Inside this issue... Growth Accelerator IFB 2014 Annual Dinner report Charity corner: NYAS
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Spring | 2014
Issue Eight
Plus much more...
CharteredOne | Issue 8 | Spring 2014
INSIDE THIS ISSUE 14 Annual Dinner
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GET IN TOUCH WITH THE MAGAZINE TEAM... Advertising/Features: Roger Swift - 0845 643 5551 roger.swift@crosbyassociates.co.uk
Editorial: Martyn Best martyn.best@documentdirect.co.uk Chartered ONE is designed and published on behalf of the Liverpool Society of Chartered Accountants by Crosby Associates Ltd.
of Man
www.crosbyassociates.co.uk Š All rights reserved.
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Behind the mask
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Samaritans
LSCA Business Presidents Words
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n Insight from the editor
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n Diary of events
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n Annual Dinner
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n A day in the life of
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n IFB 2014
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n Glenys Hunt
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n Aoountex 2014
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n ICAEW & Isle of Man
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The Liverpool Society of Chartered Accountants was founded in 1870 and is the oldest district society in the Institute of Chartered Accountants in England & Wales, and was one of the four founding societies of the ICAEW.
Profesional Services
The Society has an illustrious history and has provided in Harmood Banner, Arthur Green and Ian Morris, three National ICAEW Presidents.
Education Skills and training
Awarded the Freedom of the City of Liverpool in 2012, the Society continues to play an active role in local and ICAEW issues. As a world leading professional accountancy body, the ICAEW provides leadership and practical support to over 138,000 members in more than 160 countries, working with Government, regulators and industry in order to ensure the highest standards are maintained. Our members provide financial knowledge and guidance based on the highest technical and ethical standards. They are trained to challenge people and organisations to think and act differently, to provide clarity and rigour, and so help create and sustain prosperity. The ICAEW ensures these skills are constantly developed, recognised and valued. Because of us, people can do business with confidence. The ICAEW is a founding member of the Global Accounting Alliance with over 775,000 members worldwide.
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Bridging Loans
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Base Competition
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Out of Office n
Behind the Mask
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Wine tasting in style
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Charity Corner
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Golfing question
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LCASA Masquerade ball
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The intitutes samaritan’s
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CharteredOne | Issue 8 | Spring 2014
THE PRESIDENT
The President’s Words
Where did that year go? Year ends dominate my professional life. Tax year ends, accounting year ends and shortly I will have a new and rather unique year end. The end of my Presidential year! I was told it would pass all too quickly and that was fair warning as it has. There is still a few months to go however and a great many things have been achieved and some inevitably remain work in progress.
Within the pages of this issue of Chartered One are a few pictures taken at the Dinner with a link to the Society’s Flicker page for those who have a greater appetite. Go to http://www.flickr.com/photos/91012688@N04/
There are many highlights but as any President will admit it is the Annual Dinner that dominates one’s thoughts, until it’s over that it. I very much enjoyed the evening and I thank all those who attended for their support.
I am delighted to see Chartered One going from strength to strength. Not only is it selfsupporting - it is now generating an income for the Society. It is also developing a style of its own with many new features being introduced with each new edition. I would however still urge you to think about how you can contribute to its success, and as no doubt Martyn will say “please support your Society”.
I had an ambitious programme planned for the evening with Justin Urquart Stewart providing a highly entertaining and insightful economic commentary. He was actually also very complimentary of the role that Chartered Accountants have played within the financial sector. After dinner comedy came from Josh Daniels and for the first time in my memory, we had a musical ending with a local tribute to Lennon and McCartney from “The Two of Us” . As I mentioned on the night, although the “The Two of Us” can usually be seen playing at The Cavern Club, they had recently returned from starring on Broadway in the hit Beatles Musical ‘Let it Be’. And yes it was Broadway , New York not Norris Green.
Finally, I sincerely thank all of you who have provided help and generous advice throughout my Presidential year. With the next issue likely to be after my year finishes may I just conclude by noting that it has been my privilege to serve as President of the oldest Society of Chartered Accountants in England and Wales. Kind regards, Paul Cochrane President
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CharteredOne | Issue 8 | Spring 2014
INSIGHT FROM THE EDITOR
Hello and I hope it’s not too late to wish you all a very happy new year. Well, it’s now February, and I’m sure many resolutions have run their course, and we’re all fully focussed on what will nevertheless be a year which continues our wider economic recovery, and specifically will help propel Liverpool – our city and our Society – further forward. Martyn Best Editor Chartered ONE Past President The major event which will help both aspects is the forthcoming International Festival of Business – affectionately now known as IFB2014. This arrives in Liverpool in June for two months and will be the largest business event in the UK for over 50 years – it is described as the Business Olympics, and I would totally urge everyone to find out as much as possible and engage with this event. We have a number of articles and profiles about IFB inside, and also how ICAEW and our Society are becoming involved. There is a very informative website at http://www. ifb2014.com/. This issue also provides warm reflections of our recent Annual Dinner, once again a great success. We also look forward to a number of other events such as our courses programme and our golfing calendar. We are also now entering our third year with Chartered ONE, and you may have read this plea from me before – may I please have your feedback? We do put a good deal of effort into producing this newsletter, and whilst silence is often referred to as
golden, it would be good to know if we are catering to some of your needs, or what else we can do to improve your newsletter. You know how to find me ! Finally, here’s to spring, lighter mornings and evenings, and wonderful personal and professional 2014. Very kind regards Martyn Best Editor.
Thoughts for coming issues include: • Members professional and personel news • Firm’s News • A spotlight on... • Social Activity • Comments/Feedback • Charity Corner • Student News You can also join our Society’s LinkedIn group it’s very easy to find within groups on LinkedIn
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LSCA Business
DIARY OF EVENTS 2013/14 Below are details of forthcoming events. Please check the website for further updates, including ‘early bird’ discounts and season ticket offers at icaew.com/north-west-events DATE
START EVENT
VENUE
SPEAKER
6 March
17:00
Masterclass: CorporateInsolvencies
Liverpool Chamber of Commerce
Jason Tucker, BDO LLP
7 March
19:30
Chester & North Wales Society Annual Dinner
The Chester Grosvenor Hotel
Dr Kevin Jones
12 March
09:30
PAYE/NIC/P11D Update
Britannia Adelphi Hotel, Liverpool
Marion Hodgkiss
14 March
19:30
Southport Branch Annual Dinner
Hesketh Golf Club, Southport
Martin Daniels
15 March
19:00
Liverpool Chartered AccountantsStudents Association Annual Ball
Crowne Plaza Hotel,Liverpool
N/A
25 March
09:30
Accounting & Auditing Update andtopical issues including details of FRS102
Royal Victoria Hotel, Llanberis
SWAT Uk
26 March
17:45
Cloud computing
Masonic Hall, Southport
Gardner Systems
24 April
11:00
Retired Members’ visit to Liverpool Philharmonic Hall
Liverpool Philharmonic Hall
N/A
24 April
09:30
Tax update
Britannia Adelphi Hotel, Liverpool
Marion Hodgkiss
30 April
17:45
Post budget tax update
Masonic Hall, Southport
Rob Adams & Matt Foddy
13 May
09:00
Tax Update
Holiday Inn, A55 Chester West
Marion Hodgkiss
14 May
12:45
Chester Town Group
Pursglove & Brown,Chester
N/A
15 May
09:30
Financial Reporting Update
Britannia Adelphi Hotel,Liverpool
Bruce Cowie
21 May
17:00
Liverpool Society of Chartered
Accountants Annual General Meeting
TBC N/A
22 May
08:00
Ten top tips to provide added value for your clients
Weightmans, Liverpool
Carole Atkinson
5 June
09:30
Topical Tax Update Royal Victoria Hotel,
Llanberis
SWAT Uk
26 June
09:30
Charity Taxation Update Britannia Adelphi Hotel,
Liverpool
Tony Austin
26 June
14:00
Charity Accounting Update Britannia Adelphi Hotel,
Liverpool
Valerie Steward
4 July
10:00
Liverpool Society Annual
Members’ Conference
New Museum, Liverpool Various
16 October
09:30
Financial Reporting Update Britannia Adelphi Hotel,
Liverpool
Bruce Cowie
4 September
09:30
Finance Act Update & Topical Tax Tips
Royal Victoria Hotel, Llanberis
SWAT Uk
24 September
12:45
Chester Town Group Pursglove & Brown,
Chester
N/A
12 November
12:45
Chester Town Group Pursglove & Brown,
Chester
N/A
20 November
09:30
Tax Update Britannia Adelphi Hotel,
Liverpool
Marion Hodgkiss
29 November
18:45
Liverpool Society Annual Dinner Crowne Plaza Hotel,
Liverpool
TBC
SAVE THE DATE
LSCA MEMBERS’ ANNUAL CONFERENCE 4th JULY 2014 – INDEPENDENCE DAY
We have highlighted the important INTERNATIONAL FESTIVAL OF BUSINESS (IFB2014) that is coming to Liverpool in June. As part of this internally acclaimed festival, we shall be holding our own Annual Conference at the MUSEUM OF LIVERPOOL.
