A fresh approach to business
ulletin Issue 15
Budget highlights Full rate of corporation tax to be cut by one per cent to 20 per cent in 2015. Income tax eliminated for all earnings under £10,000 by 2014. New employment allowance to cut National Insurance bills for every firm by £2,000 to help small companies. Tax avoidance and evasion measures to be targeted to recoup £3 billion. Stamp duty abolished on shares traded on growth markets such as AIM. Fuel duty rise scrapped. New scheme to allow property purchases with only 5 per cent deposits. Single flat-rate pension of £144 a week brought forward a year to 2016. 20 per cent tax relief on childcare up to £6,000 per child from 2015. Care home costs assets threshold to rise from £23,000 to £118,000 from 2017.
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Spring 2013
A budget for growth? Despite being forced to slash growth forecasts for the UK in his Budget, Chancellor George Osborne had some good news for business. He insisted his economic medicine is working and said the UK would avoid a "triple dip" recession with growth of 0.6% this year, although that’s just half the 1.2% forecast last year. At the same time he reached into his red briefcase and pulled out a package of measures aimed at "those who want to work and get on". He announced plans to cut corporation tax from 21% to 20% in 2015, a move that will give the UK one of the lowest rates in the developed world. Small businesses will also have welcomed a new employment allowance to cut National Insurance bills for every firm by £2,000. At the same time he announced the income tax threshold will be raised to £10,000 next year as part of a string of moves to lower the tax burden on areas like fuel and childcare. While he was cutting tax for some, he unveiled a £4.6bn government crackdown on tax avoidance and evasion. The initiatives include "naming and shaming" promoters of tax avoidance schemes and new financial
An extra £15 billion to be invested in road, rail and construction by 2020. Tax incentives for ultra low emission vehicles.
HWB Chartered Accountants, Highland House, Mayflower Close, Chandlers Ford, Eastleigh SO53 4AR T: 023 8046 1200 | F: 023 8026 9621 | E: admin@hwb-accountants.com | W: www.hwb-accountants.com
disclosure agreements signed with the Crown dependencies of Jersey, Guernsey and the Isle of Man. He also announced two schemes to boost the housing market, now seen as vital if the economy is to be growing strongly in the run-up to the 2015 general election. The Treasury will provide £3.5bn over three years for shared equity loans to increase the sales of new homes, and will give mortgage guarantees to lenders to encourage them to lower the cost of home loans to all buyers. HWB managing director Geoff Rhodes said: “We wanted a budget for growth, something to help our entrepreneurs create the jobs and the industry that will drive the economy forward. “There was some welcome news for business here, but will it be enough to improve people’s confidence, as this is key to stimulating the economy? Only time will tell.” The scale of the challenge faced by the UK economy was underlined by figures from the Office for Budget Responsibility suggesting that, despite years of austerity budgets, the government's efforts to cut the deficit - the difference between money spent and earned in a year - have stalled and it will remain at about £120bn for three years.
HMRC’s bank details are changing for PAYE As a consequence of Real Time Information (RTI), the account details for all PAYE payments, irrespective of accounts office, will change to the following with effect from 2013/14 tax year:
Account Name: HMRC PAYE
12001039 Account PAYE Number:HMRC AccountName: Account Number: 12001039 10 10 Code: 08 32 SortCode: Sort 08 32
If you decide to use the electronic method to make PAYE payments, please ensure you include the correct payment reference. This is made up of your Accounts Office reference and the year and month to which it relates. For further information and guidance on payment references, please visit HMRC’s website
http://www.hmrc.gov.uk/paying hmrc/paye.htm#2 Making payments electronically, although the preferred method, is not currently mandatory and you can continue to use the Employer Payment Booklet. These can be ordered from your HMRC Accounts Office.
Real time headache to hit businesses A major change affecting all businesses came into force from 6 April 2013. HM Revenue & Customs is going real time – introducing a new system which means that from the start of the new tax year, businesses will have to submit all PAYE returns online, at the same time, or before an employee is paid.
