RAFFINGERS STUART NEWSLETTER SUMMER 2015
SMALL DETAILS
BIG DIFFERENCE *Visualising data with CrunchBoards
What Small Businesses want from the New Government
Do you meet the Annual Tax on Enveloped Dwellings Conditions?
A Taxing Time Ahead?
The FSB surveyed 2,327 small businesses to find out the top 10 issues they want the new government to address.
Missing your deadline can result in penalties, interest and surcharges.
The Chancellor’s Budget statement on 8th July 2015 offers a window of opportunity when it comes to managing your wealth.
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Contents
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PP SMALL DETAILS BIG DIFFERENCE
Welcome and Partners
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Special Feature What Small Businesses want from the New Government
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Queen’s Speech Welcomed by Businesses
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Do you meet the Annual Tax on Enveloped Dwellings (ATED) Conditions?
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Employee Spotlight
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Client’s Story Sasudi.com: Fear of Sales
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Events 2015 - The Story so Far
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Annual Charity Golf Day 2015
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A Taxing Time Ahead
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Raffingers Stuart Join APSCo
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Partner’s Perspective Why Should you Make a Will?
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Welcome to our SUMMER Newsletter The last three months have been promising for UK businesses. A surprising general election and a jampacked Queen’s speech have had UK businesses at their core, with the government proclaiming their support and aim to stimulate growth and create jobs. The Enterprise Bill was probably one of the most welcomed announcements, which aims to cut red tape for small businesses, as well as help them to settle late payment disputes without generating extortionate legal costs. As well as a focus on the election outcome and Queen’s speech, in this edition, we bring you the latest on ATED (and ways to avoid being hit with penalties and surcharges), the latest blog from our Wealth Management partners, Bradbury Hamilton, and the announcement of our next Annual Charity Golf Day.
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
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.
adam.moody@raffingers-stuart.co.uk
The Partners at Raffingers Stuart
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 SUMMER 2015
What Small Businesses want from the New Government SPECIAL FEATURE With open letters from the British Chamber of Commerce (BCC), as well as the latest results from the Federation of Small Businesses (FSB) survey, businesses have made it clear what they expect from the government in the next five years. The government is now under pressure to act quickly and demonstrate that they will back businesses. The FSB surveyed 2,327 small firms to find out what they want from the new government. The general consensus was a call for stability and certainty during the course of the next parliament. 3
35% said they expect sustained economic recovery to be the top priority for David Cameron. For the next five years, 53% expressed their wish for reduced regulatory burdens and 51% requested a simplified tax system. Although, when it came to stating whether small businesses were confident in the government addressing these issues, it was nearly a 50/50 split. 51% said they are confident or very confident in the government, whilst 28% said they were unconfident or very unconfident. The government became under further pressure following an open letter from John Longworth, Director General, BCC. The letter called for a focus on: public spending, trade, talent, investment, Europe and infrastructure. Initially, the government does seem to be going in the right direction, especially in regards to the Enterprise Bill and their commitment to growth and job creation. However, actions speak louder than words and we now wait to see how the government will deliver upon their promises and address the issues felt by many small businesses.
SMALL DETAILS BIG DIFFERENCE
Top 10 Issues small businesses want the government to focus on in the next five years... Reduce regulatory burden (53%) Introduce a more simplified tax system (51%) Reform business rates (44%) Improve the employability skills of young people (41%) Deliver improved broadband /mobile connectivity (39%) Help UK small businesses to create more jobs (34%) Tackle late payments (33%) Lower energy costs for businesses (30%) Ensure better access to finance (28%) Increase investment in infrastructure (26%) *Federation of Small Businesses
Queen’s Speech Welcomed by Businesses Wednesday 27 May saw the Queen make her 64th state opening of parliament, announcing plans that the newly-formed government expect will “raise the productive potential of the economy” and show their support for small businesses. Here we outline the key announcements...
Cutting Red Tape In the Queen’s speech, Sajid Javid’s announcement of an Enterprise Bill was confirmed, which will cut red tape, saving British businesses at least £10billion. The Enterprise Bill also includes a small business conciliation service, which will help settle disputes between small and large businesses, without the need for court action. This is expected to help considerably with disputes over late payments. Finally, the bill will look to simplify business rates and the way in which appeals are made.
Income Tax, VAT and National Insurance Legislation will be proposed to ensure that those working 30 hours a week, on minimum wage, will not have to pay income tax. It was also confirmed that there will be a tax lock and no increases will be made to income tax rates, VAT or National Insurance before 2020. Finally, it was once again confirmed that the income tax threshold will be raised to £12,500.
