CharteredONE Magazine - Issue 30 by chartered-one

CharteredONE The official magazine of the Liverpool Society of Chartered Accountants

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ISSUE 30 AUTUMN 2021

WHERE THE LEGAL COMMUNITY MEETS

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The President's Words It was great to finally meet some of the other District Society Presidents in the Midlands a few weeks ago for an informal lunch."

s a first in my time as your President I am actually able to report having attended a physical meeting. It was great to finally meet some of the other District Society Presidents in the Midlands a few weeks ago for an informal lunch. I am now also looking forward to the first formal in person meeting of the District Society Office Holders again in theMidlands in a few weeks’ time. Whilst the diary still remains quiet for the rest of this year we do have some in person events coming up shortly, the first being the New Members ceremony in a matter of weeks, with a full report coming in the next issue. Thereafter we are looking at how the

traditional events such as the annual dinner and annual conference can be phased back into the diary. If you have any views or want to highlight your support for these fine traditional events to be resumed do let us know, as we are mindful of some sensitivities around such events, but equally we do want to start better engaging with our members again. Whilst thinking about this 30th edition of CharteredONE, it both seems like no time at all since Issue ONE and simultaneously I’m unable to remember the time without it. I would like to pay tribute to the hard work put in by all the editorial team members and contributors who have worked on the issues to date and thank them for

all their efforts. In particular I would like to give thanks our editor Martyn without whom this all wouldn’t have been possible. I’d also like to add to his regular plea – this is your magazine, and so please do send us anything you feel is newsworthy. Meanwhile, my best wishes to you all. Best wishes,

ROB YOUNG President

CharteredONE

www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business

Contents 22

03 THE PRESIDENT'S WORDS 05 REFLECTIONS FROM OUR EDITOR 06 COODEN TAX CONSULTING: ARE WE THER YET? 08 DOCUMENT DIRECT 09 DAVID CRADDOCK 12 DSG - CHARTERED ACCOUNTANTS KICKS OFF INSTITUTE OF DIRECTORS SPONSORSHIP 13 DSG - LEADERSHIP THROUGH SPORTS & BUSINESS 14 Q UILTER CHEVIOT - INFLATION EXPECTIATIONS 16 SMART VAULT - FIVE WAYS TO BOOST YOUR ACCOUNTANCY BUSINESS POST LOCKDOWN

18 ICAEW - ANNUAL GENERAL LSCA EQUALITY, DIVERSITY & INCLUSION 19 ICAEW - LOCAL EVENTS & ACTIVITIES 20 R EMEMBERING ICAEW MEMBERS 22 ACCOUNTANCY STUDENTS HARD WORK ADDS UP TO SPECIAL PRIZE

39 ICAEW - INFORMATION HUBS 40 TECHNICAL REPORT 42 OPUS 43 LEGAL RSS 43 CHAMBER OF COMMERCE - KICKSTART SCHEME FACILITATION

24 BLANKSTONE SINGTON 26 GOLFING MEMORIES 28 DAN MORTON - GOLF EVENT 30 DSG - SIMPLIFIED TAX REPORTING PROPOSALS FOR THE SELF EMPLOYED 32 R EWARD FINANCE GROUP 34 ANDY BOUNDS - TUESDAY'S TIPS 38 CHRIS WAINWRIGHT GENTLEMEN I GIVE YOU...

COVER PHOTO By www.upshot.photos

LIVERPOOL SOCIETY OF CHARTERED ACCOUNTANTS

PRESIDENT Rob Young president.liverpool@icaew.com CHARTERED ONE EDITOR Martyn Best martyn.best@charteredone.co.uk For all content and advertising enquiries please contact Martyn Best.

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. The Society has an illustrious history and has provided in Harmood Banner, Arthur Green and Ian Morris, three National ICAEW Presidents. Awarded the Freedom of the City of Liverpool in 2011, the Society continues to play an active role in local and ICAEW issues. There are over 1.7m chartered accountants around the world – talented, ethical and committed professionals who use their

expertise to ensure we have a successful and sustainable future. Over 150,000 of these are ICAEW Chartered Accountants. We train, develop and support each one of them so that they have the knowledge and values to help build local and global economies that are sustainable, accountable and fair. The ICAEW have been at the heart of the accountancy profession since we were founded in 1880 to ensure trust in business. We share our knowledge and insight with governments, regulators and business leaders worldwide as we believe accountancy is a force for positive economic change across the world.

LSCA Business

Reflections from our Editor It has been a challenging year for the Society and we have all missed a lot of contact with each other, and the wider sense of camaraderie that the Society gives us."

ello again everyone,

Welcome to our historic Issue 30. I hope that many of you have been here since issue one, back in December 2011, and I do of course hope that you continue reading both beyond this page, and of course for many issues to come. Well, it’s back to school, and hopefully many of us have used that defining moment to re-assemble our own teams. There is much talk and debate about the so-called “return to work”, hybrid-working, the new normal etc. My own views are that we will probably return to what we are familiar with, but with a slightly improved version. Remote working and on-line access are a good addition to efficiency, and I’m sure we have all saved some time and some costs in avoiding the daily commute. However, have we

reflected on the value that everyday interaction and engagement with our colleagues gives us? The extra insights and understanding, never mind the vital mentoring and guidance that our younger colleagues may need. A Bill Gates quote springs to mind, “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don't let yourself be lulled into inaction.” There have however been promising signs of a return to networking and events, and I have seen the Law Society, Professional Liverpool, Mersey Maritime and indeed even Neston return to some of their former glories – and I am sure I will have seen some of you at those events – even if the memory became a bit blurred as the evening wore on. I hope that our very

own special Annual Dinner will be returning soon, and do please let us know if you have views on this. My normal nod to the sporting heroes of the summer must go to our England football team, who despite their evertroublesome penalty taking surely exceeded expectations. Sadly, our cricketers nor our rugby players did, but they did give us moments of hope; and of course a glorious salutation to Emma Raducanu who brought great joy in her remarkable achievement at the US Tennis Open. So, goodbye summer, hello winter, and I hope to see you all at the re-emerging events, and I wish you all well. With very kind regards, MARTYN BEST Editor & Past President

CharteredONE is designed and published on behalf of the Liverpool Society of Chartered Accountants by Legal RSS.

www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business

Are we there yet? Four words that used to drive any parent absolutely insane, but after the last 14 months, are probably now music to the ears of a lot of us. by Simon Bulteel of Cooden Tax Consulting

LSCA Business

I don’t know about you, but out of an abundance of caution, we didn’t take our summer holiday to Europe last year, and we didn’t take our children to any of the places we might normally have done during the summer holidays. That meant avoiding adventure parks; zoos; and soft plays, places they love, but, where there would be lots of people, just to be safe. So instead, we got a National Trust membership and probably annoyed a lot of people out for a quiet walk in the grounds of many properties, by taking our three children for days out and picnics! But this May Bank Holiday weekend, we went out, out! On Friday, my wife went and had drinks with 5 of the school mums, and on Sunday we took our three boys to a Miniature Railway and on Bank Holiday Monday they went to an adventure park as well. Now, I haven’t yet applied that level of bravery to my business life, I haven’t had a face to face business meeting since early October, but I think we are almost there! Have I been too cautious? Probably, professionally being an accountant, I see myself as generally risk averse and yet as an entrepreneur running a niche tax consultancy, I know I have to throw off my cloak of pessimism and be more “out there”. That being said, it’s not held our business back, when it comes to preparing R&D Tax Relief claims for many businesses, working over video conference and conducting our technical interviews through this medium, rather than face to face has proven to work and is something that we may continue into the future, if that is what our customers want. However, even though we have been able to keep preparing claims for those business in Manufacturing and Engineering, where we know them and have been around the factory floor, there has been a semblance of business as usual. For those who we have worked with for the first time during lockdown, there is a nagging thought at the back of my head that by not being present, by not walking through and seeing what is going on and being able to ask questions in the here and now of such a walk, have we been able to identify all of the R&D activities. There are only so many times you can ask is there anything else, anything new, anything that you are doing differently, anything that you have improved, before beginning to sound like that child in the back seat pre-lockdown.

