Chartered ONE Issue 29 by chartered-one

CharteredONE

ISSUE 29 SPRING 2021

The official magazine of the Liverpool Society of Chartered Accountants

Annual General Meeting

Another million steps in April

Melvin Morris RIP

Equality, diversity & inclusion developments Your 'new' President

WHERE THE LEGAL COMMUNITY MEETS

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LSCA Business

The President's Words My hopes for the coming year are simple in principle - to be able to conduct some physical meetings and events. I hope that following the reduction in infection rates and the efficiency of the vaccination program that this is now achievable."

he last time a President of the LSCA served consecutive terms was T. Lesley Hanmer which was between 1944 and 1946. I think that this puts the magnitude of the events of the last twelve months into context. When the 2020 AGM concluded I would never have envisaged conducting an entire year of committee meetings via video and I certainly would not have expected to conduct the 2021 AGM in the same format. Meetings with other District Society Office Holders have been limited to

a virtual format and although the majority are continuing in their role for another year, some have retired from office without me having physically met them. I’d like to give my thanks to my Deputy (Justin Lang) and Vice President (Rob Adams) for their continuing support, and to all of the members of our Committee who give so much of their time in helping maintain the vitality of our Society. I’d also like to thank the everreliable and always hugely supportive Alex Pilkington, who keeps our Society on track with her energy and commitment.

My hopes for the coming year are simple in principle - to be able to conduct some physical meetings and events. I hope that following the reduction in infection rates and the efficiency of the vaccination program that this is now achievable. So, my best wishes to you, and I hope to actually see you in the near future. Best wishes,

ROB YOUNG President

CharteredONE

www.charteredone.co.uk

ISSUE 29 Spring 2021

LSCA Business

Contents 28

03 THE PRESIDENT'S WORDS 05 REFLECTIONS FROM OUR EDITOR 06 COODEN TAX CONSULTING: ARE WE THER YET? 08 I CAEW - BUSINESS CONFIDENCE MONITOR 11 DAVID CRADDOCK 12 DSG - CHARTERED ACCOUNTANTS BOLSTERS TEAM WITH THREE SENIOR PROMOTIONS 13 DSG - FREEPORTS: TAX BREAKS 14 QUILTER CHEVIOT - INFLATION EXPECTIATIONS 16 SMART VAULT - FIVE WAYS TO BOOST YOUR ACCOUNTANCY BUSINESS POST LOCKDOWN

18 ICAEW - ANNUAL GENERAL MEETING: PRESIDENT ELECTION 18 ICAEW - LOCAL EVENTS & ACTIVITIES

30 CHESTER & NORTH WALES NEWS

19 LSCA - EQUALITY, DIVERSITY & INCLUSION

32 REWARD FINANCE GROUP

20 MELVIN MORRIS RIP - ACCOUNTING ICON

34 ANDY BOUNDS - TUESDAY'S TIPS

22 LSCA - EQUALITY, DIVERSITY & INCLUSION 23 ANDREW LLOYD - THE GOVERNEMENT AND GREEN TAXES

36 1 MILLION STEPS 38 CHRIS WAINWRIGHT GENTLEMEN I GIVE YOU... 39 ICAEW - INFORMATION HUBS

24 BLANKSTONE SINGTON

40 TECHNICAL REPORT

26 LEST WE FORGET

42 OPUS

27 DAN MORTON - GOLF EVENT

43 LEGAL RSS

28 DSG - COVID FINANCIAL SUPPORT

43 CHAMBER OF COMMERCE - KICKSTART SCHEME FACILITATION

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 everyone,

I hope that the wide demographics of our members and readers has ensured we have all now been vaccinated, and we are looking forward to a safer and happier year ahead. I’m sure we have all had our challenges this last year or so, and my thoughts are with you all, and your families and colleagues. 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. Courses and seminars have continued very valiantly, and I know the renewed, though familiar, Office Holders are planning for our release for later in the year, and certainly your Committee has been encouraging them

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

in their plans for our usual conference and of course our much-loved Annual Dinner. We have been experimenting with a different online format and platform for CharteredONE, which will offer a more interactive content experience, we will unveil this for the next issue. I’d really welcome your feedback then on what format you prefer. A great summer of sport is about to unfold upon us. After months of working from home, is it now time for football to come home. In terms of my normal review of sporting excellence that is heading our way – well, we do appear to have the Euro 2020’s – which I believe is still called that in some areas, as it’s such a shame to waste a good reprint. Will

COVER PHOTO Kindly supplied by and with thanks to Gary Millar, former Lord Mayor of Liverpool.

England give us some cheer, both in the football, and the cricket, and of course what joy might there be in a glorious Lions tour? As a Society and Committee there is a growing support for the many areas of equality and diversity that are so vital within our Society, and Barb Boyle is really championing this very vital subject, and she (and I) would really welcome your thoughts here. So, as Spring warms up, and wherever we may holiday, let’s hope for some sunshine, may I wish you well until issue 30. With very kind regards, MARTYN BEST Editor & Past President

Document Direct are having a special Euro 2020 charity challenge which I invite you to enter at https://form.jotform.com/211514325689357

www.charteredone.co.uk

ISSUE 29 Spring 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 28 Spring 2021

LSCA Business

The ICAEW Business Confidence Monitor · Companies nevertheless expect their domestic sales to grow strongly over the next 12 months, and their export sales to also rise. They expect profits to increase, in line with domestic sales, and they plan to take on more staff.

The results of Q2 ICAEW Business Confidence Monitor™ (BCM) are in. The latest results show that business confidence has hit its highest level since a survey began in 2004. The continued success of the vaccine rollout programme in the UK and declining infection rates are likely reasons behind this. The findings come after figures from the Office for National Statistics showed the UK economy had contracted by 1.5% in the first three months of 2021, but gathered speed in March as lockdown restrictions were eased.

· Transport problems are a widespread growing concern, especially for those companies that export. Shortages of road and air-freight capacity, Brexit disruptions and the temporary closure of the Suez Canal are all likely factors.

BCM Q2 key findings ·E conomic recovery stalled through the winter but now looks to be resuming. Confidence is at its highest level on record, reflecting the success of the vaccine roll-out and the sharp decline in infection rates. ·M any sources of uncertainty remain, including the possibility that the much hoped-for consumer recovery will disappoint, and the existence of both economic and health risks emerging from other parts of the world.

