Tax Relief for Innovative Businesses. creditcontrol.co.uk

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1 ISSN and ASSET & RISK REVIEW VOLUME 36 NUMBER 3 & Why Day Dreaming is an Essential Skill for Business Leaders Improving Business Performance by Co-sourcing Customers are Shaping the Future of Digital Banking Save Time and Money by Focusing on Trust Rather than Blame With Great Power Comes Great Responsibility Tax Relief for Innovative Businesses creditcontrol.co.uk

2 Credit Control Journal Editor Carol Baker FCICM Telephone: +44 (0) News Editor Getting Paid and Internet Director Gareth Price Editorial Board Coordinator Sally Halliday Editorial Assistant Sally Williams International Correspondent Anna Waddington-Feather Illustrator and Graphics Advisor Robert Welham Accounts Department Louise Hart All orders and subscription enquiries: Telephone +44 (0) or order online at forms/subscribetocc.htm Missing issue claims*:+44 (0) * Missing issue claims will be fulfilled if claimed within four months of dates of despatch. Maximum of one claim per issue. Reprint service enquiries: Sally Williams, Editorial Assistant Copyright permissions: Carol Baker, Editor Internet services available worldwide on URL CREDIT CONTROL (ISSN ) (now incorporating: GETTING PAID ISSN and ASSET & RISK REVIEW ISSN ) 2015 House of Words Limited Published and Distributed by House of Words Limited 7 Greding Walk Hutton Brentwood, Essex England CM13 2UF Tel: +44 (0) info@creditcontrol.co.uk website: CREDIT CONTROL is abstracted and indexed in a wide range of academic and professional abstracting journals and on-line systems. A full list is available from the Editor. CREDIT CONTROL is published ten times a year by House of Words Limited. No part of this Journal may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. DISCLAIMER Articles and news items are published without responsibility on the part of the publishers or authors for loss occasioned in any person acting or refraining from action as a result of any view expressed therein. The publisher, editor and contributing authors will not accept any liability whatsoever in respect of any article or news item published in the Journal. No responsibility is accepted for the accuracy of the information contained in the text, illustrations or advertisements. The opinions expressed in the articles are not necessarily those of the editor or publisher. The editor reserves the right to edit or alter any article before publication. Missing issue claims will be fulfilled if claimed within four months of date of despatch. Maximum of one claim per issue. Printed by B:M PRESS

3 Cover Feature Tax Relief for Innovative Businesses With the UK economy having grown faster than any major advanced economy in the world last year, the Government will no doubt be quick to attribute this performance to its strategy for economic growth and tax reform. A major component of the strategy, to attract innovative companies to develop and exploit intellectual property within the UK, manifests itself through the tax system via two key company tax reliefs: Research and Development (R&D) tax relief; and Patent Box. In this article, the authors look at how these two particular UK tax incentives can be used by to innovative businesses. In ANALYSIS... Why Day Dreaming is an Essential Skill for Business Leaders As a leader, do you find time and space to plan the future of your business, or do you find it difficult envisioning new possibilities, or perhaps you just feel that day dreaming is a waste of time? If so, this article has some ideas and a solution for you. In his new book, the author of You Are More Than You Think the return to your authentic self, has developed new and practical ways of thinking that is straight forward and a step-by-step approach to help you to realign your thoughts to push past your own personal perceived limitations to become a better you as a leader.

4 Table of Contents Editorial European alternative finance market set to see rapid growth in 2015 One of the most noteworthy aspects of the alternative finance sector is that it showcases innovation, in terms of both business models and technological platforms. But, as with any new sector, alternative finance also brings with it new risks. 6 Legal Aspects Tax Relief for Innovative Businesses Andrew Wilson and Michelle Andrews Ensuring Your Documents Benefit from Litigation Privilege Gwendoline Davies Have You Protected the Value in Your Brand? Don Pennant Analysis Why Day Dreaming is an Essential Skill for Business Leaders Andrew Jenkins Price Optimization: The Power of Customer- Centricity in Out-Pricing the Competition Rick Biggs China Due Diligence Red Flags to Avoid Some of the Pitfalls John Besant-Jones and Marcel Wiedenbrugge Chestertons Residential Observer Nicholas Barnes, Richard Davies, Sam Warren, Robert Bartlett, John Woolley, and Henry Knight Save Time and Money by Focusing on Trust Rather than Blame Lucy Windsor With Great Power Comes Great Responsibility David Golder Data from Social Media has a Place in Credit Decisions Paul Thomas Credit Control

5 Table of Contents Customers are Shaping the Future of Digital Banking, Listen to Them Ahmed Michla Commentary: UK Manufacturers Require More Export Support Carl Hasty Products and Services Country Risk Analysis A leap forward in borderless styling with nubia Z9 E-type essence captured in new wristwatches ViewSonic introduces new 4K monitor for business Lexus announces forth generation all-new Lexus RX Advanced Legal s Laserform Hub is preferred solution for Companies House gateway Business meets pleasure in vineyard networking tours from French Art de Vivre Emerging Market Growth will continue to Outpace Developed Markets Erik Lueth News and Views Leading logistics firm eliminates paper and improves reporting with hosted solutions Chestertons announce new international associate in Toronto Top tips for businesses wanting to adopt M2M technology Magma highly commended at EIS Association Annual Awards 2014 VoiceSage reports interim turnover growth of 16% Advanced Computer Software goes private in 750 million deal Local authorities could cut costs by up to 35% V1 document management technology to increase processing speed Book Review Brand Psychology: Consumer perceptions, corporate reputations 118 Notes for Contributors Forthcoming Papers Credit Control 5