We are almost there, we are seeing the opening up of society, we can now drink in a pub, have a meal inside and go to the cinema or theatre, we have seen some trial mass participation events, lots of little steps! I still feel that I am giving the stock response, that might be given to the children, “we are almost there, not long to go now!” It is still open ended to some extent, but I am ready to get out there again! I am sure it will be a little bit different at the start, but hopefully, we will get there! So, now to you, how are you doing? How positive are you for the next 12 -18 months of your business? Have you taken out some BBLS or CBILS funding that needs to start being paid back anytime soon? Have you been doing something new and interesting in your business over your previous 2 accounting years, even pre-pandemic? Has it involved an element of scientific or technological uncertainty? Has it been ultimately successful? Or did it fail and has had to be put on the shelf for the time being? If you’ve answered yes to any of those last questions, why don’t you give me a call? I’d love for you to be the first business I come out and see, when we are both ready! We can start with a discovery call, that first little step! You can book one at www.calendly.com/simon-bulteel and we can have a video or telephone call to suit you or you can just pick up the phone and call me on 01424 225345. Let’s finally get 2021 rocking and get you a nice pot of money back in your bank account from a successful R&D Tax Credits claim!

www.charteredone.co.uk

ISSUE 30 Autumn 2021

Professional Services | Financial

How Share Schemes can operate within the Gig Economy David Craddock is a recognised authority in the UK and worldwide on employee share schemes and the author of Tolley’s Guide to Employee Share Schemes. In this article, David identifies the role that share schemes can fulfil in supporting the role that gig workers play in the UK economy.

ow did the Gig Worker emerge and what are the Reasons for going Gig?

According to the Office of National Statistics there were 4.7 million gig workers in the UK in 2019, projected to rise to 7.5 million in 2022. Currently they are estimated to contribute in excess of £20 billion to the UK economy. Although there has always been gig working in the UK, the concept emerged with significance from the 2008 financial crisis as, for some, a decision of choice of independence and, for others, a choice of necessity that had arisen out of the redundancies of the time. The single most widely reported motivation for wanting to work as a gig worker based on accredited survey work with actual gig workers is to introduce flexibility into their lives. The reasons for wanting the flexibility are many: individuals caring for family members, students wanting flexible work alongside their study programmes, and individuals who want greater control over how their time is spent. The Report of the Department of Business, Energy and Industrial Strategy from February 2018 reports six key reasons for an individual choosing to work in the gig economy: (1) a personal belief that the gig economy is the future of work; (2) as part of a resolution to pursue their dream job; (3) the opportunity to earn additional income while pursuing a specific goal; (4) the opportunity to gain work experience; (5) the desire for working conditions that are better suited to their own health conditions, either mental or physical or both; and (6) the determination to transition to a positive experience from redundancy.

Are we at the End of the Employment Era? The answer is: not really but the idea is interesting to explore. James Robertson in his book “The Sane Alternative: A Choice of Futures”, heralds the transitional trend away from “the consumer economy” to the socalled “conserver economy” with higher expectations for personal fulfilment. The characteristic of this new economy is on spending less based on a new lifestyle that does not require previous spending and consumption levels. The key lesson to learn from this book is that the business psychology of employees in the modern era is dramatically different from that of previous generations. The employee share ownership culture that has developed with strength since the introduction of the first tax-approved employee share scheme in 1978 is both a response to and a facilitator of changing expectations within society. Employee share schemes operate to best effect within an infrastructure of human resource policies that enable employees to develop as creative, motivated, and productive employee entrepreneurs within the business that employs them. Ironically, it is individuals with these characteristics who are motivated to become self-employed gig workers. However, their forward-thinking and energetic mindset can be harnessed by the enlightened employer to become high-contributing employees, the entrepreneurial mindset operating within the employing company. www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business Professional Services | Financial

The Challenges of Introducing Share Schemes for the Gig Workers Available shares are usually rationed by a company to a particular percentage of the share capital, so is allocating shares to a self-employed gig worker share scheme the best use of shares? A decision must be made on the balance of the share allocation to employees compared with the share allocation to self-employed gig workers. The decision must always be driven by the expectations on the contribution to productivity through involvement in the share scheme. If headroom on available shares poses a problem, then a phantom share option scheme, effectively a deferred bonus scheme linked to shares, will meet the requirement, and can be an effective motivator based on the increase in the share value. Gig workers do not conform to a homogeneous model, with a wide variety of life aspirations and work preferences, so how does the company design a share scheme to be suitable for them all? The share scheme structure for the self-employed gig worker must be kept simple, based on the direct communication of the simple message. Gig workers are not subject to company training programmes, performance management procedures or internal decision-making committees, so how can the sister

policies to employee share ownership that are required to make worker share ownership work be implemented for the gig worker? It is true that the secret to a successful employee share ownership implementation is to ensure that the programme operates alongside a compatible set of policy initiatives based on employee participation in different forms. All the research in the UK and in the USA supports this position. The share ownership sister policies that remain for the gig workers are: (1) profit-sharing and (2) corporate communications, which, when shared with both employees and the self-employed gig workers alike in the same meeting, can operate as a powerful unifier behind the company’s vision. Gig workers and employees can easily be categorised as separate groups of workers, so how can the attractions of employment be preserved if gig workers have share schemes which have previously been the privileged preserve of the employed workforce? The employment attractions of pension schemes, holiday pay and sick pay remain, together with a perceived safety in employment and the sense of belonging to an entity larger than themselves that they believe mitigates against the risk associated with self-employment. The downside of the perceived categorisation is the development of a defensive form of protectionism by the employee

contingent. The company must always guard against the development of protectionism within its ranks as its effects can be corrosive and, potentially, if left checked, threaten the very existence of the company. Understanding the Gig Worker’s Mindset and Approach to Work The self-employed gig worker is typically a motivated energetic individual who has mastered to varying degrees, depending on the individual, the integration that is necessary to run “a one-person oneowned business”, solving their own problems and managing their own business finances. If the gig worker is running the business through a small company, then the argument can be made that the share capital of the gig worker’s own small company is the gig worker’s share scheme. The motivation for the gig worker is to grow the value of his/her own personal gig business and to invest its profits in credible investments that will prepare for his/ her future. The question then becomes the following: what is the best way to support the gig worker who has found personal freedom in running his/her own business, whether as a sole trader or through a service company? The answer is, in most cases, a gig worker profit-sharing scheme. The gig worker’s energy and motivation are usually harnessed to an efficiency and a discipline that the company also needs to see in its employed workforce. The gig worker is an entrepreneur, and respect shown by the company’s senior management to the gig worker can be a powerful element to bind the gig worker to the company, even without offering a share scheme arrangement. When will a Share Scheme be suitable for a Gig Worker? The key question to ask is the following: is the primary relationship of the gig worker with the customers or with the supplier? (1) The CustomerFocused Gig Worker: by “customerfocused” is meant that the gig worker is serving a multiplicity of customers from the base of his own operation.

Professional Services | Financial

For example, the gig worker has set up a self-employed business providing book-keeping accounting services from home, primarily on a virtual basis. The gig worker will not expect to be involved in a share scheme with his customers although in some circumstances this type of worker is invited to participate in a share scheme arrangement. (2) The SupplierFocused Gig Worker: by “supplierfocused” is meant that the gig worker is focused and dependent on one major supplier for their work. In these circumstances, there is a propensity for a natural sense of identification with the one supplier company, thereby potentially making some form of share scheme a natural fit. Examples of this type of relationship for which a share scheme could potentially work are with Uber Technologies, Inc. and Deliveroo Holdings Plc, both of which are quoted companies with shares that have a daily public display of their share movement.

The Purpose of an Employee Share Scheme The research conducted in the UK and in the USA can be distilled into the following as the reasons for a company introducing an employee share scheme: (1) identification and involvement of employees; (2) motivation and incentive of employees; and (3) retention and recruitment of employees. In the light of the analysis provided in this article, how do these reasons align with the introduction of a share scheme for gig workers who are not employees of the company? For the supplier-focused gig worker, yes, a real possibility, and if the customer-focused gig worker is part of the integral team of the business then in those circumstances also a share scheme may be appropriate. Gig workers are here is stay and, where appropriate, share scheme structures can be created for them.