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CharteredOne | Issue 8 | Spring 2014
Southport Branch The Southport Branch has held its first three meetings of the 2013-14 programme: 25th September - Capital Allowances: Complications of Tax Simplification: Sunil Sharma, Moore Stephens North West 30th October - Pensions Update: John Kelly, Mattioli Woods 27th November - Charity Accounting Update: Sarah Anderson, Deloitte The future meetings are: 26th February - Tax efficient profit extraction including dividends: Catherine Gregory, Liverpool University 26th March - Cloud Computing: Paul Stringfellow, Gardner Systems 30th April - Post budget tax update: Rob Adams and Matt Foddy, Grant Thornton Meetings to be held at the Masonic Hall, Duke Street, Southport PR8 1LS from 5.45 – 6.45pm. Refreshments available from 5.15pm. The booking forms are on the ICAEW website Cost £12 per session or season ticket £30 for all sessions Friday 14th March Annual Dinner at Hesketh Golf Club with guest speaker, comedian Martin Daniels. The cost is £35 per person. Please book with Harrison Latham & Co, 97 Tulketh Street, Southport PR8 1AW, telephone 01704 500960, email: neil@harrisonlatham.co.uk
LIVERPOOL CHARTERED ACCOUNTANTS STUDENTS ASSOCIATION NEWLY QUALIFIED At the recent Annual Dinner the President, Mr. Paul Cochrane was delighted to welcome a number of newly qualified chartered accountants who attended the Dinner as his special guests.. The names left to right are: Jon Byrne, Liz Tay, Catherine Leith, Paul Cochrane, Iris Hung, Kelly Quinlan-Owen
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Annual Dinner Paul and Justin
‘Confidence is key to recovery’ says financial markets expert at LSCA dinner Global financial markets expert Justin Urquhart Stewart told the Liverpool Society of Chartered Accountants that ‘confidence’ was the key to economic recovery. Mr Urquhart Stewart – co-founder of Seven Investment Management and an internationally recognised market commentator – was speaking at the LSCA’s Annual Dinner at the Liverpool Crowne Plaza Hotel. More than 340 members of the Liverpool business community attended the black tie event to hear Mr Urquhart Stewart talk about the core factors for growth in the UK economy. In a lively keynote speech, Mr Urquhart Stewart stressed the need for “confidence”, encouraging more people to start up businesses and suggesting that the economy is “damaged, but not doomed”. LSCA President Paul Cochrane – Partner at Wirral firm McEwan Wallace – said guests were encouraged by Mr Urquhart Stewart’s analysis. “The speech was a fastpaced, lively and informative summary of the state of the global economy and Chartered Accountants, as
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trusted financial advisers, have a vital role to play in encouraging growth and stimulating business on both a local and national level.” The theme of ‘business with confidence’, was echoed by Arthur Bailey, Deputy President of the ICAEW. Mr Bailey also focussed on the growth in the UK economy, highlighting the latest Q4 results of the ICAEW Business Confidence Monitor which suggest the UK will be the fastest growing Western Economy next year at approx. 2.4%.” After dinner Mr Cochrane spoke to guests about the history of Liverpool and the way in which over the last few years the city has grown to become a vibrant and thriving place to do business. He said: “There are a number of traditions that have come and gone over time, but the one that I would be most keen to preserve is our tradition of hospitality.” The Liverpool Society of Chartered Accountants annual dinner was supported by Parkin S Booth and McEwan Wallace Wealth Management
CharteredOne | Issue 8 | Spring 2014
Another Past President, Michael Sale, well surrounded.
Paul Cochrane – Liverpool Society President Gary Millar – Lord Mayor of Liverpool Arthur Bailey –Deputy President of the ICAEW Justin Urquhart Stewart
One of our Past Presidents Jan McDermott supports our current President Paul Cochrane
The grandeur of the Annual Dinner at the Crowne Plaza
Alex Pilkington, our LSCA Executive praised by Paul Cochrane
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CharteredOne | Issue 8 | Spring 2014
A day in the life ofBrian Ricketts, BDO LLP Brian is a former President of our Society, and as many members will know, he will have seen some changes in the last few months following the mergers of his firm PKF with BDO. Here he provides the debut to our new feature. Brian Ricketts
One of the joys of a working life in a professional services office is the sheer variety of work such that no two days are the same. That is certainly true in my case and, despite my best laid plans, I really wouldn’t want it any other way.
With the national merger in 2013 of BDO LLP and PKF (UK) LLP, the BDO brand has been brought to Liverpool for the first time. I have spent a lot of time meeting up with contacts in the business community, together with colleagues from BDO, in order to develop existing relationships and form new ones as we bring new services and additional sector expertise into the market place. This does show the appetite in Liverpool for the support of professional advisers. I think it also shows an increase in business confidence in the region, which should provide a good base for the upcoming International Festival of Business.
The merger itself has not brought any physical change to our office in Temple Street, but one area of inevitable change is IT. As we harmonise our work platforms across the mainstream tax and audit practices, colleagues have put a lot of work in to ease the transition. For me it has meant getting to grips with new audit software – something of a challenge since I am a luddite when it comes to IT! Much of my day is spent keeping in close and regular touch with clients across a range of sectors, many of whom I have acted for over a long period of time. This is a great privilege, but also brings with it responsibilities. I have wanted to ensure that with a period of change for the firm, clients continue to get the very best service from us. Whilst introducing new colleagues to clients needs to be handled carefully, it is very satisfying to see colleagues, especially more junior ones, develop good working relationships across the business community. A key aspect to my daily work revolves around quality control and ensuring the delivery of excellent client service by all our people. This is quite rightly demanded by the firm, but it is also an essential part of professional service life. I’ve also been working increasingly closely with businesses that are looking to expand overseas. Being a part of the BDO international network, which has offices in more than 140 countries, means we can provide clients with genuine expertise in every market across the globe. Seeing their international ambitions come to fruition is particularly rewarding. For much of my professional career, I have been a school governor and a charity trustee and I have also sat on the board of a Housing Association. I have learned a lot from the organisations I have been involved with, so I do spend time encouraging others in the office to follow their interests and get involved in the community locally, including LSCA and the Students’ Society. Whilst variety is the order of the day, a good work/life balance is important, so spending time with family is essential – it is all down to good time management! Brian Ricketts is an audit partner at accountancy and business advisory firm BDO LLP in Liverpool. Tel: 0151 237 4539 Email: brian.ricketts@bdo.co.uk We hope have enjoyed the insights this feature will give into the activities of some of our members, and do feel free to send yours to Martyn Best, our editor.
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IFB 2014
ICAEW BUSINESS FUTURES AT THE INTERNATIONAL FESTIVAL OF BUSINESS 2014 ICAEW (Institute of Chartered Accountants in England & Wales) is a world leading professional membership organisation that promotes, develops and supports over 140,000 chartered accountants worldwide.
•8 1% of FTSE 100 companies have at least one ICAEW Chartered Accountant on their board. •5 9% of FTSE 100 companies have an ICAEW Chartered Accountant as chairman, CEO or CFO. • ICAEW Chartered Accountants are the biggest source of business advice, reaching over 1.5m businesses from more than 20,000 offices across the UK. ICAEW is a UK-based international organisation with members in more than 160 countries and offices in the UK, Belgium, China, Cyprus, Hong Kong, Malaysia, Singapore and the United Arab Emirates. We are known for our public interest remit and our work is well-recognised by regulators and governments for its high quality. BUSINESS FUTURES ICAEW is embarking on a long-term project looking at the changes to the business environment we can envision over the next two or three decades. The Institute is in the unique position of knowing today’s ICAEW students and younger members will be tomorrow’s captains of industry. We therefore have an obligation to prepare our members and others for the challenges of the future. This has resulted in the establishment of the ICAEW Business Futures project. 14 potential discussion streams have been identified and
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four broad themes have been chosen for work in the first year. They are: • T he impact of ageing populations on businesses and individuals; • The growing demand for water and energy; • T he changes, threats and opportunities for education and training; • T he development of tax policies and their impact on businesses and Government. Four panels have been formed, one for each of the four themes. Each panel will produce a draft report setting out its views on what the future may hold and the final reports and recommendations will be launched at IFB2014. Each committee is chaired by an expert in the field and includes at least two ICAEW members, an ICAEW younger member or student, an ICAEW regional director and up to three external experts (including academics specialising in the field under discussion as well as a member of the media). Our panel members/partners on this project include: • Baroness Sally Greengross OBE • The International Longevity Centre • Royal Society of Arts • Paul Wallace, The Economist • Dr Richard Scase, Canterbury University • Warwick University •S usan Davy, Finance and Regulatory Director, South West Water • Seven Trent Water •C arl Bayley, Tax Author and Presenter (and Deputy Chairman, ICAEW Tax Faculty) The reports will be promoted to the media, our membership and key stakeholders in both the public and private sector and will inform future ICAEW manifestos and other submissions to policy-makers. BUSINESS FUTURES CONFERENCE AT IFB2014
CharteredOne | Issue 8 | Spring 2014
We are holding a high profile conference during IFB2014 which will take place on the morning of 1 July, during the themed week for Knowledge, Professional & Financial Services. The organisers of IFB2014 are positioning the conference as one of the highlights of the themed week. At the conference we will launch the final reports on the four themes outlined above. Our keynote speaker at the event is Sir Terry Leahy. Sir Terry is the former head of Tesco and by the time he stepped down as Chief Executive in 2011, the company had become an international retail phenomenon. Attracting one in every eight pounds spent in Britain, it’s now the UK’s biggest supermarket chain and the third biggest in the world - with 350,000 employees and 2,000 stores. Sir Terry will talk about how the business environment has changed over the last 20 or so years and what he envisages the challenges may be for business in the future. Our conference facilitator is Jonathan Dimbleby. Jonathan is one of Britain’s most respected broadcasters. After stepping down as presenter of ITV’s flagship current affairs programme, he continues to chair Any Questions and Any Answers for BBC Radio 4.
