improvements to the rules for Substantial Shareholdings Exemption, the relief which allows a company to sell a major interest in another trading company with no tax liability on the disposal

Research & Development The government has committed an extra £4.7 billion to fund R&D over the course of this parliament. As part of this there is a commitment to review the current R&D Tax Relief system in order to build on it and increase its value.

Further details of how the system will be enhanced are not yet available.

In addition the government is launching two new funds – the Industrial Strategy Challenge Fund and a further fund for innovation, applied science and

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autumn statement research, both of which will be administered by Innovate UK. £23 billion has been earmarked for these funds which are aimed at improving the UK’s productivity which is lagging behind Italy and France, and significantly lower than Germany and the USA.

MTD project in January. Strong representations have been made by business and the professional bodies that the timescales for implementation

of MTD are far too short, but we will need to wait now until the New Year to find out whether those calls have been heeded.

Salary Sacrifice The government is abolishing the tax benefits of many salary sacrifice arrangements through which individuals could save tax by taking certain benefitin-kind in lieu of salary. The most popular ones which are government endorsed will be preserved (childcare, pensions, cycle to work and ultra low emission cars) but others will be attacked so that employees who receive those benefits pay the same tax as they would normally.

VAT The government will introduce a new 16.5% rate to the flat rate scheme from 1 April 2017 for businesses with limited costs, such as many labour-only businesses. This is a significant shift which will result in an addition cost for most flat rate traders.

Capital Allowances 100% Capital Allowances will become available immediately on amounts spent on electric vehicle charging infrastructure, giving a further incentive for companies to invest in fleets of electric cars for their employees.

Making Tax Digital The government will publish its responses to the consultation replies on the

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As always Randall & Payne will stay on top of all the changes that could affect you or your business, enabling us to give the best advice to our clients, taking advantage of any opportunities and carefully managing any challenges that arise.

If you have any questions about how the Autumn Statement could affect you, don’t hesitate to give us a ring on 01242 776000. if Winter 2017

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Leadership in 2025 – are you ready?

Will Abbot

Against this background, a recent Forbes article explored the long tail theory, which was originally applied to retail brands. The head of the market is dominated by the big players serving a large part of the market. The tail represents an infinite number of smaller niche segments and customers, which is typically where our businesses operate.

With ever-increasing use of technology and globalisation the niche segments in the tail are increasingly reachable by smaller players.

It has been said many times that change is the new normal. A recent SAP survey concluded that technological change, accelerating globalisation, shifting demographics and focus on employee engagement were all converging to push business to radically simplify the way they work.

For the leaders of those businesses, the good news is that customers in the tail tend not to be early adopters and tend to move more slowly.

This gives us more time to respond to changes.

One of the lessons here must be that constant innovation may not be a good thing, as it may disconnect us from our customer base. As always, it is about striking a balance – what is dynamic and evolves more quickly, and what is more stable and can be left alone?

Need help to turn your business strategy into reality?

Randall & Payne Quorum allows business leaders to connect and share strategies for growth while gaining skills and tools to implement them.

For a small investment you not only get a sounding board for your ideas, but real training and the knowledge that you can see and measure your progress regularly.

• • • • • •

Online Tools Remote Business Support Accounting For Business Workshop for Business Leaders Minimising Tax Making the most of your wealth

Our next Quorum Meeting will be held on February 21st.

To book a place, contact Jo Kline or Will Abbott on 01242 776000 14

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business advice This is of course the perfect definition of an agile business – dynamic capability built on a stable backbone. The analogy quoted to illustrate this is the smartphone. The hardware is the stable backbone, and the dynamism is provided by the apps. You can change your apps continually, but you only upgrade your phone every few years.

Quick Stats

If this is the business environment in which we operate, what are the capabilities that the leader in 2025 will require? Just picking up 4 statistics from the survey of leaders and their teams, 52% of felt they had the skills to manage talent, 51% knew how to inspire employees, 44% were able to drive real change and 35% felt able to lead a diverse workforce. These appear to be real gaps in leadership capability.

