Raffingers Stuart Autumn Newsletter 2015

RAFFINGERS STUART NEWSLETTER AUTUMN 2015

SMALL DETAILS

BIG DIFFERENCE *Introducing iZettle

Residential Lettings and the Summer Budget

What are the Chances of you Being Investigated by the Taxman?

Overcoming the Changes to Dividends

The ‘Summer’ Budget brought some dramatic changes, which will impact those owning UK residential properties.

Recent figures have shown that nearly 400,000 new tax investigations are launched each year.

Company owners or directors may soon receive an unexpected bill if they continue to draw dividends from their company.

Page 03

Page 08

Page 10

Contents

+ 1

PP YOUR BUSINESS OUR PASSION

Welcome and Partners

02

Special Feature Residential Lettings and the Summer Budget

03

No Anonymity for Company Directors

05

Small Business Act to Tackle SMEs Waiting 72 Days for Payment

06

Employee Spotlight

06

Xero Add-On Introducing iZettle

07

What are the Chances of you Being Investigated by the Taxman?

08

Shared Parental Leave and Your Business

09

Overcoming the Changes to Dividends

10

Client’s Story A Xero Case Study

11

Events 2015

12

Hold Fire on Pension Withdrawals Following Black Monday Turbulence

13

Partner Perspective Are Athletes the Key to Your Success?

14

Welcome to our AUTUMN Newsletter The current tax year has been interesting with not one, but two budgets. The Summer Budget brought some dramatic announcements, and with draft legislation recently being released on these, we have taken the opportunity to look in-depth at some of the changes, specifically those concerning dividends and those that will have a direct impact on individuals and companies owning UK residential property.

Our aim is to always bring you the latest news and advice; therefore you will notice in this edition that we have extended our newsletter to now include: ‘Tax Corner’, which this quarter sees our Senior Tax Manager, Neill Staff, advise on tax investigations. We also bring you ‘Xero Add-On Partner of the Quarter’, where we look at the Xero add-on that is benefiting our clients the most.

The last three months have been extremely exciting for the Raffingers Stuart team. Firstly, we would like to thank everyone that attended our Golf Day in September for The Lauren Page Trust, helping us to raise over £1,100. Secondly, we are pleased to announce that we have been shortlisted for The British Accountancy Awards, APSCo’s Awards for Excellence and the 2020 Innovation Awards, topping off a brilliant year.

If you would like to be featured in our next edition, or have any suggestions for topics that you would like to see discussed, please get in touch.

The Partners at Raffingers Stuart

Raffingers Stuart Partners

Gary Inglis Managing Partner gary.inglis@raffingers-stuart.co.uk

Andrew Coney Partner andrew.coney@raffingers-stuart.co.uk

Lee Manning Partner lee.manning@raffingers-stuart.co.uk 2 Adam Moody Partner adam.moody@raffingers-stuart.co.uk

Suda Ratnam Partner suda.ratnam@raffingers-stuart.co.uk

Barry Soraff Partner barry.soraff@raffingers-stuart.co.uk

Paul Dell Partner paul.dell@raffingers-stuart.co.uk

RAFFINGERS STUART NEWSLETTER AUTUMN 2015

Residential Lettings and the Summer Budget SPECIAL FEATURE

Key changes you need to be aware of...

10% Wear and Tear Allowance Previously, individuals or corporate bodies were able to claim the ‘Wear and Tear Allowance’ if they rented out a residential property on a furnished basis.

3

In order for a property to qualify as furnished, the property needed to have been let on the premise that all the tenant needed to do was turn up with a suitcase of clothes.

Therefore, the allowance was provided to cover yearly wear and tear on the furnishings provided to the tenant cutlery, curtains, white goods etc. The allowable deduction was a yearly election and was based on 10% of gross rents, minus any services provided that would normally be paid for by the tenant (e.g. council tax or TV license).

Wear and Tear Allowance Removed from 1 April 2016 for companies and 6 April 2016 for individuals.

The Change The 10% wear and tear allowance will be removed with effect from 1 April 2016 for companies and 6 April 2016 for individuals. In its place, landlords will now be able to deduct the cost of replacing any furnishings within the property.