The four reports and recommendations will be presented by our panel Chairs (including Baroness Sally Greengross OBE who is Vice Chair of the All-Party Parliamentary Group on Dementia and Ageing and Older People & Chief Executive of the International Longevity Centre – UK) and this will be followed by an open debate. Michael Roberts, Chair of ICAEW International Student Council (Michael works for Deloitte in their Reading office) will introduce the event and Arthur Bailey (who will be President of the ICAEW in July 2014) will close the conference. We anticipate an audience of 200+ made up of ICAEW members (including ICAEW International Student Council (ISC) members who are also holding their annual ISC conference in Liverpool the day before the conference), our partners on the project, key stakeholders, business leaders, the media and policy makers. There will be no charge to attend the event and as it will be promoted through IFB2014 there will be an opportunity for anyone attending the Festival to book to attend the conference. We anticipate that the event and the Business Futures reports will generate significant interest from the media, business leaders and policy makers.
CPD: are you getting enough? The provision of CPD, you may have noticed, is undergoing somewhat of a revolution. Webinars, podcasts and e-learning now compliment the good old fashioned workshop and lecture format, not to mention coaching, mentoring, discussion group and reflection. The LSCA’s ‘Learning and Professional Development Committee’ (formerly known as the ‘courses committee) are keen to help all our members navigate these shifting CPD waters. Not only do we want to find out if you are getting enough CPD, but also if you are getting the right kind at the right time and in the right format. In addition to changing our name to reflect the broader nature of CPD, LSCA are also one of four district societies contributing to a national working party investigating how the ICAEW can work with local members to support CPD. As chair of the Liverpool LPD ( Learning and Professional Development), I am also researching the topic for my master’s degree. So with all this in mind, we are having a series of focus groups, exploring the area of non-technical CPD provision. We need representatives at all levels, from firms of all sizes, as well as CAs from industry and the public sector. We are particularly keen to hear from local members who have not previously attended local CPD events. We have had a number of these events already but if you wish to register for the focus group or to share your views on CPD locally and nationally, you can email me direct on info@theaccountantscoach.com. This is an exciting opportunity to join us to lead CPD at the cutting edge with the aim of maximising value from your CPD investment Carol McLachlan FCA LSCA Learning and Professional Development contact me at info@theaccountantscoach.com
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Leumi ABL – Boosting business growth As business owners assess their balance sheets and look to other assets to raise business finance, Asset Based Lending stands out as a funding tool that can deliver sophisticated solutions for a variety of scenarios including improving existing working capital, financing growth, restructuring, funding an MBO/MBI or facilitating M&A plans. Leumi ABL offers growing businesses a range of flexible finance solutions that work in tune with their business. Services include invoice finance, stock finance and plant and machinery finance. In conjunction with their parent, Bank Leumi (UK) plc, they can also offer trade finance, property finance and commercial banking. A flexible, personal approach and the ability to structure multi-facility deals can often result in higher levels of funding for their clients. At Leumi ABL we look for businesses that are solid and want to grow, with a funder working closely with them throughout their business development. We take a long term view and leverage the value of clients’ business assets, structuring the funding facility to suit the exact business needs of the client. Here are two recent client success stories, showing how financing from Leumi ABL has assisted their business growth: Leumi ABL has supported the Hardstaff Group with a multi-asset finance facility. With a heritage dating back in excess of 150 years, the c. £25 million pound turnover Hardstaff Group is one of the principle providers of leading edge technology and innovative services to both the global and UK road transport industries. Seeking to replace their banking relationship, the client turned to Leumi ABL and a more flexible funding facility was put in place which offers good headroom going forward. The multi asset finance package totalling £5.75m includes invoice finance and stock finance. In another deal, Leumi ABL has supported the Rethink Group with a £20m finance facility. Specialising in the IT sector, the AIM-market listed £100m-plus turnover recruitment group is headquartered in central London. Its five subsidiary companies include one based in the Irish Republic. The £20m Leumi ABL invoice finance facility covers Sterling, Euro and US dollars, and further backing is in place from Bank Leumi (UK). Steve Wright, CEO at Rethink Group, commented: “Leumi took a very commercial approach to support our acquisition growth plans, demonstrating both a willingness to be flexible and a mindset of finding a solution that works.” Chris Divers, Leumi ABL Sales Director –North, added: “One of the key considerations in completing this deal was Leumi’s willingness to bring the client’s Irish company into the main funding facility, as well as putting in place future term lending for acquisitions. By working together with our colleagues at Bank Leumi (UK), we were able to structure a funding solution to meet the current and future needs of the client.” Good businesses seizing growth opportunities will require flexible financing arrangements to fuel their growth plans from a provider they can trust, and Leumi ABL is well placed to assist.
For further details please visit www.leumiabl.co.uk
IFB 2014
ICAEW at the International Festival of Business 2014 The International Festival for Business 2014 (IFB2014) is coming to the North West during June and July 2014 and will feature hundreds of world-class events attracting visitors from across the globe. The 50-day business festival hosted in the Liverpool city region will champion UK businesses to new markets, new products and new partners. The IFB2014, endorsed by David Cameron, aims to deliver:
• Over one hundred events throughout June and July 2014 • An engaged audience of 250,000 business professionals • Global representation • £100m direct investment into the UK • A catalyst to double UK exports by 2020 • At every level the Festival will attract an audience of pioneers from the UK and across the world. Recognising the fundamental role of cities in stimulating innovation and driving economic growth, the International Festival for Business will be an urban celebration with activity focused around seven high-value core business sectors: • Maritime, Logistics & Energy – w/c 9 June
• Higher & Further Education & Research – w/c 16 June • Cities, Enterprise & Urban Business - w/c 16 June • Manufacturing, Science & Technology – w/c 23 June • Professional & Financial Services - w/c 30 June • Low Carbon & Renewables - w/c 14 July • Creative & Digital - w/c 14 July The British Business Embassy, taking place on 5 & 6 June, will launch the six week Festival of Business in Liverpool and focuses on the strengths of the UK in the manufacturing, advanced engineering, automotive and aerospace sectors. The ICAEW has committed to being involved in the Festival in a number of ways. We will be holding various events, as set out below, including the Business Futures Conference which is being hailed as one of the key note events of the Professional & Financial Services week. We will also have a presence throughout the whole Festival at “The IFB Hub”. The Hub will be the central focal point during June and July for all visitors, organisers, delegates, media and sponsors to gather and optimise their visit to the Liverpool City Region and the IFB 2014.
What is IFB 2014? The International Festival for Business (IFB) 2014 is the largest global concentration of business events during 2014. The 50-day festival runs across 7 weeks in June and July and will attract business delegates and trade intermediaries from around the world. IFB 2014 offers you the choice of more than 150 businessfocused events of all shapes and sizes, spanning seven broad IFB 2014 themes: Cities, Enterprise and Urban Business · Creative and Digital Industries · Financial and Professional Services · Higher/Further Education and Research · Low Carbon and Renewables · Manufacturing, Science and Technology · Maritime, Port and Logistics
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IFB 2014 is very ambitious. It is a key part of the government’s target of rebalancing the economy and achieving its export and investment objectives. A festival like this has never been held before. IFB 2014 isn’t a talking shop - it’s a chance for you to develop your business. It is placing an explicit focus on creating new international and domestic business-to-business relationships and commercial openings for small, medium and large UK companies.
CharteredOne | Issue 8 | Spring 2014
International Student Council Meeting - 30 June The ISC will be holding one of its quarterly council meetings in Liverpool on the afternoon of Monday 30 June. There will be approximately 26 members of ISC attending. Regional Management Team Meeting - 30 June The team of Regional Directors from across the UK will be holding their June meeting in Liverpool on the afternoon of 30 June.
Economic Success: the limits of GDP & profit event - 1 July This thought leadership event, being led by Claire Jones, Sustainability & Economics Manager, will take place mid-afternoon on 1 July with an invited audience of 50+ guests. Further details to follow. Women on boards – breaking through the barriers (exact title TBC) – date TBC
Pre-conference dinner - 30 June A dinner, for invited guests only, will be held on the evening of 30 June at Malmaison, Liverpool. Members of ISC, speakers at the Business Futures Conference, UK Regional Directors and other members of ICAEW staff, Business Futures panel members, local DS office holders and representatives and guests from regional accountancy firms will be invited to the event.
This event is being organised in association with the Law Society and will take place in Liverpool during w/c 30 June (exact date and location to be confirmed).
The speaker for this event has yet to be announced, the topic of which is likely to be “the psychology of doing business” or similar.
The ICAEW speaker(s) will be confirmed in due course.
Business Futures Conference - 1 July Our ‘showcase’ event during the Festival is the Business Futures Conference. The conference will take place on the morning of Tuesday, 1 July at the Liverpool Town Hall. Over 200+ delegates will hear from keynote speaker and IFB2014 ambassador Sir Terry Leahy. Sir Terry, the former chief executive of Tesco, will be talking about the changes he has seen to business over the last few decades and will give his thoughts on the fundamental challenges that businesses face in the future. The draft programme for the event is as follows: 9:30 - Welcome & introduction – Jonathan Dimbleby (conference facilitator) 9:35 - Business Futures overview – Michael Roberts, Chair of International Student Council 9:40 - Keynote speech – Sir Terry Leahy: The challenges for business – past & future 10:00 - ICAEW Business Futures topics – review & recommendations: Ageing – presented by Baroness Sally Greengross Tax – presented by TBC Skills – presented by TBC Water – presented by TBC 11:20 - Refreshment break 11:40 - Panel discussion and Q&A opened up to the audience (facilitated by Jonathan Dimbleby with all speakers on panel) 12:40 - Summary and ICAEW perspective on “what’s next for business” – Arthur Bailey, ICAEW President 12:55 - Closing remarks – Michael Roberts 13:00 - Lunch and networking 14:00 - Close There will be a mix of members and non-members in the audience, including: - ICAEW student council members - Regional Strategy Board chairs and members - ICAEW Executive Directors, SMT, office holders and staff -M embers of the Business Futures panels and members that have been involved with the project. -K ey national, regional and local stakeholders including LEP’s, universities, MP’s and policy makers, Bank of England, North West Business Leadership Team and others. -A number of the major accountancy firms within the regional have pledged their support to the project and the conference and senior partners/directors will be invited to attend and bring along a number of guests. -M embers from across the North West Region including DS offices holders and committee members (a number of members, particularly from business, have already expressed an interest in attending). The event will be free of charge to attend.