+44 (0)1908 248 250 8

contactus@icaew.com

· Regulatory requirements are also a large concern, with both Brexit and COVID-19 restrictions contributing at least slightly to the growth in challenges facing businesses. You can view the full report and regional findings here: https://www.icaew.com/technical/economy/economic-insight Or you can join us, Pro Manchester and Professional Liverpool for the live results on Friday 11 June – register here or rsvp directly to Alex.Pilkington@icaew.com Hope you can make it.

icaew_uk

icaew.com

Professional Services | Financial

How the Employee Ownership Trust Offers the Ideal Exit Strategy at Zero Tax 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 the Employee Ownership Trust (EOT) can fulfil in facilitating the ideal tax-efficient and cost-effective exit strategy as an alternative to a trade sale or an initial public offering.

he Latest Triumph for Employee Ownership

The initiative to introduce the EOT through Schedule 37 of Finance Act 2014 emerged from the Coalition Government as the single most significant triumph in the development of employee ownership since Enterprise Management Incentives (EMI) and the Share Incentive Plan (SIP) were introduced by New Labour in 2000. Unlike EMI and the SIP, which deliver direct employee share ownership to individual employees, the EOT offers indirect employee share ownership. The unique feature of the EOT is that the sponsoring company’s shares are held in a discretionary trust as a collective arrangement for the long-term benefit of the company’s total workforce in stabilising the company’s ownership structure and securing its independence. Although different in kind from EMI and the SIP, either of these two scheme arrangements can, if the company so chooses, operate alongside the EOT and offer direct employee share ownership to complement the collective ownership by the EOT. Notably, the grant of EMI options to senior employees, properly implemented and communicated, can act as a motivational empowerment for executives, thereby ensuring that the shareholder

succession is matched by a management succession that is so essential for a successful exit. Nevertheless, the EOT can operate without any accompanying tax-advantaged (taxapproved) employee share schemes, and still offer, courtesy of its own 2014 legislation, if the company so decrees, taxfree bonuses to its employees. Ironically, although the word employee precedes the words ownership trust, the introduction of the EOT is not conditional upon offering any form of specific employee financial benefit. In its most basic form, by allowing the sale of a controlling interest to the trust, the selling shareholders enter a transaction with the trustees at a zero capital gains tax rate. The economics reasoning behind the legislation is that the sale of its shares to the trust secures the independence of the company in perpetuity. Any sale to a third-party acquirer - which often results in redundancies through reorganisation and economies of scale - is therefore, forestalled. This preserves not only jobs but also the company’s culture that has evolved over many years, and its contribution to the community in which the company is based. Operating in this dynamic, therefore, the EOT is pro-business, pro-employee, and pro-community with an accent on giving the company a safe and secure business environment in which to grow and flourish with its own business identity. www.charteredone.co.uk

ISSUE 28 Spring 2021

LSCA Business Professional Services | Financial

The Headline Capital Gains Tax Exemption: ZERO Tax Charge for the Selling Shareholders The EOT provisions of Schedule 37 of Finance Act 2014 are effective from 6th April, 2014 through insertions into the Taxation of Chargeable Gains Act 1992 (TCGA 1992) and the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003). Under Section 236M, TCGA 1992, the Controlling Interest Requirement secures a complete exemption from capital gains tax for the seller of the shares for the sale of the 51% (or more, up to 100%) controlling share interest to the EOT in a defined single tax year. This exemption is available for persons who are not companies. Provided the statutory requirements are met, notably that the shares are in a trading company or the parent company of a trading group, then the capital gains tax exemption is available to an unlimited extent. The fact that the exemption is unlimited is a particularly attractive feature, even if the seller has access to Business Asset Disposal Relief, for the simple reason that the sale of shares to the EOT attracts zero capital gains tax on an unlimited amount of value. The tax-efficiency of the EOT for the selling shareholders is underlined by the fact that the legislation also states that the sale of qualifying shares to the EOT does not in any circumstances constitute a chargeable transfer for inheritance tax purposes,

provided the conditions for the introduction of the EOT are met. Furthermore, a contribution of cash by a close company to an EOT to fund the trustees for the purchase of the shares is not a transfer of value for inheritance tax purposes either. Additionally, with the EOT existing as a discretionary trust for the benefit of the company’s employees, the trust is exempt from the 10-year inheritance tax charges and exit charges on distribution.

The Income Tax Exemption for Qualifying Bonus Payments to Employees Chapter 10A within Part 4 of ITEPA 2003, introduced as a new EOT insertion, is devoted to the rules for the tax-free status which accord to qualifying bonus payments to employees. The tax-free status is given as an exemption from income tax for up to £3,600 for each employee in any given tax year, operated for all employees on a same-terms basis. The income-tax-free payments remain subject to National Insurance Contributions although a corporation tax deduction is available in the same way as for payments that are normal taxable emoluments paid outside the context of the EOT. Although it is the establishment of the EOT that provides the opportunity for the company to introduce qualifying bonus payments, it is the company that pays the qualifying bonus payments to the employees and not the EOT trustees.

The Deferred Consideration The Sale and Purchase Agreement for the sale of the shares is between the existing shareholders and the EOT trustees acting on behalf of the EOT. Although the company is not a party to this agreement, it is the company that funds the EOT through an arrangement that must be non-binding in order to ensure that monies received by the EOT from the company are not subject to income tax. The whole of the sale proceeds, linked to the whole company value, will be paid to the existing shareholders immediately following the sale if the EOT has the available funds, albeit supplied by the company. Alternatively, though, the sale proceeds may be paid as a series of deferred consideration payments over whatever time-period is manageable for the company to fund the EOT. Given that the deferred consideration does not have to appear on the balance sheet, the creditworthy status of the company is protected in the eyes of the business community. This piecemeal payment profile is an appealing feature for a company that, at the actual date of the sale transaction, does not have the full amount of the available cash to fund the EOT. The deferred consideration approach does, of course, require the company to fund the EOT from future earnings. The departing shareholders will usually, therefore, want to remain as directors, whether remunerated or otherwise, until such time as the deferred consideration has been paid. Indeed, they may well remain after that date, often with the role of mentor to the successor management of the company. Furthermore, they can be appointed as directors of the trustee company and play a significant role in the developing nature of the new arrangements in which the company is now operating.