Building a “Northern Powerhouse” The idea of a ‘Northern Powerhouse” (which was first raised in the Budget 2015) was once again mentioned. The Government plans to encourage economic growth in the north through introducing legislation that will give more power to northern cities.
Childcare A Childcare Bill will look at the entitlement for free child
care to be raised to 30 hours a week (for 38 weeks of the year) for eligible parents.
EU Referendum The Queen outlined plans for legislation on an in-out referendum on Britain’s membership of the European Union, which will be rushed through before the end of 2017.
Worker Strikes It was announced that the Government will be looking into new rules to make worker strikes more difficult to organise. Legislation will now make it illegal to strike unless there is a ballot turn-out of 50% of those eligible to vote and around 80% of those vote in favour of striking.
Apprenticeships Three million more apprenticeships have been promised over the next five years and a new law will ensure the minimum wage remains tax free. These announcements show the government’s commitment to back UK small to medium-sized businesses. RAFFINGERS STUART NEWSLETTER SUMMER 2015
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Do you meet the Annual Tax on Enveloped Dwellings (ATED) Conditions? Missing the filing deadline can result in penalties, interest and surcharges. ATED return submission dates depend on when the property was purchased and the value of the property. The deadline can be as early as 30 days from completion of the purchase. The Government introduced the ATED annual charge in April 2013 on UK residential property owned by a company, a partnership or a collective investment scheme (referred to as a ’non-natural person’). Depending on the circumstances, the ‘non-natural person’ may be able to obtain relief and therefore not pay the ATED annual charge. However, an ATED return will still be required if the property value exceeds the limit stated. 5
Failure to submit an ATED return where the value of the property exceeds the limit will result in penalties, interest and surcharges, irrespective of whether or not an ATED charge is applied. Relief from the ATED charge is available for: ● Dwellings held by property development companies, or as trading stock ● Dwellings held by property rental businesses where the building is let out to a third party on a commercial basis ● Dwellings that are conditionally exempt from IHT and regularly opened to the public or used to provide accommodation or other services to the general public on a commercial basis ● Farmhouses occupied by working farmers ● Dwellings held by trading companies for the use of employees in the trade ● Dwellings owned by a charity and held for charitable purposes ● Dwellings owned by public or government bodies or for social housing SMALL DETAILS BIG DIFFERENCE
Administration An ATED return is required annually and shall report either the charge applicable to the property or the relief the company is entitled to (as stated above). ATED returns are prepared a year in advance, for example an ATED return covering the period to 31 March 2016 was due for submission by 30 April 2015. The submission date depends upon the value of the property and when the property was acquired. It is important to note that if a property is purchased and exceeds the property value limit, a return will be required within 30 days following completion of the purchase or 90 days if the property is newly developed. From 1 April 2015, the charge on residential properties owned by a non-natural person has increased by 50% above inflation. Opposite is a table of the ATED rates:
Property ATED charge ATED charge 1 Value 1 April 2013 April 2014
ATED charge 1 April 2015
£2m £5m
£15,000
£15,400
£23,350
£5m £10m
£35,000
£35,900
£54,450
£10m £20m
£70,000
£71,850
£109,050
£20m +
£140,000
£143,750
£218,200
Recent Changes The property value limits have reduced; as such, please see below a table for the charge on residential properties owned by a non-natural person:
Employee Spotlight In this slot we would like to introduce you to a valued member of our team, allowing you to put a face to a name. This quarter we visit our Payroll Apprentice, Georgia Tear. Name: Georgia Tear Nicknames: Gee DOB: 28 May 1997
Property value
ATED charge
More than £500,000 but not more than £1m (with effect from 1 April 2016)
£3,500
More than £1m but not more than £2m (with effect from 1 April 2015)
£7,000
Where we can Help We are able to review the properties held and determine if an ATED return is required and if any reliefs are available. We have prepared a number of ATED returns and are able to provide advice and support in dealing with HM Revenue & Customs on any matters relating to the return and charge.
Should you require any further assistance or have any queries, please contact Adam Moody at: adam.moody@raffingers-stuart.co.uk
Career history: As I have only just left school, I do not have a long career history as I am still developing new skills and experience in my current position at Raffingers Stuart. However, prior to my position here, I carried out work experience at NHS offices administrating medical records. Since starting at Raffingers Stuart in August 2014 as an apprentice, I have been given plenty of opportunities to develop my skills in the payroll field whilst being supported every step of the way by a great team. When my apprenticeship ends in August, I hope to continue my journey at Raffingers Stuart and start a CIPP course. Interests: Music is a huge factor in my life. When I am not working, I am listening to music. When I am not listening to music, I am singing! My favourite band has been the 1975 for years, so I am extremely excited to go and see them live later this year! I have also grown up with a family who are passionate about horse riding; I find it a great escapism. Partners Report: Georgia has been a baptism of fire. Having joined the payroll team in August 2014 as a payroll apprentice and the youngest member of our team, she has developed considerably and is fast becoming a payroll expert. With her ambition, talent (as well as her impressive pouting skills), Georgia has an incredibly bright future.