The Law Society has approached Alderman Fiona Woolf CBE, the Lord Mayor of London, and she has agreed to attend. They are also approaching a female MP.
Potential event with the FRC The FRC have expressed an interest in being involved with an event during the IFB 2014 which is in the process of being organised. Start Up Saturday - 28 June, venue TBC The brain child of Enterprise Nation founder and business expert Emma Jones, Start Up Saturday has been running around the country for over two years now and provides a fun and friendly one-day start-up class for people who want to start their own business. The ICAEW Business Advice Service has supported numerous Start Up Saturday events. Further details to follow. Liverpool District Society Activities at IFB2014 The Liverpool Society are currently looking to hold four events during the Festival – - The annual Liverpool Society Members’ Conference will take place on Friday 4 July (city centre venue tbc) - A networking evening for LSCA younger members (details TBC) - A social event for its members at the HUB (details TBC) - A joint social event with Liverpool Law Society (details TBC).
The IFB Hub
The Hub will be the place where visitors can meet, network and do business and we will be co-located in the Professional Services Area with The Law Society, UKTI and others. This will provide an opportunity for our firms to meet with delegates and offer accountancy advice to businesses who visit the festival. The ICAEW Business Advice Service will have a constant presence at The Hub (though not a constant ‘physical’ presence necessarily). Firms have been invited to man the stand during the themed weeks in which they have a particular interest and expertise. Expressions of interest have been received so far in respect of the Maritime, Logistics & Energy, Cities, Enterprise & Urban Business and Manufacturing, Science & Technology weeks. There are also opportunities for experts in doing business in various overseas locations to man the stand when UKTI events are taking place. We/our firms have the opportunity to use the lecture theatre space at The Hub once a week during the six weeks of the festival (this is one slot per week and not one day – exact timings of slots are to be confirmed). Please contact Melanie Christie at Melanie.Christie@ icaew.com if you are interested in taking advantage of our presence at the Hub.
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CharteredOne | Issue 8 | Spring 2014
Glenys Hunt - Interview for Liverpool Society of Chartered Accountants Journal Continuing with our theme of gaining closer ties with the Liverpool Law Society, John Nolan, our Deputy President tracked down the new Liverpool Law Society President, Glenys Hunt, and found out a little about her. a management diploma, during which we covered some elements of law so when I decided to change career that seemed to be a subject that would be if interest. I am one of those people who like to study and learn and I thought that as a lawyer I would be constantly learning and that each case would be different and throw up its own challenges – which has been proved to be largely true. I also like the idea of being able to help and advise others.
Glenys Hunt was appointed by Liverpool Law Society as its new President on 10 December 2013. A resident of Hoylake on The Wirral, Glenys is a well-known figure in both legal circles and local community groups. Glenys is a specialist in personal injury and clinical negligence law and currently occupies a senior position with Carpenters Solicitors where she is part of a team that is responsible for quality audits and training. She is well known on Merseyside for her tenacious but professional litigation skills.
Here is her exclusive Interview for Liverpool Society of Chartered Accountants 1. What are the main challenges solicitors face in the coming year? There are so many it is difficult to choose. There is of course the general challenge of the recession, which is affecting the country generally, and solicitors are no exception, with many redundancies having to take place. Then there is the problem of cutting back Legal Aid which will mean that many people are unable to obtain legal representation, and so reducing their access to justice. In Personal Injury work we have particular challenges due to the changes in legislation that have taken place recently, and are threatened in the near future, which hugely reduces fee income and makes us have to reevaluate how we provide a service to our clients. 2. Why did you choose to do law? My first career was as an NHS scientist and as part of my career progression there I did
3. What do you most enjoy about your job? Making a difference to the lives of accident victims and their families when they have been badly injured and have to try to adapt and survive in greatly reduced changed circumstances. 4. What do you enjoy least about your job? Having to deal with clients who turn out to be making fraudulent or exaggerated claims, as this give the whole industry a bad name. 5. What is the highlight of your career so far? One of my most satisfying settlements was in a clinical negligence case when I managed to get over £500,000 for an Asian lady client who had been paralysed from the waist down due to a diagnostic failure. That money would make a huge difference to her life, and the care she received. 6. What are you most looking forward to in your year of office? The International Festival for Business (IFB), it will be a really exciting time for the city and I am hoping that all the professions locally, including solicitors, will make the most of the opportunities it will present. 7. What are you most dreading in your year of office? Having to do a valedictory for a retiring judge. The thought of standing up and speaking in a courtroom full of professional advocates is a bit scary 8. How do your members perceive accountants? I think most of our members perceive accountants as business partners, we each have our different roles to play in helping clients achieve their aims. This of
course has been reinforced by the advent of Alternative Business Structures, so that solicitors and accountants can work together in the same organisation. 9. Should there be more cooperation between our societies? There already has been a some cooperation, that was something the current Liverpool Law Society President, Alistair Fletcher, has been keen to foster. We have had a number of joint social events, such as the real ale tasting and a wine tasting (note the emphasis on alcohol), and hopefully that will continue. In addition we have been in discussions with regard to the IFB and as to what we can do together, or to complement our different profession. I think it is to the benefit of both organisations, our members, and the commercial life of the city, for us to cooperate. 10. What music do you like to listen to? My favourite music is blues rock – Free, Led Zeppelin, Joe Bonamassa, but it does very much depend on my mood. If I want to listen to something more mellow I usually go to one of my Harry Nilssen albums. When it comes to live music I am happy to go to a classical concert, or even something like folk music. Almost anything but jazz in fact. 11. Where do you normally go for your holidays? I don’t have a normal for my holidays, as I like variety. I will usually go on an organised tour, definitely not a on a beach based holiday. In recent years I have been to Egypt, Vietnam and Burma. My favourite holiday was to Peru, which included a trip to Machu Picchu. I also take holidays in the UK with my mother and family 12. What are your hobbies and outside interests? I am Chair of a Liverpool NHS Research Ethics Committee, which I find very interesting, if hard work. I am also a member of Heswall and District Soroptimist International, which is a great organisation to be part of. My hobbies include gardening, listening to music and travel. I go to the theatre a lot, to watch all sorts of performances – music, amateur and professional plays, pantomimes, comedy etc.
29
Checking and Challenging your Rateable Value made easy A cap of 2.0% was announced on rates increases for 20142015, rather than the 3.15% based on RPI but in reality the multiplier of 48.2p that will be charged on assessments over RV £18,000 is actually a 2.3% increase on the current figure. Particularly welcome is the extension of the enhanced small business rate relief scheme which means that those with Rateable Values below £6,000 will continue to pay no rates at all until 31 March 2015. Other new measures announced include a discount of £1,000 for retail properties (the term is quite widely drawn) with assessments up to RV £50,000; a ‘Temporary Reoccupation’ relief of 50% for up to 18 months where ‘long term empty’ retail properties are bought back into use and provision for businesses to pay annual bills by 12 instalments rather than the current 10. All this is tinkering and complicates the current system without addressing the fundamental problems of an increasing burden for ratepayers, a lack of transparency regarding how assessments are calculated and the appeal process which can be slow and difficult to navigate. David King
DAVID KING, BUSINESS RATES SPECIALIST AT ES GROUP LOOKS AT THE PROBLEMS FACING BUSINESS RATE PAYERS, CURRENT OPPORTUNITIES TO REDUCE RATES AND PROPOSALS FOR LONGER TERM CHANGES. ‘Checking and Challenging your Rateable Value’ is the title of a recent consultation by the Government which sets out ‘proposals to improve transparency in the business rates valuation and formal challenge system’ However, this very essential aim must come with a warning that ‘past performance does not give optimism for the future’. Business rates have become a ‘cash cow’ for Government in a time of fiscal crisis. Five years ago businesses were typically paying rates bills that were equivalent to 40% of the rental value of the premises they occupied. While the subsequent economic downturn has seen values decline the business rates tax has continued to increase each year in line with RPI inflation. Today it is not unusual for a business to actually pay more in rates than rent. Government has ignored logical arguments from many sources to update Rateable Values and in what appears to be a purely political move has postponed the next planned rating revaluation by 2 years until April 2017. A number of minor changes were made in the Autumn Statement on 5 December.
While some occupiers may believe business rates is a property cost which is largely outside their control, for many rate payers there are opportunities to make savings. The most obvious is to seek advice on the Rateable Value shown on the Council’s rates bill. It should be a reflection of the rental value of the property at April 2008. However the evidence used to arrive at the RV is not published and appeals to reduce RV’s are often successful provided that sufficient evidence is assembled and a reasoned argument put forward. This requires a detailed knowledge of both the market and appeal system, including increasingly often an appearance at a Valuation Tribunal. Circumstances can change and where these are in some way physically manifest, not just economic, the RV of a property should be reviewed again. Rates charged on empty properties have come in for some of the loudest criticism, but David highlights that in addition to long established exemptions recent litigation has re- confirmed that in many circumstances empty rates costs can be reduced by between 60% and 80% for most premises. Careful investigation of rates demands can highlight billing errors, sometimes going back several years resulting in significant refund of past rates. In summary, it is essential for all ratepayers to proactively manage business rates like any other outgoing.