The EOT Implementation The whole process can be undertaken and completed in a short time span, typically over four to six weeks, and executed under the safe protection of 10

Professional Services | Financial

sound legislative principles. Remember that a key advantage of the EOT as the chosen exit strategy is that the time and costs normally associated with a trade sale in dealing with the acquiring company’s lawyers are not incurred. The company directors, working with their advisers, are in control throughout the process and all professional fees are corporation tax deductible. The implementation should be supported by communications with employees to enable them to see the benefits and opportunities of the company being controlled into the future by an EOT. The tax-free bonuses can be offered as a particularly attractive feature to the employees. However, the companies that prosper most after becoming EOT-owned are those that properly embrace the collective ownership concept of a trust owning the shares for the benefit of the employees and, in that spirit, choose to invest in their human resources

activities (training programmes, career development, etc.) in support of the achievement of their strategic objectives. Since 2014, some 500 companies have taken the EOT route to a company sale. The ownership by the EOT of the shares of the company in perpetuity stabilizes the independence of the company and reinforces the employees’ confidence of continuing employment. In a consultation on exit, as well as discussing the advantages of the EOT, discussion should also be given to the Employee Share Trust (“EST”) which allows a more gradual sale approach over several years. The capital gains tax rate for the sale of shares to the EST (as distinct from the EOT) is the Business Asset Disposal Relief rate of 10%. As another possibility, the company owners may prefer a model that allows them to maintain ownership into retirement while taking substantial dividend payments on their shares.

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 28 Spring 2021

LSCA Business

Mark Kearsley

Rob Hackney

David Pennant Williams

DSG Chartered Accountants bolsters team with three senior promotions LIVERPOOL-BASED firm, DSG Chartered Accountants (DSG), has made three significant promotions across the firm. Mark Kearsley, formerly corporate tax director at the firm, has been promoted to Tax Partner. With over a decade’s experience working at DSG, Mark has worked closely with the firm’s larger corporate clients and owner managed businesses, providing a range of tax advisory services. He oversees the firm’s corporate tax advisory offering. Further reinforcing DSG’s tax offering, Rob Hackney has been promoted to Tax Manager. Since joining in February 2020, Rob’s focus has been on assisting clients with their compliance responsibilities as well as advising widely on corporate and other business taxation. David Pennant-Williams, based at DSG’ Ewloe office, has been promoted to Senior Corporate Business Manager. David’s promotion will see him adopt an enhanced role within the firm’s Corporate team where he will oversee the provision of both audit and non-audit services to Liverpool and North Wales clients. With 13 years’ experience at the firm, David has demonstrated adaptability in working with a variety of client types in providing both compliance and advisory services.

Tony Bayliss, Senior Partner at DSG, said: “Our tax team has remained extremely busy over the last 12 months, despite the impact of COVID 19 on the broader business community. Mark’s elevation to partner is therefore well timed and I am also delighted to announce the well earned promotions of both David and Rob. The continued investment in, and advancement of, our people is vital in ensuring we continue to provide our clients with the best advice and quality of service across all of our departments and locations and establishes a firm platform for the future.”

Our tax team has remained extremely busy over the last 12 months, despite the impact of COVID 19 on the broader business community.

LSCA Business

Freeports: tax breaks As part of Budget 2021, the Chancellor announced the introduction of “Freeport” status for a number of areas across England, including the Liverpool City Region, providing a range of tax benefits to businesses investing in the area. The key tax benefits can be summarised as follows:

use within a Freeport area, incurred on or before 30 September 2026. These allowances should be available more widely than the 130% ‘superdeduction’, including being available for a longer period and to businesses not operating as limited companies.

• Qualifying land transactions will be exempt from SDLT. A transaction will qualify where it takes place on or before 30 September 2026, relating to land within the Freeport area used exclusively for a qualifying purpose (including a commercial trade or profession, but not for residential purposes).

• A 0% rate of employer National Insurance Contributions (NICs) will apply on the salaries of new employees working within a Freeport area, on earnings of up to £25,000 per annum, for up to three years, per employee. This relief is intended to be available for nine years from 1 April 2022, but for an initial minimum period up to 31 March 2026, with a review at this point to confirm its continued availability.

• Enhanced structures and buildings allowances provide a straight-line 10% deduction per annum, over ten years, for the cost of constructing or renovating structures and buildings for nonresidential use within a Freeport area, incurred on or before 30 September 2026.

• 100% relief on business rates for certain business premises, for new businesses in, or those relocating to, a Freeport area, between 1 October 2021 and 30 September 2026. Relief should be available for five years, from the date at which the beneficiary first receives relief.

• Enhanced capital allowances provide a 100% first-year allowance for the cost of new plant and equipment for

www.charteredone.co.uk

ISSUE 28 Spring 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 29 Spring 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

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LSCA Business

Annual General Meeting – re-appointment of our Office Holders

Liverpool Society of Chartered Accountants announces President for 2021/22 We continue to live in exceptional times and my second year in office reflects this being the first time someone has served consecutive terms since the second world war. In contrast to the last year I’m hoping to be able to meet with members in the current year."

he Liverpool Society of Chartered Accountants AGM took place on Wednesday 12 May and for the first time since the war years the current President was elected to complete a second term in office. Rob Young , Partner, SB&P, was appointed President for 2020/21 and will now continue in his role for 2021/22. Rob began his career with the Liverpool Office of Gruber Levinson Franks which became part of BDO Stoy Hayward. Whilst there he worked with a wide array of SMEs with a particular emphasis on the retail and the legal sectors. He joined SB&P in 2003 as an Audit Manager. then transitioned to special projects and corporate finance in 2006 and became a Partner in 2008. 18

Rob will continue to support the Society’s members from across Merseyside and Cheshire & North Wales which forms part of ICAEW (Institute of Chartered Accountants in England and Wales). His primary role will be to oversee the delivery of a range of services for members including a series of CPD courses, an annual dinner, a variety of technical and networking events and discussion groups as well as representing the interests of Chartered Accountants within the wider business community. He will be supported in this role by Deputy President, Justin Lang of Jacobs, Critical Mission Solutions –

International and Vice President Rob Adams of Grant Thornton. Rob Young, President of the Liverpool Society of Chartered Accountants, said: “We continue to live in exceptional times and my second year in office reflects this being the first time someone has served consecutive terms since the second world war. In contrast to the last year I’m hoping to be able to meet with members in the current year.”