6 Editorial European alternative finance market set to see rapid growth in 2015 One of the most noteworthy aspects of the alternative finance sector is that it showcases innovation, in terms of both business models and technological platforms. But, as with any new sector, alternative finance also brings with it new risks. Investors need to understand the nature of the products, and it s important that appropriate controls are put in place. Carol Baker Editor Apart from the previous studies on the UK by the University of Cambridge and its research partners Nesta and UC Berkeley, there have been very little empirical-based studies available to estimate the overall size of the European alternative finance market or the year-on-year growth of different market segments. This considerable gap in information and knowledge is unfortunate, particularly as this nascent alternative finance industry is growing swiftly, evolving rapidly, and starting to be regulated across many European countries. It is in this context that the University of Cambridge has partnered with Ernst & Young to carry out pan-european, scientific and systematic benchmarking research to capture the size and growth of the online platform-based alternative finance market in Europe. The report, Moving Mainstream: The European Alternative Finance Benchmarking Report, includes input from 14 key national or regional industry associations, as well as 255 leading platforms in Europe, to capture an estimated 85%-90% of Europe s online platformbased alternative finance market. Seen until recently as a niche activity, online alternative finance, including equity-based crowdfunding, peer-to-peer lending, third party payment systems, SME mini-bonds, private placements and other shadow banking mechanisms, social impact bonds, community shares and alternative (virtual) currencies such as Bitcoin, has become a vital and increasingly commonplace source of essential funding for SMEs, start-ups and many other businesses throughout Europe. 6 Credit Control

7 Editorial The Report found that the state of the European online alternative finance market is strong. The overall European alternative finance market, including the UK, grew from 487 million in 2012 to 1,211 million in 2013 to 2,957 million in 2014, with an average yearly growth rate of 146%, and could top 7 billion in Between 2012 and 2014, the surveyed 255 platforms in 27 European countries facilitated 4,655 million worth of funding to European consumers, entrepreneurs, creative artists, SMEs, social enterprises, renewable energy projects, community organizations and good causes. Research shows that the UK is by far the largest European country for alternative finance, at 2.34 billion in 2014, followed by France at 154 million, Germany at 140 million, Sweden at 107 million, the Netherlands at 78 million and Spain at 62 million. Alternative finance in Europe excluding the UK grew from 338 million in 2013 to 620 million in 2014, and has averaged growth of 115% over the past three years. Peer-to-peer consumer lending is the largest market segment at 275 million in 2014, followed by reward-based crowdfunding at 120 million, peer-to-peer business lending at 93 million and equity-based crowdfunding at 83 million. The regulatory landscape of the European alternative finance market remains a concern, according the report. While 18.42% of the respondents state that the existing regulations in their countries are adequate and appropriate, 21.05% argue that they are excessive and too strict. However, across Europe, 14.74% of the respondents in countries currently without dedicated regulations are actively calling for them. There is a substantial body of academic research demonstrating the important role that access to finance plays in promoting economic development, which suggests that economies with low levels of alternative finance activity may be disadvantaged in trying to stimulate economic growth. Policymakers, therefore, may wish to re-examine the regulatory framework governing alternative finance activity in those economies where it appears to be a factor stunting development of the market, while of course balancing this against the need for investor protection. Likewise, the whole financial services industry should be watching this space with growing interest and this study will provide a valuable benchmark against which to measure future developments. Credit Control 7

8 Legal Aspects Tax Relief for Innovative Businesses Andrew Wilson and Michelle Andrews Biography Andrew is a Chartered Accountant and Chartered Tax Adviser and leads Magma s Corporate Tax team. He has extensive experience of advising large corporate and owner managed businesses on a wide range of corporate tax issues. Andrew has been a member of both the HMRC National Working Together Committee and ACCA Global Tax Forum, but is now fully devoted to clients affairs. Andrew Wilson Partner Magma Michelle Andrews is a Chartered Accountant with over a decade of experience in working with small companies through to major listed companies. Michelle has strong technical knowledge in all areas of Corporate and Business Tax, with experience including International Tax, company reconstructions and reorganisations, transactional work and research incentives. Michelle Andrews Senior Tax Manager Magma Keywords Taxation, Tax incentives, Tax relief, Research & Development, Patent Box Paper type Opinion Abstract With the UK economy having grown faster than any major advanced economy in the world last year, the Government will no doubt be quick to attribute this performance to its strategy for economic growth and tax reform. In this article, we look at two particular UK tax incentives available to innovative businesses. Introduction A major component of the strategy, to attract innovative companies to develop and exploit intellectual property within the UK, manifests itself through the tax system via two key company tax reliefs: Research and Development (R&D) tax relief; and Patent Box. 8 Credit Control

