The vibrant and lively city of Leeds was confirmed as the leading centre for financial and business services outside London, following publication of the government's Annual Business Inquiry. Leeds has also now moved into the top 25 European cities for business according to the recent European Cities Monitor Report.

The Haines Watts  Accountants office in Leeds was opened in 1989 by the current Managing Partner, Peter Bancroft, providing owner managers with the business advisory and accountancy services you would expect from a national top 15 firm.

In addition the team in Leeds have the depth of expertise to provide successful individuals and growing businesses with an unrivalled level of technical and tax advice through specialist Tax Accountants, VAT Accountants and Corporate Finance Partners, and via other specialist services including online outsourcing.

On 1st April 2008 in common with most other large accounting practices, Haines Watts in Leeds became a UK Limited Liability Partnership (LLP). The move followed a change in the legislation, which recognised the realities of operating a modern partnership advising on large commercial transactions. The relationship between a LLP and its members is similar in terms of rights and liabilities to that of a UK company and its Directors. We feel that the new structure will enhance our professional competitiveness and help us attract the very best people to support our commitment to providing excellent client service.

News

HW Leeds student Matthew Barton with Managing Partner Peter Bancroft at recent ACA prizegiving. Click picture for full news story

Funding for businesses

Is your business based in the Yorkshire and Humber region and in need of further funding?

Is your business profitable but unable to secure the required funding for existing operations or to fund any planned expansion activity?

Have you reached the maximum your bank is prepared to lend you?

If the answer to these questions is yes, we may be able to help.

We have assisted many businesses in accessing the funding they need. For more details or to arrange a no obligation exploratory meeting with our Head of Business Advisory Services Jacquie Leake, please go to Business Advisory Yorkshire.

HW Leeds Specialist VAT team - current issues 

VAT issues we are currently working on include:

Entertaining

Under existing rules, businesses have been unable to recover VAT incurred on  entertaining customers. A challenge currently before the European Court could result in this treatment being overturned. A decision is expected later in the spring and those affected have until 31 March to submit claims backdated to 1 April 2006. In some cases very substantial amounts may be involved. The position on entertaining both staff and overseas customers is unaffected.

Catering sector

Until last year HM Revenue & Customs (HMRC) took the view that, say, all of an exhibition centre was a premises and any person selling sandwiches at the venue had to account for VAT. We won a lead case in the VAT Tribunal on this point, which resulted in a change of policy by HMRC last year. Thus we have obtained 6 and 7 figure VAT repayments for caterers with outlets in departure lounges at airports, racecourses, exhibition centres, office blocks, colleges, factories etc

Hotels

Topical issues include incorrect treatment of VAT in respect of credit card fees, cancellation charges and pre-paid meals.

Bakers etc

Whether or not a product is hot takeaway food (liable to VAT) or freshly baked (zero-rated) is complex. Some bakers and food outlets get to zero rate their freshly baked pasties, sausage rolls and paninnis whilst others do not. The cases in this area go both ways depending on the facts. Again, we have won a major case at the VAT Tribunal - our clients get zero rating!

Care homes

Care homes, as opposed to nursing homes, can get VAT back on  expenses prior to March 2002 in respect of VAT payments on a range of general overheads, building work and extensions following the Kingscrest Associates court ruling.

Riding Stables

Sole proprietors and partnerships that are, or have ever been VAT registered, can get VAT repayments.

Private members sports clubs, including golf

Can get VAT repayments in respect of green fee income and membership subscriptions.

Property Transactions

Any property deal has potential VAT problems. It is always advisable to check the VAT position in advance, for example to confirm that a customer is able to recover VAT on a commercial property acquisition.

Business Transfers

Again it is worth checking the VAT treatment. VAT is not chargeable if a transfer of a going concern can be established.

Interest

Anyone who has ever had a VAT repayment in the past has arguably not received enough interest from HMRC. The lead case is due to be heard by the VAT Tribunal later this year.

VAT Assessments

We have a strong track record in fighting VAT assessments. When successful we invariably get Customs to contribute to costs.

Security Notices

There has recently been an increasing incidence of such notices, consequently it is important that the correct action is taken if such a notice is received. Security notices　provide HMRC with one of their most powerful weapons against VAT registered traders.

They are typically issued to directors of a newly formed company where a previous business has gone down owing VAT, PAYE or other taxes.　

The usual requirement is for the business to lodge a security deposit with HMRC equivalent to 6 months VAT liability, which can have a devastating impact on the business. Immediate action is required as continuing to trade without a response is a criminal offence, with fines of up to　£5,000 for each taxable supply.

VAT deductions incurred during merger and acquisition activities

BAA has recently won a case which means a Company will now be able to recover the VAT element of any professional services costs (e.g. legal, due dilligence, bank fees, advisory costs) incurred in the course of buying a share in another company.

My Travel won a similar case against HMRC in October last year which is currently under review - it is not known if HMRC will also appeal against the BAA ruling.

This case has significant implications for businesses in both the corporate and private equity M&A arena. Businesses affected by this decision should now consider making claims for repayment of VAT.