Media enquiries: Contact Alex Pilkington, ICAEW Regional Executive on 01925 594284 or alex.pilkington@icaew.com

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

7 June

Freeports – will they deliver ?

https://bit.ly/2RvKtfO

9 June

Southport Members Forum

https://bit.ly/2SdMHAV

11 June

Q2 Business Confidence Briefing: Changing cities

https://bit.ly/3vA2hFv

17 June

North West Practice Network

https://bit.ly/3xzloRK

21 June

Retired Members’ coffee morning

https://bit.ly/3dZ0aox

24 June

A woman of achievement

https://bit.ly/3aPGvWe

29 June

Accountancy, cybercrime and fraud – you’re a target

https://bit.ly/2R6POdi

30 June

The UN’s Sustainable Development Goals – the impact on business

https://bit.ly/3nvL8K6

30 June

Charity Sector Insight Group

https://bit.ly/3gNR4wB

1 July

Managing stakeholder interests in a post covid world

1 July

ICAEW NW Tourism & Hospitality Insight Group

https://bit.ly/3foiS9H

14 July

The power of AI for accountants

https://bit.ly/3fpt1Dp

15 July

Southport Members Forum

https://bit.ly/3vtCVsW

15 July

Retired Members Coffee morning

https://bit.ly/3unwtm1

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 29 Spring 2021

LSCA Business

MELVILLE MORRIS RIP ACCOUNTING ICON

A LIFE WELL LIVED It is with much sadness that we report upon the recent passing of Melville Morris on 12 April, 2021 Melville must have been known by everyone within the Liverpool accounting and professional business community, and he was very warmly regarded by all who knew him. 20

Born on 4th November 1925, he was admitted to the ICAEW in 1949, when just 24, after a stint in the Merchant Navy. Melville was still practicing until very recently, an amazing 71 years, and would often be seen heading to the office. The only thing that curtailed even Melville was the arrival of a global pandemic. He really missed going to the office two days a week but he still engaged with clients from home.

LSCA Business

“He always joked that one day he would retire and I would complete my probation period.

He married his dear wife, Alma, in 1950, and they enjoyed a very happy 66 years together. They had two daughters, Carole and Julia, four grandchildren, Rebecca, Talya, Avi and Daniella, and four great grandchildren, Freddie, Summer, Kendall and Vinnie who are a testimony to that. Melville and Alma met on their respective ways to a football match, and whilst she was a Manchester United fan, and Melville a lifelong Liverpool fan and season ticket holder, their differences did not stop their wonderful future relationship. Melville practiced for over 70 years, with offices in Dale Street, near to the Vernon Arms, and then at Trident House on Dale Street. He had many long-standing clients, and a great deal of loyalty and affection was generated between he and them. His practice has now been taken over by Oscar Ip who recalls the first time they met. “Sixteen years ago, Melville was looking for an assistant, and perhaps a successor. On my arrival, I was greeted by the always wellgroomed Melville, and my interview consisted of reviewing some of his client files and my thoughts on how I might improve his systems. He immediately made me feel welcome and comfortable, and he become a fine mentor to me with his great insight, charm and friendship.

He had an amazing energy, and as an early riser, was always in the office before me. I really missed him when he started to take it a little easier, and I was honoured when he felt able for me to take on the practice and keep his fine values and client service alive". - Oscar lp

“He had an amazing energy, and as an early riser, was always in the office before me. I really missed him when he started to take it a little easier, and I was honoured when he felt able for me to take on the practice and keep his fine values and client service alive.” Another stalwart of the Liverpool accounting scene remembers Melville with great affection too. Andrew Kilshaw worked for him in the 1970’s and recalls a very firm, but fair employer, dedicated to his work and clients, and devoted to his family.

I can certainly testify to his indefatigable spirit and cheerfulness, and his family, and the Liverpool accounting world have certainly lost a character of the highest order. Our thoughts are with his family and everyone who knew him, and on behalf of the Society, I’d like to acknowledge the life of a fine gentlemen and an outstanding chartered accountant". - Martyn Best

we checked after that he obeyed the rules. “Whenever I suggested retirement, he always refused saying “I love my job”. “ Mandy Best worked for Melville in the 80’s and 90’s and remembers him with great fondness. “Melville was well known for running frantically wherever he went – whether it was to a client meeting, or to complete his own banking two minutes before the bank closed. Yet somehow, he would always have time to stop and speak with everyone he knew. His meetings with clients would always overrun because he took such a genuine interest in their lives and their businesses and their families. He’d look after his staff really well, and always combined Christmas meals with a visit to a client, and he’d always have his lovely wife, Alma, join us to hear about everyone’s news. “He was hugely loyal, and he gave me such a good grounding in accounting and bookkeeping, and after I’d left him to have my daughter Jessica, he always kept in touch, and when I established my own business, he’d regularly refer clients to me, and ask about Jessica as she grew up. “He was certainly one of a kind.”

“Melville was a very capable footballer in his youth, and an absolutely devoted Liverpool supporter. “He also had a very mischievous sense of humour, and once in the power cuts of the seventies, a neighbour had annoyed him and when we noticed that the neighbour had a light on (at the back of the building) Melville phoned “This is Detective Inspector Jones from The Bridewell – we have a report that your lights are on” and lambasted him for the offence. After 5 minutes the light was still on, so Melville phoned again with a more serious tone saying a constable would visit the premises and to our great amusement the offender jumped out of his chair, ran across the room and switched off the lights and whenever

Melville was honoured by the Institute in 2000 after 50 years in practice, and in January 2021 he was awarded lifetime membership. Our Editor knew Melville for many years too. “I can certainly testify to his indefatigable spirit and cheerfulness, and his family, and the Liverpool accounting world have certainly lost a character of the highest order. Our thoughts are with his family and everyone who knew him, and on behalf of the Society, I’d like to acknowledge the life of a fine gentlemen and an outstanding chartered accountant.” He certainly had a full life, and the great bookkeeper in the sky will now have some good company for those ledgers.

www.charteredone.co.uk

ISSUE 29 Spring 2021

LSCA Business

Liverpool Society of Chartered Accountants – Equality, Diversity & Inclusion 1 Institute related news The institute continues its diversity push with attention given to D&I (Diversity and Inclusion) matters. A news release in April 2021, announced Sharon Spice appointed new Access Accountancy chair. Additionally ICAEW hired two diversity and inclusion managers to boost equality in the profession. Dr Antonia Sudkaemper and Sara Najjuma will support teams across the organisation to develop strategies and initiatives to improve equality of opportunity for colleagues, members and students. The full report may be seen here. ICAEW aimed to collect membership diversity as part of the annual exercise for fees and CPD declarations. Data to

be collected includes: ethnic origin, socio-economic background and disability information. Reminders have been sent since the beginning of the year and it is not too late to participate. If anyone has not responded, a link to the survey may be found here. Also members of LSCA are encouraged to actively highlight the survey to colleagues, peer groups and other institute contacts. On 16 March 2021, ICAEW held a Kickstarting Social Mobility webinar. In March, Sara Najjuma one of the newly recruited ICAEW diversity and inclusion managers held virtual meetings with members of the NW region committee members as part of her ICAEW induction. We welcome Sara to her new role.