Accountex Exhibition 2014
15-16 M
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CharteredOne | Issue 8 | Spring 2014
May 2014
35
LSCA Business
March 2014
Dear Member Formal notice of the Annual General Meeting of the Society is given in this letter. Copies of the Society’s Financial Statements for the year ended 31 December 2013 will be available from mid April and will be published on the Liverpool Society of Chartered Accountants webpage at www.icaew.co.uk/northwest. Hard copies of the Financial Statements are also available on request. Nominations for members wishing to join the committee should be forwarded to Alex Pilkington at the address below. Please let me know on the slip below if you plan to attend the meeting. ANDREW MOSS HONORARY SECRETARY ................................................................................................................................. To:
Mrs Alex Pilkington Liverpool Society of Chartered Accountants PO Box 471 Wigan WN2 1WY
Name ........................................................................................................... ……... Organisation .......................................................................................................... Address ................................................................................................................. .............................................................................................................................. .............................................................................................................................. Tel .............................. Fax ............................ Email............................................. Membership No. ................ ..................................... ............................................. I intend to be present for the Annual General Meeting
YES/NO
PLEASE RETURN THE REPLY SLIP NO LATER THAN MONDAY14 MAY 2014
Liverpool Society of Chartered Accountants T PO Box 471 Wigan WN2 1WY E www.icaew.com/northwest Registered in England Company Limited by Guarantee Registered No. 04869 Registered address: 30 Union Street, Southport, PR9 0QE
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+44 (0)1925 594284 liverpoolsca@icaew.com
CharteredOne | Issue 8 | Spring 2014
NOTICE OF MEETING
NOTICE IS HEREBY GIVEN that the 144TH ANNUAL GENERAL MEETING of the Members of the Liverpool Society of Chartered Accountants will be held on WEDNESDAY 21 MAY 2014 at THE RACQUET CLUB, CHAPEL STREET, LIVERPOOL AT 5.00 PM.
1.
To receive the Report of the Committee for the year 2013.
2.
To receive the Honorary Treasurer`s Accounts for the year 2013.
3.
To elect Members of the Committee. The following members are due to retire and are not eligible for re-election: B Ricketts (re-elected 2011) A Lavelle (re-elected 2011) A Lloyd (re-elected 2011) The following members are due to retire and are eligible for re-election M D Sale (elected 2011) A R Lovelady (elected 2011) The following members are standing for election P Christian
4.
To transact any other ordinary business.
All Members of the Society are eligible to serve on the Committee. Nominations to fill vacancies on the Committee should be sent to Alex Pilkington, Liverpool Society of Chartered Accountants, PO Box 471, Wigan, WN2 1WY, not later than Monday 28 April 2014. At the conclusion of the formal business of the meeting the Officers for the ensuing year will be announced.
PROXIES: Any Member may appoint a proxy to attend and vote for him/her, provided the proxy is a Member of the Society. Forms of proxy should be lodged with The Liverpool Society of Chartered Accountants not later than 13.45 hours on Monday 28 April 2014.
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ICAEW & Isle of Man
Our Isle of Man bretheren The Liverpool Society of Chartered Accountants is very proud to be the oldest Society in the UK - a fact well known throughout Liverpool the ICAEW and the Isle of Man.
Andrew Gerard
We are also proud to have members across the north-west, with town groups in Southport, Wirral, and of course Chester & North Wales. We are also very proud to have within our numbers the members of the Isle of Man Society of Chartered Accountants, and whilst there may be other challenges and interests facing these members, there has always been a warm and cordial relationship with regular visits to and fro.
The current Chair of the Isle of Man is Andrew Gerard, a director in Harding Lewis, Chartered Accountants, and here he gives us his own insights into the Isle of Man, and some of the issues facing members there. Some of you will occasionally hear about the Isle of Man and possibly visit. Here is some information about the island and our own local society. 1. Isle of Man background a. Government and status The Isle of Man is a self-governing British Crown Dependency. The head of state is Queen Elizabeth II, who is represented by a Lieutenant Governor. The island’s parliament, Tynwald, claims to be the oldest continuously existing ruling body in the world. The population is approximately 85,000 b. Economy The Isle of Man is now ranked in the top 10 by the World Bank out of 214 international economies in terms of Gross National Income (GNI) per head of population. The Island’s Gross Domestic Product has steadily increased to become the largest of the Crown Dependencies. Average annual growth of 6% in the decade up to 2010 has been achieved since when it has slowed to annual rates of between 2 and 4%. Unemployment is currently under 3%.
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The economy is quite diverse when compared to the other Crown Dependencies. The financial services sector today accounts for close to 1/3 of income, and consistently supports the growth of high value added sectors such as ICT, high tech manufacturing and e-business. This represents a significant shift away from reliance on financial services, which accounted for nearly 1/2 of GDP in 2001. The key growth sector over the last few years has been e-gaming. A key part of this is having a very advanced telecoms environment. To give you an example, there are now approximately 60 registered e-gaming companies. Most are run by local service providers, but a small number employ significant numbers such as Pokerstars, Microgaming and Celton Manx. One company alone I know takes over $1 billion per month in bets, and the Far East provide much of the business. c. Image The island has struggled to shake off its perceived ‘tax haven’ status but there has been fundamental change in the island’s direction over the last 10 years finally leading to George Osborne announcing late last year in the House of Commons that the crown dependencies should no longer be deemed to be tax havens. The island has been at the forefront on recent tax transparency moves and has signed a significant number of tax information exchange agreements around the world and to a lesser extent double tax agreements. d. Isle of Man & investment in the UK It is a misconception to state that the Isle of Man has been a drain on UK tax revenues. The Foot report, commissioned in 2008 by the then Labour Government and published late in 2009 found that the Crown Dependencies and overseas British territories provided bank liquidity to the UK of over $330 billion in 2009 when it was much needed during the banking crisis. These funds originate from around the globe. Isle of Man individuals and businesses also invest significantly into the UK. In the North West of England for example, island resident John Whittaker via Peel Holdings Limited has been a significant investor via the Trafford Centre, Ocean Gateway, Media City and Liverpool John Lennon Airport amongst others. 2. Isle of Man issues a. Government finances As with many Governments at present, the island spends more than it receives but is fortunate to have reserves it can call upon. By 2015/16 the Government budgets to be balancing its books. However, this masks longer term problems such as a health service which is not sustainable, largely unfunded civil service pensions and a welfare
state that are also not sustainable. With low personal and corporate tax rates part of the island’s DNA there are significant challenges ahead. b. Diversification of the economy The traditional finance sector industry is seeing change. New industry sectors are needed and the Government is marketing the island in places such as China and India. Generous grants are available for business and attracting wealthy entrepreneurs is part of the strategy. Zero corporate tax and a personal tax cap of £120,000 is a key part of attracting business. c. Transport links Air travel is subject to an open skies policy which has turned out to be less secure for the island. Whilst more local routes such as Liverpool and Manchester appear to work well, the long term future of regular links to major London airports is less secure. Regular daily flights will be serviced by British Airways to London City enabling day return trips. The problem is that it has taken a private company, Microgaming, to underwrite the London City link for it to happen. 3. IOMSCA issues Background: The IOMSCA is an entirely self-funding society using training courses to fund costs which include a part-time regional executive and her office. We get involved in reviewing all relevant legislation affecting members and generally provide feedback to Government. We also have regular contact with key Government departments. Current matters facing members are: i. Designated Business Bill which is concerning AML oversight where it is likely that member firms will be able to have oversight by the ICAEW as opposed to the local regulator. AML legislation of course has been in place for many years this is only to govern oversight. ii. Audit experience: Currently IOM private company and locally listed audit experience does not count as relevant audit experience for the purposes of qualifying as a responsible individual for UK and Irish audits. We are in discussions with POB and the ICAEW about bringing in an oversight regime. iii. Brand awareness of the chartered accountant: Currently ICAEW promotions do not consider the Isle of Man and we have asked for closer involvement. We are looking at ways to improve brand awareness and we are in communications to progress this. iv. Relationship of the IOMSCA with the ICAEW: The IOMSCA is represented in Council by Council member John Tiernay. We are very grateful for the support of John. Longer term our view is that the IOMSCA, perhaps in conjunction with the other Crown Dependencies, should have direct Council representation, and we have made these views known to ICAEW.
Pro
Professional Services
CharteredOne | Issue 8 | Spring 2014
Bridging loans The primary advantage of a short-term loan is first and foremost speed. High street banks can take six months to provide funds, whereas bridging lenders can place facilities in under a week, sometimes even under 24 hours.
ofessional Services
Bridging loans act as a useful tool within real-estate finance, as often the ability to move fast can be the difference between securing a property and losing it, and the consequent investment opportunity. The short-term loan industry has transformed since 2008, where the mainstream banks’ unwillingness to lend has arguably led to bridging’s rise and the blossoming of products available. Last month, Omni Capital completed one of the biggest short term loans on record, a £127 million facility on a property near Buckingham Palace. Currently, the market is targeting £2.7 billion by the end of 2014, according to the West One Loans index. While reflecting on the sector and its rise to glory, Jonathan Samuels, CEO of short-term lending heavyweight, Dragonfly Property Finance, commented: “Short-term lending is an increasingly important — and rapidly growing — area of UK financial services. “The liquidity problems that hit the high street in 2008 merely shone the light on a sector that has always been there but which, previously, had been relatively misunderstood. “The growing acceptance of the alternative finance movement, of which short-term lenders are a part, bodes well for the future of bridging. “People, these days, are much more aware that there are other ways to raise finance than via the high street banks.” He assured that alternative finance providers and mainstream banks can co-exist In harmony, saying: “What’s very clear is that, even though the high street banks have come back to the table over the past year or two, there has been no impact whatsoever on loan volumes among short-term lenders. “A strong mainstream mortgage market is actually a positive for the short-term lending sector, not a negative.