9 Legal Aspects Whilst there is a clear policy objective for these reliefs to attract multinationals, who are naturally adept at exploiting Government incentives, the benefits on offer to UK Small and Medium Enterprises (SME s) 1 are also significant. But are SME s really taking full advantage of this opportunity? R&D tax relief enhancements The most recent figures released by HM Revenue and Customers (HMRC) showed a 30% increase in the number of R&D claims made, taking the annual cost to the Exchequer to 600 million. Incremental improvements to the generosity of the regime have played their part in augmenting SME participation. Noteworthy historical enhancements have been: An increase in the rate of tax relief to 225% from 1 April 2012; equating to 45p of tax relief for every 1 of eligible R&D; Enabling R&D credits of almost 25p per 1 of eligible spend to be repaid in cash to companies, even where no corporate tax, PAYE or National Insurance has been paid over to HMRC; Elimination of the 10,000 minimum spend threshold to encourage smaller claims. These features are to be further augmented by the following enhancements announced in the Chancellor s December statement: From Autumn 2015, a voluntary advance assurance procedure to obtain HMRC approval for SME s making their first claims: (i) (ii) An increase in the rate of tax relief to 230% from 1 April 2015, equating to 46p of tax relief for every 1 of eligible R&D. An increase in the cash repayment rate from 25p to over 33p. Common misconceptions Notwithstanding recent and impending improvements, a decade of regular tinkering with the eligibility criteria by successive governments has left a legacy of common misconceptions, which continue to hamper SME s from pursing valid claims. Perhaps most commonly, SME s discount their eligibility as they assume that the relief is only available for ground breaking scientific research. In reality the scope of the relief is far more bountiful. Claims typically involve enhancements to existing products or processes to make them smaller, lighter, faster or more Credit Control 9

10 Legal Aspects environmentally friendly. A further misconception is that the R&D has to be successful to qualify. On the contrary, project failure usually provides better evidence of eligible R&D than success. Use of the forthcoming advance approval procedure should provide SME s with early reassurance as to their eligibility. Industry focus No specific boundaries exist on which industries are able to benefit from R&D relief. It is the nature of the R&D activities themselves which define eligibility. Recent HMRC statistics show that manufacturing companies led the way with 32% of claims. Companies within this sector who have yet to consider claims should review their position with the opening mind-set that they are likely to be undertaking some qualifying activities. The information and communications industries account for 26% of claims. Notably, this sector covers the development of software and integration of software systems; areas where we have seen HMRC become increasingly sympathetic to claims in recent years. SME s within this sector should therefore review their activities for potentially eligibility. The widely drawn professional scientific and technical sector takes the bronze medal in HMRC s league table. Whilst the scientific and technical categories lend themselves most naturally to the stereotype of R&D, the contribution from professionals to the R&D process, such as architects and designers is a potential further source of R&D which may often be overlooked. With the average size of a SME claim being worth over 20,000 and boundaries of the relief being far wider than generally perceived, companies which have historically not made claims should reassess their eligibility for R&D relief, particularly those in the manufacturing and IT sectors. Patent Box In contrast to R&D relief, the Patent Box is in its infancy, having only been introduced on 1 April Whilst this has meant it has not suffered from the misconceptions which have grown up around the R&D regime, it has yet to gain traction with SMEs. Time is of the essence with their relief, as following opposition from other EU member states that the UK parent box provides too generous a relief, it is to be closed to new entrants in June Thereafter it is anticipated that a less generous EU wide patent regime may be introduced. What is the Patent Box? The Patent Box regime enables companies to benefit from a lower UK corporation tax rate on worldwide profits generated from their patented inventions. 10 Credit Control

11 Legal Aspects How does Patent Box interact with R&D? The Patent Box is complementary to the R&D relief. Indeed, it is anticipated that many companies eligible for the Patent Box will also be undertaking qualifying R&D activity. Who can benefit? To benefit a company must: Hold an eligible patent (or an exclusive license to such a patent); and Undertake qualifying development work on them. Eligible patents are those which have been granted by: The UK Intellectual Property Office; The European Patent Office; or Certain other specific countries within the European Economic Area. A company will undertake qualifying development in relation to the patent where it makes a significant contribution to either: (a) (b) The creation or development of the patented invention; or A product incorporating the patented invention. What is the benefit? A lower corporation tax rate on Patent Box profits is being phased in from 1 April Starting at 14% for small companies, the rate graduates down 1% annually, reaching 10% in 1 April This rate represents a significant saving over the 20% corporation tax rate applicable to UK companies from 1 April The Patent Box regime covers worldwide income arising from: Product sales which incorporate the exploitation of qualifying patents; Licence fees and royalties from a right granted over a patent; and Proceeds from the disposal of a patent or exclusive licence. Credit Control 11

