In Focus Issue 2

issue two: summer 2014

Britain on a budget...news, and reaction from local business

How to reach the top in business business advice

Partnerships and tax inequality

accountancy & audit

Spotlight on Tewkesbury

Business growth Learning outdoors: new legislation accelerator tax advice

wealth management

finance

welcome

in this issue welcome to issue two

day special hosted by Randall & 08 Budget Payne covered by Points West

Hello and welcome to the second issue of ‘in focus’ magazine - your quarterly guide to growing both your business and your profits.

At Randall & Payne LLP we’re proud of our firm’s long history and of our team, who offer breadth and depth of knowledge and experience.

Our 130 years experience combined with a youthful dynamic team has helped realize our track record.

We particularly enjoy working with young, entrepreneurial enterprises; helping companies grow from initial ideas to multimillion pound businesses!

Often the people with the best business ideas can only maximise their potential if they have the best support and advice.

That’s what our partners and in focus magazine deliver: commercially-minded, up to the minute creative solutions to help you grow and develop your full potential.

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summer 2014

04 news update

04

your guide to what’s new in the world of business and accounting this summer

06 payroll bear traps

things you must do and what to avoid when paying your employees

07 the great outdoors

Fiona Walker (above) took on the world of accountancy in a compettion...and won!

05

What a new Swiss/UK agreement means for you

how legislation is changing the way oudoor learning will have to be supplied from 2014

08 budget day 2014 Randall & Payne’s full coverage and the reaction to the budget by local businessses. What does it mean for you?

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contents 16

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

how to accelerate and grow your business

14

12 reaching the top in business it’s not always the strongest that survive in business, but following our steps could make all the difference

13

14

16

Tewkesbury in focus a special feature on Tewksbury Abbey

(Below) Outdoor learning is proven as beneficial, but new legislation means that changes will neeed to be made.

perfect partners

how not all partnerships in LLP companies are equal in the eyes of HMRC. Is yours?

growth accelerator

schemes and government funding that are available to help grow your business

19

(Above) LLPs are under the HMRC spotlight. Find out if your company needs to review its ways of dealing with tax

12

reference guide

simple reminders to current tax and vat information

07

strategies to get you to the top

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summer 2014

03

business news

news focus turn your business strategies into reality

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

F

Fiona Walker beats Worldwide Competition to win Accountancy Prize! to our team!” says Managing Partner, Ian Selwood.

iona Walker of Randall & Payne

has beaten 4,059 students, worldwide, by gaining the highest marks in the Business Change paper in the Advanced Stage accountancy exams at ICAEW. Of the 2935 students who passed all the papers they took, only Fiona had the marks to be awarded the Walton Prize. This prize was established by Tom Walton, who was on the council from 1926 until his death in 1953 and bequeathed a sum of money for this purpose.

The ICAEW exams test the students on all areas of accountancy, with the Business Change element focussing on real-life business scenarios (e.g. a business trying to expand abroad; a sole trader incorporating into a limited company), testing the student on their knowledge and ability in tax planning, strategic advice, etc. Fiona’s spectacular success in her exams fits perfectly with Randall & Payne’s ethos of providing the best client help and advice in all areas of business.

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“We enjoy working with young, entrepreneurial enterprises and our track record in helping companies grow from initial ideas to multi-million pound businesses speaks for itself. Often the people with the best business ideas can only maximise potential with the best support and advice. That’s what we deliver: commercially-minded, creative solutions to help you grow. Fiona’s success makes her a valuable asset

Fiona originally studied music at university and trained to be a secondary school music teacher but decided that teaching 12 -18 year olds wasn’t for her. Whilst working in a small education business in Oxford, she became interested in accountancy through talking to the business’ accountant.

She applied for a trainee position with Randall & Payne and began her career three years ago, as a trainee accountant. She maintains her skills at playing clarinet and bassoon and enjoys making jewellery but insists that she’d rather advise other people about their business than start up her own, as her expensive taste in jewellery would involve a rather larger initial outlay!

Fiona receives her prize at the ICAEW prize ceremony in London on 14 May 2014.

To see how you can become part of our award winning team visit http://www.randall-payne.co.uk/jobs/

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business news

peak performance the ups and downs of the new Swiss asset disclosure agreement

A

new tax agreement between the UK and Switzerland, signed in October 2011, finally came into force in January 2013.

Most taxpayers with assets in Switzerland have had to sign an agreement with their financial institution to confirm whether they wanted to be subject to a charge, or allow the financial institutions to disclose the personal details to the UK authorities.