As with any significant change, HM Revenue & Customs (HMRC) has released consultation notes and requested input from all interested parties on the changes. HMRC intends to publish responses on the consultation later this year, with draft legislation being published before 6 April 2016. HMRC’s intentions are to make the tax system fairer by having landlords deduct the cost of replacement furnishings (less any proceeds received from the old asset that is being replaced), within the property.

It is important to note that initial costs incurred on YOUR BUSINESS OUR PASSION

furnishing a property will continue to be disallowable, and any furnishings that have been replaced and are a significant improvement to what was previously provided, will be restricted to remove the improved cost element.

Top Tip With these changes coming into effect, it will be imperative for landlords to keep detailed records on what furnishings have been replaced and the costs incurred.

Finance Costs for Landlords Historically, landlords with residential property were able to deduct 100% of interest incurred on mortgages or loans relating to their rental property, lowering their rental profits and therefore the income tax they were subject to. This is evidently highly advantageous and encouraged many landlords to reinvest their rental profits into new properties, rather than using the money to pay off existing mortgages or loans.

The Change As of April 2017, the relief on finance costs will be restricted as follows: Tax Year

Deduction from rental income

Basic rate tax reduction from income tax

2017/18

75% of loan interest

25% of loan interest x 20%

2018/19

50% of loan interest

50% of loan interest x 20%

2019/20

25% of loan interest

75% of loan interest x 20%

2020/21

0% of loan interest

100% of loan interest x 20%

*These changes will not affect furnished holiday lettings.

As you can see these changes are graduated until tax relief is only available at the basic rate of income tax on

the full amount of the mortgage or loan. The good news is that basic rate tax payers will be unaffected. However, for landlords that are subject to higher or additional rates of tax, their tax liability will significantly increase, in some cases resulting in them making little to no profit on their rental income.

These changes are without doubt going to affect the viability of property investments.

Top Tip For those worst hit and with large portfolios they may consider selling off some of their property to repay mortgages. However, this is not always practical and in some instances may make matters worse. Alternatively, landlords should consider incorporating their portfolio, as the above changes will only affect the tax relief of individuals, not incorporations. Although, as with everything, this will not work in every circumstance and with the controversial change to dividends, it means further tax will be due if the individual wishes to extract income from their portfolio, rather than reinvest.

For a confidential discussion of your portfolio and how these changes may affect you, please contact Paul Dell at: paul.dell@raffingers-stuart.co.uk.

RAFFINGERS STUART NEWSLETTER AUTUMN 2015

4

We are pleased to announce that Raffingers Stuart has been shortlisted for: Affiliate Member of the Year, APSCo’s Awards for Excellence 2015 Mid-Tier Firm of the Year and Practitioner of the Year (Barry Soraff), British Accountancy Awards 2015 Most Innovative Large Firm, 2020 Innovation Awards 2015

No Anonymity for Company Directors

5

Look out company owners and directors – you will soon be on the register. The Small Business Enterprise and Employment Act 2015, introduced in March 2015, states that UK companies have to maintain a register of all parties who have a ‘significant influence or control’ over their company.

● Has the right to exert ‘influence or control over a company’ ● Is entitled to 25% of Company shares (directly or indirectly) ● Is entitled to 25% voting rights of the company ● Has the authority to appoint, demote or remove a majority of the board of directors

From January 2016, the PSC (Person with Significant Control) register will be introduced and will require companies to maintain a list of people who have a major influence on their business, in the hope of improving transparency. The government aims for the register to be made public and searchable on Companies House from April 2016; the public will then have access to the following information - name, trade address, nationality and date of birth of the people who control a company.

Failure to comply with the disclosure obligations may result in criminal sanctions and/or penalties.

Through reviewing this new act, my main concern is for companies who have a complex work structure, as I can already think of many of my clients who are going to find it challenging to determine who falls into the above categories and has ‘significant control’. It seems to be yet another administrative burden placed upon businesses and I struggle to see the value it is going to bring.

So, what companies need to maintain a PSC register?