12 Legal Aspects The lower patent box tax rates apply to specified profits derived from these income sources. What should companies do to realise the benefits? Many companies are now due to file their first tax returns which can include a patent box claims. Companies must elect into the regime to benefit and should take action now to: Establish the potential Patent Box savings available; Determine the most beneficial claim methodology when computing claims; and Assess whether the Patent Box provides sufficient incentive to file new patent applications. Conclusions Whilst impossible to assess just how much of the UK s economic revival is underpinned by the Government s R&D and patent box reliefs, recent enhancements to the R&D regime can only be said to have supported SME s. Those SME s who have yet to make claims should take a fresh look at their eligibility and may be pleasantly surprised with the outcome. The Patent Box has potential to be an equally generous relief. SME s with existing patents should ensure they are now submitting claims and those companies which have potential to obtain patents should consider their strategy for doing so, factoring in the tax benefits. Reference 1 For R&D purposes an SEM is a company with fewer than 500 employees and either annual turnover not exceeding 500 million or a balance sheet not exceeding 43 million. 12 Credit Control

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14 Legal Aspects Ensuring Your Documents Benefit from Litigation Privilege Gwendoline Davies Biography Gwendoline Davies is a Partner and Head of Commercial Litigation at Walker Morris LLP. Ranked as a leading individual and in the top tier for commercial dispute work for a number of years, Gwendoline is a highly respected litigator and has been involved in several reported cases. Her sensible, intelligent and measured Welsh fighting spirit means that clients consider her to be a very talented lawyer and great fun to work with. Gwendoline Davies Partner and Head of Commercial Litigation Walker Morris Her clients come from multiple industries and business sectors and include major corporates and leading financial institutions. She has more than 25 years of experience of representing clients in their most complex and important disputes. Her practice includes commercial and civil litigation matters, regulatory matters, internal investigations and domestic and international arbitrations. Gwendoline is an accredited mediator with the Centre for Dispute Resolution, a member of the Chartered Institute of Arbitrators and a member of the International Bar Association. For the last three years, she has been a Governor of the College of Law. Keywords Privilege; Litigation; Liquidation; Confidentiality Paper type Opinion Abstract The Court of Appeal decision in Rawlinson and Hunter Trustees SA and Others v Akers 1 is a recent illustration of the approach the courts will take when determining whether documents will benefit from litigation privilege. The case is of relevance to anyone involved in litigation but is particularly important for liquidators. Introduction: A reminder what is litigation privilege? A document which has the benefit of litigation privilege is protected from an opponent s inspection. To gain that benefit, a document must be a confidential communication between a lawyer and a third party or a client and a third party, created when litigation was reasonably contemplated or underway and made for the dominant purpose of obtaining advice or information about that litigation. Background to the case The facts behind the litigation are quite complex. Suffice to say that two brothers (the Tchenguiz) required inspection of five reports held by third parties (the liquidators) to assist their claim against the SFO for damages. 14 Credit Control

15 Legal Aspects The Tchenguiz had applied under CPR rule for third party disclosure against the liquidators. The liquidators resisted the application arguing that the reports were protected by litigation privilege and had been prepared for the dominant purpose of litigation. The High Court, having agreed that the reports were relevant to the Claimant s claims, decided the reports were not privileged and ordered their disclosure. The liquidators appeal of that decision was dismissed by the Court of Appeal: in order to gain the benefit of litigation privilege, confidential documents must have been produced for the dominant purpose of the seeking advice, information or evidence on reasonably anticipated litigation. The liquidators had failed to establish that dominant purpose. In this case, the dominant purpose test was complicated by the fact that the liquidators were carrying out their roles as liquidators as well as assisting in the preparation for litigation. Their statutory duty as liquidators was to establish what assets existed, how they could be collected and how the liabilities could be reduced or discharged. The reports therefore had a dual function: they were needed to help the liquidators fulfil their roles in the liquidation but they were also needed to obtain advice, information and evidence about potential litigation. Unfortunately, the evidence provided on behalf of the liquidators referred to two or more reasons for each of the reports being prepared, did not state clearly which was the dominant reason (and why) and failed to prove that seeking advice/information for the litigation was the dominant purpose. Consequently, no privilege attached to the documents. Further in the case of some of the reports, it wasn t proved that litigation was reasonably in prospect at the time of their creation. Issues to consider when claiming litigation privilege: Following this Court of Appeal case, the essential question remains: does the confidential document or class of documents over which litigation privilege is claimed satisfy the dominant purpose test? In other words, was it prepared for the dominant purpose of seeking information or advice about reasonably contemplated litigation? (It need not have been the only reason.) Keep good records: if there are two or more reasons for creating a document, the court will analyse very carefully the evidence to ascertain the dominant purpose for its production. A claim to privilege will not be helped if litigation proceedings are not issued in timely fashion after the preparation of the documents. If there is a delay it is important to record the reasons why so that these can, if necessary, be explained away at a later date. Sending a document to counsel will not on its own prove litigation was a dominant purpose for the document s creation. It is the reason for Credit Control 15