Many individuals with assets held in Swiss financial institutions have been contacted by HMRC regarding the potential liability to UK taxation.

The letter requests the individual make a statement in respect of the correct treatment: • The income received on the Swiss assets have been fully disclosed and no further liability arises.

• The income has been disclosed

under the Liechtenstein disclosure facility • The income has not been disclosed and it shall be shortly.

Dealing with HMRC and notifying them of the additional income and subsequent tax liability can be a daunting task. At Randall and Payne, we have an internal specialist who previously worked for HMRC and has many years of experience in dealing with HMRC enquiries and investigations by the Special Compliance Office (the arm of HMRC that deals with the most serious cases of fraud and suspected fraud and which can carry out criminal prosecutions). His wealth of knowledge is very beneficial when dealing with HMRC on these matters.

Our expert team will draw on their experience to represent you in the most effective way, managing the disclosure throughout. This includes providing

regular feedback to you so you don’t need to worry.

We will: •

liaise with HMRC

•

negotiate tax, interest, penalties and settlement terms with HMRC

•

prepare all necessary disclosures.

Our timely intervention and professional expertise has assisted clients in avoiding any additional tax payments or in low penalties and settlement sums when tax has been underpaid. if

east india club cache A

‘cache’ of our Academies Team headed to the East India Club in London on 25th March to ensure that their knowledge of issues affecting academies is totally current.

The staff attended technical seminars arranged by the UK200 Group Academy Forum which dealt with accounting updates; practical issues arising from academy audits and common failings within Governors reports; tax issues affecting academies, ranging from gift aid, the structure of trading activities and the impact upon direct taxation

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we’re not sure of the collective noun for a group of accountants... but ‘cache’ sounds good

through to VAT issues. Rob Case, Head of Randall & Payne’s VAT Services, regularly advises and has written articles for the UK200 Academy Forum.

If you require specific advice in this area please contact Rob at rob.case@randall-payne.co.uk or on 01242 776000.

Away from the direct impact of accounting procedure, the ‘cache’ also attended seminars from solicitors and Assurance Officers covering ‘good governance’; employment contracts; assurance frameworks and

academy financial handbooks and fraud and irregularity.

We will continue to invest in our staff to ensure that they are fully conversant, not only with prevailing accounting policies, but also with legislative changes and current issues affecting academies, thus ensuring that we can provide the best possible advice at all times. For more advice on Academy audits contact Rob Stokes on 01242 776000 or visit www.randall-payne. co.uk

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summer 2014

05

business news

l l o r y a p d i avo bear traps

a guide to avoiding possible pitfalls when paying your employees in 2014...

statutory sick pay (SSP) SSP recovery is being removed with effect from 6 April 2014. Late recovery of SSP for 5 April 2014 and prior years can still be made, but recovery must be made by 5 April 2016.

empoyee holiday pay ALL employees are entitled to PAID holiday even if they only work a small number of irregular hours.

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national insurance contributions (NICs) employment allowance From 6 April 2014 Business, Charities and Community Amateur Sports Clubs can reduce their Class 1 secondary (employer) NIC bill by up to £2,000 a year.

pension ‘auto enrolment’ Every employer must automatically enrol UK workers into a workplace

pension scheme if aged between 22 and state pension age and earn more than £9440 a year.

The date at which employers must enrol is known as the ‘staging date’. This is dependent upon the size of the business’s PAYE scheme on 1 April 2012. To check your businesses staging date visit: www.thepensionregulator. gov.uk/employers

penalties From 6 April 2014 HMRC will charge penalties for late submission of Real Time Information (RTI) and for late payment of any PAYE due.

If you would like any further information please contact Karen Harries or Danielle Longney in the payroll department of Randall & Payne on 01242 776000. if

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feature

Rob Case - head of vat services Rob heads up Randall & Payne’s VAT services and is a member of the VAT Practitioners Group.

He regularly advises businesses in the SME sector and has written the UK200 Group VAT Guide for Academies. He also carries out reviews to ensure our clients are making the best use of the different VAT Accounting Schemes available.

For more help and advice contact Rob on 01242 776000 or email rob.case@randall-payne.co.uk

despite the benefits of outdoor education many exisiting facilities will have to evolve to survive during austerity

the great outdoors T

he importance and benefits of outdoor education and learning are widely understood but with ongoing austerity being a significant part of the coalition government plans, many local authorities have been looking to devolve or remove responsibility for running outdoor education centres around the country.