The UK Government are not playing about with this and have made it mandatory for all businesses, even dormant and subsidiary companies. Limited Liability Partnerships can also expect, under secondary legislation, to be liable.

The only group of companies exempt are those who are publicly traded.

I advise that all companies, particularly those with complex structures, begin considering the above as soon as the guidance is released. In the meantime, if you would like to discuss this area further, please contact:

Will you be on the register? Those who meet the following criteria must be listed on the register: YOUR BUSINESS OUR PASSION

In the autumn, technical guidance will be released to help define the meaning of ‘significant influence or control’, so we wait in anticipation for that.

Barry Soraff, Partner barry.soraff@raffingers-stuart.co.uk 020 8418 2663

Small Business Act to Tackle SMEs Waiting 72 Days for Payment SMEs account for 99.9% of all UK businesses, yet it is estimated that they have to wait an average of 72 days to receive payment from outstanding invoices.

According to Asset Based Finance Association (ABFA), the UK late payment debt has increased. There is now an estimated £26billion worth of unpaid invoices outstanding to small and medium sized businesses with a turnover of £1million and an average of 72 days wait for payments to be received, 25 days more than large businesses.

To tackle this problem the government is introducing a variety of measures as part of their Small Business, Enterprise and Employment Act 2015. Small Business Minster, Anna Soubry states that the commissioner will, “tackle the imbalance of bargaining power between small suppliers and large customers”. One way in which this is going to be done is through shaming big companies that fail to pay their bills in a reasonable time (although the commissioner will only do this as a last resort). Alongside this, The Small Business Commissioner will also provide SMEs with further support, mediation and conciliation services, as well as being available to investigate complaints against large companies.

However, most importantly of all, the act will provide more leniency and less financial restrictions for SMEs when using Invoice Financing. The ‘bans on assignment’ rule has hindered SMEs from using Invoice Financing as a source of funding, making it extremely difficult for SMEs to work with public sector or larger businesses.

The key benefit of using Invoice Financing is that SMEs can unlock the cash they need immediately, rather than waiting for debtors to pay. This tackles not only the late payment problem, but also helps SMEs with their cash flow.

The measures to nullify the ‘bans on assignment’ law will come into effect from early 2016, if approved. The government will also employ a commissioner to focus on supply chain and late payment disputes.

Employee Spotlight In this slot we introduce you to a valued member of our team, allowing you to put a face to a name. This quarter we speak to our Marketing Manager, Lauren Aston.

Name: Lauren Aston Nicknames: Lol DOB: 12 August 1988 Career history: After graduating, I was in a position of uncertainty; not entirely sure what I wanted to do.

I had an English degree and so Publishing seemed the obvious choice. As they say, everything happens for a reason, and after carrying out work experience in the Editorial department at Pearson, I was given the opportunity to join the marketing team. Since then, I have never looked back.

Five years later, having worked at Pearson and then Avanti (both of which have two very different approaches to marketing), I find myself at Raffingers Stuart. Raffingers Stuart has been a refreshing place to work, welcoming new ideas and being very open to try new things. So much has been achieved in the 18 months I have been here; I now look forward to seeing what the next 18 months will bring.

Interests: Much to my boyfriend’s delight I can get into almost any sport and I am currently an avid fan of Moto GP. I also have a love/ hate relationship with running. In that, I love running races (half marathons and 10ks), but hate training!

Partners Report: Lauren has become an integral part of the Raffingers Stuart team since she joined us 18 months ago and her enthusiasm is infectious amongst her team members. It is a pleasure to see her smile every day even after a gruelling half marathon the night before!

RAFFINGERS STUART NEWSLETTER SUMMER 2015

6

+ + XERO ADD-ON

Introducing iZettle This quarter, our favourite Xero add-on is iZettle, a free Point of Sale app that enables you to accept cash and card payments for your business on a phone or tablet device.

About iZettle 7

iZettle was created to help businesses around the world grow and prosper.

With just a free app, a secure card reader and great analytics, iZettle helps businesses make and keep track of their sales, as well as gain insights into their top-selling products, average spend and sales per hour. iZettle is great for small businesses wanting to accept card payments and with the app’s seamless integration with Xero, valuable time can be saved. What is more, the more you sell, the less you pay, which means businesses will see their transaction fees adjust depending on their monthly sales.