“if it ain’t broke, don’t fix it”

52% felt they had the skills to manage talent

51% knew how to inspire employees

44% were able to drive real change

35% felt able to lead a diverse workforce

One approach to addressing the gaps is to build a learning culture in an organisation – but this needs to be focussed on informal, social learning rather than the traditional training model.

This means an emphasis on real experience combined with just in time learning and a coaching mind-set. We are big advocates of this approach and see it increasingly being embraced in organisations of all sizes.

There is a danger that the “if it ain’t broke, don’t fix it” mentality may creep in. Business Leaders are by definition successful, and that success will be built on our past capabilities. The future is likely to be very different and our past capabilities may be insufficient or even irrelevant. to be effective as leaders in 2025 we will need to identify what capabilities will remain valuable and which new capabilities we will require.

Agility, self-awareness and continuous learning will be givens. Developing a culture of trust, curiosity and empowerment, effective communication and high levels of engagement will be necessary within our organisations.

All this will be underpinned by a cycle of continuous improvement. if Which of those capabilities will be your focus in 2017?

Contact the Business advisory team on 01242 776000 if you would like advice and support on getting ready.

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business advice

Baby Boomers ready to Exit Randall & Payne, along with our local and regional professional connections, have seen an increase in client Merger & Acquisition activity as the baby boomers begin to retire and as debt financing continues to be low cost and more accessible to those wishing to grow their business. Whether you are looking to improve, invest, grow or exit your business, we can offer a bespoke service to suit your strategic objectives.

Exiting your business is not simply about arriving at a value and finding a buyer. We recognise that for the majority of business owners, your businesses are your ‘babies’ – they have been nurtured for years and there have no doubt been plenty of ups and downs on your journey so far. They are something that you have invested your time, energy and money into over the years. As a result you need to feel confident that the professionals working on your exit will provide a level of care, attention and understanding that befits your relationship with your business.

Randall & Payne are able to offer a ‘cradle to grave’ exit process that benefits existing and new clients alike by: • Preparing an exit strategy and valuation report; • Determining what factors in the business need to change to meet your objectives; • Working collaboratively with our Business Advisory department to deliver the required results; • Working through a Vendor Due Diligence process in order to populate a ‘data room’ (a bible of all relevant company documentation) in order to reduce time and stress later;

Ollie Newbold

Our Top Tips 1. Plan Early: Randall & Payne recommend that you start thinking about your exit strategy 3-5 years before your intended sale date.

2. State Your Objectives: Make clear any ‘dealbreakers’ or objectives that would fulfil your sale requirements.

3. Be Realistic on Value: There are many factors taken into account when arriving at a value for your business and we will always endeavour to maximise the cash you receive on completion of the transaction.

4. Be Transparent: By being as open and honest as possible, we can gain a full understanding of your business operations, which will enable us to help you in the best way we can.

5. Retain Good Lawyers: Good lawyers are imperative to ensure that you get an efficient deal that mitigates your risk.

• Marketing the business;

6. Set Time Aside: Selling your business is an in-depth process which will require significant management time. By committing your time early on, momentum can be maintained at the critical stages later in the deal.

• Carrying out negotiations in order to achieve the best possible deal and liaising with our tax team in order to ensure the deal is structured efficiently;

7. Anticipate Questions: By answering questions before they arise, bottle-necks in the exit process can be avoided.

• Providing support throughout any buyer Due Diligence process; • Liaising with lawyers to work towards legal completion.

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To book a free no obligation meeting with Ollie Newbold or to attend one of our free Improve, Invest, Grow, Exit seminars please contact Jo Kline, Business Advisory Admin, on 01242 776000. if

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business advice

Does the thought of working a 4 day week sound attractive?

In the UK, we like to work long hours. The trouble is that when we are at work we are terribly unproductive; we produce less per hour than our main economic rivals.

The difference in our levels of productivity is pretty dramatic.

We produce on average 30% less per hour than workers in the US and Germany, 20% less than France and we even produce 8% less than the average Italian.

But the big questions are: why exactly are we so unproductive and what can we do to change this?

In our capacity as business advisors to organisations of all shapes and sizes, a major contributor to this low level of Productivity is lack of motivation and performance of its people. Low motivation = lower performance = lower productivity.