Many of the pre-existing facilities are being transferred into not for profit entities to ensure their survival.This

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means, in the majority of centres, that the management running the centres also become responsible for their administration which in part includes the VAT position.

Education and Vocational Training are complicated areas of VAT, but these centres very often carry out other activities which have different VAT implications, be it running a shop, catering and the sales from vending machines or pool tables.

Each case will be different but there is an argument that the educational activities are exempt for VAT purposes.

It is therefore important to consider whether VAT registration is appropriate, the overall impact on finances and ultimately the pricing structure of the courses offered is where we can help.

For more help and advice contact Rob on 01242 776000 or email rob.case@randall-payne.co.uk

summer 2014

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07

budget 2014

budget day 2014 every budget is unique, but this year was made even more so when Randall & Payne hosted a budget day event for local business leaders

R

andall & Payne’s event at Gloucester Rugby Club where over 100 leading local business people watched the Budget and gave their feedback, was a huge success.

Tim Watkins, Tax Partner at Randall & Payne said: ‘We weren’t expecting a great deal but the Budget turned out to be, whilst not a ‘give-away’ Budget, a Budget to help confidence for both businesses and individuals.

We haven’t got the detail yet but there was some good news for businesses looking to invest, there was encouragement for companies exporting and good news for individuals with increases in personal tax allowances,

widening of the basic rate band and freezing a range of duties.

news for businesses like ours where confidence is key. We already feel very confident that the market is picking up and this Budget certainly won’t have a negative impact.’

for businesses •

Raising of personal tax allowance to £10,500 from 2015

Increase in lending for exporters and cutting by a third the interest rates on that lending

•

•

Threshold for 40p income tax to rise to £41,865 from April 2014 and to £42,285 next year

Increase in Annual Investment Allowance to £500,000 from April 2014 to the end of 2015

•

•

Duty on cider and spirits frozen, beer duty cut by 1p per pint

£7 billion package to cut energy bills for manufacturers

for individuals •

Stephen Vaughan MD from Gloucester Rugby Club said: ‘This should mean that people on the street have more disposable income which is good

David Owen, the CEO of GFirst LEP said: ‘Finance support for exporters is really good for businesses generally and particularly for those in Gloucestershire as potential to export here is very high.’

Chris Pockett, Head of Communications at Renishaw said: ‘On export, as ever, it will come down to the detail.

pleased 98% were dget u with the B es and tax chang ght the 98% thou would be economy r it. better afte

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summer 2014

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budget 2014 The additional finance sounds like it will be encouraging but the biggest complaint is that accessing government financial support is a nightmare so it’s making this finance accessible that will be key. A lot of exporters will look for more direct support. It takes at least three visits to an overseas company to gain trust and build up the relationship to export – this is very expensive and there was nothing in this Budget to really help with this. European exporters seem to be more supported by their governments through subsidies. The number of UK companies exporting significantly lags behind European.’

David Owen said that ‘£1000 reduction in business rates for high street retailers was unexpected and very positive for smaller businesses. The doubling of the investment allowance will hopefully get some of our manufacturing businesses investing and therefore growing.’

79% thought the Budget meas ures would improv e the access to finance for th eir business.

Michaela Cozens from Gloucestershire Enterprise Ltd said: ‘We’re currently training the manufacturing workforce through our Growing Skills program so the Budget announcements that will encourage manufacturing is great news for the ‘makers’ in the county.’

John Moss, Chartered Financial Planner from IFS Cotswold Financial Planning thought that: ‘In pension terms people being able to take responsibility for their own pensions is great. Bearing in mind that over the next five years every employee in the country will be enrolled in a pension scheme under the Auto Enrolment Regulations, so giving them more freedom in what they do with their retirement savings, makes it much more attractive. In the end this will benefit pension companies as well because saving will become less unpopular.

At the moment most people do not understand the benefits of saving for a pension because of the complicated tax rules which have been introduced over 40 years to remove the risk of abuse. As things become simpler so the barriers to saving tax efficiently will be removed.