David Craddock has been advising on employee share schemes and employee share trust arrangements for over 35 years. He advises on every aspect of the implementation process, working personally with the client at each stage, and offering solutions and expertise in all the technical questions that require clarification during the consultation. As an expert share valuer, David is the Technical Secretary and Advisor to the Share Valuation Worked Examples Group that meets quarterly with HMRC. He is also a member of the Steering Committee of The ESOP Centre, Economics Policy Adviser to The Employee Shares Policy Forum and the Educational Director of The ESOP Institute. DAVID CRADDOCK, MA(Oxon) David Craddock Consultancy Services

David Craddock welcomes an opportunity to discuss your Employee Ownership Trust Initiative with you. Please feel free to contact David at: T: 01782 519925 | M: 07831 572615 E-mail: d.craddock@dcconsultancyservices.com Visit: www.davidcraddock.com David Craddock Consultancy Services Specialist in Employee Share Ownership and Reward Management, Share Valuation, Management Buyouts, Employee Ownership Trusts (EOTs) and Investment Education

www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business

DSG Chartered Accountants kicks off Institute of Directors' sponsorship DSG Chartered Accountants (DSG), is delighted to announce that it will sponsor the Institute of Directors (IoD) in the Liverpool City Region for the next 12 months. Over the next year, DSG will be a lead sponsor at a series of events across the region, including breakfast meetings, debates, and the organisation’s regional conference in Liverpool in November. DSG will host its own event later in the year, with details to be confirmed in due course. The first session under DSG sponsorship welcomed an audience at ACC Liverpool for a question-and-answer session with Metro Mayors Steve Rotheram and Andy Burnham on a variety of topics, from infrastructure projects, to supporting businesses post pandemic. Mr Rotheram said that if the UK Government was serious about its levelling up agenda, Liverpool city region could see its “greatest period of growth since the Industrial Revolution” and called on the Government to back Liverpool’s £1.4bn economic recovery plan. “We can forge new industries here. We have the assets to do that. If the Government agrees to fund it then that would be proper levelling up,” he said. From its offices in Liverpool City Centre and Ewloe, North Wales, DSG provides independent accountancy and advisory services to a variety of small, medium, and larger businesses. The firm is a member of DFK International, a global association of accounting firms, that provides access to local knowledge on a global scale in matters such as tax planning, expanding overseas and regular compliance. The IoD is the representative body of business leaders across the UK. Established in 1903, the group holds a series of networking and discussion events throughout the year. Mark Kearsley, tax partner at DSG and IoD member, said: “We’re delighted to be named as a sponsor for the IoD in the Liverpool City Region.

Mark Kearsley “This is a prestigious organisation within the business community and this partnership further underlines our position as one of the region’s largest independent advisory practices and as a partner-led team, linking up with the IoD network can only improve the overall experience for our clients. “The first event with Steve Rotheram and Andy Burnham was a great success and we look forward to further such opportunities moving forward.” The IOD then had an Audience with Steve Morgan, the founder of housebuilder, Redrow, again sponsored by DSG. More details will be made available in due course.

The first event with Steve Rotheram and Andy Burnham was a great success and we look forward to further such opportunities moving forward. Mark Kearsley

LSCA Business

Leadership Through Sport & Business (LTSB) and LFC Foundation Apprentice of the Year. Congratulations to James Pimblett for being awarded Leadership Through Sport & Business (LTSB) and LFC Foundation Apprentice of the Year. James was selected by LTSB for dedication and achievement in his role as Accounts Advisor at DSG. LTSB prepares and supports bright young people who face barriers to beginning professional careers. Intensive training develops them personally and professionally, from exclusive experiences with LFC Foundation to professional qualifications with Kaplan UK. See James’s celebration video with messages from Celebrity Chef Simon Rimmer and Jane Stewart and David Williams, Business Accounts Managers DSG Chartered Accountants.

www.charteredone.co.uk

ISSUE 30 Autumn 2021

Professional Services | Financial

Inflation expectations: Cause for concern or economic recovery? Following on from a significantly challenging 2020, much of the positive momentum created in the final quarter as a result of Covid-19 vaccination optimism carried over into the beginning of 2021. However, despite a strong economic recovery including lower unemployment rates and higher retail sales, inflation expectations are now causing market rallies to stutter somewhat. The battle against inflation To avoid disrupting the economic recovery experienced following the easing of national lockdowns across the globe, central banks such as the US Federal Reserve, Bank of England and European Central Bank have all reiterated their plans to continue quantitative easing for the time being while keeping interest rates low. This is in their bid to continue seeing more money flow back into the economy and further stimulate growth which has been lost due to the recent lockdowns. Now we are seeing a slight return to ‘normality’ and economic activity is beginning to improve, there has been a significant uptick in demand for certain products for which suppliers have had to increase their manufacturing in a short period of time. However, suppliers have been caught on the backfoot as a result of the speed of recovery and are therefore struggling to keep up with the accelerated demand and this is resulting in supply chain shortages. Higher inflation has also been driven by ‘base effects’, particularly in energy costs because we are comparing annual rates against April 2020 when oil prices had fallen dramatically. Having explained why inflation is becoming a widely discussed topic, it is now worth moving onto how this impacts investors. Equity markets have been climbing fairly consistently since

the Covid vaccination announcement at the end of 2020 but in recent weeks have become more volatile because inflation concerns could cause central banks to halt quantitative easing and raise interest rates sooner than suggested. Inflation concerns become even more pertinent when the price of goods are

not just rising but are accelerating, like what we are seeing within commodities market, such as oil and copper, as well as typical household goods and microchips. In the US, the CPI jumped 0.8% in April, beating expectations of just 0.2%. This contributed to the annual figure climbing 4.2%, the fastest pace in twelve years. The year-on-year figures are likely to appear high for several months to come as most parts

Professional Services | Financial

of the world had imposed lockdown restrictions to tackle the virus this time last year. In tandem with the rising price of goods is a falling unemployment rate and rising salaries which further suggests a strengthening economy and short-term labour shortages. As the UK progressively opens its hospitality industry, unemployment rates have started to decline. US Payroll figures in April, however, were still more than 750,000 below pre-pandemic levels, suggesting there is still some way to go. In the US, forecasters wildly missed the mark as 266,000 jobs were created in April, significantly short of the 1 million predicted and this seems to have been related to labour shortages due to a fear of Covid as well as a lack of enough childcare provision. Is inflation here to stay? While for the most part, the economic data is driving inflation expectations, central banks, most importantly the Fed, have said that the rise in prices is likely to be transitory. Once

suppliers have comfortably caught up with demand, the value of goods is expected to normalise. The Fed has stressed that these price changes are only momentary and markets should remain calm. It is worth looking at what the world was like pre-Covid and whether inflation was ever a concern. For the most part, it was predominantly the opposite opinion with concerns that inflation was actually too low. Central banks mostly cut interest rates across 2019 and hawkish rhetoric about the economy overheating, which sparked a stock market sell-off at the end of 2018, disappeared almost entirely.

which should include some protection against inflation, whether through holding shares in companies that have the ability to raise their prices over time or more direct inflationprotecting assets such as inflationlinked bonds. In the meantime, your exposure to inflation protecting assets should be seen as part of your normal portfolio allocation. For more information, contact Nigel Hibbert on 0151 243 2160 or go to QuilterCheviot.com to discover more.

Investment protection As rising inflation means central banks may have to tighten monetary policy, some investors have turned bearish. In our view, investors should not be too concerned about inflation at this stage. This does not mean to disregard it completely, however. It is important to maintain a diversified portfolio

Nigel Hibbert

SHE’S GOT YOUR SMILE. GIVE HER YOUR GOOD FORTUNE TOO. For more than 240 5 years Quilter Cheviot has provided bespoke investment management to generations of clients. Our team in Liverpool provide the same award-winning service to our clients in the North West. Find out more about investing with us by contacting Nigel Hibbert, Head of Liverpool office, on 0151 243 2160 or visit www.quiltercheviot.com.

PERFORMING FOR GENERATIONS

Investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future returns. You may not recover what you invest. Quilter Cheviot Limited is registered in England with number 01923571, registered office at Senator House, 85 Queen Victoria Street, London, EC4V 4AB. Quilter Cheviot is a member of the London Stock Exchange and authorised and regulated by the UK Financial Conduct Authority.

www.charteredone.co.uk

ISSUE 30 Autumn 2021

Five ways to boost your accountancy business post-lockdown As we start to look to the future and transition to a post-lockdown mindset, many accounting and bookkeeping firms are looking at ways to take their business to the next level by streamlining their workflow and becoming more efficient.

Here are five ways you can kick-start your business now, to bring success post-lockdown: Get organised Eliminating paper from your office and shifting to secure online storage is not enough – you will still face issues searching for documents if your file structure is unorganised. Make sure your storage solution has customisable folder structures so you can route documents to their final destination and file them automatically. This will make searching for specific documents far easier.