Currently, if businesses sign-up to use the service today, iZettle are offering: ● A free iZettle Lite Card Reader ● 3 months of Xero for free ● Up to £1,000 pounds of sales free of charge ● Personal consultation with the Xero and iZettle team

YOUR BUSINESS OUR PASSION

Sign-up for iZettle at: www.izettle.com/gb/xero.

iZettle in the News iZettle has launched a credit-card reader that lets shoppers pay by tapping the device with a smartphone or bank card.

The company, whose card-sized devices are used by car-repair shops and street-market vendors, said the new reader works with chip-and-PIN and contactless payment cards, as well as mobile applications, such as Apple Pay. “It’s not until services like Apple Pay that this technology starts to really make sense, both for card holders and merchants,” Jacob de Geer, founder and chief executive officer of iZettle, said in an e-mail.

“This is the first step towards a true mobile payments environment, when you can start to leave your wallet at home.”

Tax Corner What are the Chances of you Being Investigated by the Taxman?

By Neill Staff, Senior Tax Manager E: neill.staff@raffingers-stuart.co.uk Recent figures have shown that nearly 400,000 new tax investigations are launched each year. That is nearly 8,000 new cases every week. But, how would you react if the dreaded enquiry notice landed on your doormat?

In my experience, people generally react in three ways;

1.

Bury their head in the sand and hope for the best – I would not recommend this!

2.

Contact the Inspector straight away to try and resolve things – the Inspector is a friendly person and you want to come across as being helpful, right? – I would not recommend this either!

3.

Take a deep breath and then contact their accountant

It goes without saying that your best bet is always option three! I am not just saying this because I am a tax investigation specialist. It is more because I spent over 20 years in HMRC as a senior investigator and it is a fact that HMRC officers prefer to deal with good quality accountants and enquiry specialists. This is because they help manage the enquiry process and make life easier for everyone on both sides of the table.

Some enquiry letters can appear threatening, or even casual, to encourage a quick response, but do not be fooled. While you need to act relatively quickly, you should not succumb to panic. Nor should you start thinking about how much it is going to cost you to get professional help.

Do not start thinking of the enquiry as a DIY project. It may cross your mind - why pay for someone else to fix it when

you could have a little fiddle around and, hopefully, fix it yourself? The problem with dealing with HMRC on your own is that HMRC officers are highly trained and extremely astute people. They will be polite and professional to the extreme, even smiling and joking as they casually ask questions about your business and personal life. But make no mistake, the Inspector has spent many hours or days researching your business and preparing for the opening meeting and records review.

It is imperative that you have a good accountant in your corner. HMRC officers have wide ranging powers of inspection and can charge penalties if tax has been under-declared. But they must also work within specific legal boundaries. How would you respond if the Inspector turned up to your business premises and immediately asked for your books, records and private bank statements from the last six years? Similarly if mistakes have been made, a good accountant can work with HMRC to quantify the additional tax due, and then negotiate a penalty that is reasonable to the circumstances of the case.

So, in conclusion, the three recommended steps to dealing with an HMRC enquiry notice are:

1.

2.

3.

Take a deep breath Take another deep breath and put the kettle on Get an accountant

Neill was a former senior tax inspector and investigator with HMRC for over 20 years and now deals with enquiries including COP9/8, Employer Compliance Reviews and IT/ CT. RAFFINGERS STUART NEWSLETTER AUTUMN 2015

8

Shared Parental Leave and Your Business Since April 2015, parents have been able to split a total of 50 weeks of leave and 37 weeks of statutory pay between them, following the birth or adoption of their child.

This new system, known as Shared Parental Leave (SPL), does not replace current maternity/ paternity leave, but simply offers parents another option.

Employees can choose to opt for SPL at any time, provided there is still some untaken maternity leave to share. They can also request to take a continuous block of leave or take their shared leave in weekly blocks.