“The term and short-term loan markets complement, rather than compete with, each other.” Looking at the horizon, Association of Bridging Professionals (AOBP) Chairman, Rob Jupp said: “If January is anything to go by, 2014 is going to be a halcyon one for those of us in the UK short term lending community. Our challenge this year will be to ensure that as a community we all fully embrace the principles of ‘Treating Customers Fairly’ irrespective of whether it’s a regulated loan or not. “Lending clients’ money without a sense checked exit can only be described as irresponsible and as a community we must ensure that we ‘weed out’ those culprits whose sheer existence affects our long term survival.” April’s Mortgage Market Review is expected to spark a slight shift in the landscape, with a source close to the Financial Conduct Authority (FCA) questioning whether prudential requirements will pose a large obstacle within second charge bridging. At the most recent AOBP AGM, members gathered to debate hot issues within the bridging industry. One topic that gained media attention was the AGM’s discussion on the complicated process of comparing products from different lenders. Members claimed this was due to the varying formats of lenders’ Key Fact Illustrations (KFI). As a result of the discussion, industry professionals have called for an industry-wide standard for the KFI document to be implemented in the near future, in order to aid direct comparison. On the 24th of April, the AOBP members will convene for the association’s first event of the year, debating and discussing the behaviour of the short-term marketplace. Industry lenders will take questions from the floor of intermediaries and other professionals working within bridging. With this much already achieved and an exciting growth path ahead, short-term loans are undoubtedly dwelling within a vibrant market as they continue to attract a colossal demand within the UK.
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Solicitors committed to providing the highest level of legal services
Who are we? Seth Lovis & Co is a London law firm specialising in financial misselling claims against banks and other financial professionals. We act for SMEs in their claims for compensation arising from mis-sold Interest Rate Swap Agreements (or ‘Swaps’) or other derivatives or hedging products.
fees, but have shown a general reluctance to offer compensation for consequential losses which can run into the hundreds of thousands of pounds or more. Therefore even if a bank makes a compensation offer following a review it may not represent the full amount of the claim. It is particularly on this aspect of the claim that a business should take expert advice otherwise it risks under-settling its claim. Action through the courts may be the only course available to ensure a full and proper settlement is achieved.
What is the position with the FCA redress scheme?
The need to act now
The FCA review and redress scheme is ongoing but its success
The Limitation Act will preclude claims being brought if action is
is questionable at best. The FCA reports that it is now delivering
not taken quickly so businesses should act now.
Independent, expert advice and representation is crucial.
justice to businesses mis-sold swaps and says that some £306m has been paid to more than 2000 companies and that the banks remain on track to provide compensation offers to claimants by
Contact us
the end of May 2014. But if we look only a little deeper, we see
If you have clients who were sold swap agreements contact us
all is not quite so rosy. The £300m paid out is only about 10%
for a no obligation discussion on 020 7420 7020 or email us at
of the total £3billion the banks have set aside to settle these
enquiry@sethlovis.co.uk
claims which is indicative not only of the huge volume of claims anticipated by the banks but also the significant sums they expect
Seth Lovis & Co Solicitors
to have to pay out. It highlights the huge scale of this mis-selling
33 Henrietta Street
scandal and demonstrates that there are still thousands of
Covent Garden
companies who have not brought a claim and who are entitled to
London WC2E 8NA
significant compensation. Are small business going to let the banks
020 7420 7020
get away with this?
enquiry@sethlovis.co.uk www.sethlovis.co.uk
Is the scheme independent?
DX 40051 Covent Garden
How can it be? The FCA scheme requires the bank to determine whether the Swap was mis-sold and if so what should be the level of compensation. Claims are therefore being determined by the very people that mis-sold the products. There is no independent analysis and the process must at least have the potential for abuse. It is therefore imperative that any business that was sold a swap or similar product receives expert independent advice to ascertain not only whether it has a good case for compensation but also for how much. We can offer such expert advice.
Are the banks offering full compensation? In many cases they are probably not. Where the banks have identified on review that a Swap was mis-sold they may have been willing to settle certain clear and obvious losses, for instance exit
Jonathan Tyler is a partner at Seth Lovis & Co Solicitors and specialises in commercial litigation. He heads the financial mis-selling litigation team. Contact Jonathan directly on 020 7420 7051 or email at jtyler@sethlovis.co.uk
Education Skills and Training
CharteredOne | Issue 8 | Spring 2014
BASE Competition John Tiernay, our ICAEW Council Member gives us an update and his own personal perspective on the highly successful BASE initiative.
Since its launch in 2009, BASE (Business, Accounting and Skills Education) has continued to increase in popularity, with 1,426 students taking part in 2013. Due to its continued success, BASE is back and bigger than ever in 2014 with 46 regional heats scheduled across the UK. Primarily designed to support the improvement of key employability skills in students aged 16-19, BASE challenges students to develop valuable business advice in response to a business issue. In addition to enhancing skills, BASE provides an excellent opportunity for students to meet potential employers and explore the range of opportunities a career in accountancy, finance or business can offer. There are now 22 teams in Liverpool and 15 teams in Chester booked in for the BASE heats during the Spring, with the events taking place: Chester 21/03/2014 Cheshire View Liverpool 27/03/2014 Liverpool University From personal experience as a judge in the heat that was held in the Isle of Man in November, I would encourage members at any level to sign up their interests as judges or mentors. For the benefit of anyone without experience of the competition, secondary schools enter teams of six, who are presented with information about a business scenario, which outlines a range of challenges concluding with each team giving a short presentation to a panel of judges. No prior work before the heat itself is required – one reason schools like the competition. Each team has a mentor – generally a recently qualified or third year student. Mentors use their knowledge, skills and experience to guide their team through the business case, helping them achieve their goal. Mentors should not over-teach nor help with the teams’ conclusions, but can encourage and explain the concepts presented to them. Judges have two main responsibilities: 1. to observe the teams as they work through the challenges 2. judge their final presentation 3. judging the teams on their recommendations and advice. Judges are given formal score sheets, but in my experience, judges
do better to work on a purely subjective basis. In the Isle of Man, for example, our lead judge warned us at the outset that all four judges would be unanimous in their choice of winner – we actually found that we were unanimous in placing first, second and third! The winner of this heat were Castle Rushen High School. Winning teams from each heat go forward to the prestigious final to be held in Birmingham in June 2014. Nationally, there are 46 regional heats with something over 3,500 students taking part. From my experience in the Isle of Man, we were impressed with the enthusiasm and quality of the presentations given by each team. Although challenging, the competition was obviously being enjoyed by the students. BASE is a great introduction to accountancy. One hopes that we may draw from those taking part in future student intake. Do please get involved – if not this year, then in future. BASE will, I hope, be around for some time to come. There are further details on the ICAEW web site at http://careers. icaew.com/events/BASE If you would like to participate as a mentor please contact Alex Pilkington.
BASE winners - Isle of Man - Castle Rushen High School
Help secure the future of your profession
The authorised training principal (ATP) scheme gives you the flexibility of including the ACA in the training options available to your firm or your organisation.
Identify, develop and support business leaders of the future by becoming an authorised training principal – a new approach to train ACA students in China, Malaysia, Singapore and the UK
As a chartered accountant you are equipped to share your knowledge, insight and experience. You will also make a difference to the careers of others and support the accountancy and profession.
Supporting ACA training will enhance the skillset across your team and many areas of your organisation. As an ATP, you will monitor ACA students within your organisation. You will guide, review and advise your students throughout their ACA training period.
The process of becoming an ATP is free, straightforward and the ICAEW will support you from day one.
Go to http://www.icaew.com/home/qualifications-and-programmes/aca/develop-chartered-accountants-of-the-future and you will discover:
> Benefits of ACA training > How ACA training works > How you can become an authorised training principal
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Out of office
BEHIND THE MASK
Tales of the Secret Accountant We have been very lucky at Chartered ONE to secure the services of a high level accounting insider. Each issue they (is it a he or a she?) will reveal, at great personal risk, some of the sensitive and previously unrevealed insights into the mysterious world of accountancy. Be prepared, be ready, be scared...
“There is all the time in the world” – except there isn’t!!
Finally, the records reach us and the client gives us his kindly reassurance “there’s still plenty of time for you to get it done”
For the accountants reading this, I’m sure you, like me, are glad that another January is over and we can........RELAX.
Outside we look like swans, gliding gracefully through the most miserable month of the year. Inside it’s a different matter - it’s more like a game of Flappy Birds (Google it or ask your kids!) Many obstacles, ups and downs, start all over again, but in the end that very proud moment of completion once the HMRC Submission receipt appears on your computer screen.
We ring or email our clients in plenty of time asking for their records – often we are ignored. We repeat the process numerous times during the year – and still we are ignored. We threaten them with HMRC penalties – ignored. January arrives – ignored. 31st January arrives – oh guess what ? That’s right – they chose that one time of the year to listen to us.
We’ve all heard the excuses: “We’ve been too busy to get them ready” “I can’t find all my paperwork” “My dog ate the receipts” “My goldfish died” “I have an unruly cow” “Oh, I didn’t think tax returns applied to me” “I was so upset at watching a volcanic eruption, I couldn’t face my tax return” “I was so busy completing my client’s tax returns” (We can be good at it too you know.)
No thought for the poor accountant who has to worry and work late and worry and check WIP lists and worry, just to make sure everyone’s return has been submitted on time with least effort for the client.