16 Legal Aspects creation which is the key to ascertaining the dominant purpose and not what is done with the document afterwards. To support a claim a strong contemporary note as to why the conclusion on privilege was reached will be of assistance. Important issues for liquidators The case raises important issues for liquidators. In particular, a liquidator should not assume that everything they do is in contemplation of anticipated litigation and will be privileged. The court will look carefully at each document produced to ascertain the dominant purpose. From their very appointment, liquidators should therefore think about what documents are needed and why. If there is more than one purpose behind the creation of a document and the protection of litigation privilege is needed, they should ask themselves whether it could be proved that seeking advice, evidence or information in contemplation of litigation was the dominant purpose? Without adequate evidence, liquidators could be opening themselves up to a disclosure order in future proceedings. Reference 1 [2014] EWCA Civ Credit Control

17 Debt Recovery Ignited! 01 - Pre-sue + Court Action 02 - Fast Track 03 - Judgment Enforcement 04 - Insolvency Bankruptcy 05 - Insolvency Liquidation 06 - Costs

18 DEBT RECOVERY IGNITED! YUILL + KYLE Debt Recovery + Credit Control Lawyers Scotland, offer a range of debt recovery and credit control services. Our systems will improve your cash flow, reduce debtor days and make your business more profitable. Whether you are a small trader, multinational corporation, international bank, debt recovery organisation or English lawyer we tailor-make your Scottish recovery solutions. Moreover, we never charge commission on cash recovered. Our philosophy recognises the need to offer an effective service at a reasonable cost with friendly staff to guide you through each and every process. This is probably why we have grown to be one of the largest debt recovery legal practices in Scotland. Contents 01 - Pre-sue + Court Action 02 - Fast Track 03 - Judgment Enforcement 04 - Insolvency Bankruptcy 05 - Insolvency Liquidation 06 - Costs Yuill + Kyle have represented my best experience to date with solicitors... I would have no hesitation in using them again. Nick Bowles, Webcraft UK Ltd

19 01 - Pre-sue + Court Action Pre-sue + Court Action the typical route to recovering your debt Yuill + Kyle s Pre-Sue Service Get the Ball Rolling... Generally the jumping off point is to submit a Letter Before Action (LBA/pre-sue letter). We send a letter to your debtor asking for payment within 7 days. You ll see from the below that you also have the option of strengthening the impact your letter will have by opting to send your debtor an and/or text too! Ë Pre-sue - Standard Letter to your Debtor Ë Pre-sue - Plus Letter + an Ë Pre-sue - Extra Letter + a Text (+ an if address known) If no payment is received after the 7 days we will come back to you and ask if you want to take this to the court action stage although there is no obligation to do so. It s a good starting point and many clients have recovered thousands of pounds by just taking this step! The easiest way to instruct our pre-sue service is via our online form at: Would you like to see a sample of our pre-sue letter? just us at info@debtscotland.com and we ll send you one over. Yuill + Kyle s letter resulted in the debtor paying up. We also received a letter of apology from them!! Great result!! Ian Matthews, Gloag Taylor Wines Instructing Court Action Getting serious with your Debtor... Whilst for many clients our pre-sue service will do the trick and no further action is needed you may have to take court action to get paid. We will remind you when the 7 days have expired and ask you if you want to take the matter further. Our experience has taught us that the quicker you instruct legal proceedings, the better the chances are of you being paid! Your debtor will have other creditors looking for payment so it s always best to get yourself to the front of the queue! Our extensive databases allow us to better determine the debtor s ability to pay preventing you from throwing good money after bad! What do we do? As soon as we receive your instructions (by letter, fax, or via we can issue proceedings anywhere in Scotland. To ensure that you get paid as quickly as possible, we ll draft all documentation and send it to court within 48 hrs. Once the court processes the papers (usually within 7-14 days) they will return them to us. It s at this stage we serve (issue) the papers on your debtor the faster the summons is issued the quicker you ll get paid. Falling on Deaf ears? don t worry, if your debtor simply ignores the court action we ll enforce the judgment using our post-judgment remedies (see judgment enforcement on page 3). Remember you can instruct both Pre-Sue and Court Action via helping to speed the recovery process up and get your money to you sooner! DEBT RECOVERY IGNITED!

20 02 Fast Track Collections Need to act quickly? Then use our Fast-Track service... You should consider this option if you re particularly concerned about payment of a large debt and think the debtor is in financial difficulty. This service uses the statutory demand procedure. It s available both for individuals and limited companies. Remember if you re the last creditor in the queue you will be last to get paid! How to Instruct Fast-Track Simply fill out the Fast-Track form on: The debt must be undisputed and you should supply invoices or a statement of account supporting the debt. Fast-Track can be used either on its own or along with court action. What we do? We prepare a formal demand in terms of either the Insolvency or Bankruptcy legislation and instruct court officers to serve it on your debtor. If there is no denial within 21 days after service we are able to institute insolvency proceedings meaning your recoveries will be maximised in minimal time! If there is a denial and you want to take the matter further then you still have the option to instruct a court action. See our information on court action. Yuill + Kyle are an extremely focused firm who are achieving great results for us north of the border. David Barrass, Your Move Estate Agents Transparency - Track Your Case Online Remember you ll be able to be kept in the loop by signing up for our free extranet service at Here you ll see all updates regarding your case so you ll know exactly where things stand. Thanks again for the work done for me. It was 5 star in every way and I will certainly recommend my friends use your firm. Very much appreciated. Mervyn Caplan