On 24th March, ICAEW held a Diversity & Inclusion Community webinar “talking about Race and Inclusive Language Comfortably”. Anyone wishing to listen to the webinar may do so here. 2 Local contacts Contact was made with Nina Sahu, the chair of Liverpool Law Society ED&I and a first meeting was held in February. There are many promising opportunities for collaboration and sharing of ideas. 3 National ED&I webinars and events attended by Barbara Boyle An unexpected benefit of the pandemic has meant greater access to national events held on line. A selection of such events in the past few months are shown below:

DATE

SPONSOR(S)

TITLE

SPEAKER

11.03.21

Broadgate Search, The FENG

Inclusivity matters: Diversity within accountancy & finance

Panel - Perrin Joel - Host and Chair at Broadgate Search - Nadine Dyer - Respect and Inclusion Manager at Deloitte - Bianca Granara - CFO at Salary Finance - Shawn McCarthy - Head of Treasury and Board Member at FENG. - Dauda Jammeh - Group Finance Operations Manager at Brit Insurance

25.03.21

D&I Leaders

The Role of Visual Content: Driving Greater Diversity in the Workplace

Asif Sadiq MBE, Global Head of Diversity and Inclusion, Adidas Kate Philpot, Senior Director of Global Sales Enablement, Getty Images

12.04.21

Goodman Masson

Positive Action (in Recruitment)

Lauren Boyce (Goodman Masson)

05.05.21

FT conference.

Gender equality: Are women at further risk of being left behind due to COVID19?

Panel: Julia Gillard Alison Rose (Nat West CEO) Tom Shropshire (Linklaters moving to GC of Diageo)

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/barbara-boyle/ 22

LSCA Business

IS IT TIME FOR THE GOVERNMENT TO RE-THINK ITS STANCE ON GREEN TAXES? Andrew Lloyd, Tax Partner at RSM, takes a critical look at recent government policy on green taxes and suggests that some UK taxes intended to combat climate change have been badly thought through, with the reality not meeting the underlying policy objective and no attempt made to measure the outcome for the environment. In line with many governments around the world, the UK government uses the tax system to achieve environmental targets and to incentivise the use and development of greener alternatives. Unfortunately, data shows that UK revenues from environmental taxes are only mid-range compared to other European countries and have largely stagnated over the last 20 years relative to GDP. At best, the UK government has not used the tax levers available to it to full effect to deter environmentally damaging practices. Worse, its use of green taxes appears to be illconceived. These taxes not only fail to target the root of the evil they purport to tackle but they also lack any demonstrable links between the taxes and a positive impact on climate change. The National Audit Office (NAO) has investigated this, finding that taxes aimed at helping the environment raised £34.7bn in the UK in 2019. This demonstrates the potential to raise revenues while reducing environmentally damaging behaviour, provided the former does not undermine the latter. Disturbingly, the NAO found that at present HMRC and the Treasury do not measure whether green taxes are having any impact on the environment. The UK government is too focused on raising money from

these taxes, rather than checking they are actually achieving their intended policy effect. Because both the March 2021 Budget and Tax Day had been environmentlight, many interpreted as little more than “green-washing” the Chancellor’s pledge to put green investment at the heart of economic recovery. Quite reasonably, observers expect the government to back up fine words with specific actions. With the UK hosting the COP26 Climate Change Conference in Glasgow later this year, we might be about to witness a greater commitment to the use of green taxes to drive positive environmental behaviour and raise tax revenues. In reaching this point, there have been many thrills and spills in the UK’s implementation of green taxes. Between 2010 and 2020, the landfill tax is credited with a 72 per cent reduction in the weight of local authority-collected waste sent to landfill. However, there is no record of the amount of waste which is now being illegally dumped. Increasing fuel duty, which has been frozen at 59.75 pence per litre since 2009, would be an easy win in the government’s campaign to abolish petrol and diesel cars and to improve public health. Leaving aside the rather important detail that the government has not worked out how to replace the revenues raised by fuel duty, this easy win for the environment might backfire, becoming a polling-booth loss for the Conservatives in 2024.

failing to have the courage of their green convictions. The first step was to raise the rate to 8 per cent, but political willpower crumbled under public criticism so the rate was reduced to 5 per cent, the lowest allowed under the prevailing EU rules. Perhaps we will now see the Prime Minister proposing to zero-rate domestic heating power produced from renewable sources, with a phased increase from the current 5 per cent to 20 per cent in respect of nonrenewable supplies. What could an environmentallyfriendly tax system look like? The Chancellor has referenced decent well-paid green jobs so might we see lower income tax for people who work for green companies? A lower rate of corporation tax for businesses that meet stated ESG criteria? A tax on the amount of carbon used to produce goods and services? However, this would increase complexity of an already convoluted tax system and contradict another aim: tax simplification. Developing a system of taxation that is underpinned by policymakers identifying what a successful environmental outcome looks like and aligning the tax framework to meet that aim, with no divergence to increase tax take, is critical if green taxes are to be used to full effect and the UK government is to materially move the dial towards its net-zero target.