Why do most business owners not measure motivation in the same way as they might Finance, Key Performance Indicators (KPI’s), Profit, Turnover, Cash Flow and so on? Typically, it’s because they are not sure how to.

From our perspective, understanding what motivates people is a fundamental part of driving higher levels of performance in a business.

All organizations that survive long term have loyal, engaged, and motivated workforces.

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To help our clients achieve this we use a range of tools: Everything DiSC® profiles use a research-validated earning model to create a highly personalized learner experience.

Each profile is topic-specific, with in-depth information, including tips, strategies, and action plans to help learners become more effective.

All profiles include access to unlimited free follow-up reports.

Motivational Maps®: An ISO accredited online selfperception inventory that focuses on motivation rather than personality.

DiSC is about helping people understand what is happening – this is visible and observable.

Maps goes deeper into understanding why people are behaving in that way, exploring the invisible drivers of behaviour.

•

Increased productivity

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Lower rates of staff absence

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Training costs reduced

The list goes on.

So if you’re looking at ways to increase the productivity in your business and performance of your people, Motivation and Purpose has to be a good start.

You never know, a four day week (or rather a 3 day weekend) might just be possible.

If you would like to find out more about Improving productivity in your business please call Richard Gray on 01242 776000 if

By understanding how to best motivate everyone in a business, the benefits are substantial: •

Reduced staff turnover ( no skills loss / lower recruitment costs )

Richard Gray

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academies update

Academies Update

Rob Stokes

With the only announcement in the recent Autumn Statement confirmed as a ÂŁ50million annual capital investment to deliver new grammar schools and no confirmed uplift in school budgets, effective financial management has never been as important. Schools and Trusts are under pressure to provide governors with detailed information to ensure that their resources are being effectively utilised in providing the outstanding levels of education that is required.

Whilst the Government has withdrawn the whitepaper, the continued pressure on budgets can be considered as another driver for SATs and maintained schools to create or join a

Top 10 Planning Checks

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Staff pay as percentage of total expenditure Staff pay is the single most expensive item in the school budget, representing typically over 70% of expenditure.

Multi Academy Trust. An expected benefit of being part of a MAT is a greater ability to use economies of scale with regard to costs and may help towards alleviating budget pressures.

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Pupil to teacher ratio (PTR) This measure is calculated by dividing the number of FTE pupils on roll by the total number of FTE teachers.

Class sizes The smaller the class size the greater the cost of delivery per pupil. Governors should ensure that class size plans are affordable whilst supporting the best outcomes for pupils.

Winter 2017

Governors will want to see 3 to 5 year financial projections and the assumptions made to cost them.

Spend per pupil for non-pay expenditure lines compared to similar schools MAT trustees may want to compare their level of top slice to other MATs, what it is used for, and how it provides value for money (VFM) for member academies School improvement plan priorities and the relative cost of options

9.

Teacher contact ratio This measure is calculated by taking the total number of teaching periods timetabled for all teachers in the school and dividing that by the total possible number of teaching periods (the number of teaching periods in the timetable cycle multiplied by the FTE teachers).

Schools have many different leadership and management structures and comparisons are not straight forward.

3 to 5 year budget projections

Average teacher cost This measure is calculated by dividing the total teaching cost by the full time equivalent (FTE) number of teachers.

Proportion of budget spent on the leadership team

The budgetary process sits firmly within the strategic leadership framework and should link into the overall management and planning cycle rather than being seen as an additional activity that is the sole responsibility of the finance manager.

List of contracts with costs and renewal dates

10.

Each year your school will need to review its contracts across all of its services to determine which ones are due for renewal.

www.randall-payne.co.uk

academies update “a £50 million annual capital investment to deliver new grammar schools” The Department of Education has suggested a top ten planning checks that Governors should use early in the budget planning cycle to include the following. Whilst being good as a guideline these are generic and will need careful consideration given the context of the SAT/School/MAT being considered. However, the context should not be an excuse for a full and honest appraisal: With little or no increase expected in school budgets and the delayed introduction of the National Funding Formula we will be focusing on the Financial Health checks for Academies in our next Academies seminar.