You know the stress has got to your team when they answer the phone “Good morning, Jack Daniels & coke, can I help you” or when, bless the little darlings, they phone in sick on 31st January! For those that do make it in to the office on 31st January, there are those first few hours of the day whilst we wait for those last minute clients, saying things like “if they don’t come in by 11.30am then we can’t get it done”. These clients are usually the ones we hate to love. You know you should “move them on” but they are genuinely nice guys or girls and, after all, what else is there to do that day! The promise of wine and chocolates always helps. (Please note). And then it’s 5pm, we can do no more. It’s time to submit our own tax return (remember the Titanic - women and children first - incidentally this is officially known as the Birkenhead drill -http://en.wikipedia.org/wiki/ Women_and_children_first) with the comfort that we have achieved what we set out to do, for another year! We can log off, close down and retreat to the real world. Well, for a short period anyway before it all starts again on the 6th April (or 10 seconds later if you were lucky enough to download Flappy Birds from the App Store before it’s Vietnamese creator withdrew it from online sales). As for me, well I’m off for a well-earned break to recharge the batteries and plan for January 2015 - BRING IT ON !
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CharteredOne | Issue 8 | Spring 2014
left to right – John Elliott, Jan McDermott, Phil Silver and Eileen Quinn
Wine Tasting In Style February saw another successful joint event with LSCA, Liverpool Law Society and the Insurance Institute of Liverpool. Some 65 chartered accountants, lawyers and insurance professionals enjoyed a wonderful evening sampling a selection of fine Italian wines in the unique setting of Jaguar House, Liverpool. The event was sponsored by Jaguar House, Gieves & Hawkes and Formby Hall Golf Resort & Spa. In addition to browsing the showroom, guests were welcome to take a behind the scenes tour as Jaguar House organised an “access all areas” tour, including the workshops. There was just one question for the main prize – the use of a Jaguar car for the weekend. How many bottles of wine are produced in Italy each year? Answer – 12 billion! left to right the three Presidents Paul Cochrane, Glenys Hunt and Marie McAnaulty
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Charity Corner
CHARITY CORNER
Many of our members spare their time as trustees or supporters of many great causes, and we thought it would be good to feature some of those that are supported.
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CharteredOne | Issue 8 | Spring 2014
To start the ball rolling, Martyn Best, our editor and Past President, describes why he was attracted to become an ambassador for NYAS.
“NYAS offers a range of advocacy and legal services to children across England and Wales and our Advocacy Helpline is absolutely at the core of NYAS. The helpline is a freephone number which acts as a lifeline for children and young people who are in desperate need of help and do not know where else to turn. Each year, the helpline takes more than 16,000 calls which lead to more than 7,000 new cases being opened. “NYAS works with these young people to give them a voice. We help children who want to see their parent, brother or sister, or who are being bullied in their placements, or who feel they are not being represented in meetings. Our legal team help children whose parents have split up and who are fighting about who they should live with and how often they see their parents. We also help children maintain their contact with siblings.
Martyn Best I met Christine Renouf, Chief Executive of NYAS (National Youth Advocacy Service) , last year and was very touched by the work and support they provide to young people who are in care, and how they provide prime advocacy support to supplement the absence of caring parental guidance. As a father of four, and as one, like many of our members I am sure, who has been proud to play a strong part in the raising of those children I was so struck that there are over 90,000 children who are in care throughout the UK and I was further astonished at the impact of the absence of loving parents: • Children in care are 10 times more likely to be excluded from school, and only 12% achieve five GCSE grades A*-C compared with 55% nationally • Only 7% go onto higher education compared with 50% of all young people. • A year after leaving school 15% are unemployed compared with 4% nationally. • They are 60 times more likely to be homeless • A young care leaver is 50 times more likely to go to prison than a young person who has not been in care. • And over 50% of children in care have, or develop, a mental illness. Christine, a former director of the NSPCC Childline leads the Liverpool founded and based national charity, and describes their work:
“NYAS is urging businesses to support the charity in a number of ways. In additional to financial support, NYAS is looking for law and other professional firms to provide probono work for individual cases, or funding for specific work, such as judicial reviews and the training of paralegals. NYAS is also looking for members of the business community to give their time. “Over the last 12 months, NYAS has been working to develop a network of ambassadors across the country, to act as an official voice for the charity. Martyn Best CEO of Document Direct, and a Past President of the Liverpool Society of Chartered Accountants and Roger Phillips of BBC Radio Merseyside are amongst the first to agree to be part of our new Ambassador campaign and we welcome anyone else who would be interested in helping us.” Commenting on his appointment, Martyn said: “NYAS makes a significant difference to thousands of young people each year. As a NYAS ambassador, I will be supporting the charity by helping to promote its activities here in Liverpool and amongst the accounting, legal and professional services sector across the UK. Document Direct is also providing real commercial support to the charity with its smart typing and document production service, and some members may recall me cycling from London to Paris for NYAS last September. If you are a business or individual who would like to make a donation or to discuss sponsorship opportunities, please contact Bob Towers, Trusts and Corporate Partnerships Fundraiser on 0151 666 5777.” IF ANY MEMBER WOULD LIKE TO HIGHLIGHT THE CHARITY THEY ARE INVOLVED WITH PLEASE CONTACT MARTYN FOR THE NEXT ISSUE.
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CharteredOne | Issue 8 | Spring 2014
THE GREAT GOLFING QUESTION. Christmas is over, the nights are becoming longer, and of course the golf season beckons. Glyn Pike, our Golf Secretary has a good calendar of events lined up with the highlight being the competition for our Annual Trophy. Alan Rumph is the current holder having showed great skill at Ormskirk Golf Club last year. This trophy has been contested annually with the exception of the war years since 1912 and this year will be our 102nd. After the normal kind acceptance speech, the topic of conversation typically moves to the actual value of the trophy. Periodically we obtain a formal valuation for insurance purposes and one was last obtained in September 2013 by our Past President Mike Sale, who is therefore excluded from the following. So, to set the scene for the coming season, we now invite our readers to provide their estimate of its value and the most accurate submission will be rewarded with free entry into this year’s Annual Trophy. This will take place at Prenton Golf Club on Thursday May 29th 2014, and even if you are unlucky with this challenge, do please try to join us for what is always an enjoyable joy with super sunshine and great company. Please send your estimates to: glyn.pike1@virginmedia.com, and also let Glyn know if you are able to play.
Glyn Pike presents the Annual Trophy to the winner Alan Rumph
Call yourself an ACA? Well – did you know that after 10 years of being an associate member of ICAEW you can apply for fellowship – and then you could call yourself an FCA. The FCA designation is recognised globally and enhances your credentials and demonstrates your commitment to the profession; as well as confirming an element of your age ! To apply for fellowship please go to http://www.icaew.com/en/members/membership-information/fellowship or call the Institute on +44 (0)1908 248 028 to request an application form. The form and requirements are very straightforward. Advancements to fellowship are approved each month, and you will usually be granted fellowship within six weeks of applying. There is no application fee and your annual membership subscription won’t change either.
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LCASA MASQUERADE BALL 2014
LCASA MASQUERADE BALL 2014
Saturday 15 March 2014, 19:30 for 20:00 - carriages at 23:30 Crowne Plaza Hotel, St Nicholas Place, Princes Dock, Liverpool, L3 1QW Following on from the successful Christmas event the next event in the LCASA calendar is the annual ball to be held on Saturday 15 March at the Crown Plaza in Liverpool city centre. This year’s theme is that of a Masquerade Ball. Tickets are now on sale. The LCASA committee look forward to welcoming students to the event which is the highpoint of the LCASA social calendar. Dress code: Black tie. Price: £35 per person plus VAT this includes a three course meal with coffee and after dinner entertainment You are invited to join the LCASA committee and guests for a ‘Masquerade Ball’ on Saturday 15 March 2014 at
the Crowne Plaza Hotel on Liverpool’s waterfront. The dinner is the high point in the events calendar for students and fellow professionals in Merseyside. It offers a great opportunity to network and celebrate the exam successes of the year. This year we would like to take the opportunity to raise funds for The Clatterbridge Cancer Charity (Registered Charity Number 1051727). The Clatterbridge Cancer Charity is the only charity directly raising money for Clatterbridge cancer patients across the region. They are dedicated to providing outstanding cancer care to around 27,000 patients each year at their centre in Wirral, satellite radiotherapy centre in Aintree and network of chemotherapy units in local hospitals across the region. Venue: Crowne Plaza Hotel, St Nicholas Place, Princes Dock, Liverpool, L3 1QW Contact: Alex.Pilkington@icaew.com
CharteredOne | Issue 8 | Spring 2014
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CharteredOne | Issue 8 | Spring 2014
Thursday 24 April 2014 - Liverpool Philharmonic Hall The ICAEW North West Region is pleased to host an event exclusively for retired ICAEW members and their spouses/partners at the Liverpool Philharmonic Hall.