The intended increase in the rate of VAT on domestic heat and power in the 1990s to the standard rate is another example of the government

www.charteredone.co.uk

ISSUE 28 Spring 2021

LSCA Business

Blankstone Sington offer award winning Inheritance Tax Portfolio

ounded in 1976 Blankstone Sington is a Liverpool based, independently owned member of the London Stock Exchange. The firm operates a boutique investment management and stockbroking service that includes both discretionary, advisory and execution only services. Over the past 10-years Blankstone Sington have also been offering an award-winning Inheritance Tax Portfolio Service. The portfolio provides a simple approach to sheltering part of an estate from Inheritance Tax, with the potential for capital growth and income generation, by investing in a diversified portfolio of Business Property Relief (BR) qualifying AIM shares. AIM, formerly known as the Alternative Investment Market, is a sub-market of the London Stock Exchange intended for young and growing companies by providing an ideal environment for businesses to access the capital and liquidity of the London Markets. BR was introduced to promote the investment in unquoted businesses by permitting family-owned companies to pass free of Inheritance Tax, which extends to AIM shares with many seeming to satisfy the BR qualification criteria. It should be remembered that qualification is only confirmed after application (i.e. after death). As part of the overall investment strategy for the Inheritance Tax Portfolio Service that Blankstone Sington offer, the firm consider four key principles; stock selection, the integrity of BR qualification, portfolio build and strong sell discipline. Blankstone Sington offer investment in a diversified portfolio of some of the fastest growing and entrepreneurial businesses listed in London providing significant long term upside potential.

Each portfolio is individually tailored and expertly researched by the firms award-winning team, which clients always have access to. One of the main benefits of the Inheritance Tax Portfolio Service portfolio with Blankstone Sington is the potential for capital growth plus it can provide an attractive level of income for investors. In addition, on the basis of current legislation, and the ability to hold AIM shares in an ISA, it is also extremely tax efficient on a number of levels. By investing with an award-winning firm, like Blankstone Sington, clients also have complete control and access. So, if circumstances should change there are no penalty charges or ‘lock ups’ for early withdrawal. Alongside this, Blankstone Sington provide a highly competitive and transparent charging structure meaning that there are no surprise charges along the way. M J Hudson of Allenbridge, one of the UK’s leading independent analysis firms, said: “The product is worthy of consideration by investors who seek a managed AIM portfolio for estate planning purposes, or indeed as an investment in its own right for those investors who already hold a diversified portfolio. “It may also be of particular interest to those investors who already hold other BR AIM portfolios because of the smaller cap companies on AIM.” Neil Blankstone, Director of Blankstone Sington, said: “The last four decades has seen Blankstone Sington successfully invest in smaller companies and as stockbrokers, managing small cap stock is part of our DNA. We use this core knowledge and experience base to support our clients by creating Inheritance Tax Portfolios to help them both shelter part of an estate and hopefully offer some growth and the potential for generating income.”

NEIL BLANKSTONE of Blankstone Sington

The information contained herein does not constitute investment advice and the investment or investment services referred to may not be suitable for all investors; we strongly recommend you consult your professional adviser before taking any action. It should be noted that the benefits of the Inheritance Tax Portfolio are premised on current tax rules continuing for the duration of an investor’s portfolio. The rules on tax or their interpretation, as with the rates of tax applicable, may alter. The details and examples in this document are a simplified summary of the relevant tax rules. Blankstone Sington is not a tax adviser and potential investors are recommended to consult a professional tax adviser on all tax matters. The past performance of any investment is not a reliable indicator of future performance. The value of investments and any income from them may fluctuate and are not guaranteed. Investors may not get back the original amount invested. Authorised and Regulated by The Financial Conduct Authority (143694). Web: Tel:

blankstonesington.co.uk 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 28 Spring 2021

LSCA Business

Lest we forget

Nick Ledingham, Committee member of the Liverpool Society of Chartered Accountants presenting the plaques to the Rev. Cannon Dr Crispin Pailing

Readers of Chartered ONE will recall that in our 150th anniversary commemorative issue there was an article about the two LSCA war memorial plaques that had for many years been left to gather dust in our storage facility. It was explained in that article that Nick Ledingham had arranged for the plaques to be presented to Liverpool Parish Church so that they would have a permanent and very appropriate home alongside the memorial plaques from other Liverpool Institutions and professional bodies. It was the intention that the two plaques would formally be presented to Liverpool Parish Church as part of the 150th anniversary Civic Service that was planned on 13 March 2020. Of course the dreaded Covid interrupted the Society’s plans for the Civic Service and the Civic Reception at the Town Hall. However the plaques were recently formally presented to Liverpool Parish Church and are now in their rightful place, adjacent to the Liverpool Stock Exchange war memorial. The photo shows Nick Ledingham, Committee member of the Liverpool Society of Chartered Accountants presenting the plaques to the Rev. Cannon Dr Crispin Pailing after the service on Sunday 23 May. 26

LSCA Business

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 www.charteredone.co.uk

ISSUE 28 Spring 2021

LSCA Business

Covid-19 Financial Support from April 2021

As we move into the new financial year and following the Budget on 3 March, a number of COVID-19 related financial support measures continue in place. This update summarises the main forms of support that remain available as at 1 April 2021. A comprehensive list of business support measures and links to full detail of each scheme are available via GOV.UK

Coronavirus Job Retention Scheme (CJRS) The CJRS, which provides grant funding to businesses to support paying the wages of employees temporarily laid off due to COVID-19, has now been extended until 30 September 2021. The scheme will now gradually wind down, reducing the extent of support available, such that while employees’ minimum pay remains at 80% of their usual pay for any hours worked, an increasing share must be borne by employers: • Until 30 June 2021, grants will cover the full 80% of employees’ wages, but employers must pay employers NICs and minimum pension contributions. • In July, employers must contribute 10% towards employees’ wages (the CJRS covers 70%). • In August and September, employers must contribute 20% towards employees’ wages (the CJRS covers 60%). Employers may ‘top up’ wages above the 80% minimum if they choose, but this is not required. Employees may work on a flexible basis, paid at 100% for any hours worked (and CJRS support not claimed for those hours). Claims under the CJRS must be made on a monthly basis, by the 14th day of the following month.

LSCA Business

Grant funding From 1 April 2021, a new “Restart Grant” scheme will replace existing local grant schemes in England, providing non-essential retail businesses that have been required to close with a grant of up to £6,000 per premises, based on rateable value. For businesses required to remain shut for longer (e.g., gyms and leisure), a larger grant, up to £18,000 per premises, is available, as follows: •F or rateable value of £15,000 or less, a grant of £8,000 (£2,667 for non-essential retail) •F or rateable value between £15,000 and £51,000, a grant of £12,000 (£4,000 for non-essential retail) •F or rateable value above £51,000, a grant of £18,000 (£6,000 for non-essential retail) Applications for Restart Grants can be made via local authorities, for which a search tool is provided on the GOV.UK website.