21 03 Judgment Enforcement Our goal is to recover as much of your cash as possible. Have a look at some of our pre and post-judgment remedies... the faster we move the quicker you ll be paid! Pre-Judgment Remedies... Take Action Arrestment Third Party: This process prevents a third party from making over money to your Debtor. An arrestment can be placed on these funds to settle your outstanding debt. Bank Arrestment: if the debtor s bank account details are known then an arrestment may be placed on the account to secure funds to satisfy the outstanding debt. Inhibition In an effort to secure your debt, we may be able to inhibit the debtor from granting security or selling their heritable (fixed) property. This will include a house or commercial property if registered in the land register. Post- Judgment Remedies... a spur to payment At all times we try to match the most effective enforcement for your debt and we ll always be there offering you the best advice. Charge This is the first stage of the enforcement process. Once decree (judgment) is granted, Sheriff Officers visit the debtor, leaving a formal demand for payment for the sum due with interest and expenses within fourteen days. If no satisfactory proposals are made further enforcement can proceed. Exceptional Attachment Order In terms of a consumer debtor, where the debtor has goods stored in his house, application can be made for the removal of his/her goods to the value of the outstanding debt for auction and sale. The court requires evidence that other enforcement procedures have failed to settle the debt. Earnings Arrestment: An arrestment may be placed in the hands of the debtor s employer, meaning that a regular amount may be deducted from the debtor s salary to satisfy the debt. Attachment Order This involves the Sheriff Officers attending the premises of a commercial debtor to value the debtor s assets for auction and sale, with a view to discharging the outstanding debt. The defendant thought that as he lived in Scotland he could escape from Justice. However, by using your services, I have recovered a substantial amount and have recommended your firm to the local County Court. Alan J Brown DEBT RECOVERY IGNITED!

22 04 Insolvency Bankruptcy Shake the money tree - Insolvency can often be a fast method of recovering cash particularly if your debtor wants to continue in business. Insolvency can be instructed at different stages, either after using fast track collections or after judgment in a court action, where no payment has been made following the first stage of enforcement. In terms of Insolvency services, we offer both Bankruptcy and Liquidation to help turbo-charge your recoveries. Bankruptcy We can bankrupt: What we do? After we receive your instructions we prepare a bankruptcy petition and send it to the court for processing. Once the court has done this we then serve the petition on the debtor. This will be approximately 1 to 2 weeks after we receive your instructions. If the debtor is serious about carrying on in business - or for other reasons does not want to be declared bankrupt we will be contacted with settlement proposals. We ll contact you immediately when this happens. If we do not hear from the debtor we ll proceed with a bankruptcy order. This will not involve you in further expense. We were delighted with Yuill + Kyle s professionalism and fully intend to use them again in the future. Andrei Vasilescu, Jacobsens Solicitors

23 05 Insolvency Liquidation Separating the Can t Pays from the Won t Pays the emphasis will be to only spend money if recovery prospects are good! Liquidation We can liquidate: Limited companies What do we do? We present a Petition for the appointment of a Provisional Liquidator. This will take 1 to 2 weeks following receipt of your instructions. The Provisional Liquidator will attend the company s premises to assess whether the debt can be discharged by third party funds usually cash injected personally by a company director or shareholder. If the Provisional Liquidator is unable to get settlement he will assess whether it s financially worthwhile to take the liquidation further we won t proceed to the next stage without discussing the options with you. Our carefully selected team of Insolvency Practitioners keep their ears to the ground and are able to evaluate your debtor s solvency at an early stage. A brief summary of the Procedure: i. If the debtor company discharges the debt in full via funds from a third party then we will have the petition dismissed. ii. If the debtor company is unable to discharge the debt but has sufficient assets to settle the liquidator s fees then we will proceed with the liquidation. iii. If the debtor company is unable to discharge the debt and has insufficient assets to satisfy the liquidator s fees then we will have the petition dismissed. Thanks for your excellent service and prompt response. It s good to find such a customer focused firm and I look forward to dealing with you again. Alan Clapperton, Red Industries Ltd DEBT RECOVERY IGNITED!

24 06 Costs Do nothing to recover your debt and cost your business more... The following prices are accurate at the time of printing. To check the most up-to-date prices visit: Yuill + Kyle s Pre-Sue Service Although our pre-sue options carry a lot of punch, you ll be surprised that prices start at 6 +vat! And remember you can send a letter, plus an and text to your debtor. What have you got to lose by trying these? Many of our clients have recovered thousands of pounds just by using our pre-sue services... Yuill + Kyle Court Action Where court proceedings are successful the cost to you are as follows: Amount of debt Cost to you to to to 1, Over 1, Where proceedings are unsuccessful, in addition to the fee above, we will add judicial expenses and disbursements. Fast-Track Collections Costs are 160 plus vat and outlays. Judgment Enforcement Pre-Judgment remedies: Third Party Arrestment: disbursements Inhibition: disbursements Post-Judgment remedies: Our Charge is 10 per stage of diligence (i.e. enforcement of the Decree against the Debtor) plus vat and outlays once Decree/Judgment is obtained. Enforcement of English Judgments: 80 plus vat and outlays. Yuill + Kyle Debt Recovery + Credit Control Lawyers 79 West Regent Street, Glasgow G2 2AR T: F: E: info@debtscotland.com Insolvency In terms of either Bankruptcy or Liquidation costs are 350 plus vat and outlays. All fees quoted above are exclusive of VAT and disbursements.