Create repeatable workflows Set up automatic notifications, create templates, and establish a centralised location for all of your client information and important document. Integrating tools like DocuSign into your workflow and setting up custom templates to suit your business’ needs saves tremendous amounts of time. For example, you can simply send out a form for signature with one click, have it routed back to the correct folder, and instantly receive a notification that a document has been signed.

Add a client portal to your website A client portal allows you, your staff and your clients to access important documents securely at any time, regardless of location. It also allows clients to send you sensitive information securely and quickly over the internet. Don’t lose valuable time because a file exists on one machine that might be temporarily inaccessible, or even worse, lost or stolen.

Integrate your softwareEnsure the platforms you use every day communicate with each other, and avoid having to work in silos based on the software you need at that moment in time. SmartVault integrates with TaxCalc, Xero, Quickbooks and more – plus you can connect virtually any app you use to SmartVault via our print driver integration.

Set up 2-Factor Authentication (2FA) This may not save you time immediately, however turning on 2FA reduces the risk of cyberattack by 99% - this could save you a lot of time (and money) if your computer or email was hacked and sensitive information was inadvertently disclosed. Any apps that store or process sensitive information should have the option to turn on 2FA – and if they don’t, they should!

Find out more about how Smartvault can help you kick-start your business smartvault.com/see-a-demo

Rated #1 secure file sharing & document storage for accountants Streamline the way you collect source documents, organise client data and share files by using a secure, branded client portal, built for accountants and accounting firms.

In-built security and compliance SmartVault keeps you GDPR and AML compliant, with bank-grade encryption both at rest and in-transit.

Unlimited growth Add unlimited clients (for free!) and never experience a degraded service (common with on-premise storage) as you add clients & documents.

Automatic back-ups You never have to worry about losing your laptop or your hard drive failing with cloud storage - we automatically back up files as soon as they are uploaded.

Automate your workflow From collecting files from clients to eSigning within the portal and automatic filing, SmartVault helps you reach peak efficiency in as few clicks as possible.

I wouldn’t use anything else. Possibly the most seamless cloud-based solution for accountants. Christos Liondaris | Accountant and Founder | Liondaris & Co

SmartVault helps over 20,000 accountants and businesses securely share files with over 1,000,000 clients every day. Take 15-minutes to see how we can help your practice.

20,000 ACCOUNTANTS

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LSCA Business

Liverpool Society of Chartered Accountants Equality, Diversity & Inclusion

Institute related news The institute has been very busy in the D&I space. July was the month where most of the ICAEW content was focused on D&I. Please have a read of the content in the link below for our members . The D&I Hub is in the process of being revamped on the ICAEW website where you can find all our D&I activity, please also find the link below. July Monthly: https://www.icaew.com/insights/insightsspecials/equity-diversity-and-inclusion D&I Hub: https://www.icaew.com/insights/ diversity-and-inclusion 18

ICAEW workshop 12th October 21 Sara Najjuma , ICAEW Diversity and Inclusion Manager contacted the local district society to advise “We are now in the process of launching an ICAEW D&I Campaign this autumn with a content agency. We’re at the stage of starting to recruit participants for the filming of a workshop that we’re planning to run on 12 October 2021 in London. All travel expenses and accommodation will be renumerated. We’re looking to recruit participants approx. 15 students or newly-qualified chartered accountants, 15 chartered accountants who manage teams and 15 senior leaders, such as CFOs.”

This would be an ideal opportunity for workshop participants to enhance their learning and understanding of diversity and inclusion matters and how it relates to a work environment. The event would be filmed with the ultimate aim of producing three short video clips that would be used as learning material across ICAEW members. Please contact Barbara Boyle ASAP for more information if you would like to participate in this innovative workshop. If you need ED&I help or advice or wish to share ideas, please contact Barbara Boyle via her Linkedin page: https://www.linkedin.com/in/barbaraboyle/

LSCA Business

Local Events & Activities Coming up in your local area – please spread the word to ICAEW members within your network! Below is a list of events taking place within the North West - you are welcome to forward the planner on to ICAEW member colleagues and contacts. DATE

EVENT

LINK

20-Oct-21

ICAEW Essentials: 20 accounting problems

More info/book now

21-Oct-21

ICAEW Essentials: Corporation Tax Update (SME's)

More info/book now

22-Oct-21

Learning to Lead: Positioning Yourself for Seniority (Womens)

More info/book now

02-Nov-21

Unconscious Bias

More info/book now

03-Nov-21

Chester Town Group

More info/book now

03-Nov-21

Creating agile supply chains

More info/book now

04-Nov-21

ICAEW Essentials: Charity Accounting, Reporting and Governance Autumn Update

More info/book now

04-Nov-21

Driving Sustainability in the North (Team England)

More info/book now

05-Nov-21

Learning to Lead: Positioning Yourself for Seniority

More info/book now

08-Nov-21

ICAEW Essentials: Companies Act Issues

More info/book now

08-Nov-21

Agile Business Finance Solutions

More info/book now

10-Nov-21

Southport Members' Forum

More info/book now

10-Nov-21

ICAEW Essentials: Auditor Independence refresher

More info/book now

All of these events and more can be found at www.icaew.com/events

Essentials CPD The 2021 programme is now well underway and we would appreciate your support in sharing this with your colleagues. https://events.icaew.com/pd/19212/ essentials-virtual-cpd-2021-programme?sourc e=search&txt=brexit&rid=232

Member insight Please share your member insight with the local regional team, your views are important and will be fed back through the ICAEW network. www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business

Remembering ICAEW MEMBERS

Peter Stuart Jones Aged 87

Michael Harrison Aged 76 Michael was a Partner at Harrison Latham Chartered Accountants in Southport. Michael passed away at the beginning of June and leaves wife Nina. A Past Chairman of the Southport Branch and active committee member for many years, he will be missed by many.

Appleton, Barbara We are very sad to learn of the passing of our very dear Barbara Appleton. Barbara not only broke the glass ceiling, but shattered it, when she was elected as our Society’s first female President in 1995, and rejoiced in her title as “First Lady of the Oldest Society. She continued her groundbreaking when being elected to the ICAEW Council in 1997, and was also a Liveryman of the Chartered Accountants Company, and also served on the St Asaph Diocesan Board of Finance.

Peter trained with Harmood Banner (the forerunner to Deloitte Haskins and Sells and PWC) and went on to have a career in practice for about 40 years. Peter passed away at Whiston Hospital on 29 April 2021 and will be greatly missed by all those whose lives he touched. Beloved Husband of the late Pam, dearly loved Dad of Debbie and Philip, much loved Grandad to Alex, Philippa, Chris, Nathan and Robert, and younger brother of the late Lyn.

Donations if desired for Marie Curie Hospice, Liverpool, registered charity 207994, or The Rotary Foundation of the United Kingdom, registered charity 1002059 c/o Thomas Porter & Son Ltd, 66-68 Allerton Road, Woolton, Liverpool, L25 7RG.

LSCA Business

Tim Hill We are very saddened to report the passing of our member Tim Hill.

Tim was a hugely enthusiastic member of the Society, and whilst not directly involved in the Society activity, he represented us enormously on the wider stage, and supported our BASE students competition many times. Born in 1949 in Smithdown Road, Liverpool he qualified in 1974 with Peat Marwick Mitchell, later KPMG, and soon headed to South America, where he became Financial Controller of Club Caribbean at (in his own words, “the best address I’ve ever had”), Runway Bay, Jamaica. He created the remarkable, The Financial Game (TFG), which was endorsed by Mark Carney, the former Bank of England governor, and was committed to improving the financial literacy of young people. His recent illness caused him to pass on the future of this game to others, but he still continued with his great enthusiasm and commitment, and earlier this year had his very engaging biography, “LUCKY BASTARD” published under the name of Timothy Oliver. It is a book of great wit and heartfelt warmth, and will certainly make you smile. He leaves his wife Sue, three children and six grandchildren. Martyn Best, our Editor, recalls the few times he met with Tim as...

...too few by far. He was a fellow of great energy and enthusiasm, and very easy to warm to. We published a good profile of him in issue 28, and I only wish it had been a longer one, as I’d have loved to have dug deeper into his fascinating life. "His book does make up for that a little, and will be one of your best reads of the year. He would have loved me to be telling you that it is available on Amazon. Rest in Peace, Tim”

www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business

Accountancy student's hard work adds up to special prize lise Steward has been awarded a Liverpool Society of Chartered Accountants prize at her graduation from Edge Hill University in recognition of being the best performing student in her cohort.