Increasing the ISA allowance to £15,000 per year with freedom to choose

98% felt the Budget would help their business and 100% thought it supported growth. whether its cash or investments will also encourage tax efficient savings.’

summing up In summing up, Tim Watkins said: ‘The comments made by individuals indicate that this is a Budget that has gone down well. If there’s anything coming out of this year’s Budget that you would like to talk about then please call Randall & Payne on 01242 776000, we’d be delighted to hear from you.’

if

for savers and pensioners •

All tax restrictions on pensioners’ access to pension pots will be removed, ending the requirement to buy an annuity

•

Tax on money taken out of pension pots reduced to individuals’ marginal tax rate

•

Increase in lump sum payments people can take from their pensions to £30,000

•

Cash and shares ISAs to be merged and annual limit increased to £15,000

www.randall-payne.co.uk

summer 2014

09

budget day

the big pension unlock! the Chancellor promised us a surprise in this year’s Budget, and what a surprise it was.

Tim Watkins from Randall & Payne takes a closer look

E

veryone paying into a pension or due to start drawing their private pension may well have raised a glass of duty-reduced beer to Mr Osborne once he had finished speaking. Judging by the sharp drop in the pension companies share prices they were perhaps not so grateful.

Perhaps the irony is the pension surprise may have reduced, albeit temporarily, the value of people’s pension pots!

let’s have a quick and simplistic look at the old rules Basically, ignoring the drawdown rules,

you paid into your scheme until it was time to draw the benefits, then you took 25% of the fund value tax-free from the pot and handed over the rest to a pension provider to pay you a pension for your lifetime at the annuity rate applicable at that time.

so what was the big surprise?

Firstly, a significant number of people have low value pension funds which, if converted to a pension, would provide a negligible income. We already had rules for taking the full value of small

funds.The value of those funds was increased sharply from £18000 to £30000. The 25% tax free sum is still taken but tax will be then be paid on the remainder at your own tax rate, depending on your other income.

The previous 55% tax charge could now be 20%, 40% or 45%, or a combination of these rates.

A similar rule applies if you have up to three schemes, individually valued at less than £10000. You can now take those funds in full, tax free.

These rules apply from now for those about to reach 55, but not to those

summary of the changes for 2014-15

Scheme value Tax free lum sum Tax on remainder Tax rate Taxable pension for life

Up to £10000 Whole value N/A N/A N/A (up to 3 schemes) £10000 - £30000 25% Yes Marginal rate N/A Over £30000 25% N/A N/A Yes

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summer 2014

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budget day schemes that depend on final salary.

From April 2015 the rules will change for schemes worth more than ÂŁ30000 at retirement. Then savers will be able to draw the full value of these funds too, whatever the size, again with a 25% tax free lump sum and again tax to pay on the balance at your own tax rate which, with bigger funds, could mean tax at the higher rates.

where can people go for advice on the new rules?

The Government has promised everyone the opportunity of free faceto-face advice, although it is unclear how this will work. In the meantime, if advice is needed, use a registered IFA.

someone has just called me and offered to give me pension advice. what should I do?

If it is a cold call or any form of unsolicited contact, be very careful.

A properly authorised IFA is very

unlikely to cold call. The new rules are likely to present opportunities for fraudsters to exploit, as accessible pots of money suddenly become available.

Do take advice but only from those properly authorised to give it.

should I take the balance of my pension post as cash subject to the tax change?

A properly authorised IFA should have knowledge of the tax system. However, it may well be worth getting the tax treatment of your pension checked by a qualified accountant, as there could be a tax charge up to 45% of the amount of the balance and once you have drawn the money out, there’s no going back.

how should I invest my pension money?

An authorised IFA will help you here.

The IFA will carry out a review of your circumstances. Risk should be discussed, including how much risk you

wish to take with your investments.

The IFA should then come up with an investment plan, explained and costed fully, so you know exactly what you are committing to. Remember this pot of money is to last you the rest of your life and the life of your spouse or partner.

It should be invested wisely to provide you an income. The size of the pot may determine in part the investment choices. A smaller pot may result in more secure products being chosen.

The larger the pot the more risk might be taken, with a greater range of products being used for investment, from cash funds to shares and share based products.

Invested wisely, the fund could produce an income better than an annuity, but watch out for guaranteed annuity rates within your pension fund, as they may be better than you can get anywhere else. Certain illnesses may also give rise to enhanced annuities. In short, the best option may not be to take the cash, which is why good advice is going to be essential.

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feature

it’s not the strongest that reach the top... our recent survey of business leaders has highlighted two key issues that are top of the agenda for 2014: growth and the abilty to develop winning strategies.

Randall & Payne’s Head of Business Advisory, Will Abbott, reports.