• The fifth grant will cover the period from 1 May 2021 to 30 September 2021. Again, this will be referenced to three months’ average trading profits, but with a turnover-based test introduced. Where the individual’s business has suffered a turnover reduction of 30% or more, the grant will remain at 80% of average trading profits, but where trading profits have reduced by a smaller amount, this will be 30% of average trading profits, capped at £2,850. Claims will be open from late July 2021. Those eligible for the fourth and fifth grants must have annual profits of no more than £50,000 in tax year 2019/20, or average annual profits of no more than £50,000 in prior years, with more than 50% of their annual income from self-employment, and must have lost income as a result of the pandemic. Individuals commencing self-employment after 5 April 2020 will not be eligible.

Government-backed loans A new Government-backed loan scheme opens from 6 April 2021, offering loans from £25,000 to £10 million, with the Government providing an 80% guarantee. This scheme is open to all businesses aside from banks and insurers, until 31 December 2021, in addition to earlier loan schemes. Business rates relief Qualifying retail, leisure and hospitality businesses will continue to benefit from 100% relief from business rates for an extended period, until 30 June 2021; this will then reduce to 66% relief until 31 March 2021. A cap applies, set at £2 million per business for properties forced to close on 5 January 2021; for other business, not subject to forced closure, a lower cap of £105,000 applied. Reduced VAT rates The reduced VAT rate of 5% for hospitality, accommodation and attractions across the UK is extended until 30 September 2021, followed by a 12.5% rate for a further six months until 31 March 2022. Self-employment The Self-Employment Income Support Scheme provides grant funding to support self-employed individuals whose businesses have been negatively impacted by the COVID-19 pandemic. Intended to mirror the support available for furloughed employees, three rounds of grants have previously been paid, with fourth and fifth grants still to be paid. • The fourth grant will cover the period from 1 February to 30 April 2021, providing similar support to the earlier grants, set at 80% of three months’ average trading profits, capped at £7,500 and paid as a single instalment. The online claims service will be available from late April 2021 until 31 May 2021.

www.charteredone.co.uk

ISSUE 29 Spring 2021

LSCA Business

Chester & North Wales news “The ICAEW and the Liverpool Society have been a great support over the recent challenging times and to be given the opportunity to become the youngest Chairman of the Chester & North Wales Society is an honour, and I shall be ensuring that locally we deliver support to our members.”

Chester & North Wales Society announces new Chairman

George Wood of Bennett Brooks & Co Ltd has been appointed Chairman of the Chester & North Wales Society of Chartered Accounts for the year 2021/22. He takes the reins from Sue Harris of Champion (Chester), and in doing so, George makes history being the youngest ever Chartered Accountant to be appointed as Chairman of the Society. George qualified as a Chartered Accountant at Mazars LLP in Liverpool before transferring to New York where he worked across the audit and transaction services teams for listed entities. George joined Bennett Brooks & Co Ltd in April 2017 and runs an audit portfolio of local and national audit clients as well as supporting several North West businesses to float on the London Stock Market. With offices in Llandudno, Chester and Northwich, and other offices outside of the region, Bennett Brooks & Co Ltd is one of the leading independent practices and George is looking forward to sharing his experiences with businesses and society members.

George will continue to support the Society’s members in Cheshire & North Wales, which is the local branch for the Liverpool Society of Chartered Accountants and we have always had a very close relationship there. His primary role will be to oversee the delivery of a range of services for members as well as representing the interests of Chartered Accountants within the wider business community. He will be supported in this role by an active committee of members from other accountancy practices in the region, and of course from the LSCA. George noted: “The ICAEW and the Liverpool Society have been a great support over the recent challenging times and to be given the opportunity to become the youngest Chairman of the Chester & North Wales Society is an honour, and I shall be ensuring that locally we deliver support to our members. In such unprecedented times, my hope is that, along with my fellow society members, we have the opportunity to add value to the firms and accountants in the region.”

LSCA Business

Matthew Ryan appointed as Director, McEwan Wallace, Wirral McEwan Wallace has announced the appointment of Matthew Ryan as a new Director, to help support the continued growth of the firm. Matthew, previously a manager at the firm for 20 years’, is an expert in external audit and VAT. He also provides specialist advice to the franchise sector. Commenting on the new role, Managing Director Alastair Gould said “We are delighted to have Matthew on board - He deserves this opportunity. He is loved by our clients and will be a real asset. We have always been a progressive firm and welcoming Matthew as a director can only bolster our approach.” Matthew added “I’m excited about this new opportunity and keen to help move the firmforward in these challenging times. My clients have always beenmy main focus and supporting them now is my priority. I am proud to be part of a firm that puts client care and staff wellbeing at the heart of everything they do. It’s a real privilege to work here and to now be a bigger part of that picture.” McEwan Wallace has seen unprecedented staff growth over the last year, including five new appointments and five promotions at their Argyle Street office in Birkenhead.

“I’m excited about this new opportunity and keen to help move the firm forward in these challenging times. My clients have always been my main focus and supporting them now is my priority. I am proud to be part of a firm that puts client care and staff wellbeing at the heart of everything they do. It’s a real privilege to work here and to now be a bigger part of that picture”

INTERVIEW WITH MATTHEW RYAN Congratulations on becoming a director! Q: What made you decide to make the leap from manager to director? I joined the firm 20 years’ ago and never looked back! It has always been like an extended family to me, with genuine care and consideration - not just for clients, but staff too. The MW values are in line with my own, so naturally I am thrilled to be part of the decision-making process to help build on the success that has already been achieved. Q: What do you hope to achieve in your new role? My main focus has always been client satisfaction and as a firm we go above and beyond to help our clients. Given the COVID crisis businesses need us, now more than ever, to guide them through and that will be my main focus initially. Q: What will you bring to your new role I am a specialist in Audit and VAT, I also head up our Franchise team which I hope to expand further. I will also be involved in our customer care programme, which has always been a key element in our success. Q: How has COVID altered your perception on life and business? We always knew we had the best and most dedicated staff, but Lockdown has highlighted just how true this is. We are like a family and because we look after our staff they have really worked tirelessly for us, and their clients. They feel a personal sense of responsibility, for every client, and that type of commitment and dedication is rare to find.

www.charteredone.co.uk

ISSUE 29 Spring 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 29 Spring 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

MY FAVOURITE APP (it improves my comms; and saves me hours!)