The 22-year-old BSc (Hons) Accountancy student from Walsall said it was “a lovely surprise” to be awarded the £100 prize alongside her certificate for a First Class Honours after setting herself a series of personal goals. She has urged other students to “grasp the opportunities” Edge Hill offers “because they don’t know where they’ll take you next.”

LSCA Business She said:

I really can’t believe I’ve won this prize. All I did was go to the lectures and do the work so it’s quite surreal but nice to be recognised. "I didn’t really set my sights on it as such but after I started getting quite high marks, I set myself personal goals like getting the Academic Achievement scholarship in second year. I then decided I wanted to aim for a first in every module by the end of third year. They were just goals I kept to myself to keep me motivated.” Elise decided to pursue a career in accountancy and finance after taking part in work experience in sixth form and she felt confident the Edge Hill course was perfect for her.

Completing my degree has only made me more sure of this; the University has made sure I leave not only with a degree and the professional exemptions that I was after, but I am also now a well-rounded graduate who is prepared for a career in the industry.” Elise is excited to be continuing her education with an MSc Finance at the University of Siena in Italy, due to start in September.

I participated in one of Edge Hill’s Language Steps courses in Italian during second year, funded by the University’s Student Opportunity Fund which I’m incredibly grateful for, which has proven invaluable for this next step in my career.

“I’ve loved my time at Edge Hill. I’ve made friends for life and I’m graduating with a degree that I’m really proud of. “I’d like to thank the lecturers for being so supportive, especially during this difficult last year where we’ve all had to adapt to remote learning." Senior lecturer Graham Bloor, Elise’s personal tutor, commended her on the achievement, adding: “It’s great to have the opportunity to congratulate Elise for being the most outstanding third year accountancy student at Edge Hill University.

As well as reflecting Elise’s natural abilities and aptitudes, her achievement has also been based on hard work and a strong determination to succeed. “Edge Hill University’s accountancy programme is closely aligned to the requirements of prestigious professional bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW), and we pride ourselves on producing graduates like Elise who possess the skills and knowledge necessary to launch successful careers in the accountancy profession. “It is particularly pleasing therefore to team up with the Liverpool Society of Chartered Accountants (LSCA), the oldest society of Chartered Accountants in the country, in order to recognise Elise’s outstanding achievement." “We all wish her every success in her future career.” www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business

New innovations and greater client choice in global stock markets

ith global stocks reaching

Exchanges have been created

new highs and new regulated

that offer the issuance, trade and

exchanges entering the

management of decentralised derivative

market, Neil Blankstone explores

assets such as cryptocurrencies like

the latest developments and client

Ethereum or Bitcoin, facilitating a space

offerings within an ever-changing

for the creation and settlement of

landscape.

synthetic assets. There is concern that

The impact of COVID-19 has clearly

such assets are not yet ready for the

created huge challenges for economies

mainstream with regulatory bodies such

large and small, with the real-world

as the FCA warning of the risks.

consequences felt by businesses across

Consequently, if this is a bit ‘too

the globe.

innovative’ then IPSX as a further

During this time however, new

example is a lot more ‘grounded’.

listings on global stock exchanges have

Specialising in real estate, IPSX

continued to reach new highs, and

enables asset owners to raise capital,

market capitalisation figures from Tokyo

and investors to invest in real estate

to New York to London have seen solid

through a regulated exchange. For

growth. The wider capital markets have

example, the Mailbox in Birmingham – a

undoubtedly been a critical source of

large prime office-led mixed-use asset

support in facilitating new financing

– is on the exchange as Mailbox REIT

when it has been most needed in the

plc and allows investors exposure to the

last 18 months.

long-term income streams. Investors

Stock exchanges therefore continue

are attracted to assets where income

to play their part, enabling access to

is derived from well-known long-term

investors seeking better returns in a low

tenants, and they can see it with their

interest environment.

own eyes, even take a drive past in the

New products and services, more

car if they wish!

choice.

We have also seen other innovations,

Since the formation of the Alternative

including the explosion of money market

Investment Market in 1995 there has

funds offered, again expanding choice

been a recognition that innovation,

for investors seeking to park their cash.

flexibility, and a focus on the needs of

The International Stock Exchange

smaller, more specialised, businesses

(TISE) has also innovated in recent

can create new opportunities to

years, with updates to their listing

match investors with those in need of

rules and changes to the application

investment.

process. TISE have taken a good slice

In recent years there have been

of the global trend for increased public

further innovations and new regulated

issuance, with the first quarter of 2021

products and services entering the

seeing more new listings than in any

market – once again expanding the pool

other first quarter since the inception of

of investors and businesses benefitting

the Exchange in 1998.

from regulated exchanges.

NEIL BLANKSTONE of Blankstone Sington

Conclusion The aftermath of the pandemic will likely lead to further innovations and greater client choice – if undertaken within a flexible and agile regulatory regime. Private investors who have not previously engaged with stock exchanges are looking at new regulated markets – IPSX being a prime example. Innovative businesses therefore have more choice when raising finance, which will keep the wheels of the economy greased. The role of specialist investment managers and brokers is also changing. To ensure clients benefit from new opportunities there is a requirement to scan the horizon, reach out, and stay on top of any new innovations, product and services – something Blankstone Sington does very well! Authorised and Regulated by The Financial Conduct Authority (143694). Web:

blankstonesington.co.uk

Tel:

0151 236 8200

LSCA Business

We listen. We plan. We invest. INVESTMENT MANAGEMENT INHERITANCE TAX PORTFOLIO SERVICE STOCKBROKING

Entrusted with our clients’ savings and investments since 1976. BlankstoneSington.co.uk

ISSUE 30 Autumn 2021

LSCA Business

Golfing Memories Vicki Wheelhouse, the Chief Financial Officer of Kings Court Trust in Bristol

With our Annual Trophy looming, here is a fascinating memory of one of our former golfing members. We’re fairly sure that none of our existing members, or even our golfers will recall this delightful memory, but Vicki Wheelhouse, the Chief Financial Officer of Kings Court Trust in Bristol very kindly contacted us recently, and we needed to share her story. Vicki qualified in 2000, with a fine lineage amongst the profession, and her father, to commemorate her qualifying, presented her with a precious family heirloom. The silver cigarette case had been presented to his father (her grandfather) by our Liverpool Chartered Accountants' Golf Society back in June 1934 – a mere 87 years ago. We’re not sure what it represented, as her grandfather, William Stanley Hayes, is not recorded as a winner on our wonderful Annual Trophy, but he must have done something special. 26

She was also given, a magnificent leather bound copy of the Robert Louis Stevenson classic, Inland Voyage and Travels with a Donkey. This had originally been presented to William in 1937 for being the winner of the Alan Cookson Prize. The Award Certificate was signed by our then President, Mr H.G. Alexander. Many of you will know that In 1917 the Alan Cookson Prize was presented by Mr Ben Cookson in memory of his son Captain Alan Cookson who we sadly lost in the First World War, and is awarded not merely for examination achievement but for overall contribution to the Students' Association. If any of our members can add anything to this lovely tale, please contact Martyn Best, our Editor, and in fact if you have any similar fond anecdotes do please let us know. Many thanks to Vicki for sharing this with us.

0330 133 3732

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DID YOU SEE THIS IN THE LAST ISSUE...

Inter-District Societies

At WILMSLOW GC 24th June 2021 Dear All, I hope you are well. Welocme to the LSCA Golf Societies first fixture of the season. We require a team of 8. The first tee times will be 1.30pm with lunch beforehand and dinner afterwards. Please contact me to let me know if you're available. I can provide details of costs and further details about the other fixtures and the Annual Trophy. Best wishes. Dan

Dan Morton – Golf Secretary Lonsdale & Marsh, Cotton House, Old Hall Street, Liverpool, L3 9TX (t) 0151 236 8211 | (f) 0151 236 4485 28

THIS IS WHAT HAPPENED...

Liverpool Society Crowned Champions

In a year festooned with tales of amazing sporting prowess, our own Society Golf team join that 2021 pantheon of Olympian proportion. At the Inter-District Societies match on 24 June 2021 at Wilmslow Golf Club, Liverpool won under the formidable captaincy of Gerry Boon. In what was looking to be a fairly close finish, the last few holes proved to be decisive, and our boys ran out the winners by two strokes.