RAFFINGERS STUART NEWSLETTER SUMMER 2015
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Fear of Sales? Sasudi.com tackles one of the biggest challenges for small business owners…their fear of sales!
We’ve been training Business Owners and Entrepreneurs for almost 20 years and whilst they’re passionate and knowledgeable about what they do, we’ve found that most of them are pretty poor at selling and are afraid of it. Over the years we’ve created a series of approaches that blend practical sales with psychological methodologies. These have been delivered face to face and have generated real sales success for small business owners.
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We’ve now found a way to scale up these methodologies via an online platform. It’s a complete and affordable solution...an integration of sales training, process, management, direction…and psychology, which combine to make sales easy. Business owners will be able to learn sales techniques by watching ‘How To’ videos, develop skills by completing training exercises, download proven templates, upload their action plans, get a boost when they’re feeling low, manage their sales funnel, create email marketing and track responses, connect with other small businesses, overcome their fear of sales and their negative self-talk...in fact, everything they need will be there...in one place! Never before has all this been available on one platform!
SMALL DETAILS BIG DIFFERENCE
Our vision is to help millions of small businesses globally to overcome the fear of sales for good and to enjoy selling themselves, their ideas and their products /services in a way that’s right for their style and personality and at a cost that all small businesses can afford. Sasudi.com is completely free for 60 days so that you can really experience how it works for you (prices then start from as little as £25 per month). Sasudi.com launches in September but you don’t have to wait for sales help. Pre-register at the site now and get access to our twice weekly blog full of easy to implement tips that really help generate more sales. Pre-Register here: http://sasudi.com
Key Contacts Leigh Ashton
Jonathan Mills
E: leigh@sasudi.com
E: jonathan@sasudi.com
T: 07932 164873
T: 07970 753664
Events 2015 - The Story So Far Take Control of Your Business with Xero and CrunchBoards
Golf Day 2015
When: Wednesday 29 April 2015 Where: Eight Members Club Bank
When: Wednesday 16 September 2015 Where: Toot Hill Golf Club
Over 30 finance directors, business owners and bookkeepers joined us for our first ever Xero and CrunchBoards event.
Following the success of our 2014 Annual Charity Golf Day, we are pleased to announce that our ninth Golf Day will be held on Wednesday 16 September 2015 at Toot Hill Golf Club.
At this event, Lee Manning guided attendees through CrunchBoards. Using a case study from an existing client, Lee showed the reports that businesses owners and directors can now produce for their company, with a particular focus on the following reports:
As always, the event will bring together colleagues, clients and friends of our firm. With all money raised being donated to our chosen charity, The Lauren Page Trust.
● Sales snapshot and forecasts ● Sales by region and sales by individual team members ● Salaries to sales ● Bank balances ● Overheads as a % of income
This year, the Golf Day will be £70 per person, which includes breakfast, 18 holes on this superb course, a three course meal and a donation to The Lauren Page Trust. There will be the usual competitions on the day with presentations for the following:-
● Profit and loss
● Nearest the Pin
● Gross profit of national offices
● Longest Drive
● Corporation tax liability
● Overall winner
● Property expenditure analysis and watch list
● Team prize
● ROI on advertising and marketing spend ● Gross profitability analysis
If you would like to attend this event, please email lauren.aston@raffingers-stuart.co.uk.
With CrunchBoards allowing real-time reporting, attendees were able to view live reports. However, for this to be achieved, CrunchBoards does need to sync with Xero. Therefore, Lee went on to discuss the future of accounting and the benefits that Xero is bringing to businesses. To find out more about Xero and/ or CrunchBoards, please contact: Lee Manning, Partner E: lee.manning@raffingers-stuart.co.uk Check out our YouTube channel for all of the videos from our seminars.
RAFFINGERS STUART NEWSLETTER SUMMER 2015
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A Taxing Time Ahead? The Chancellor’s forthcoming budget statement on 8th July 2015 may not be top of everyone’s summer reading list, but it offers a window of opportunity when it comes to managing your wealth. George Osborne has promised no increases in income tax, national insurance or VAT in the life of this Parliament. Yet, while he is under pressure to keep election promises made, Mr Osborne also has to balance the books. So what does this mean for clients looking to manage their wealth? In particular, how can you ensure that any further changes made to the tax system can both minimise any adverse changes in tax rises as well as maximise favourable tax changes as part of your wealth management planning?