Now therefore may be the ideal time to consider outsourcing payroll, bringing benefits not only in relation to meeting the new submission requirements, but also in providing:
As well as creating an additional administrative burden, Real Time Information (RTI) will provide the headache of learning the new legislation, particularly with regard to policies and procedures, in order to ensure compliance. The expectation is that compliance visits will also be triggered as a result of consistently incorrect or late submissions. There is more information required to submit a successful Full Payment Submission (FPS) than at present and preparation for your FPS alignment is essential. James Alesbury, HWB’s Payroll & HR Manager said: “We have been working hard to prepare all of our clients for RTI, in advance of the new tax year, by providing the information needed to make an informed decision on the best way to comply with these changes. PAYE can be a complex area at the best of times and knowing exactly what is expected is a big step in the right direction.” Businesses affected by the new rules should consider how they are going to ensure compliance with RTI. One solution is to outsource to a provider such us HWB Payroll & HR Solutions. Alternatively a commercial software package with RTI functionality should be purchased to enable the work to be carried out by existing accounts staff.
• Payroll processed by experienced and qualified payroll professionals • Reduced in-house administration • Assistance with HM Revenue & Customs enquiries • Flexible deadlines to suit your business • Tailored service HWB offer a fully managed payroll service. To demonstrate how the outsourced payroll service could work, a free review of your current processes is carried out before providing a summary of the ways in which greater efficiency, accuracy and cost-savings could be achieved. For further details, please contact James Alesbury.
James Alesbury Payroll & HR Manager
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Email james.alesbury@hwb-accountants.com
Tamo a done deal HWB has been instrumental in a deal to sell valve and instrumentation equipment supplier, Tamo Limited. The deal, for an undisclosed sum, is the second corporate sale HWB has helped to complete recently.
have acquired Tamo as we believe there is real potential for us to help take the business to the next level. Owner Venture Managers are always keen to hear of similar opportunities where scope for development and an MBI structure exists.”
Tamo, which is based near Heathrow and has been trading for more than 50 years, has been purchased by London-based investment group Owner Venture Managers.
The vendor, Don Grant said: “Last year I made the decision to sell the company and HWB played a key part in helping me achieve that goal within a reasonable timeframe.”
James Wooster, Director at Owner Venture Managers, said: “We were delighted to
HWB Director Richard Hurst said: “Having acted for Don for many years, it’s great to
HWB Chartered Accountants, Highland House, Mayflower Close, Chandlers Ford, Eastleigh SO53 4AR T: 023 8046 1200 | F: 023 8026 9621 | E: admin@hwb-accountants.com | W: www.hwb-accountants.com
be able to help him realise his goal and see him rewarded for all the hard work he has put in. It’s a good deal for both parties and promises a bright future for a fantastic company. “It goes to prove that despite a challenging economic environment, deals offering genuine value can still be realised.”
Charity activity
A bake-off proved a tasty way to raise funds for Red Nose Day, with HWB staff cooking up a storm of more than 13 different cakes to raise over £100. It fell to Practice Manager Roger Hann to judge the competition, tasting all 13 in the process. Roger said: “It was a tough job but someone had to do it! There were some fantastic cakes and it was a great effort to help a super cause.”
New rules mean tax savings on commercial property Changes to the rules on Capital Allowances mean commercial property owners should check to ensure they have claimed maximum tax relief. That’s the advice from HWB’s tax experts, who are highlighting how Capital Allowances on commercial property, already the most overlooked area where the relief applies, now have the potential to deliver significant further savings. Alan Rolfe, Senior Tax Manager, said: “Where any new building is to be acquired or where works are to be carried out on existing premises a full review of the expenditure should be undertaken to maximise possible Capital Allowances claims.
“Even if you are not intending to sell an existing building, it is important to ensure the full expenditure qualifying for Capital Allowances has been identified and claimed. This should be done as soon as possible to safeguard the maximum tax advantage available. For further information on Capital Allowances, or to get expert tax assistance for any aspect of your business, contact Alan Rolfe.