Dale Thorpe & Andy Lloyd 39 Peter Green & Derek Ashford 41 Chris Sales & Neil Latham 42 Gerry Boon & Phil Silver 44 Sadly, Dale missed his moment of Trophy receiving glory, but here are the rest of the team: Neil Latham, Derek Ashford, Phil Silver, Peter Green, Gerry Boon, Chris Sales and Andy Lloyd.

The final result was: Wolverhampton 158 Nottingham 159 Sheffield 160 London 164 Liverpool 166 Dan Morton, our Golf Secretary (non-playing on this occasion) gave an extra credit to Phil Silver, one of our Past Presidents for his superb and consistent play. Here are the team scores, and as you can see, all played splendid below-par golf, and immense congratulations to each for representing us so nobly. www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business

Simplified tax reporting proposals for the self-employed

New proposals for ‘simplified tax reporting’ for the selfemployed will see the often complex ‘current year basis’ rules abolished, aligning the treatment of self-employed trading profits with that for other forms of income. Businesses will be taxed on profits arising in a tax year, rather than on profits of the accounts ending in that year.

The Government is consulting on the detail of the proposed changes, with comments invited until 31 August 2021. For those businesses already adopting a 31 March or 5 April year-end, the impact should be minimal. However, with implementation proposed from 2022/23, others should act now to plan for the changes: • Some profits will be taxed earlier, creating cashflow challenges during the transition period as nearly two years of profits could become taxable in a single year. Spreading rules may mitigate the impact. • Relief should not be overlooked for ‘overlap’ profits from early years of trade. • Businesses with year-ends later in the tax year will may need to submit tax returns including provisional/ estimated figures, with amendment once finalised information is available. • Consideration should be given to implementing an effective software package for accounting and tax reporting, especially given the also upcoming introduction of Making Tax Digital for Income Tax. • Particular complication may arise for partnerships, where joiners/leavers are involved. In certain cases, incorporation may be worth considering.

LSCA Business

Brexit: Impact for withholding taxes As a result of the UK’s exit from the EU, from 1 July 2021 UK companies will no longer be able to benefit from the two EU Directives that provide automatic relief from withholding taxes on the payments of interest, royalties and dividends. The basic rule is that a UK company must withhold Income Tax at 20% on interest or royalties to a non-UK resident person (there is no UK withholding tax on dividends). The withheld tax is paid to HMRC (typically via a quarterly reporting) and the payee receives the remaining 80%. Often the foreign recipient will be able to benefit from a domestic double tax relief regime to offset the withholding tax suffered, but this will not always be the case and there is also a cash flow disadvantage. Whilst the UK was a member of the EU, UK companies, like those in the EU, benefited from two Directives relating to withholding tax: 1. the Interest and Royalties Directive 2. the Parent-Subsidiary Directive

Each of these Directives has the effect of eliminating the withholding tax requirement between residents of EU member states, where qualifying conditions are met. The UK continues to benefit from these two Directives for a short period after the end of the Brexit transition period, but from 1 July 2021, unless the payment qualifies for another relief, UK companies will need to withhold tax on the payment of interest and royalties to EU persons in the same way as for payments to a person elsewhere. The same applies for payments from an EU resident company to a UK resident, who may now find themselves subject to withholding taxes that were not previously applied. Interest and penalties may be levied where tax is not withheld when required. Fortunately, there are other reliefs, most commonly by reliance on a double tax treaty between the two countries. A common clause within a treaty will limit the extent of withholding tax that applies, either to a reduced level or possibly to nil, and the UK has a very extensive network of such treaties. However, there are conditions for treaty reliefs to apply and the relief is rarely automatic, requiring the companies party to the arrangement to make a claim to the relevant tax authorities. The claim should be made in advance and can be a time-consuming process, requiring certification of residence and exchange of physical papers between the two jurisdictions. UK companies should review their debt, intellectual property and dividend arrangements and establish if they receive or pay any interest, royalties or dividends to/from EU-resident persons. If they do, they should then review the withholding tax position and, as a result, may then need to make a claim for a relief under a double tax treaty. In more complex situations, it may be necessary to consider reorganising the relationship. EU companies should give similar consideration to arrangements with UK residents. DSG’s tax team are highly experienced in assisting our clients in managing their withholding tax position, working closely with client teams to establish a commercial approach to resolving any concerns. We will always be happy to discuss your situation with you, so please get in contact if you have any concerns.

www.charteredone.co.uk

ISSUE 30 Autumn 2021

Professional Services | Financial

IF YOU WANT TO STOP IT KICKING OFF DON'T MOVE THE GOAL POSTS

Well, it was quite a storm over the idea of a European Super League with the city of Liverpool demonstrating some polar opinions. There was outrage on the blue half of Merseyside at the thought that the folks across Stanley Park should race away to chase this pot of gold and untold riches, whilst Liverpool FC’s owners made a miscalculation of epic proportions about how unhappy their ‘customers’ might be. Before anyone shouts at me for referring to supporters as ‘customers’, it enables me to make a comparison to business, so bear with me. Legends of the game such as Bill Shankly, Matt Busby and Jock Stein all made emotive statements with a variation on a theme that football, without fans, is nothing, and the last 12 months of playing in empty soulless stadiums has only served to reinforce this fact. I’m a man of simplicity, and whilst it’s not all about nostalgia and doggedly holding with old traditions, there are some basic aspects that transcend time and technological change. Bill Shankly talked about making the people happy. In the world of business and football, and the seismic events we are still coming to terms with, most people are happier when things are simple, clear, and certain – this is both in the way they run their companies and what they want their

customers to experience. Add in choice, and you have a winning formula. Amazon, as undoubtedly one of the most valuable businesses on the planet, is certainly a pioneer in taking this to another level through technology. At its heart it allows the customer to easily and simply have a clear choice from a range of products, at a price he/she can easily compare and, once purchased, it provides certainty of a quick delivery. So, how on earth does this relate to the world of raising finance in a post COVID era? The team at Reward Finance Group passionately believe that trying to keep things simple and straightforward, with a speedy delivery, are key requirements. Naturally, price matters within reason, but it should not be the defining decision. Why else would millions of us buy an Apple laptop at £1,500 when you get a laptop that does many of the same things for about £250? When a business requires finance, it needs to consider several factors – the amount required; how easy it might be to obtain; what ongoing requirements it entails; does it provide enough to cover future plans; is it something the business can afford; how quickly can it be delivered? Whilst financial services play a significant part in driving the UK economy, there are large parts of the SME market that labour on, juggling cash and using their own resources, because of some inherent fear

STEVE NOBLE, REWARD FINANCE GROUP’S MANAGING DIRECTOR, NORTH WEST, ON WHY WE SHOULD ALL KEEP THINGS SIMPLE, CLEAR, AND CERTAIN.

that having funding (debt) in your business is somehow a bad thing. But business owners often consider how much more potential the business would have if they had access to additional working capital. The last 10 years plus have seen more choices created than ever before for alternative finance, rather than being restricted to the “big boys” on the High Street. Let’s face it, the High Street is changed forever, and so in my view, is the world of business finance. With so much choice, Reward’s advice to SMEs is for them not to be overwhelmed or frustrated by complexity, ‘box ticking’ or fancy tech – but to talk to their Accountant/Adviser. Together they can focus on the amount they might want and then find a solution which meets those needs, rather than letting an ‘off the shelf’ product drive them down a certain path. After all, when you go onto Amazon and search for an item you want, you don’t put the model number in and work back from there, do you? The ‘Big Six’ football owners should listen to the fans (their ‘customers’) who want things simple, clear, and certain. It’s a formula that works well across all sectors, from delivering parcels through to providing finance, and it is certainly one that Reward Finance Group has built a successful business upon. Hopefully, our clients and their advisers believe this approach puts us in the Premier League when it comes to lending.

Professional Services | Financial

When the banks would not support me, I was close to putting everything on the market and selling up. However, Reward saw the passion I had for the site and Russell Holt and the Reward team worked tirelessly to provide me with the funds to turn my childhood dreams into reality."

Reward Finance Group helps childhood dream become a reality for leisure operator. Reward Finance Group was introduced to Carol Gerrard-Hughes by Liverpoolbased Matthews Sutton Accountants to ask if we would consider funding the improvements to the Forest View pub and caravan site in Oakmere, Northwich.