As an employer, you are not able to reject a request for a continuous period of SPL if the following conditions are met: ● The employee has been continuously employed with you for more than 26 weeks 9

● The employee has notified you of the leave he/ she wishes to take by the 15th week before the new born or adopted child is due ● The employee satisfies the employment and earnings test (worked for at least 26 weeks in the 66 weeks leading up to the due date of the child or placement for adoption, and has average weekly earnings of £30 or more in at least 13 of those 66 weeks)

However, if your employee has asked for multiple periods of shared leave, for example one month off, followed by one month at work, followed by one month off etc., you are able to accept, reject or propose an alternative.

Although, if you reject this request and are not able to come to a suitable arrangement, your employee must still be allowed to take a continuous period of leave instead.

So far, there has been a mixed response to SPL. The government expects only 2-8% of eligible couples to apply, making some question whether employers will be affected at all. However, others have argued that SPL will put even more burdens on ‘struggling employees’.

We have yet to see what the take up of the new scheme will be. There is no obligation for employees to match their SPL benefits to any enhanced maternity benefits they offer.

Although, some larger firms have already announced they will be offering the same terms for both SPL and maternity leave packages.

SPL is now a reality and it is important that employers are aware of their employee’s new rights. Employers need to prepare themselves for these new rules and get a system put in place to deal with such requests. It is also advised that employers update their policies and handbooks to reflect these changes and ensure their employees understand the new requirements.

The Apprenticeship Guide If you are an employer then the possibility of hiring an apprentice may have crossed your mind, but this may have been where the commitment stopped... To help you in this process we have produced our Apprenticeship eBook, providing everything you need to know about hiring an apprentice.

Email lauren.aston@raffingers-stuart.co.uk to request your copy.

YOUR BUSINESS OUR PASSION

Overcoming the Changes to Dividends If you are a company owner or director you may have an unexpected tax bill if you continue to draw dividends as your main source of income from your company.

The new dividend tax, as announced at the Summer Budget, has taken us all by surprise and has left many in a state of confusion as to how it will affect them.

The changes introduced were said to be “long overdue” and are set to affect nearly 700,000 UK tax payers (ft. com). The changes, which will come into effect from April 2016, are as follows: ● The first £5,000 of dividend income will be tax free ● Basic-rate tax payers will be taxed 7.5% on sums above £5,000 (previously they paid no tax) ● Higher-rate tax payers will be taxed 32.5% on sums above £5,000 (previously they paid 25%) ● Additional-rate tax payers will be taxed 38.1% of sums above £5,000 (previously they paid 30.56%) So in simple terms how does this affect you? Under the current system, it is a common tax strategy to pay a small salary combined with a dividend up to the value of the higher rate tax bracket, which for the current tax year

is £42,385. Choosing to be remunerated in this way means individuals can avoid paying any personal tax. However, as of April 2016, this will no longer be possible and someone drawing their remuneration in this way will face a personal tax liability of £2,000, payable by 31 Jan 2017. This is not good news if you have a few shareholders, maybe a husband and wife and children, taking dividends to keep below the £42,385 bracket.

For those earning up to the next taxable earnings bracket of £100,000 (where you still keep your personal allowance), currently the tax bill is £15,348, but from the next tax year this will increase by a massive £8,831 per year. Furthermore, for those earning £140,000 and £200,000, the additional tax liabilities show a 44% to 47% increase in tax payable, every year.

One solution for those paying higher rates of tax is to vote the dividends in the current tax year and pay the tax a year earlier than normal, if practically possible.

In the long term, it is slightly more complicated. There must be a point when salaries and bonuses become attractive again, especially where the PAYE/NIC is being paid by the company and not the shareholder personally.

To discuss your options contact Lee Manning at lee.manning@raffingers-stuart.co.uk

RAFFINGERS STUART NEWSLETTER AUTUMN 2015

10

A Xero Case Study Rob Grant, Director at Dragonfly discusses his experiences with Xero and why choosing Xero was one of the best decisions he has ever made.