25 Legal Aspects Have You Protected the Value in Your Brand? Don Pennant Biography Don Pennant has worked in Intellectual Property especially trademarks for 24 years. He is Artington Legal s Registered Trademark Attorney. Having worked in both private practice in London and In-House at ICI, Don has extensive experience providing commercially focussed legal advice on all aspects of the brand concept including protection and enforcement of rights. Don Pennant Trademark Attorney Artington Legal Don enjoys helping businesses develop their true brand value and can be reached. For more information contact Don at don.pennant@artington.com. Keywords Intellectual Property, Trade marks, Brand value, Loyalty Paper type Opinion Abstract Many companies lack a coherent policy for maximizing the value of their intellectual property and in many cases are ignoring the increasing role of intellectual property in today s economy. In this article, the author discusses an area of law that businesses should be more aware of and consequently take steps to protect their brand, their trade marks and add value to their business. Introduction All businesses, whether sole traders or vast corporations, have a brand. This is made up of their overall company name and logo, operating style, marketing genre and goodwill, creating a unique proposition and reputation. This is supported by their trade marks being product names, words, symbols, logos, shapes, numbers, etc., that are used to identify one trader s goods and/or services from a competitor s. The aim being to grow goodwill in the business, create brand loyalty from customers and to create a successful profit making venture. Prevention is better than cure We ve all heard this saying, so why don t we heed the advice given? Legal consideration needs to be given to protecting trade mark rights by all enterprises whether a start-up, an established business or even the launch of a new venture or product. Trade marks can be protected by law giving the owner the right to the exclusive use of that name in relation to the goods and/or services that are being offered. The cost of such protection is proportionally very small in Credit Control 25

26 Legal Aspects comparison to the cost of trying to cure the extreme damage that can be caused by a third party infringer (whether intentional or not) or a counterfeiter. Protection First, why would anyone not protect themselves to aid prevention of a competitor s use of the same or confusingly similar trade marks in the same area of business interest? Secondly, in a worst case scenario, protection of trade marks can be used to prevent criminal counterfeiters from directly copying your trade marked goods and/or services. In either case the effect of an infringement can be very damaging and can seriously harm your company s reputation and goodwill, potentially putting your business at a major risk. It could even be worse. Let s say you have launched Brand X and you received a letter stating that you were infringing someone else s registered rights? Imagine receiving a cease and desist letter ordering you to stop using your company name or an important trade mark in connection with the goods and/or services you offer. Could this ruin your business? All because you failed to protect your trade marks! Having a company name registered at Companies House is no defence to someone suing for trade mark infringement. Generally the person who registers their trade mark rights first is in a much more powerful position than the person who uses a trade mark first. You have the opportunity to protect your trade marks before someone else does. Why not do so? 26 Credit Control

27 About Us Charities & Non-profit Construction Corporate & Commercial Employment Financial Services & Regulatory Hotel & Hospitality Immigration Insolvency & Restructuring Insurance Litigation Intellectual Property International IT & Media Litigation & Dispute Resolution Private Client Property Tax Services Practical, Commercial Legal Solutions Edwin Coe is a commercial law firm which provides tailored and integrated legal services across a wide range of practice areas to both UK and international clients. Ranked as a UK-200 law firm, we combine the personal and responsive service of a boutique, with big firm expertise. Top quality legal advice and a personal service. MD, UK Limited Company [Edwin Coe LLP] have a good understanding of our needs and service them with knowledge and understanding of the issues. Chambers Directory 2014 edwincoe.com We are a traditional, high-quality law firm based in the heart of London s historic legal district in Lincoln s Inn. Areas on which we advise include: Corporate & Commercial Employment Immigration Insolvency & Restructuring Insurance Litigation Intellectual Property IT & Media Litigation & Dispute Resolution Private Client Property Tax Services. We also have expertise in a number of business sectors, including: Charities & Non-profit Construction Financial Services & Regulatory Hotel & Hospitality. Partner-led Advice All work is carried out by or closely overseen by a partner whose knowledge and experience enables them to get to the heart of matters quickly and to come up with insightful, practical solutions in the shortest possible time. For most clients this is preferable, however, we discuss this on an individual basis with clients to ensure that they receive the most appropriate level of support for them. A Supportive and Collaborative Approach We believe that the key to providing a high quality service is developing an in-depth understanding of clients needs and priorities to ensure that we deliver timely and commercial legal advice which meets clients objectives. Quality Our aim is to deliver a consistently high standard of service to all clients. Value for money is always a priority and to this end we do our utmost to provide the highest quality advice at an acceptable cost. We will establish at the outset an understanding of your needs, expectations and requirements and aim to meet or exceed these. Edwin Coe is proud to provide high-quality, tailored advice that puts your best interests first. Managing Costs and Risks Managing costs and minimising risks are key considerations for most clients. We offer a range of alternatives to traditional hourly billing which include value billing, blended hourly rate, fixed fees (for non-contentious matters) and conditional fee arrangements (CFAs). We are happy to discuss and explain these and other available fee options with clients on an individual basis. Cost Control Measures Discussion and agreement of fees up-front. Working in small dedicated teams with no overlap. Providing regular updates to clients on fees and progress.