O

ften when talking to business leaders, I hear lofty ambitions announced such as 20% growth, but rarely is there substance, in terms of strategy, to back it up. In fact, there are times when growing by 20% is presented as the strategy for the year.

The reality of course is that this is not a strategy at all – it is a strategic goal.

them, I advise the clients I coach and mentor that:

One reason for this lack of real strategy is that many businesses have battened down the hatches over the last 5 years.

Many have forgotten how to grow and how to strategise. For the next generation of leaders coming through the business, the skills and experience are even more limited, which is why many businesses are seeing the sense of getting external help with strategic planning and training.

What then are some of the insights that we can get from the businesses that have achieved rapid and successful growth? Having worked with some of

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summer 2014

•

You need a clear understanding of your competitive advantage and strategies that maximise it.

•

You need clarity of vision throughout the business, combined with focus on one or two key goals.

•

Empower the people in the organisation to make decisions and respond to events.

•

Avoid just replicating what other businesses do – this is the route to being average.

Businesses need to be innovative, able to respond quickly to changes and to demonstrate a regular and consistent ability to adapt in the face of rapid change. Those are capabilities not present in many organisations, so a key strategy for any leader must be the development of such skills in their

people. This strategy has other benefits, not least of which is the attraction and retention of high quality individuals – another area where organisations often face challenges.

Once the organisation can respond successfully to disruption in the marketplace, it is also then very well placed to create disruption in its industry. That is the key to rapid and successful growth – but those skills cannot be embedded overnight. So the first strategy for 2014 must be to identify the biggest gap in your capabilities and develop a plan to start bridging it.

Following the global financial crisis it has never been more true that it is the businesses most adaptable to change that will excel. We certainly believe in this approach and have seen consistent growth over the last 5 years To find out more visit http://www.randallpayne.co.uk/services/business-advisors/

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spotlight

Tewkesbury focus...

Lying at the southern edge of the old town, Tewkesbury Abbey quietly dominates the land and skyline with its long nave and “probably the largest and finest Romanesque tower in England” (Pevsner). Its social domination can be deduced from the layout of the streets and buildings and the occasional relic; the Abbot’s gatehouse, the Abbey Mill, The Vicarage and the Tudor-style dwellings in Church Street. The area surrounding the Abbey is protected from development by the Abbey Lawn Trust, originally funded by a United States benefactor.

Founded in 1087 by Robert FitzHamon, building of the present Abbey did not start until 1102.

Built to house Benedictine monks, the Norman Abbey was consecrated in 1121.

Tewkesbury Abbey is an unsung success story providing employment and extensive support to the local community via a large and vibrant range of activities. Much more than a place of worship and centre for pastoral care, it is also a meeting place for many Tewkesbury residents.

Randall & Payne has been proudly associated with the Abbey for many years, both as auditor to Tewkesbury Abbey Parochial Church Council and as accountants to Tewkesbury Abbey Limited, responsible for running the hugely successful tearoom and gift shop.

The Abbey Shop offers a diverse and eclectic array of products, ranging from an interesting and tempting array of jams, chutneys, marmalades, fudge, biscuits and chocolate through to a superb organic skin care selection, highly moisturising face cream and body butters, cards, books and prints. There is also a large selection of unusual gifts and distinctive jewellery. The shop is also the Box Office for the wide variety of concerts and events hosted by the Abbey.

The Abbey is open to the public to pray, to marvel at the history or to enjoy the architecture.

For more information about the Abbey visit www.tewkesburyabbey.org.uk if

TE WKESBURY ABBE Y

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Open Sunday 1.30 to 4.00pm Monday to Saturday 10.45 - 1.45 Home made cakes and hot & cold drinks

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Church Street, Tewkesbury, GL20 5RZ www.randall-payne.co.uk

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feature

two’s company.... changes in the taxation of LLP’s and partnerships and how it affects you...

I

n December 2013 HMRC finalised the consultation process, started in May 2013, regarding the tax treatment of partnerships, including LLP’s. The two main areas of focus for the consultation were salaried members of LLPs and mixed partnerships. Following this consultation and the Autumn statement, the Government are proposing the following steps, being introduced from April 2014.

•

The member has made a capital contribution to the business (less than 25% of the fixed profits allocated to the individual in a tax year e.g. A profit share is £100,000 with a contribution of £10,000.

• The member has no significant influence in the running of the partnership business

Where HMRC argue that these conditions are met, the individuals’ ‘profit share’ will be taxable as if they were an employee and therefore, they will be subject to PAYE and NIC. The flow chart below is useful to help you decide whether an issue exists.