“I had been looking for accounting software for a while as I was desperate to get real-time information on my company’s financial position. My old accountant suggested Sage, which I tried and spectacularly failed to get to grips with – in fact I still have a drawer full of unopened Sage training manuals if anyone wants them? I guess that tells its own story! Having quickly realised that Sage was far too complex for a man of my meagre accounting prowess, I asked my old accountant to research other alternatives. Alas he could not find a suitable solution and so I resigned myself to receiving my management accounts every six months.

11

However, the accounts would invariably take a few months to complete by which time the information would be outdated. Again, I approached my accountant for a solution but none was forthcoming. It was then I made the decision to seek alternatives and a broker put me in contact with Lee at Raffingers Stuart. On our first call Lee mentioned Xero; how the firm were big advocates of the software and that if we went with them we could move all of our financial data on to the Xero platform.

Dragonfly is an award winning recruitment consultancy specialising in the media sector.

T: 08456 182 750 E: info@dragonflyrecruitment.com

YOUR BUSINESS OUR PASSION

I politely explained to Lee that I had struggled with Sage and he assured me that Xero was a lot more user friendly and that I would be able to cope.

He was right, and quite honestly we have not looked back.

Using Xero has fundamentally changed how we operate as a business and has given me the real-time information I had been after for so long. I now have access to the daily balance sheet, P&L and cash position of the business at the touch of a button, allowing us to make business critical decisions far more clearly and quickly than ever before.

Xero is easy to use and when I do struggle with something the software allows almost instantaneous communication with the team at Raffingers Stuart, who are happy to talk through any problems.

Additionally, with CrunchBoards we can produce realtime reports and evaluate the business’s financial data on a granular level, bringing a real clarity to our financial planning.

Put simply, Xero is probably one of the best decisions we have ever made.”

Events 2015 Over

£1,100 raised

further the work of Consultant Obstetric Physicians who deal with women who have serious health problems during pregnancy, often resulting in premature births. It was great to see so many people turn out for this great cause. To find out more about The Lauren Page Trust visit www.laurenpage.org.uk.

We would also like to again congratulate the winners on the day...

Annual Charity Golf Day 2015

Nearest the Pin - Mark Roye Longest Yard - Tony Ash

Thank you to everyone that attended our ninth Golf Day in aid of The Lauren Page Trust.

Despite the non-stop rain, our hard core golfers helped us to raise over £1,100 (and still counting) for our chosen charity. It was great to see so many people turn out for this great cause - we hope you are now all dried out.

Overall Winner, Handicap 1-16 - Frank O’Donnell Overall Winner, Handicap 17-28 Joolz Overall Team Winners - Baber Nisar, Naeem Arif and Khalid Mustaq

The Lauren Page Trust is a charity set up to raise money to

An Introduction to Alternative Finance Date: Thursday 19th November 2015 Time: 5pm, for a 5:30pm start Venue: APEX Hotel

With over 56% of UK SMEs unaware of Alternative Finance, we hosted a unique event on how businesses can access and benefit from a range of funding and

sponsorship alternatives, outside of the bank.

The event featured, Market Invoice, who guided attendees through their funding options, Chaser who showed attendees how they can reduce their debtor days and gain a financial boost through simply revising the process in which they chase outstanding invoices, and Growth Accelerator on their business growth service.

To see the presentations from the event please contact lauren.aston@raffingers-stuart.co.uk.

RAFFINGERS STUART NEWSLETTER AUTUMN 2015

12

Hold Fire on Pension Withdrawals Following Black Monday Turbulence

By Sheriar Bradbury, Managing Director of Bradbury Hamilton People aged 55 or over have moved swiftly to take advantage of pension freedoms – within only four months the new regime has seen Britons withdraw more than £1.8billion from their pensions. Now, in the wake of the startling Chinese stock market crash, retirees are being cautioned to hold fire and delay any plans to cash in all or part of their pension pots.

13

While the inherent flexibility of the new freedoms is incredibly appealing, a pension takes many years of discipline and commitment to build and does not deserve to be put at risk. It is critical for retirees to stall all decisions relating to moving any pension money, certainly until the markets have stabilised. The FTSE initially rebounded from Black Monday on 23 August 2015, but has since seen further volatility with markets falling once again, illustrating that we have not seen the end of the turbulence.