HOW I HELPED 500 HAIRDRESSERS SELL MORE (not bad, for a bald man)

I’ve recently had a few people ask what my favourite App is.

I once spoke at a hairdressers and beauticians conference.

(Before I tell you, here’s a quick hint about written comms – it’s relevant to this App:

I know what you’re thinking – “how desperate must they have been to hire a speaker with no hair or beauty?”

You should write as you talk So, if you read your writing out loud, it should sound like you. Not some weird corporate drone) Which is why my favourite App – as in, the one I use most often, find most valuable, and that saves me most time – is called ‘Document Direct’. It’s a digital dictation App. I dictate my typing onto it, press “upload” and it goes to a pool of typists. They type and resend it really quickly. They’re available 24/7. So if I’m dictating at odd times – early, late, am in a different time-zone (if we ever get to fly again) - it still comes back fast. I love the speed and convenience. But most importantly, I love that my written stuff sounds like me talking. Which means it’s more likely to work. Action Point Write as you talk! 1. To check you do, read aloud one of your recent written comms. If it doesn’t sound like you, change how you write the next one 2. I f you’re interested, check out the App (btw, I don’t benefit at all by telling you about it!) 3. Watch these vids to show other ways to save time by better comms

Clearly, I didn’t have any personal experiences I could use. So I followed my Prep Golden Rule: RESEARCH TO TEACH ( = Do lots of RESEARCH, so I can TEACH people valuable things) So I asked people with hair – I managed to find some – and found one recurring theme: Many told me their hairdresser’s #1 focus was on how great their hair looked when they left the salon. But my friends were then frustrated they didn’t have the skills or time to make it look as good again themselves. I told my conference audience this. I suggested different questions they could ask instead – ‘how easy do you want it to be, to maintain your hair yourself?’ etc After the conference, loads of them contacted me, saying they’d changed their questions, which had led to more repeat business and referrals for them. Which all goes to show – if a bald person can teach hairdressers something, you can teach anyone anything. As long as you RESEARCH TO TEACH. Action Point For your next meeting, “research to teach” them. A great way to add value to them – and to you. These will help you nail this…

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

ISSUE 28 Spring 2021

LSCA Business

What's better than 1 million steps? If you’re going to have a charity fundraiser and a challenge, and you’re a Chartered Accountant, then certainly numbers need to be involved.

seemed to be some irony in walking a million steps in such a well-named month.

I’m sure you will be aware that Chris is an intrepid athlete and adventurer, and certainly 16 miles in a day, in one day, is comfortable – but 31 consecutive times for a busy fellow like him?

A little further consideration arrived at the charitable aim, and it seemed particularly appropriate to be walking to raise the final tranche of funding for a disabled, accessible lift for Tranmere Rovers main stand at Prenton Park. This was a project that had been running for a couple of years, initiated by the Club’s Disabled Supporters’ Association, and supported by their London based supporters’ club, the Southern Super White Army. During the pandemic, it had stalled, and Martyn as an Associate Director of the Club was asked to complete the project by one of our Society’s members – of course, the Tranmere Chairman, Mark Palios.

So, the fine idea of sharing that million was suggested, and the challenge was accelerated to March – there

1st March arrived, and Chris and Martyn had a clear plan. Meet locally – both living in Oxton helped with

“Martyn”, asked Chris Wainwright, our Business Members’ Committee powerhouse, of our Editor, “I think I’d like to walk a million steps in May!” One quick calculation later and it was revealed that was over 30,000 steps, in fact as you will know more precisely, 32,258 per day – or approximately 16 miles.

LSCA Business

that – at 7am, and complete an hour or so before daily duties called. Hence began a rather delightful daily routine, and one which various other early risers witnessed. An ensemble of joggers, other walkers, dogs and other souls all become nodding acquaintances on the march around the Wirral. This company was even joined by various friends on their WhatsApp group, as we occasionally embarked on a real/virtual accompanied walk. The activity soon turned into a regular habit, and even a drug-like fascination. The numbers were all logged, averages calculated, steps achieved, and the daily target average quickly came down. The aim quickly

came into sight, and both the million steps, and the remaining £10,000 quickly accumulated, and thanks to many of our members is also well due.By the end of March – with a very controlled last day, Chris and Martyn both achieved an average of 20,022 for a combined total of 1.2million steps shared between them, and their financial target happily achieved. However, let us return to the title of this article. What, indeed is better than one million steps? Of course, an accountant will know that the answer is TWO MILLION steps. Inspired and indeed, intoxicated by their success, it was agreed that they would continue throughout April – and with a slightly lesser target for the month, the pair just passed the one million each mark on the 30th April.

So, whilst Tranmere Rovers’ season did end in some disappointment in being beaten in the Play-off semi-finals, the Lift Appeal proved successful, and the lift is being installed during June ready for the start of the new season.

www.charteredone.co.uk

ISSUE 29 Spring 2021

LSCA Business

COMING SOON! If this page intrigues you, then we shall have an exclusive interview with the author in the 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 28 Spring 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 29 Spring 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. 42

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 29 Spring 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?

Chartered ONE Issue 29

Articles inside

OPUS

ICAEW - INFORMATION HUBS

1 MILLION STEPS

ANDY BOUNDS - TUESDAY'S TIPS

REWARD FINANCE GROUP

CHESTER & NORTH WALES NEWS

DSG - COVID FINANCIAL SUPPORT

BLANKSTONE SINGTON

LEST WE FORGET

ANDREW LLOYD - THE GOVERNEMENT AND GREEN TAXES

LSCA - EQUALITY, DIVERSITY & INCLUSION

MELVIN MORRIS RIP - ACCOUNTING ICON

DAVID CRADDOCK

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

ICAEW - BUSINESS CONFIDENCE MONITOR

DSG - CHARTERED ACCOUNTANTS BOLSTERS TEAM WITH THREE SENIOR PROMOTIONS

REFLECTIONS FROM OUR EDITOR

COODEN TAX CONSULTING ARE WE THER YET?

QUILTER CHEVIOT - INFLATION EXPECTIATIONS

DSG - FREEPORTS: TAX BREAKS