Alan Rolfe
Senior Tax Manager
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Email alan.rolfe@hwb-accountants.com
HWB Chartered Accountants, Highland House, Mayflower Close, Chandlers Ford, Eastleigh SO53 4AR T: 023 8046 1200 | F: 023 8026 9621 | E: admin@hwb-accountants.com | W: www.hwb-accountants.com
Exam success Congratulations are due for three of HWB’s staff who have passed key professional qualifications. Tom Young has passed his ACA qualification and is now a chartered accountant. Stacey Steele has passed the Chartered Tax Advisor (CTA) qualification, the highest level qualification in the UK. Finally, Susan Andow passed her personal tax paper, a key step towards becoming a member of the Association of Tax Technicians (ATT). HWB Managing Director Geoff Rhodes said: “These qualifications are only gained through hard work and application, so well done to them all. “It is fantastic to see the enthusiasm and professionalism we have amongst our trainees which bodes well for the future.”
Three important services for clients Your information safely stored for whenever you want it, wherever you want it
An accounting hero Clients at HWB are embracing a powerful new accounting system called Xero, that makes staying on top of business critical information more efficient than ever. This online system allows both clients and HWB as advisors to view and share information at the same time, offering a real-time snapshot of the business. Xero also allows users to access this key data online anytime they choose and from any computer or even their smartphone. Because it’s online, there’s no need to send bulky files backwards and forwards and there’s no software compatibility issues. Xero’s ability to link directly to bank transactions, and feed data directly into the system significantly reduces the inefficiency of manual entry. Andrew Kershaw, Associate Director said: “This is a step change in the quality of the information we can provide to clients about their business. Xero enables clients to keep their records up to date with much greater ease, meaning that we can offer advice about current and future business issues rather than analysing just the recent past. This allows clients to identify problems sooner and make changes to improve their results. “We are a silver accredited Xero partner and have built a trained team of experts to help clients make the most of all the powerful new features that Xero has to offer.”
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information anywhere • Real time y computer cess from an ac e ot em R • ers • Unlimited us nk feeds ba • Automatic e user interfac t ar • Simple, sm t phone App ar sm cessed on a ac be an C • bscription • Monthly su
To arrange a free demonstration of Xero please contact Andrew Kershaw.
Andrew Kershaw Associate Director
We have now introduced an online data storage facility where clients can access and supply personal and business critical information in a secure online environment. By giving them online access, they will be able to view documents securely online whenever they need them. As documents can be uploaded by both clients and HWB, these will be available instantly and avoid the time taken by sending them by post. How do I gain access to my client account? To maintain security, we have not issued login details to clients and would ask that clients email Richard Bacon to obtain this information. Please note that only one user has initially been created with unlimited access but more may be created with bespoke access rights if required. If you have any queries on our new Online Data Storage facility, please contact Richard Bacon.
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Richard Bacon IT Manager
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Email richard.bacon@hwb-accountants.com
Taken advantage of our HMRC enquiry fee protection? We offer an insurance policy that protects clients from professional fees incurred in connection with an HM Revenue & Customs enquiry. The insurance provides up to £100,000 of our fees for the following events: • Attendance at any face-to-face meeting or dealing with any enquiry correspondence from HMRC • Income & Corporation Tax Self Assessment Full and Aspect Enquiries • Business Record Checks, VAT & Employer Compliance inspections (the actual meeting even prior to any possible disputes) and any resulting disputes (for example PAYE/P11D/P9D/NIC/IR35/CIS) • Automatic private individual cover for all directors or partners and their spouses for their Personal tax returns (as long as we are the Appointed Tax Agent and they show no other self employed income) For further information, contact James Alesbury.
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Email andrew.kershaw@hwb-accountants.com
HWB Chartered Accountants, Highland House, Mayflower Close, Chandlers Ford, Eastleigh SO53 4AR T: 023 8046 1200 | F: 023 8026 9621 | E: admin@hwb-accountants.com | W: www.hwb-accountants.com
James Alesbury Payroll & HR Manager
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Email james.alesbury@hwb-accountants.com We are not authorised under the Financial Services and Marketing Act 2000 but, in certain circumstances we are able to offer a limited range of investment services because we are ICAEW members. We can provide investment services if they are an incidental part of the professional services we have been engaged to provide.