We will be working with Business Manager and Governors on how to effectively embrace the

significant responsibilities of running a business whilst being fully accountable for public funds and delivering ongoing efficiencies.

The EFA have put together a supplier list of organisations who can help by delivering financial health checks as they see this as an important area to manage budgets. We will discuss areas that can be used to make decisions and give advice on areas like benchmarking where hard figures can be misleading. In the EFA help section is also case studies that cover areas like workforce efficiencies including timetabling, lean and effective SLT’s, staff absence rates and effective support staff use. These case studies involve more practical solutions/suggestions to this area. if

Come along to a free Academies Seminar!

At Randall & Payne we pride ourselves in sharing our knowledge and helping others.

Our Academies Seminars run termly and are open to all converted Academies, whether you’re clients or not. Save the date – the next seminar is scheduled for the morning

of 24th January 2017. If you are interested in attending, an agenda and booking form is available at: www.randall-payne.co.uk/news-new/events/

www.randall-payne.co.uk

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in the community

Pied Piper 25 years Fundraising has started with a buzz, with all staff enthusiastically getting behind the suggestions.

So far we have adopted Huggy Bear and his babies.

Supporting the Teddy Bear appeal, Huggy sits in our reception with some of his baby bears, which are available for staff and visitors to buy for £5.

Everyone is welcome to a free Bear Hug too, which is Huggy’s favourite thing. if

Halloween

Dress Down Day

20

Winter 2017

Some of R&P staff donated money to dress up and ‘scare’ the rest of their colleagues, to fundraise for The Pied Piper Appeal. The SLT provided bacon butties and fruit, which the staff could make a further donation to enjoy. On the last Friday of the month, staff can dress down and donate and, since The Pied Piper became our Corporate charity in July, we have raised £168. if

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in the community

Christmas Bazaar We held a Christmas Bazaar on 12 December selling homemade cupcakes, cookies, shortbread and Christmas gifts all donated by staff. We raised a wonderful total of £120, its fair to say the staff at Randall & Payne are very generous and kind hearted supporting all our Fundraising schemes.

The Pied Piper Appeal celebrate their 25th year in 2017 and will be holding a wide range of fundraising events such as a quiz night, a Charity Ball, race night etc. We will be looking to support their organised events as well as organise some of our own - one of our team suggested that, as it’s their 25th year, we should carry out 25 fundraising activities of our own to follow the theme!

Watch this space for updates. if

Hamper Scamper Hamper Scamper is Cheltenham Community Project’s Christmas giving scheme, providing gifts and food hampers for some of the county’s most disadvantaged children, young people, families and vulnerable adults. The staff at Randall & Payne added a few extra items to their weekly shop and filled two boxes, which were donated to this worthwhile scheme.

Cheltenham Community Projects need donations and volunteers all year round so if you think you or your organisation could help, at any time throughout the year, they would be pleased to hear from you on 01242 228999. if

www.randall-payne.co.uk

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dates for the diary monday

tuesday

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thursday

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saturday

sunday

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30

Deadline for online Deadline for filing of Corporation Tax 31

january 2017

Academies seminar

submission of Self Assessment tax returns

NIC to HMRC (cheque payment)

Corporation Tax due for periods ended 31 March 2016

NIC to HMRC (electronic payment)

Returns to 31 January 2016, accounts y/e 30 April 2016 to Companies House

monday tuesday wednesday thursday friday saturday sunday

1 Corporation Tax due 2 3 4 5

february 2017

for periods ended 30 April 2016

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28 5% late payment

monday

tuesday

Quorum

penalty if Balancing payment has not been made

NIC to HMRC for (electronic payment)

Construction Industry Scheme

Deadline for filing of Corporation Tax Returns to 29 February 2016, accounts y/e 31 May 2016 to Companies House

wednesday

thursday

friday

saturday

sunday

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2

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Winter 2017

march 2017

Corporation Tax due for periods ended 31 May 2016

PAYE & Class 1 NIC to HMRC (electronic payment)