Carol Gerrard-Hughes and her daughter Sophie at Forest View

We went to meet Carol to hear her story. She told us that she had fallen in love with Forest View after her parents bought a caravan, when she was six, and the family spent weekends and school holidays there. At 13, she started washing up in the pub, then worked behind the bar and, ultimately, finished up running it. She set her mind on owning Forest View but realising her ambition has not been easy. Having bought the tenancy for the pub and the site in 2007, she was advised by pub operator and owner, Scottish and Newcastle, that they were planning to sell the site to a housing developer in 2009. To prevent this from happening, she moved quickly and bought the whole lot from them. As well as the pub, the site has 45 static caravans and 26 touring pitches. Recognising the potential for Forest View, which overlooks Delamere Forest, Carol was keen to make a significant investment in the site. Her plans were to extend and refurbish the pub, build a new toilet block, create 20 more touring pitches, provide additional electrical points for the caravans, as well as landscaping and tidying up the site to further enhance its appeal.

Despite the equity in the site, none of the banks would lend her the money to carry out her plans. Having been impressed with Carol’s enthusiasm and tenacity, as well as her plans for the site and the additional revenue this would generate, Reward quickly provided the funds. With the works now complete, Carol is already reaping the rewards with all the static caravans occupied and the touring pitches fully booked for this year. Planning permission has also been granted for an additional 27 tent pitches. “When the banks would not support me, I was close to putting everything on the market and selling up,” Carol said. “However, Reward saw the passion I had for the site and Russell Holt and the Reward team worked tirelessly to provide me with the funds to turn my childhood dreams into reality. “My parents and two siblings spent some wonderful holidays and getaways here and, from being my second home, it has now turned into my real home for my husband Mike and our six children. I am also delighted my eldest daughter Sophie is my new business partner, and I am very

excited about the future, now that it is secured.” Reward’s Business Development Director for the North West, Russell Holt, added, “The money we have lent to Carol has been invested wisely as it has transformed the site, making it a real destination for holidaymakers, especially with the rise in ‘staycations’, and a great place for people who live in the static caravans. “The pub has traditionally served those on site but, now the improvements have been made, it will definitely attract people from the local area too. “By being flexible we were able to provide Carol with the funds quickly to ensure the pub and the site fulfil their true potential, resulting in an extremely successful business.” For further information contact: Steve Noble, MD North West on 07802 297929 email steve.noble@rewardcf.com, or Russell Holt, BD Director North West on 07825 327725 email russell.holt@rewardcf.com www.rewardfinancegroup.com

www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business

WITH ANDY BOUNDS IT'S TUESDAY EVERY DAY

COMMUNICATION TOP TIPS

– get a lot MORE done, in a lot LESS time

Andy is also a member of the Liverpool Society of Chartered Accountants, and he has kindly agreed to share with us some of his famous Tuesday Tips.

Communication Expert Andy Bounds helps companies communicate better and sell more. Awarded the title Britain’s Sales Trainer of the Year and Liverpool Business Personality of the Year, Andy has worked in 40+ countries, with some of the world’s largest and most famous companies.

These words of wisdom and practical insight come out, not very surprisingly around 08:45 each Tuesday morning, and every Chartered ONE will now contain some of the best from the previous month.

LSCA Business

“VIRTUAL MEETINGS START BADLY. AND THEN THEY GET WORSE” That’s definitely true. But then so’s this:

“When meetings start well, they tend to be good” Which means – and I know this is an oversimplification (but not much)…

… Your start dictates how successful your meeting will be. So start with a BANG, not a whimper. To nail this, only two things matter – the WHAT and the HOW:

WHAT

Before you start, be clear WHAT you’ll say in your first 1-2 sentences. Make it sound exciting, relevant, interesting. Be clear on the benefits to them of attending.

HOW

GRASS IS NOT GREENER ON THE OTHER SIDE. Instead, it’s greenest where you water it. It’s the same in business. You should water your relationships. After all, it’s better to chat with people you know, compared to those you don’t. So if you want lots of green grass (or – as businesses call it – ‘sales’), it’s better to water your current relationships, rather than spending all your time targeting strangers. For example, your NUMBER 1 contacts are your customers. So proactively ring them. Ask how they’re doing. Offer them help.

Obvious, right? But too many people don’t proactively contact their customers. They don’t water their grass enough. In fact, they only ring their customers when there’s a problem, or they want to sell them something.

Deliver your start in an engaging way. Speak with passion. Smile. Look straight at the camera. Lean forwards. Raise your voice slightly…

But that means, every time your customer sees your name on their phone, they’ll think “oh no, there must be a problem. Or worse, I’m about to be sold to!”

… all easy stuff.

And how to find time to contact the people you should…?

But also all-too-easily forgotten. This is one of my favourite Tips. Because it causes maximum impact for minimum effort! After all, it only takes a couple of minutes to work out WHAT you’ll say. And, as for HOW you’ll say it… well, you were speaking anyway - so it doesn’t take any longer!

Action Point … Simply schedule time in your calendar to water your important relationships. Your family, friends, colleagues, customers – whoever matters most. Because, miraculously, when you schedule time in your calendar, you always have time to do it!

You can email him on andy@andybounds.com and join his online sales training programme at www.andyboundsonline.com www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business

COMING SOON! If this page intrigues you, then we shall have an exclusive interview with the author in the next issue.

Many of you will know Chris Wainwright. Chartered Accountant with Arthur Young, multi-talented and diverse entrepreneur, gifted rugby player with Birkenhead Park, and of course on the Business Committee of your Society. You may not know he is on the verge of becoming a best selling author, and Gentlemen, I Give You … is being published next month, and with bated breath we will have an exclusive interview with him in our next issue.

LSCA Business

Information hubs from the ICAEW BREXIT–the latest resources and advice for ICAEW members and their clients. Business advice service (BAS) - Please do help us by promoting BAS to your contacts in business by explaining what the service is all about and pointing them to our new webpage. A further promotional push with LEPs, growth hubs, chambers and so on is in planning, and further press releases are also planned across the UK to raise awareness of this important service to local businesses. Latest ICAEW updates within the Coronavirus Hub - A reminder of the main Coronavirus Hub web link, including the Help for business section and a growing collection of sector-specific content relating to coronavirus. Just one of the recent areas of support is the Redundancy hub for employees and organisations.

Latest ICAEW updates within the COVID-19: global recovery Hub - Global recovery news and insights and accountancy's role in global recovery. Modern Slavery – would you know what to look for? https://www.icaew.com/technical/legal-and-regulatory/ modern-slavery ICAEW helplines and support - Details of which telephone helplines are available, and alternative live web chat facilities, can be found here. An advisor will be able to take your query and resolve it or connect you with the relevant teams. CABA courses - Learn how to support your physical and mental wellbeing and build your resilience in these challenging times. Upcoming live webinars, on-demand webinars and online courses enable you to achieve your goals, wherever you are in the world. ICAEW Communities – many of which are available at no cost to join As always, please do get in touch with me, if you have any questions or comments. Kind regards, Alex.

Alex Pilkington Regional Executive, Liverpool

T: +44 (0)192 559 4284 M: +44 (0)7876 035 943 E: Alex.Pilkington@icaew.com

ICAEW Jackson House, Meadowcroft Business Park, Pope Lane, Whitestake, Preston, PR2 2YB, United Kingdom icaew.com

www.charteredone.co.uk

ISSUE 30 Autumn 2021

LSCA Business

ICAEW know how

We published this in the last issue, and because it is such a wealth of information we shall be keeping this list of publications as a easy reference for you.