Therefore, prudence should prevail and the best advice to retirees is to wait until the market has stabilised. This may take some time.

British pension funds are largely invested in London’s FTSE 100 which, on Black Monday, lost more than £70billion and has fallen by more than 10 per cent in the last two weeks. This has slashed the value of pension funds and is creating havoc within the at-retirement community. People are seeing their plans for retirement unravel and this is a terrible blow for them.

Over-55s who can manage without accessing their pension funds should do everything possible to continue as they are and leave their funds in tact to avoid locking in the losses.

General expectation is that losses will be recouped in the longer term.

The same principle applies to retirees who are using income drawdown schemes to withdraw a regular income YOUR BUSINESS OUR PASSION

“Prudence should prevail and the best advice to retirees is to wait until the market has stabilised before any withdrawal is made to your pension fund.” from their pension funds, while keeping the remainder invested. These individuals must try to protect the capital in their fund from being eroded and should try to only withdraw the amount they are making in income from dividends. Taking a lump sum from the pension pot while the stock market is low effectively means biting into a higher proportion of the overall fund, which may leave it dangerously depleted.

Funds being used for income drawdown should be correctly structured, to allow for market fluctuations.

One way to do this would be to keep an appropriate proportion of the investments in cash deposits and fixed interest to sustain income payments during volatile market movements.

Retirees can use the new freedoms to withdraw the minimum they need, rather than crystallising a large loss on the entire fund.

For further advice or for a confidential discussion, please contact Dharmesh Upadhyaya at: E: dupadhyaya@bradburyhamilton.co.uk T: 0208 418 2708

partner perspective

Are Athletes the Key to your Success?

Lee Manning, Partner lee.manning@raffingers-stuart.co.uk 020 8418 2662

If you take our firm, out of our seven partners, three are avid golfers and one a keen cyclist. In regards to the rest of our team, we boast long distance runners, footballers, gym fanatics, walkers and even a skateboarder.

addictive. This is reflected in their work, neither gives up and both strive to exceed targets and complete tasks, no matter how difficult.

It is safe to say that at least half of our team (more if you focus on those in management positions) undertake sport of some kind. I do not think this is a coincidence, but rather, in our experience, we find those who undertake sport tend to be more driven, hardworking and determined to succeed.

All athletes set goals and targets for what they want to achieve in the next week, month or year. This transfers easily to the business environment. The majority of our employees that undertake sport are self-starters, always setting new goals for themselves and their team. They are also adept at prioritising and being able to reprioritise quickly to focus on new objectives whenever they appear.

As a consequence, we find ourselves asking more, and more, in interviews questions concerning an individual’s outside interests, and whether they do play or have played sport of any kind.

So, why do we ask this? Well, we believe athletes bring the following core values to our business...

Hard Work Ethic People who undertake sport tend to be more committed; they are able to set goals and work towards them, understanding that hard work and hours need to be put in, in order for goals to be achieved.

Their hard work ethic also stems from their love of success.

Take our two long distance runners; the thrill they get from completing a race in a time they have been training for is

Goal-Orientated

Team Players Even in individual sports, athletes understand the importance of teamwork. Nothing can be achieved unless the whole team is focussed and working collaboratively to achieve the same goal.

Not only this, but athletes tend to read people better, knowing when to take charge, when to take a step back and when to encourage their colleagues, this leads to a great working environment where more can be achieved.

From seeing the positive impact athletes have had on our firm, it is definitely a subject that needs to be considered when you are next interviewing, especially if you are a small or start-up company that needs self-starters who are as passionate about your business as you are.

RAFFINGERS STUART NEWSLETTER AUTUMN 2015

14

Head Office 19-20 Bourne Court, Southend Road, Woodford Green, Essex, IG8 8HD Tel: 020 8551 7200 Fax: 020 8551 0912 Email: info@raffingers-stuart.co.uk London Office 3rd Floor, 5-10 Bury Street, London, EC3A 5AT Tel: 020 7167 6880 www.raffingers-stuart.co.uk facebook.com/RaffStu

@RaffStu

linkedin.com/company/raffingers-stuart