Latest accounting news from HWCA.com http://www.hwca.com/news.php Thu, 11 Mar 2010 01:00:00 GMT Thu, 11 Mar 2010 01:00:00 GMT “However beautiful the strategy, you should occasionally look at the results.” Sir Winston Churchill We all know that it is essential to have a clear strategy and plan in business - but checking your company’s performance against its projections is equally critical to its success. One relatively easy way to assess if you are achieving your goals is to get feedback from your clients. A simple survey can ascertain if they are satisfied with the service they are being given. The 80/20 rule still applies: 80% of profit comes from the top 20% of clients, so it is essential that they are well looked after. Conducting a financial health check is vital to keeping your business on track. It is all too easy for owner managers to get caught up in the day-to-day running of the business and “making money”, but then lose sight of the financials. Consider the following. • Could your profit margins be improved? • Could your overheads be reduced? • Do your results reflect your budget? • Are you familiar with your cashflow position? • Are you sure there is no risk of deviating from any of the conditions or covenants in your finance arrangements? As well as understanding your own financial position, there is a lot to be said for understanding your competitors too. In a downturn it is more important than ever to be aware of the different players in your sector in order to establish the competitive advantage. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344808 In an economic downturn it is often difficult to incentivise staff financially. David Smy, Partner, HW, Chartered Accountants offers a few tips on tax efficient ways of rewarding your staff. Childcare vouchers. It is not always appreciated by employers that childcare vouchers can be given to fathers, making a combined total of up to £110 per week to meet childcare costs. Contribute to travel costs. Providing free parking can be a huge benefit for staff based in an urban location. If you move business premises and there is no immediate car parking for staff, you can provide parking for staff nearby without incurring tax or NIC. Alternatively, it could be worth providing a works bus. As long as it has 9 or more seats there will be no benefit in kind charge on the employee. For an even healthier option; employers that provide staff with a bicycle and safety equipment can receive a tax break. Incentivise with the latest technology. Irrespective of whether it is for work or home use, there are no tax consequences in providing employees with a mobile phone but it might be wise to cap what you are willing to pay for. Providing a one-off loan. Whilst giving a salary raise may not be possible at the moment, if cash-flow permits, employers can consider making a loan of up to £5,000 per employee with no benefit in kind charge being incurred. Drinks and refreshments. In addition to providing drinks at work, you could supplement the cost of your employees’ lunch by providing a 15p per day luncheon voucher which might cover the cost of a small chocolate bar. Also, the commonly known “Christmas Party” exemption can cover more than one function at any time in the year as long as the total cost (VAT inclusive, plus transport and accommodation if provided) does not exceed £150 per head. Medical screening. To ensure staff well-being, medical screening for specific conditions can be made available with no benefit in kind being incurred by the employee. “It is worth noting that recruiting staff is extremely expensive, not to mention the lost productivity while they get up to speed; therefore retaining staff should be a priority for SMEs, even in a downturn. Your staff are your most important assets and neglecting them can be extremely detrimental to your business,” concludes David. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344809 In an economic downturn it is often difficult to incentivise staff financially. David Smy, Partner, HW, Chartered Accountants offers a few tips on tax efficient ways of rewarding your staff. Childcare vouchers. It is not always appreciated by employers that childcare vouchers can be given to fathers, making a combined total of up to £110 per week to meet childcare costs. Contribute to travel costs. Providing free parking can be a huge benefit for staff based in an urban location. If you move business premises and there is no immediate car parking for staff, you can provide parking for staff nearby without incurring tax or NIC. Alternatively, it could be worth providing a works bus. As long as it has 9 or more seats there will be no benefit in kind charge on the employee. For an even healthier option; employers that provide staff with a bicycle and safety equipment can receive a tax break. Incentivise with the latest technology. Irrespective of whether it is for work or home use, there are no tax consequences in providing employees with a mobile phone but it might be wise to cap what you are willing to pay for. Providing a one-off loan. Whilst giving a salary raise may not be possible at the moment, if cash-flow permits, employers can consider making a loan of up to £5,000 per employee with no benefit in kind charge being incurred. Drinks and refreshments. In addition to providing drinks at work, you could supplement the cost of your employees’ lunch by providing a 15p per day luncheon voucher which might cover the cost of a small chocolate bar. Also, the commonly known “Christmas Party” exemption can cover more than one function at any time in the year as long as the total cost (VAT inclusive, plus transport and accommodation if provided) does not exceed £150 per head. Medical screening. To ensure staff well-being, medical screening for specific conditions can be made available with no benefit in kind being incurred by the employee. “It is worth noting that recruiting staff is extremely expensive, not to mention the lost productivity while they get up to speed; therefore retaining staff should be a priority for SMEs, even in a downturn. Your staff are your most important assets and neglecting them can be extremely detrimental to your business,” concludes David. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344810 In an economic downturn it is often difficult to incentivise staff financially. David Smy, Partner, HW, Chartered Accountants offers a few tips on tax efficient ways of rewarding your staff. Childcare vouchers. It is not always appreciated by employers that childcare vouchers can be given to fathers, making a combined total of up to £110 per week to meet childcare costs. Contribute to travel costs. Providing free parking can be a huge benefit for staff based in an urban location. If you move business premises and there is no immediate car parking for staff, you can provide parking for staff nearby without incurring tax or NIC. Alternatively, it could be worth providing a works bus. As long as it has 9 or more seats there will be no benefit in kind charge on the employee. For an even healthier option; employers that provide staff with a bicycle and safety equipment can receive a tax break. Incentivise with the latest technology. Irrespective of whether it is for work or home use, there are no tax consequences in providing employees with a mobile phone but it might be wise to cap what you are willing to pay for. Providing a one-off loan. Whilst giving a salary raise may not be possible at the moment, if cash-flow permits, employers can consider making a loan of up to £5,000 per employee with no benefit in kind charge being incurred. Drinks and refreshments. In addition to providing drinks at work, you could supplement the cost of your employees’ lunch by providing a 15p per day luncheon voucher which might cover the cost of a small chocolate bar. Also, the commonly known “Christmas Party” exemption can cover more than one function at any time in the year as long as the total cost (VAT inclusive, plus transport and accommodation if provided) does not exceed £150 per head. Medical screening. To ensure staff well-being, medical screening for specific conditions can be made available with no benefit in kind being incurred by the employee. “It is worth noting that recruiting staff is extremely expensive, not to mention the lost productivity while they get up to speed; therefore retaining staff should be a priority for SMEs, even in a downturn. Your staff are your most important assets and neglecting them can be extremely detrimental to your business,” concludes David. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344811 “Every business has a role to play in tackling climate change. Being environmentally conscious is no longer a choice but a necessity in today’s economy. There are significant tax breaks for doing “green” business and perhaps more importantly clients now often compare environmental credentials before even considering entering a business agreement. SME’s are in a much stronger position than their larger counterparts to implement green initiatives and gain the competitive edge.” Comments Paul Simmons, HW, Chartered Accountants. Mr Simmons offers the following simple steps to scoring “green” points with minimal effect on your day to day business. Greener Office Environment This is a great place to start because a small organisation can easily implement greener housekeeping in the office and reap the financial benefits. Turning off your PC equipment, photocopiers and phone chargers when they are not in use and implementing a double-sided print policy will make a huge difference to your carbon footprint. Energy efficiency Businesses that reinvest in equipment and become more energy or water efficient could qualify for an enhanced capital allowance thus enabling them to set the full cost of the new equipment against taxable profits in the year of investment. Furthermore, the Carbon Trust offer Energy Efficiency Loans to upgrade equipment to a more energy-efficient version, which are interest-free to SMEs. Loans of up to £100,000 are available to businesses of 250 employees or less that have been trading for at least 12 months. Carbon Cutting Commuting Car sharing for business purposes offers rewards to employees with an extra tax-free 5p per mile. Be careful it doesn’t invalidate your car insurance though. By providing low-emission vehicles to employees, businesses can also benefit from the Enhanced Capital Allowance scheme, and avoid any possible future increases in vehicle excise duty on gas guzzlers. Encouraging employees to cycle to work can be tax efficient, as bikes and safety equipment are tax deductible, providing they remain the property of the company. For some businesses a works bus is financially viable. The provision of a works’ bus is tax free providing it is designed to hold twelve or more passengers “We have noticed in our own office that the smallest changes by each individual can make a massive impact on our collective carbon footprint and as accountants we are particularly happy with the impact on the bottom line!” Concludes Mr Simmons. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344812 “Drive thy business or it will drive thee”. Benjamin Franklin Colin Fletcher comments In the current economic climate many businesses may find themselves slipping into reactive mode. This may work for a while but it is not a long term strategy. It is important to take a step back and look critically at the way you run your business. If you haven’t the time or are too involved to do this, ask someone to help you. There are a number of issues which ought to be considered during a business health check. Here are three as food for thought.. · Existing customers’ needs - neglecting your core customer base can be fatal, if in doubt ask them if they are satisfied with the level of service they are receiving. · Analyse your overheads - moving premises, outsourcing key functions and using an external expenses control company to review what your suppliers are charging you can produce some surprisingly significant cost savings. Likewise, keep a regular check on your profit margins to ensure that they remain fairly stable. · Protect your most valuable asset, your key staff. An accountant can advise you on flexible benefits that won’t have a huge financial impact on your business but could help you retain that essential member of staff. Finally, adapt your business plan to encompass your findings and ensure you review it regularly throughout the year to monitor performance and to take into account any events which may also affect it either positively or negatively! Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344813 "Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.” – David Rockefeller With the right mindset and opportunistic tendencies, discipline and hard work could be doubly rewarded in the current economic climate with ‘once-in-a-lifetime’ growth potential. Businesses are being sold at discounted rates which provides a timely opportunity to expand an existing business or diversify into something new. Outsourcing has become popular once again, providing huge potential growth in areas such as marketing, development, distribution, IT, HR and accounting. Whatever the opportunity, a clear vision and solid planning are critical. It might be that bringing people into your business, with strong and complementary skills to your own, will allow you to delegate and release your own time to investigate new opportunities. Empowering your team and making them responsible for the everyday running of their particular area can be the key to success. Opportunities are out there for the taking. Whichever route you choose to take, with good planning and a solid team behind you, these opportunities could set your business up for the future and bring your vision to life. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344814 "Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.” – David Rockefeller With the right mindset and opportunistic tendencies, discipline and hard work could be doubly rewarded in the current economic climate with ‘once-in-a-lifetime’ growth potential. Businesses are being sold at discounted rates which provides a timely opportunity to expand an existing business or diversify into something new. Outsourcing has become popular once again, providing huge potential growth in areas such as marketing, development, distribution, IT, HR and accounting. Whatever the opportunity, a clear vision and solid planning are critical. It might be that bringing people into your business, with strong and complementary skills to your own, will allow you to delegate and release your own time to investigate new opportunities. Empowering your team and making them responsible for the everyday running of their particular area can be the key to success. Opportunities are out there for the taking. Whichever route you choose to take, with good planning and a solid team behind you, these opportunities could set your business up for the future and bring your vision to life. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344815 "Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.” – David Rockefeller With the right mindset and opportunistic tendencies, discipline and hard work could be doubly rewarded in the current economic climate with ‘once-in-a-lifetime’ growth potential. Businesses are being sold at discounted rates which provides a timely opportunity to expand an existing business or diversify into something new. Outsourcing has become popular once again, providing huge potential growth in areas such as marketing, development, distribution, IT, HR and accounting. Whatever the opportunity, a clear vision and solid planning are critical. It might be that bringing people into your business, with strong and complementary skills to your own, will allow you to delegate and release your own time to investigate new opportunities. Empowering your team and making them responsible for the everyday running of their particular area can be the key to success. Opportunities are out there for the taking. Whichever route you choose to take, with good planning and a solid team behind you, these opportunities could set your business up for the future and bring your vision to life. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344816 "Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.” – David Rockefeller With the right mindset and opportunistic tendencies, discipline and hard work could be doubly rewarded in the current economic climate with ‘once-in-a-lifetime’ growth potential. Businesses are being sold at discounted rates which provides a timely opportunity to expand an existing business or diversify into something new. Outsourcing has become popular once again, providing huge potential growth in areas such as marketing, development, distribution, IT, HR and accounting. Whatever the opportunity, a clear vision and solid planning are critical. It might be that bringing people into your business, with strong and complementary skills to your own, will allow you to delegate and release your own time to investigate new opportunities. Empowering your team and making them responsible for the everyday running of their particular area can be the key to success. Opportunities are out there for the taking. Whichever route you choose to take, with good planning and a solid team behind you, these opportunities could set your business up for the future and bring your vision to life. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344817 "Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.” – David Rockefeller With the right mindset and opportunistic tendencies, discipline and hard work could be doubly rewarded in the current economic climate with ‘once-in-a-lifetime’ growth potential. Businesses are being sold at discounted rates which provides a timely opportunity to expand an existing business or diversify into something new. Outsourcing has become popular once again, providing huge potential growth in areas such as marketing, development, distribution, IT, HR and accounting. Whatever the opportunity, a clear vision and solid planning are critical. It might be that bringing people into your business, with strong and complementary skills to your own, will allow you to delegate and release your own time to investigate new opportunities. Empowering your team and making them responsible for the everyday running of their particular area can be the key to success. Opportunities are out there for the taking. Whichever route you choose to take, with good planning and a solid team behind you, these opportunities could set your business up for the future and bring your vision to life. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344818 "Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were.” – David Rockefeller With the right mindset and opportunistic tendencies, discipline and hard work could be doubly rewarded in the current economic climate with ‘once-in-a-lifetime’ growth potential. Businesses are being sold at discounted rates which provides a timely opportunity to expand an existing business or diversify into something new. Outsourcing has become popular once again, providing huge potential growth in areas such as marketing, development, distribution, IT, HR and accounting. Whatever the opportunity, a clear vision and solid planning are critical. It might be that bringing people into your business, with strong and complementary skills to your own, will allow you to delegate and release your own time to investigate new opportunities. Empowering your team and making them responsible for the everyday running of their particular area can be the key to success. Opportunities are out there for the taking. Whichever route you choose to take, with good planning and a solid team behind you, these opportunities could set your business up for the future and bring your vision to life. Thu, 11 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344819 The 2010 Budget Report will be delivered ‘in two weeks’ time’, Prime Minister Gordon Brown has announced. Speaking at Thomson Reuters in Canary Wharf, Brown confirmed that the Budget will take place on 24 March, fuelling speculation that the General Election will be held on 6 May. The Treasury later confirmed the date in a written statement to Parliament. ‘We will set out in more detail in the Budget in two weeks’ time how we deliver on our commitment to restore the public finances while protecting the fundamental public services we all depend on,’ said Brown. ‘Our approach is clear and we will not be diverted from it.’ He continued: ‘Although the economy is growing, the recovery is still in its early stages and remains very fragile. The waters are still choppy, there are still real risks to the recovery and we must be alive to them.’ On Sunday Chancellor Alistair Darling said he was ‘absolutely committed’ to reducing the UK’s budget deficit, although ruled out a full spending review. Wed, 10 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344805 Two of the UK’s leading business groups are calling on the Government to set out clear and credible plans for tackling the UK’s £178bn deficit. In its Budget submission to Chancellor Alistair Darling, the Confederation of British Industry (CBI) has urged the Government to set out more details of its departmental spending plans, and to bring forward its targets for balancing the books, in order to obtain the critical objectives of boosting confidence in the public finances and fostering economic stability. The CBI believes that the Government’s target date for achieving budget balance in 2017/18 is too far off, and that the bulk of the deficit should be addressed by 2015/16. This would be achieved by adjusting expenditure plans, rather than increasing taxes. Richard Lambert, CBI Director-General, said, ’The UK’s deficit, though worryingly large, is still manageable, but the Government must act now to set out a convincing, credible pathway for balancing the books’. Meanwhile, the Institute of Directors (IoD) has urged an incoming Government to