28 The ability and experience of a large firm combined with a very personal level of service. Director, Public Limited Company You can be confident with Edwin Coe that they are experts in their area. Chambers Directory 2014 Clients regularly rate us as excellent in terms of our understanding of their business needs, keeping them informed of progress and developments and the overall level of our service. International Links Increasingly we find that clients needs have an international dimension and we are able to offer access to Euroadvocaten, a network of leading European law firms, of which we are a member. We also have strong links in Russia, the Far East, the Middle East, and Sub-Saharan Africa, and regularly assist clients with global or pannational businesses. We are able to provide legal services to an equal or higher standard than firms much larger than ourselves. This is demonstrated by the fact that we have won (and retained) tenders for the legal services of sizeable global companies in the face of competition from larger international firms. Briefings and Seminar Programme To help clients and prospective clients stay abreast of the important changes affecting their industry sector or field, we offer a complimentary seminar and briefing programme. For details please events@edwincoe.com. Independently Ranked for our Expertise We are proud to be independently ranked in the leading legal directories Legal 500 UK and Chambers & Partners UK Directory. Areas in which we are ranked are as follows: Charities/NFP (Legal 500) Civil Fraud (Legal 500) Commercial Litigation (Legal 500) Commercial Property (Legal 500 and Chambers) Employment (Legal 500 and Chambers) Flotations - small & mid-cap (Legal 500) Hotel & Leisure (Legal 500) Insurance Litigation (Legal 500 and Chambers) Intellectual Property (Legal 500 and Chambers) M&A - deals up to 50M (Legal 500) Private Client (Legal 500 and Chambers) Professional Negligence (Legal 500 and Chambers) Real Estate Finance (Legal 500) Retail (Legal 500) Restructuring & Insolvency (Chambers). Listed Firm 2014 How to Find Us Contact us on +44 (0) or a partner direct: firstname.surname@edwincoe.com For individual profiles please visit our website: Follow us Edwin Coe LLP 2 Stone Buildings Lincoln s Inn London WC2A 3TH t: +44 (0) e: law@edwincoe.com edwincoe.com Edwin Coe LLP is a Limited Liability Partnership, registered in England & Wales (No.OC326366). The Firm is authorised and regulated by the Solicitors Regulation Authority. A list of members of the LLP is available for inspection at our registered office address: 2 Stone Buildings, Lincoln s Inn, London, WC2A 3TH. Partner denotes a member of the LLP or an employee or consultant with the equivalent standing.

29 Legal Aspects Analysis Legal Aspects Why Day Dreaming is an Essential Skill for Business Leaders Andrew Jenkins Biography Andrew Jenkins Managing Director PDx Consulting Andrew Jenkins is a management consultant and skilled facilitator and teacher of new thinking. He is the MD of PDx Consulting Ltd, a consultancy dedicated to developing leaders, managers and executives to perform at their very best in many well-known organisations across the world. Andrew is a specialist in helping senior people and leaders to make subtle changes, enrich thinking and expand possibilities. This is made possible by creating the mental space and inner capacity to percieve things from new perspectives. Such inner journeys lead to new self-discoverys that then lead to profound reconnections to true uniqueness, strengths & talents. Using specialized techniques and inside-out approaches, Andrew also uses his expertise in enabling organizations operationalize change, from a process and people activity perspective. Andrew is the author of You are more than you think the return to your authentic self. Available from Amazon First edition signed copy available at special offer pice from For more details on Andrew s professional experience and PDX Consulting s work see Keywords Leadership; Daydreaming; Emotional Intelligence; Development Paper type Research Abstract As a leader, do you find time and space to plan the future of your business, or do you find it difficult envisioning new possibilities, or perhaps you just feel that day dreaming is a waste of time? If so, this article has some ideas and a solution for you. In his new book, the author of You Are More Than You Think the return to your authentic self, has developed new and practical ways of thinking that is straight forward and a step-by-step approach to help you to realign your thoughts to push past your own personal perceived limitations to become a better you as a leader. Every business leader needs to day dream it s an essential skill if you want to grow your business and ensure it reaches its full potential I work with many leaders and fundamental part of leadership is to purposefully and deliberately spend time looking at your business from a high level point of view like being on a balcony. Balcony moments allow you to think deeply and creatively about your business, it s a time to realign its purpose and plan future direction: What has happened? Where is the business today? What is its future potential? Credit Control 29