Construction Industry Scheme

Deadline for filing of Corporation Tax Returns to 31 March 2016, accounts y/e 30 June 2016 to Companies House

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tax reference

income tax allowances 2016-17 Personal allowance:

Marriage allowance:

Personal allowance £11,000 Income limit for personal allowance £100,000 Income limit for married couple’s allowance £27,000

Married couple’s allowance for those born before 6 April 1935: Maximum amount of married couple’s allowance £8,355 Minimum amount of married couple’s allowance £3,220

vehicle benefits Company cars 2016/17 CO2 emissions (gm/km)

Car Fuel Benefit 2016/17 £22,200 appropriate percentage* *percentage used to calculate the taxable benefit of the car for which the fuel is provided.

For diesel cars add a 3% supplement but maximum still 37%.

For cars registered before 1st January 1998 the charge is based on engine size.

Company Vans 2016/17 = £3170 Fuel for Company Vans 2016/17 £598 Zero Emission Van 2016/17 20% of normal benefit.

£2,290

Dividend allowance

£5,000

Personal savings allowance for basic rate taxpayers

% of cars list price taxed

0-50 7 51-75 11 76-94 15 95 16 100 17 105 18 110 19 115 20 120 21 125 22 130 23 135 24 140 25 145 26 150 27 155 28 160 29 165 30 170 31 175 32 180 33 185 34 190 35 195 36 200 and more 37

Blind person’s allowance

£1,000

Personal savings allowance for higher rate taxpayers

Bands of taxable income and corresponding tax rates 2016-17 Basic rate

20%

Higher rate

40%

Additional rate

45%

Starting rate for savings income

0%

Dividend ordinary rate – for dividends otherwise taxable at the basic rate 7.5%

£500

Dividend upper rate – for dividends otherwise taxable at the higher rate 32.5% Dividend additional rate – for dividends otherwise taxable at the additional rate 38.1%

Capital Allowance

Starting rate limit (savings income if other income is < £5000)

Plant & machinery main rate

18%

Basic rate band

Integral features, long life assets + cars over 130gkm

8%

New cars <75g/km

100%

Higher rate band

Annual Investment Allowance: up to 31 Dec 2015

£500,000

from 1 Jan 2016

£200,000

Complex rules apply where the accounting period straddles the change - contact us for specific advice.

mileage allowances Cars and vans Rate per mile Up to 10,000 miles 45p Over 10,000 miles 25p Bicycles 20p Motorcycles 24p These indicate the maximum tax free mileage allowance for own vehicle business use.

Any excess is taxable.

corporation tax year to 31/3/2017 Now unified at a flat rate at 20%* Due to fall to 19% from 1/4/2017, 17% from 1/4/2020. *Different rates apply for ring-fenced (broadly oil industry) profit.

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£5,000

£0-43,000

£43,001 - £150k

Additional rate band Over

£150K

value added tax Standard rate

20%

Reduced rate

5%

Annual Registration Limit: from 1.4.16 (1.4.15 - 31.3.16 £82,000) £83,000 Annual Deregistration Limit: from 1.4.16 (1.4.15 - 31.3.16 £80,000) £81,000 No change to the Flat Rate scheme/ Cash Account limits

pension premiums 2016/17

• Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings.

• Any contributions in excess of £40,000, whether personal or by the employer, may be subject to income tax on the individual.

• Where the £40,000 limit is not fully used it may be possible to carry the unused amount forward for three years.

• Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’.

• Tax relief for large contributions may be spread over several years.

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Being in business is a journey... the trick is to know the destination.

Focus and determination will make you successful our job is to make you exceptional.

For over 140 years Randall and Payne have helped thousands of business owners on their journey, from start-up, through growth phases, to exiting. Today, we have an award winning team of experts ready to point you in the right direction and advise you on the best course of action, from acquisitions, research and development tax credits and business strategies to one-to-one coaching. R&P’s goal is to help you take the right steps, saving time and effort to get you where you want to be.

For a free consultation call 01242 776000 www.randall-payne.co.uk 24

Chartered Accountants • Business Development • Tax Planning • Audit • Wealth Management