act on the deficit as soon as it takes office. Publishing its Business Manifesto 2010, the organisation echoes the CBI’s views that fiscal tightening should be based on lower public spending rather than higher taxation. Miles Templeman, IoD Director-General, said, ’The argument that early cuts would jeopardise the recovery is mistaken. We believe that lower spending is likely to trigger a whole series of positive developments that will assist growth’. Tue, 09 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344804 Individuals using the New Disclosure Opportunity (NDO) have been reminded that they have just days to make their disclosures online and to pay all tax, duties, interest and penalties owed in full. Offshore investors who have notified HM Revenue and Customs (HMRC) of their intention to use the NDO have until 12 March to settle the monies owed and incur a limited penalty of 10% of their unpaid tax. HMRC has confirmed that once the scheme closes, people who are found to have undisclosed offshore assets will be subject to a full tax investigation. Penalties will range from a minimum of 30% to up to 100%, and in the most serious cases criminal prosecution. Dave Hartnett, HMRC’s Permanent Secretary for Tax, said: ‘Taxpayers with offshore investments who have notified us of their intention to disclose have done the right thing, saving themselves 90% of the potential penalties for failing to disclose. ‘They now need to follow through by making their disclosure online and paying in full all the taxes they owe.’ We can help you with all your tax and financial planning needs. Please contact us for further assistance. Mon, 08 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344803 HW, one of the Thames Valley’s leading accountancy firms, has recently appointed Julie Bryant as Senior Tax Consultant. Julie, from Godalming, brings a wealth of experience to HW having advised for over 17 years on both UK and international tax. Prior to joining HW she has worked for Baker Tilly, BDO Stoy Hayward and Deloitte/Andersen. Julie comments “HW is a great firm and proves that it is possible to receive first-class advice from a local office without travelling to London. I am excited to be part of the growing tax practice in Farnborough and to have the opportunity to use my experience and expertise to help meet the demands of local and regional clients.” Stephen Edwards, Tax Partner, HW Farnborough said “We are delighted to welcome Julie to our business. Attracting someone of her calibre to our team builds on and consolidates our ability to help clients in an ever more complicated tax environment. We are already benefiting from her enthusiasm and depth of knowledge and look forward to working with her as we continue to grow our tax team.” When not working on complex tax issues, Julie enjoys country pursuits such as riding her horse and long walks with her dog. Fri, 05 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344799 Haines Watts, one of the Thames Valley’s leading accountancy firms, has recently appointed Julie Bryant as Senior Tax Consultant. Julie, from Godalming, brings a wealth of experience to Haines Watts having advised for over 17 years on both UK and international tax. Prior to joining HW she has worked for Baker Tilly, BDO Stoy Hayward and Deloitte/Andersen. Julie comments “Haines Watts is a great firm and proves that it is possible to receive first-class advice from a local office without travelling to London. I am excited to be part of the growing tax practice in Basingstoke and to have the opportunity to use my experience and expertise to help meet the demands of local and regional clients.” Stephen Edwards, Tax Partner, Haines Watts Basingstoke said “We are delighted to welcome Julie to our business. Attracting someone of her calibre to our team builds on and consolidates our ability to help clients in an ever more complicated tax environment. We are already benefiting from her enthusiasm and depth of knowledge and look forward to working with her as we continue to grow our tax team.” When not working on complex tax issues, Julie enjoys country pursuits such as riding her horse and long walks with her dog. Fri, 05 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344800 Haines Watts, one of the Thames Valley’s leading accountancy firms, has recently appointed Julie Bryant as Senior Tax Consultant. Julie, from Godalming, brings a wealth of experience to Haines Watts having advised for over 17 years on both UK and international tax. Prior to joining Haines Watts she has worked for Baker Tilly, BDO Stoy Hayward and Deloitte/Andersen. Julie comments “Haines Watts is a great firm and proves that it is possible to receive first-class advice from a local office without travelling to London. I am excited to be part of the growing tax practice in Alton and to have the opportunity to use my experience and expertise to help meet the demands of local and regional clients.” Stephen Edwards, Tax Partner, Haines Watts Alton said “We are delighted to welcome Julie to our business. Attracting someone of her calibre to our team builds on and consolidates our ability to help clients in an ever more complicated tax environment. We are already benefiting from her enthusiasm and depth of knowledge and look forward to working with her as we continue to grow our tax team.” When not working on complex tax issues, Julie enjoys country pursuits such as riding her horse and long walks with her dog. Fri, 05 Mar 2010 01:00:00 GMT http://www.hwca.com/article.php?id=4344801