TREATMENT OF LLP SALARIED PARTNERS Are you an LLP with salaried partners?

NO

No changes required, subject to anti-avoidance and mixed partnership rules

YES

salaried members: It has become a common situation where people are introduced as ‘members’ of an LLP. However, the reality is that if you look at their interest in the LLP, it may be considered they are actually an employee with no control over the business. Therefore, HMRC will be looking to challenge the status of members where the following apply: •

14

The members remuneration is a fixed amount which is unaffected by the overall profits (or losses) of the LLP.

summer 2014

NO YES

Salaried partner treated as employee for all tax and NI purposes

NO

NO

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feature

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We are an independent family run business with over a 100 years experience in supplying heating oil, fuels and lubricants that are vital to so many aspects of our daily lives. So whether it is for your home, business or farm, you need a provider you can always rely on to deliver:

what percentage of the profit share needs to be affected by the LLP profits?

HMRC refer to a ‘substantially wholly’ fixed payment and there is no specific definition of this term.

However, it is referred to in the consultation document issued in May 2013. The interpretation is that, if profit shares could vary by less than 5%, the risk of being challenged is increased.

4 4 4 4

what does ‘significant partnership influence’ mean?

4 4 4 4

There is currently no guidance on this subject and it may be difficult to argue what influence a junior member of the partnership is likely to have.

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mixed member partnerships

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The second area of interest relates to the scenario where the LLP has a member that is a corporate body.

The benefit of this structure is that profits are allocated to the member paying a lower rate of tax, or where losses are relieved at a higher rate of tax.

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Many partnerships have undertaken tax planning of this type and it is often seen as a ‘corporate tax member’ which HMRC considers to be the best of both worlds.

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potential challenge to all LLP’s with a corporate member Many of the comments made by professionals and members argued that the use of corporate members was often for tax purposes and commercial reasons.

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HMRC acknowledged this and confirmed that the new tax rules will not affect the commercial uses of these structures. However, the tax advantage of doing so will be prevented.

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Based on current proposal outlined as this issue went to press, the new rules will have started from 6 April 2014, so no tax can arise until this date.

However, there is a lot of pressure on professional bodies and legal practices to challenge the new approach, so there may be a change in the rules yet.

To discuss this issue further contact Trish Clements or Will Abbott at Randall & Payne.

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summer 2014

15

feature

growth accelerator G overnment funding can help businesses grow, as Will Abbott, Head of the Business Advisory Team at Randall & Payne, explains

T

he government has developed a number of schemes that look at the constraints faced by SMEs and target funding at those issues.

Surveys show that business owners wish to spend more time with their accountants, as they value independent advice from a trusted source and the opportunity to sound out ideas.

Until now those meetings have not taken place as often as they should, but with two funding streams now available to subsidise access to professional advice, things could be about to change.

With the economy now showing increasingly strong signs of growth, these schemes may not be around forever. These are genuine opportunities to access funds, which is especially relevant where the business is likely to incur the associated expenditure in any event.

There is no doubt that the Government recognises the value to the economy

For those who have been so busy just getting on with the work, they make it

Grant funding is now available for businesses under the Regional Growth Fund and John Barker, Ollie Newbold and Will Abbott, of Randall & Payne’s Business Advisory and Corporate Finance Team, have secured grants from £15,000 to £300,000 for Capital Investment projects.

Regional Growth Fund programmes are run by national or local organisations

16

that SMEs contribute and that a key driver of economic prosperity is how well this business sector performs and grows, so its good to see they are attempting to address some of the constraints and issues faced by these businesses.

summer 2014

awarded RGF cash to offer grants and/ or loans to small and medium sized enterprises (SMEs). These funding programmes have made over £1 billion available to SMEs and over 3,400 SMEs have benefitted from RGF programmes.

To qualify there must be an opportunity to create or protect jobs and proposed schemes must have been rejected for funding by High St Banks. Where it can

worthwhile considering having those advisory meetings, talking to a business advisor and getting the advice you need to overcome any blocks to growth and success in your business.

Surprisingly, despite all the publicity, these schemes still have an air of mystery and may be greeted with scepticism. As leading business advisers who are approved to deliver advice and support under all the options, we are playing an active role in accessing the funding and helping to deliver real and powerful benefits to businesses in the area. So don’t wait for others to get ahead of you - get in touch and get growing! if

be shown that the project is viable with a grant of up to 20%, RGF will provide these funds to make sure the project proceeds.