Technical Report PUBLICATIONS ISSUED DATE

TITLE

AREA

TYPE

13/01/21

Movement of goods - introduction to the UK-EU TCA

Tx F

Guide

14/01/21

Rules of Origin

Tx F

Online resource

20/01/21

The Modern Slavery Act 2015: An introduction for accountants

Guide

20/01/21

The Modern Slavery Act : Section 54 transparency in supply chians statements

Guide

21/01/21

Fraud and COVID-19 government support guide for auditors

AAF

Guide

21/01/21

The Modern Slavery Act: Actions for internal audit

BMF

Guide

21/01/21

How to spot victims of modern slavery

Multiple areas

HTML & PDF Guide

21/01/21

How to report modern slavery and human trafficking

HTML & PDF Guide

22/01/21

Paying Dividends: The essentials

Guide

25/01/21

AML: The Basics: Asset transfers

Factsheet

29/01/21

Modern Slavery Statements; good and bad practice

Multiple areas

HTML & PDF Guide

31/01/21

LLP SORP 2020 annual review

FRF

Guide

05/02/21

UK endorsement of IFRS

FRF

Online resource

05/02/21

UK Endorsement Board

FRF

Online resource

08/02/21

Update to Brexit & Risk guide

AAF

Online resource

08/02/21

How to spot victims of modern slavery

HTML & PDF Guide

09/02/21

Coronavirus: (Update) BBLS

CFF

Online resource

11/02/21

Contract modifications under IFRS 15 revenue from contracts with customers

FRF

Guide

22/02/21

Contract modifications under IFRS 9 Financial Instruments

FRF

Guide

25/02/21

AML: The Basics: Tax services

Factsheet

26/02/21

2020 reporting year-ends: questions for the Board

BMF

Guide

28/02/21

Using open innovation

BMF

Guide

28/02/21

ESG in investment and transaction decisions

CFF

Guide

28/02/21

Red Flags : Signs of modern slavery

HTML & PDF Guide

28/02/21

The Modern Slavery Act: section 54 transparency in supply chains statement checklist

HTML & PDF Guide

28/02/21

Modern Slavery around the world

HTML & PDF Guide

28/02/21

Modern Slavery Statements: Good and Bad Practice

Guide

LSCA Business

EVENTS HELD DATE

TITLE

AREA

TYPE

11/01/21

Maintaining wellbeing during audit busy season

AAF

Webinar

13/01/21

MTD for corporation tax consultation

Tx F

Webinar

19/01/21

DAC6 affects SMEs too

Tx F

Webinar

21/01/21

What UK businesses and their boards need to know about the 6th carbon budget

Sus

Webinar

26/01/21

Bitesize Briefing: Amendments to UK GAAP for COVID-19-related rent concessions

FRF

On-Demand Recording

26/01/21

Review of UK Listings: Roundtable for Lord Hill with reporting accountants

CFF

Roundtable

27/01/21

Excel Tip of the Week Live - your questions answered (part 3)

TeF

Webinar

28/01/21

2020/21 Reporting: Going concern and impairment

FRF

Webinar

31/01/21

Modern Slavery - how to spot it

Webinar

02/02/21

Hardman: Making tax digital - what does it mean for tax professionals

Tx F

Virtual event

02/02/21

Review of UK Listings: Roundtable for Lord Hill with lead advisers and principals

CFF

Roundtable

03/02/21

VAT reverse charge in the construction industry

TxFy

Webinar

04/02/21

Brexit and audit

AAF

Webinar

04/02/21

UK M&A in a Post-Covid World

CFF

Webinar

10/02/21

Interview techniques for the Zoom age

BMF

Webinar

11/02/21

MTD for income tax self-assessment

TxF

Webinar

11/02/21

COVID-19: A scientific perspective - looking to the future

FSF

Webinar

12/02/21

The Modern slavery Act 2015: An Introduction

Webinar

12/02/21

The Modern Slavery Act: section 54 Transparency in Supply Chain Statements

Webinar

15/02/21

IR35 and employment status

TxF

Webinar

22/02/21

Going concern and impairment - your questions answered (Bitesize briefing)

FRF

Webinar

23/02/21

Getting research & development claims right

TxF

Webinar

23/02/21

Getting more value from your procurement activities

BMF

Webinar

26/02/21

Improving use of charts in Excel

TeF

Webinar

26/02/21

Speech by Bank of England Deputy Governor Sir Dave Ramsden on bank resolution in conjunction with ICAEW

FSF

Webinar

www.charteredone.co.uk

ISSUE 30 Autumn 2021

Professional Services | Financial

When should a business speak to an insolvency practitioner? A question that is on any businesses owners’ mind when facing financial and operational challenges that threaten the continuity of the business. Many assume that an insolvency practitioner should be contacted at the point the company becomes insolvent, but this is not what we would recommend – it is far more beneficial for an IP to be contacted much earlier.

ypically, we have two scenarios when we are contacted. Either the business is having problems and the management are aware of the cause OR, the business is having problems and the management are at a loss of the clear route cause; which is more often the case. Common problems we regularly see are: 1) Battling overdraft facility 2) Arrears in HMRC payments 3) S upplier issues affecting delivery of own products/services 4) Staffing issues e.g. can’t find staff or can’t hold onto staff 5) Balance sheet and/or turnover reduction 6) Client erosion All too often, multiple indicators are showing themselves and with the overwhelming pressures, the management are in the thick of trying to resolve the problems, convinced they can fix them

without external help, often patching up issues rather than implementing longerterm fixes. Current Challenge An insolvency outlook report by Atradius(1) forecasts business failure rates will increase by 10% this year in Britain. External influences and economic change can often be the final blow for a business that has already been struggling. There are many businesses across the UK which have been ‘surviving’ rather than thriving and one small change such as an increase in interest rates can send them over the edge. In light of growing challenges, it is important that companies act with speed if the owners/Directors identify problems in the business; before the challenges become too big. Often, when we are engaged earlier, there are likely to be more options to rescue a

business rather than implement an insolvency process. We want to be working with Stephen Berry, businesses Partner at Opus as early as possible so that we can help them with solutions to recover their business rather than taking them down the insolvency route. This is where we can best support the management team. As well as recommending and implementing known and tried methods to help the business, we have a number of contacts who can help the struggling business if a new viable plan can be identified. For more information about our services, please call us on 0151 705 9115, email liverpool@opusllp.com or visit the website www.opusllp.com.

1. https://www.cityam.com/global-insolvency-rates-tipped-to-reach-10-per-cent-in-the-uk/

RESTRUCTURING & INSOLVENCY

Taking the Stress out of Distress At the point a business is in distress, the business owners and/or Directors need support from people they can trust, that are visible and readily contactable. For your clients, we know that means not only having people who understand the nature of their work, but also the local business market. Opus is a business advisory, restructuring, insolvency and exit management practice. The Partners are focused on commercially driven results and take a proactive approach towards tackling business challenges with an assurance of confidentiality. 40

Chartered One - Winter 2019 Advert - Opus 02-131119.indd 1

    

0151 705 9115 liverpool@opusllp.com www.opusllp.com twitter.com/opus_llp linkedin.com/company/opus-llp/

13/11/2019 11:23

LSCA Business

www.charteredone.co.uk

ISSUE 30 Autumn 2021

Kickstart Scheme Facilitation The Chamber is proud to be an approved Kickstart Scheme gateway. This means we can help your business access the Kickstart talent pool whether you recruit one Kickstarter or an entire cohort. The Kickstart Scheme provides funding to create new job placements for 16 to 24 year olds on Universal Credit who are at risk of long term unemployment. Employers of all sizes can apply for funding which covers: 100% of the National Minimum Wage (or the National Living Wage depending on the age of the participant) for 25 hours per week for a total of 6 months. Associated employer National Insurance contributions Employer minimum automatic enrolment contributions Employers can spread the start date of the job placements up until the end of December 2021. Further funding is available for training and support so that young people on the scheme can get a job in the future. Want to hire a Kickstarter or find out more?

CharteredONE Magazine - Issue 30

Articles inside

OPUS

REWARD FINANCE GROUP

DSG - SIMPLIFIED TAX REPORTING PROPOSALS FOR THE SELF EMPLOYED

DAN MORTON - GOLF EVENT

TECHNICAL REPORT

ICAEW - LOCAL EVENTS & ACTIVITIES

ACCOUNTANCY STUDENTS HARD WORK ADDS UP TO SPECIAL PRIZE

GOLFING MEMORIES

REMEMBERING ICAEW MEMBERS

SMART VAULT - FIVE WAYS TO BOOST YOUR ACCOUNTANCY BUSINESS - POST LOCKDOWN

QUILTER CHEVIOT - INFLATION EXPECTIATIONS

ICAEW - ANNUAL GENERAL LSCA EQUALITY, DIVERSITY & INCLUSION

REFLECTIONS FROM OUR EDITOR

DAVID CRADDOCK

DSG - LEADERSHIP THROUGH SPORTS & BUSINESS

DSG - CHARTERED ACCOUNTANTS KICKS OFF INSTITUTE OF DIRECTORS SPONSORSHIP

COODEN TAX CONSULTING ARE WE THER YET?