Join us for an informal concert at midday lasting about an hour, featuring the Royal Liverpool Philharmonic Orchestra. Enjoy a delightful combination of inspirational music and good company served with refreshments. The Orchestra will be in casual dress and the conductors will chat briefly about the works performed. Richard Kaufman conducts the opening of Strauss’ Also Sprach Zarathustra, Tchaikovsky’s Waltz from Sleeping Beauty and the second movement from Hanson’s Symphony No.2 The concerts will take place from 12pm – 1pm (approx), preceded by complimentary coffee, tea and biscuits in the Grand Foyer Bar from 11am. A free programme is included in the ticket price. Closing date for bookings 3rd March 2014 Any cancellations after this date may result in a cancellation fee unless we are able to resell the ticket(s) 11.00 Arrive for tea/coffee served in the Grand Foyer Bar 12.00 Concert 13.00 Close A small fee of £10.00 per person is required to secure your place(s). If you are interested in attending please complete the form below and return with your payment by 3 March 2014 or alternatively book online at www.icaew.com/events __________________________________________________________________________________ I would like to attend the seminar on 24 April 2014 (Event Code DLIVCOR240414) I enclose my cheque made payable to the “Liverpool Society of Chartered Accountants” Name: ............................................................................ .............................................................................. ........................................................................................ .............................................................................. E-mail: ....................................................................................... Tel: ........................................................... Address: ....................................................................................................................................................... ........................................................................................ .............................................................................. ........................................................................................ .............................................................................. Postcode: .................................................................................................... ................................................. ICAEW Membership No. RETURN TO: Regions Central Events, PO Box 6083, Milton Keynes MK10 1PG Tel: +44 (0)1 908 248 159 63
How to Sow New Seeds of Opportunity With Your Clients • Did you know that accountancy firms are missing out on a great opportunity to increase their profits? The revival of many client’s financial fortunes has created a fresh opening for accounting firms to grow profits in 2014. The recovery is still a little patchy, but growing order books are creating a new feel good factor amongst increasing numbers of companies in the Northwest. Confidence levels are rising, expansion plans are being considered and extra staff are being recruited. So, where is the opportunity for accountants you might ask? Well, expansion is rarely easy, particularly just after a crippling recession that has left companies with a plethora of challenging obstacles such as: • A lack of a clear vision and direction • Diminished skills in formulating and managing growth strategies • Smaller, undeveloped and less motivated workforces • Weaker or even non existent access to adequate growth funding • Stifled innovation and starved new product pipelines The profit opportunity arises from the increasing number of companies who are seeking advice and guidance on how to overcome these barriers. Over 10,000 of them across England have sought help, for example, from the GrowthAccelerator service between 2012 and 2013 (source: 2013 GrowthAccelerator report). But its accountants who are ideally placed to offer this extra support service especially to clients where a relationship already exists. Unfortunately, many are missing out by failing to recognise their client’s new needs and/or not being equipped to design, market and deliver an updated range of support services. • How can ambitious accounting firms move forward? Recent research has shown that ambition, dedication and inspiration in management teams are the most vital factors in achieving high growth for businesses. Equally important, is the recognition that faster growth is achieved by joining forces with a business support service for expert advice and guidance. Ideally, any support service will be all encompassing, easy to access and be proven to deliver. It should be able to help firms to prepare new strategies and marketing plans, to develop new skills and team working, to implement action plans and manage performance. Specifically for accountants, it also needs to provide guidance on the building of further profit opportunities via a fresh advisory framework for the marketing of coaching and consultancy assignments.
• 10 benefits that firms should seek Take a look at the major benefits that accountancy firms can enjoy with an all-encompassing support service such as GrowthAccelerator:
GROWTHACCELERATOR SOLUTIONS
THE BENEFITS
1 ORBIT growth visioning tool 2 Expert business coaching support 3 Single page action plan 4 GROWTHmapper toolkit 5 Leadership & management training 6 Workshops & masterclasses 7 Access to finance service 8 Growth through innovation service 9 GrowthAccelerator community 10 Intermediary partnership
Vision for growth captured Clear direction & strategy More focus, less waste Weak competencies identified Enhanced growth capabilities Modern, differentiated skill sets Additional funds for expansion Differentiation with increased ROI New networks, expertise, support Stronger client foothold & profits
One firm that has already grown with the support of the GrowthAccelerator service is Brightstar Financial. See the case study opposite for more details. • Look for extra value to be included Any support service worth its salt will help accountancy firms to grow profits by including several items of excellent, extra value within a single service fee. For example, the GrowthAccelerator service includes: - An online generated GROWTHmapper report on levels of competency and alignment - Up to £2,000 per manager for leadership and management development, match funded by the business, with no limit on numbers (within reason) - The expertise of experienced, expert business coaches - A series of locally based, conveniently timed, business development workshops - Assistance in creating and marketing a client advisory service • Don’t miss your opportunity to grow If you are an ambitious accountancy firm who wants to pursue this growth opportunity, contact Rob Capleton now at GrowthAccelerator for an exploratory discussion. 07718 763 403 r.capleton@winning-pitch.co.uk GrowthAccelerator, c/o Winning Pitch, 8 Exchange Quay, Salford, M5 3EJ
www.growthaccelerator.com
CharteredOne | Issue 8 | Spring 2014
THE INSTITUTE’S SAMARITANS Have you ever had a problem regarding some aspect of your life as a Chartered Accountant? Maybe to do with the practice, your partners, your employer, a client, an impending monitoring visit - or just felt that things are getting a -bit too much-? Phoning the Institute might seem a bit daunting - who on earth would you talk to anyway? What you’d like is a chat with another kindred spirit, another CA. Someone who could understand the problem perhaps, but wouldn’t go blabbing about it to the Institute. Maybe not someone you know well, or who knows you, in case you might feel awkward about him or her knowing you have the problem. Anonymously, even, if you’d prefer. Seems a bit far-fetched, doesn’t it - a bit too good to be true. Actually this facility has been available to ICAEW members for nearly 20 years, but for some reason word hasn’t got round the way it should have. We are called SUPPORT MEMBERS and we are a group of around 60 Chartered Accountants spread all over the country, who are officially recognised, backed and trained by the Institute, and importantly, we are officially excused the requirement to report misconduct. So while the majority of calls we do receive are actually nothing to do with misconduct, nevertheless when you’re talking to a Support Member, the subject matter will not go any further than the person you talk to - a listening ear that won’t go any further than the listener. A lot of us are past or present District Society Officers or Committee Members, who have been used to helping out fellow CA’s over the years, often in an unofficial capacity, and have a good understanding of Institute procedures, policies and politics. We also receive training and advice on how the Institute’s disciplinary proceedings work, so we can offer some thoughts on what might or
might not be awaiting a member who sees some sort of trouble on the horizon. Strangely, a great many calls we get end up in us able to re-assure the member that, actually, they’re not in anything like the sort of trouble that they think they are. If the news is not so good, we can at least give a bit of advance warning of what to expect, and even recommend more formal sources of help and professional/legal advice. The Institute has put a lot of effort into alerting members about the Support Member facility, but still, many of the members I talk to in general conversation have never heard of us. The service is completely free to members, and totally confidential. Calls in the past have varied from members who simply want a second opinion on some professional matter (we may or may not be able to provide that, but we will know someone who can!), to members feeling genuinely “at the end of their tether” for whatever reason, professional or personal. Again, we can’t provide instant solutions to every problem, but its amazing how much more manageable a problem can seem once you’ve talked it through thoroughly with an empathetic listener. If you feel that this service could be just what you need, now or in the future – or you know someone, a colleague or friend who might be helped by this, then you can find out about us on the ICAEW website, email on support.members@icaew.com or phone the free central number 0800 917 3526 where you can find out the names and numbers of Support Members in your area, (or specifically not in your area, if you’d prefer). Don’t suffer in silence - make the call. We’re here to listen - and SUPPORT you. ANDREW LOVELADY - SUPPORT MEMBER - LIVERPOOL
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“ Martin Luther King didn’t say “ I have a strategic plan’ instead he shouted “I have a dream” and he created a crusade” Anon Appreciating People are Organisation Development consultants with a difference our start point is what you do well. We are leading UK experts in the Organisations Development philosophy Appreciative Inquiry
How we can help you and your organisation? We can : • Make a difference by building on existing strengths, supporting resilience and delivering transformational change • Help staff be more flexible and adaptable in a ever-changing world • Work with organisations and teams to plan their futures based on what they are good at and aspire to • Help your organisation make a difference. • Provide bespoke, practical and accessible training in Appreciative Inquiry
For more information contact Tim Slack Director Appreciating People mobile 07986515237 email tim@appreciatingpeople.co.uk Have a look at www.appreciatingpeople.co.uk and learn more about what we do twitter AppreciatingP
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ASK THE EXPERTS Ross Walker is the North West Managing Partner of Forresters, the Interllectual Property specialists. They have recently expended into the Port of Liverpool building and are pleased to offer their advice to our members
Here, he answers a very important question which our members may have been asked about the recently introduced Patent Box. Q: I read recently that patent owners can take advantage of a new tax-saving initiative called “patent box�. My company has a pending British patent application for a product that has begun to generate significant revenue, and I understand it will probably be 3-4 years before our patent is granted. Can we take immediate advantage of the patent box? A: The Patent Box came into effect on 1 April 2013, and allows for a lower rate of corporation tax on profits derived from global sales of a product covered by a granted patent. To qualify, the patent must have been issued by the UK Intellectual Property Office (UKIPO), European Patent Office, or one of several other national patent offices. At present, you do not have a granted patent, and, as you have mentioned, it may take 3-4 years for a British patent application to be issued. However, there are a number of ways to speed up the process. For instance, if you can demonstrate that you are aware of a potential copyist or that you need a patent to secure investment, the UKIPO will usually expedite processing of the application. You can also request faster processing if your product has an environmental benefit. If none of the above situations apply then all is not lost. To benefit from the Patent Box the scope of the granted patent only needs to cover the revenue-generating product (or a part of it). Therefore, by narrowing the scope of the application to cover your product specifically you could potentially speed up processing of the application, thereby giving you an opportunity to take advantage of the tax reduction sooner. In order to bolster your patent portfolio, you could also file another patent application (which would be divided from your first application) to pursue broader protection. This latter patent application may be processed slowly, thereby making it difficult for your competitors to encroach within your commercial space without fear of infringing your rights. As usual, these comments provide general guidance, but not legal advice, which you should always seek, as appropriate.
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