Randall & Payne have secured funding for projects including business relocation and new machinery purchases.

For more information on this fund, contact Ollie Newbold at Randall & Payne on 01242 776000.

www.randall-payne.co.uk

feature Key Points

Where ambitious, up and coming businesses go to grow...

The Growth Accelerator scheme has been around for over 12 months.

Aimed at SMEs with growth potential, it is a coaching programme delivered by an approved GA coach. ‘Growth’ is defined as Gross Value Added, i.e. Total Profit plus Total Payroll Costs plus Total Depreciation, elements which underline the importance of growth to the economy in terms of tax paid, employment and capital investment.

One of the key attractions of this scheme is that it is outcome focussed.

The organisation completes an online assessment which, along with input from a Regional Growth Manager, is used to assess the three key barriers to growth in the business. A tailored growth plan is developed from this and the business coach then works with the business for typically 6-9 months, to help deliver the

plan. Payment is only made when the business leader signs off to say that the outcome has been achieved.

Admission to the scheme also gives access to Leadership & Management matched funding of up to £2,000 per person, to develop the skills of the senior leadership team, giving access to workshops and group training sessions.

There is a fee to pay depending on the size of the business - £600 for those businesses with under 5 FTE, £1,500 for 5-49 FTE and £3,000 for up to 250 FTE. Eligible businesses are largely those within the definition of SME. For more information contact Will Abbot, who is an approved coach in this scheme, on 01242 776000.

...one other thing...if you pay rates to Tewkesbury or Gloucester City Council, they will pay 50% of the Growth Accelerator ‘joining fee’!

A new scheme currently being piloted from January 2014 is the Growth Voucher scheme.

This is generally aimed at businesses at an earlier stage, but it is still aimed at helping businesses to benefit from strategic advice, rather than in their day to day work. Whilst the range of registered advisors is likely to be wider and will include advisers with a professional qualification or membership, there are safeguards in place to ensure the vouchers are not used for routine advice from existing providers.

The vouchers are worth up to £2,000 and this is a matched funding scheme. Again the focus is on achieving a successful outcome and promoting growth, so not all advisers will have the skills or experience to deliver this in the SME market. The programme is available to small businesses in England who have been trading for at least one year, have 49 employees or less and have not sought strategic business advice before in the last three years.

www.randall-payne.co.uk

Funding for Advice Growth Accelerator • To overcome 3 key barriers to Growth • Potential to double in size – GVA • GVA = Profit + Payroll + Depreciation • Outcome focussed • Coaching not consultancy • Fee - £1,500 for under 50 FTE, £3,000 if over • + Matched Funding £2K for L&M Growth Vouchers • Pilot Scheme - £30M • Businesses at an earlier stage • Up to £2,000 matched funding • For Strategic Advice • Wider access to advisers than GA • Only for Biz < 50 FTE Regional growth fund • Up to 20% grant - Capital investment - To make project viable - Create or protect employment • Premises relocation • New equipment • £15K - £300K • Confirm employment after 12 months Tax relief HMRC Stats: • 90% of available allowances for commercial property unclaimed • Interacts well with AIA Contacts • Access to Finance: John Barker, Ollie Newbold • Business Development: Will Abbott • Leadership & Management: Will Abbott • Regional Growth Fund: John Barker, Ollie Newbold • Tax Reliefs: Tim Watkins, Trish Clements

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17

!

cut out & keep summer calendar May 2014 monday

tuesday

wednesday thursday friday

saturday

sunday

Daily penalties begin 1 2 3 4 on late 12/13 SA tax returns (ÂŁ10/day up to 90 days)

Early May Bank VAT filing deadline 5 6 7 8 9 10 11 Holiday

12 13 14 15 16 17 18

Electronic payments Postal payments and 19 20 21 22 23 24 25 of PAYE/NIC/CIS liabilities cleared at HMRC

any EPS information to your accounts office

Five Valleys Spring Bank Holiday 26 27 28 29 30 31 P60 must be given to employees