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One of the key elements of the Government’s ability to improve the public coffers will be to ensure the economy keeps on growing. The Conservative party seems to be committed to Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCT) so reliefs available on these vehicles may remain untouched. For high earning investors with a higher tolerance to risk, who have utilised their ISA and pension allowances, such alternative tax-efficient schemes may be worth a second look. This will be particularly important for those likely to hit the reduced £1m lifetime allowance figure in April 2016. £1m may seem a large sum to accumulate, but for
those who have made the effort to contribute to their retirement regularly over the years, on the basis of a limit that was practically 50% higher in 2012, it’s anything but encouraging. Ros Altman, the new pensions minister, was against this reduction. Will it be implemented? Nor is it good news for younger clients who are committed to saving more towards retirement. Again, many will hit the limit way before reaching pensionable age, which will see them suffer a 55% tax charge for the sin of saving diligently. To put it in perspective, anyone currently aged 35 or younger in white collar employment who saves towards their pension regularly is likely to breach the £1m limit. Also, the proposal by the Conservatives to allow up to £1m to be exempt from the value of the family home on death sounds like a big giveaway on the surface. But a look at the detail and you realise this is a combined figure for couples paid for by potentially scrapping additional rate tax relief for those earning over £150,000. So while we can now enjoy an element of political stability over the next five years, getting the right financial advice to ensure your wealth management strategies can cope with economic and budgetary changes ahead will be essential. For further information contact Dharmesh Upadhyaya on 0208 418 2708 or at: dupadhyaya@bradburyhamilton.co.uk.
Raffingers Stuart Join APSCo We are delighted to announce that Raffingers Stuart has recently become a member of the Association of Professional Staffing Companies (APSCo). Ann Swain, APSCo’s Chief Executive said: “APSCo is delighted to welcome Raffingers Stuart into its membership. All of our members have to commit to a strict Code of Conduct and a rigorous, independently verified, referencing process that means that APSCo is a trusted badge of quality for candidates and employers... Raffingers Stuart embraced this process showing their commitment to excellence.” Raffingers Stuart has seen the recruitment sector soar within
SMALL DETAILS BIG DIFFERENCE
the last few years. “We are very happy to be a part of APSCo and recognised as a trusted voice within the recruitment sector. Our growth in the recruitment industry has rocketed over the last few years and it is important for us to be a part of an association that not only shares our values for excellence, but also provides us with quality services and insights into the industry”, explains Lee Manning, Partner at Raffingers Stuart. The team at Raffingers Stuart are proud to be a recognised member of APSCo and look forward to the future.
partner perspective
Why Should You Make a Will? 61% of UK adults do not have a will. There are many reasons behind this; however, according to research conducted on behalf of Standard Life, the main reason is that people “have just not gotten round to it”. Why should you make a will? A will is important for everyone, whatever their wealth and status. But in particular it should be a priority for those nearing, or already in, retirement, who may have accumulated substantial assets and pensions and have children and grandchildren they wish to look out for. You should also be thinking about creating a will if you are in the process of any of the following: ● You have bought or are moving house ● You have married, divorced or are living with a partner ● You have had a change in financial circumstances ● You have had a child ● You have experienced a family bereavement Creating a will allows you to have a voice when you are no longer here, allowing you to choose exactly where your wealth and belongings are distributed. The importance of having a will should not be under played. Without one, the distribution of your assets will be at the mercy of the intestacy rules. These rules are fixed, and not particularly contemporary, dating back to 1925 in England and Wales, and 1964 in Scotland. They can, therefore, have undesirable results in terms of who gets what, and potentially apply unnecessary inheritance tax. You can write your will yourself. There are, however, certain criteria to be met to make a will valid and therefore it is advisable to seek legal advice in all but the most simplest of cases.
Top 10 Reasons for Writing a Will 1. To ensure your spouse /civil partner inherits your house (this applies if the house is not jointly owned) 2. To guarantee that unmarried partners and dependants will inherit 3. To guarantee children from an earlier marriage inherit (this applies if you have remarried) 4. To avoid unnecessary Inheritance Tax 5. To manage assets for those who may be considered too young to inherit, or not trusted to manage for themselves 6. To appoint guardians to look after minor children 7. To avoid money going to a bankrupt person or someone who may be in the process of a divorce 8. To create a trust for a dependant who cannot care for themselves 9. To make a donation to a favourite charity 10. To benefit individuals who are not related
Paul Dell, Partner paul.dell@raffingers-stuart.co.uk 020 8418 2688 RAFFINGERS STUART NEWSLETTER SUMMER 2015
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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
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