Factsheets

Factsheet section

Specialist Services

Corporate Finance

HW Corporate Finance specialists are all experienced professionals providing advice on acquisitions, mergers, disposals, MBO, MBI, pre-sale planning, strategic and business planning, refinancing, restructuring, improving profitability, start up funding, venture and development capital and due diligence.

We approach each transaction and project with the intention of ensuring that the advice given is of the highest quality and meets with our clients' objectives. We are committed to providing a partner led, personal and proactive approach and have undertaken many different types of corporate finance projects across a wide range of sectors.

Tax

Planning

We have a technically strong and commercially aware team of specialist tax partners providing tax advice in Leeds who constantly update their knowledge on changes in legislation.

Our philosophy is that taxation should be treated like every other business cost and should be controlled wherever possible in relation to both amount and timing.

Tax planning is about selecting the most effective route to achieve both business and personal objectives, we look to make this possible through regular meetings with our clients.

Compliance

The introduction of self assessment has transferred the burden of compliance firmly into the hands of taxpayer together with the risk of penalties and charges accruing on missed deadlines.

We provide a personal tax return service and by adopting a pro active tax advice service, taking an overall look at your personal affairs, we can highlight any opportunities available to you.

We have introduced comprehensive computer software to aid in advising and complying with all statutory requirements which removes any concerns regarding compliance penalties, enabling our clients to focus on running their business.

Financial Services

Stefan Palenski (Dip PFS CFP) - Financial Services consultant Stefan heads up HW Financial Services Limited in Leeds, previously working as a senior consultant at Yorkshire Investment Group.

HW Financial Services Limited offers independent financial planning advice to our clients. Stefan is their local consultant to provide you with a financial plan appropriate to your needs. Examples of services offered include: pension advice, tax planning, investment planning, life assurance, mortgages and partnership/key personnel insurance. For more information, and a comprehensive list of services offered, please click here.

HW Financial Services Limited are Independent Financial Advisers, authorised and regulated by the Financial Services Authority, which may or may not regulate the products and services mentioned above.

VAT

HW have developed unrivalled strength in the formation of a Northern VAT team based in Leeds providing specialist VAT advice.

Terry Parkinson and Peter Smallwood have extensive knowledge on the listed topics as well as many years experience working with HM Customs & Excise, which enables us to give the best possible VAT service at a realistic cost.

Some of the specialist areas covered include:

• Assessments and Appeals - experience shows that many VAT assessments can be challenged with costs frequently recovered from Customs
• VAT Claims
• Property Transactions - obtaining the correct VAT advice is essential in respect of virtually all property transactions
• Partial Exemption
• Catering - we have advised many large catering organisations, obtaining significant VAT refunds on numerous occasions
• International Issues
• VAT Special Schemes

If you're looking for accountants in Leeds then please give HW a call.

VAT Checklist

 

If the answer to any of the questions below is ‘yes’ the advice of a VAT specialist may be needed, for further information please contact one of our VAT Partners as above

• Are you contemplating acquiring, leasing, refurbishing, converting or disposing of either commercial or residential property?

• Have you received a VAT assessment for more than £1,000 in the past year?

• Have you received a penalty relating to VAT in the past year?

• Do you import or export goods with an accrued value of over £50,000 in a year?

• Do you have any unpaid creditors over 6 months old?

• Are you a charity?

• Do you provide tours (coach, train, air etc)?

• Are you subject to input VAT restrictions (partial exemption)?

• Do you operate any special VAT arrangements eg annual accounting, cash accounting, flat rate scheme etc?

• Do you have an unexplained difference between turnover in your accounts and outputs per the VAT returns?

• Do you have significant unexplained differences on the VAT creditor or debtor?

• If you are non-registered are there any potential circumstances that require consideration?

Not-for-Profit

We know that the Not-for-Profit sector has unique characteristics which require specialist skills and we are confident in our ability to provide you with guidance to ensure your organisation fulfils its purpose while maximising its fund raising potential.

Clubs and Societies

Recent changes in the regulatory framework for clubs and associations have given rise to a range of new possibilities for some organisations within this sector.

Charities

Haines Watts provide audit services to over 150 charities and advise many more on issues such as SORP compliance, public benefit, VAT, tax-effective giving, trading, Charity Commission guidance, internal controls, trustee responsibilities and governance matters.

Students' Unions

There have been recent developments concerning the VAT treatment of the provision of live entertainments by Students’ Unions. A recent VAT Appeal case was lost by the Students’ Union concerned based on its own facts, but the issues concerned have been clarified in the process. This ruling can lead to potential VAT savings for the future.

It is believed that most Students’ Unions are entitled, under European law, to exemption from VAT in respect of almost all live entertainments events, providing the correct procedures are followed. ‘Live entertainments' can include bands, comedians, DJs who mix (rather than purely play records) and even karaoke! Consequently the majority of the entertainments income of Students’ Unions could be free of VAT if properly advised.

It is likely that in each case there will be an annual saving of a significant five-figure sum. We can assist you to put the correct procedures in place and to obtain HMRC agreement.