Business Lunch

June 2014 monday

tuesday

wednesday thursday friday

saturday

sunday

30 1

VAT filing deadline 2 3 4 5 6 7 8

Quorum 9 10 11 12 13 14 15

Postal payments 16 17 18 19 20 21 22

Electronic payments of PAYE/NIC/CIS liabilities cleared at HMRC

and any EPS information to your accounts office

23 24 25 26 27 28 29

July 2014 monday

tuesday

wednesday thursday friday

saturday

sunday

1 2 3 4 5 6

P11D deadline

VAT filing deadline 7 8 9 10 11 12 13

QuarterlyTax on Postal payments 14 15 16 17 18 19 20 company payments due (CT61)

and any EPS information to your accounts office

Electronic payments 21 22 23 24 25 26 27 of PAYE/NIC/CIS liabilities cleared at HMRC

Second payment 28 29 30 31 on account due for 2013/14

18

summer 2014

www.randall-payne.co.uk

tax reference

income tax reliefs 2014/15 Personal allowance born after 5 April 1948 £10,000

‘adjusted net income’ over £100,000.)

born after 5 April 1938 and before 6 April 1948* £10,500 born before 6 April 1938 £10,660 (For higher earners reduce personal allowance by £1 for every £2 of

vehicle benefits

(relief at 10%)* min. amount

£8,165 £3,140

* For people born before April 1948 reduce allowance by £1 for every £2 of adjusted net income over £27,000 to the minimum of the standard Personal Allowances of £10,000.

Blind person allowance

Company cars 2014/15 CO2 emissions (gm/km)

Married couple’s allowance for people born before 6 April 1935 or 75 and over

£2,230

Maximum transferable personal allowance between spouses £1,000

% of cars list price taxed

1-75 5 76-94 11 95 12 100 13 105 14 110 15 115 16 120 17 125 18 130 19 135 20 140 21 145 22 150 23 155 24 For expenditure incurred on or after 6 April 2014 160 25 165 26 (1 April 2014 for companies) cars with CO2 emissions 170 27 not exceeding 130gm/km (previously 160gm/km) p.a.

175 28 Cars with CO2 emissions over 130gm/km receive 180 29 an 8% allowance p.a.

185 30 190 31 195 32 200 33 205 34 210 and more 35 For diesel cars add a 3% Cars and vans Rate per mile supplement but maximum still Up to 10,000 miles 45p 35%. For cars registered before 1st January 1998 the charge is Over 10,000 miles 25p based on engine size.

capital allowances on cars

mileage allowances

Company Vans 2014/15 £3090 Car Fuel Benefit 2014/15 £21,700 x appropriate percentage* *percentage used to calculate the taxable benefit of the car for which the fuel is provided.

Bicycles 20p Motorcycles 24p These indicate the maximum tax free mileage allowance for own vehicle business use. Any excess is taxable.

value added tax

Standard rate 20% Reduced rate 5% Annual Registration Limit - from 1.4.14 (1.4.13 - 31.3.14 £79,000) £81,000 Annual Deregistration Limit - from 1.4.13 (1.4.13 - 31.3.14 £77,000) £79,000

www.randall-payne.co.uk

income tax rates 2014/15 Band £ Rate % 0 - 2,880 10* 0 - 31,865 20** 31,866 - 150,000 40*** Over 150,000 45****

*Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,880. ** Except dividends (10%). *** Except dividends (32.5%). **** Except dividends (42.5% for 2013/14).

Other income taxed first, then savings income and finally dividends.

corporation tax year to 31/3/2015 Profits band

Rate

Small companies rate £0 - £300,000

20%*

Marginal (small companies) rate £300,001 - £1,500,000 21.25%* Main rate Over £1,500,000 Standard fraction

21%* 1/400*

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies. *Different rates apply for ring-fenced (broadly oil industry) profit.

pension premiums 2014/15

• 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.

summer 2014

19

Wish you were here?

Then maybe you need accountants with a different approach!

Over the last five years we’ve helped our clients answer their big questions: • How do I get more value out of my business?

• Am I paying the right amount of tax?

• Where do I want to be in five years?

Whatever your goals and aspirations, we are happy and able to help you achieve them Randall & Payne Quorum allows business leaders to connect and share strategies for growth, while gaining the skills and tools to implement them.

To find out more contact: will.abbott@randall-payne.co.uk

Chargrove House, Shurdington Road, Cheltenham, Glos. GL51 4GA

01242 776000 · www.randall-payne.co.uk

Randall & Payne is a brand name of Randall & Payne LLP. Registered in England & Wales number: OC345710. Chargrove House, Main Road, Shurdington, Cheltenham, Glos. GL51 4GA. Unless otherwise indicated we use the word partner to refer to a member of the LLP. Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk, under reference number C002244548. A member of the ICAEW Practice Assurance Scheme.