Seize the Day! Genuine Opportunities for You and Your Business in 2014*

Transcription

1 Seize the Day! Genuine Opportunities for You and Your Business in 2014* *and Beyond! Mitche Charesworth Offices Chester Liverpoo Manchester Warrington Widnes Registered to carry on audit work in the UK and Ireand by the Institute of Chartered Accountants in Engand and Waes and authorised and reguated by the Financia Conduct Authority for investment business.

2 Timeine of Opportunities Act Now... Take Advantage of the Empoyment Aowance of Start Panning Now for Auto-enroment 08 Take advantage of your pension annua aowance before Apri 11 Make use of the extended Rea Time Information (RTI) Deadine 12 Invest in an SEIS Sma Trading Company or Venture Capita Trust 13 Take advantage of your tax free ISA maximum amount 14 Get Ready... Buy a new uxury company car that aso quaifies for 100% First-Year Capita Aowance 05 Maximise the benefit of the Capita Aowance Annua Investment Aowance 07 Start Panning to Caim Entrepreneur s Reief 15 Consider caiming R&D Tax Credits 16 Don t miss out on any VAT Opportunities 18 Start panning your Inheritance Tax Strategy 22 Time To Consider... Make Sure You Maximise your Capita Aowances 17 Consider Corporate Restructuring to Increase Cost Savings and Efficiency 19 Look for better business insurance deas - get an insurance quote 20 Take advantage of the recovery and se your business? 21 Seize the day and start your own business? 24 Raise Extra Finance to Support Growth on the Economic Recovery 25

3 03 Introduction to the Guide When it comes to running your business and managing your persona finances, we know that your time is a scarce and vauabe resource. As a resut, you may not be aware of various opportunities that coud derive rea benefit for you and your business. With this in mind, our experts at Mitche Charesworth have put together this Seize the Day guide that outines genuine opportunities that you coud (and perhaps - shoud) take advantage of in 2014 and beyond. Importanty, this guide aso incudes opportunities that wi expire during the year and therefore you must take advantage of them without deay. How the Guide Works: Each page wi outine the topic and the Mitche Charesworth service to which it reates. Each page has a traffic ight outining the urgency of the opportunity and underneath ists the specific deadine for that opportunity. Each page ists the key individuas at Mitche Charesworth who you shoud contact with regards to that opportunity. If you have any questions at a, you are urged to contact those individuas without deay. CONTENTS Take Advantage of the Empoyment Aowance of Buy a new uxury company car that aso quaifies for 100% First-Year Capita Aowance 05 Maximise the benefit of the Capita Aowance Annua Investment Aowance 07 Start Panning Now for Auto-enroment 08 Take advantage of your pension annua aowance before Apri 11 Make use of the extended Rea Time Information (RTI) Deadine 12 Invest in an SEIS Sma Trading Company or Venture Capita Trust 13 Take advantage of your tax free ISA maximum amount 14 Start Panning to Caim Entrepreneur s Reief 15 Consider caiming R&D Tax Credits 16 Make Sure You Maximise your Capita Aowances 17 Don t miss out on any VAT Opportunities 18 Consider Corporate Restructuring to Increase Cost Savings and Efficiency 19 Look for better business insurance deas - get an insurance quote 20 Take advantage of the recovery and se your business? 21 Start panning your Inheritance Tax Strategy 22 Seize the day and start your own business? 24 Raise Extra Finance to Support Growth on the Economic Recovery 25 Mitche Charesworth Chartered Accountants Business Advisors Visit:

4 04 1. Take Advantage of the Empoyment Aowance of 2000 A businesses are urged to take advantage of the annua empoyment aowance of 2000 that takes effect from Apri Fundamentay, most businesses, charities and community amateur sports cubs (CASC) wi be entited to an annua empoyment aowance of 2,000 to reduce their iabiity for Cass 1 secondary Nationa Insurance Contributions (NICs). The government has announced this measure to try and reduce the costs of empoying staff members, particuary for smaer businesses, with over 90 per cent of the benefit going to sma businesses with fewer than 250 empoyees. Deadine: Apri 2014 Key Individua(s): PAYROLL Ken Davies ken.davies@ mitchecharesworth.co.uk The aim is to encourage sma businesses to empoy their first member of staff or increase their workforce. For exampe, businesses wi be abe to empoy ten year-ods fu-time on the Nationa Minimum Wage without paying any Empoyer s NIC. Aternativey, a business coud empoy their first member of staff and pay them up to 22,400 without paying any Empoyer s NIC at a. The empoyment aowance wi be recovered via payro software submitting under Rea Time Information (RTI) using a secondary RTI fie known as the Empoyers Payment Summary (EPS). At present empoyers submit a Fu Payment Submission (FPS) to HMRC on or before each time an empoyee is paid. The EPS is ony required where empoyers have an offset to caim that owers the amount payabe to HMRC, such as a Statutory Maternity Pay (SMP). To caim the benefit in fu Empoyers may end up submitting up to 12 additiona RTI submissions. As EPS submissions shoud ony be sent to HMRC between the 6th and 19th of the month after the payro has been competed, the processes required to operate your payro wi increase. The empoyment aowance wi appy per empoyer, regardess of how many PAYE schemes that empoyer chooses to operate, so each empoyer can ony caim for one aowance. It wi be up to the empoyer which PAYE scheme to caim it against. For more information about the empoyment aowance or the subsequent changes to your payro procedure, you are urged to contact Ken Davies, Director of Mitche Charesworth Payro Services. Mitche Charesworth Chartered Accountants Business Advisors Visit:

5 05 2. Buy a new uxury company car that aso quaifies for 100% First-Year Capita Aowance The government announced in 2012 that the 100% first-year aowance (FYA) for expenditure incurred on cars with ow carbon dioxide (CO 2 ) emissions and eectricay propeed cars that was due to end on 31 March 2013 woud be extended for an additiona two years to 31 March The CO 2 emission threshod has been set so that cars that emit 95g/km or ess are eigibe for a 100 per cent FYA unti March The benefit in kind for directors and empoyees is aso ow, being 10% of ist price if beow 95g/km and 5% of ist price if beow 76g/km. Furthermore, cars under 100g/km CO 2 emission eve are aso eigibe for zero Car Tax for both the First year and annua Standard tax. When this announcement was first made, there were not many cars that satisfied the CO 2 emission eves criteria for 100% FYA. In recent months, however, car manufacturers have reeased severa modes that do meet these emission eves. Deadine: March 2015 Key Individua(s): Tim Adcock tim.adcock@ mitchecharesworth.co.uk David Antonia david.antonia@ mitchecharesworth.co.uk PERSONAL & CORPORATION TAX You may now be surprised to see some of the cars that quaify and sti appea to the more discerning business car owner (fu ist of cars, more information and prices are found at: and Coud this be the year to invest in a new company car? For more information about company cars and a aspects of capita aowances, contact our expert tax team. BAND A: CO gm/km = Eigibe for 100% First-Year Aowance PORSCHE Panamera 3.0 S E-Hybrid Tiptronic S Automatic 8-speed 4dr - 88,967 MITSUBISHI Outander PHEV 2.0 Pug-in Petro Hybrid Automatic 5dr - No price data BMW i3 Eectric Car 127kW Auto 5dr / Eectric (av UK mix) - 25,680 TESLA Mode S 60 kwh Auto 5dr / Eectric (av UK mix) - 50,715 MERCEDES-BENZ A-Cass A 180 CDI ECO SE Manua 6-speed 5dr - 21,965 LEXUS CT200h CT 200h SE E-CVT Continuousy Variabe 5dr - 22,495 VOLVO V60 Pug-In Hybrid 2.4 D6 AWD Geartronic Automatic 5dr - 44,275 TOYOTA Prius Pug-In Hybrid 1.8 VVT-i T Spirit CVT Continuousy Variabe 5dr - 28,245 PRINDIVILLE Eectric Hummer Lithium-ion battery 72V drive system 3dr / Eectric (av UK mix) - 22,800 CHEVROLET Vot v VVT V6 ECOTEC E-REV Auto Automatic 5dr - 30,255 Mitche Charesworth Chartered Accountants Business Advisors Visit:

6 06 2. Buy a new uxury company car that aso quaifies for 100% First-Year Capita Aowance CONTINUED BAND B: CO gm/km = Written down at 18% per annum on the reducing baance basis AUDI A3 Sportback 1.6 TDI SE 105PS S Tronic Semi-automatic 6-speed 5dr - 22,630 VOLVO S D2 115HP Business Edition Manua 6-speed 4dr - 21,295 MERCEDES-BENZ A-Cass A 180 CDI Sport Manua 6-speed 5dr - 22,785 AUDI A3 Saoon 1.6 TDI S Line 105PS S Tronic Semi-automatic 7-speed 4dr - 26,555 VOLVO V D4 181HP R-Design Manua 6-speed 5dr - 30,895 MERCEDES-BENZ A-Cass A 180 CDI SE DCT Semi-automatic 7-speed 5dr - 23,240 LEXUS IS IS 300h Luxury CVT Continuousy Variabe 4dr - 30,995 MAZDA Mazda6 Saoon 2.2 SE 150PS SKYACTIV-D Manua 6-speed 4dr - 21,995 VOLVO S D4 181HP SE Nav Manua 6-speed 4dr - 32,220 MERCEDES-BENZ A-Cass A 180 CDI AMG Sport Manua 6-speed 5dr - 24,035 Mitche Charesworth Chartered Accountants Business Advisors Visit:

7 07 3. Maximise the benefit of the Capita Aowance Annua Investment Aowance Since 1st January 2013, the annua investment aowance (AIA) has been 250,000. This means that businesses investing in quaifying equipment wi get the first 250,000 of expenditure in that year as a tax deduction. Businesses are urged to pan the timing of purchases of new machinery and pant to maximise the benefit of the current AIA as this aowance is ony vaid unti the end of After this date, it may drop back to the previous aowance of 25,000. A businesses can deduct against taxabe profits the fu cost of the first 250,000 spent on pant and machinery (other than cars) each year. Where more than 250,000 is spent, the excess wi attract writing down aowances at 18% or 8%, depending on the nature of the expenditure. If you are panning on investing in equipment in the 2014, we suggest you contact Mitche Charesworth s tax experts to see how these rues affect you and ensure that you maximise your caim before the current eve of aowance expire. Most importanty, you shoud make sure you caim if you beieve you are entited to this aowance. Deadine: December 2014 Key Individua(s): CORPORATION TAX Tim Adcock tim.adcock@ mitchecharesworth.co.uk David Antonia david.antonia@ mitchecharesworth.co.uk Mitche Charesworth Chartered Accountants Business Advisors Visit:

8 08 4. Start Panning Now for Auto-enroment The Workpace Pensions Reforms have begun to be phased in. These egisative changes wi have a significant impact on businesses of a sizes. The deadine for compiance with these reforms was based on the size of your argest payro on 1 Apri Hence, for the UK s argest empoyers, Auto- Enroment became a reaity from 1 October Over the coming months and years, these reforms wi make it a ega requirement for a empoyers, of a sizes, to automaticay enro their empoyees into a workpace pension scheme. Whist the effect on pensions and cash fow wi probaby have been considered by many empoyers, the operationa impact of the ega obigations, particuary with regards to payro procedures and communication processes, has mosty been overooked. Even if your staging date (detais beow) appears a ong way in the future, you are urged to start panning now to meet your obigations under auto-enroment. Deadine: Ongoing Key Individua(s): Ken Davies ken.davies@ mitchecharesworth.co.uk Nei Martin nei.martin@ mitchecharesworth.co.uk PAYROLL & WEALTH MANAGEMENT What is Auto-Enroment? Under the Workpace Pension Reforms, a empoyers wi have to pace their empoyees (who meet certain requirements) into a pension scheme and make reguar contributions to this pension scheme. Members of staff wi be abe to opt out of this pension scheme but if they do not opt out then they must automaticay remain in the scheme. Staff members must be tod of their right to join your pension scheme. A system of fines wi be introduced for firms who do not compy by their staging date. Who must be automaticay enroed into a pension pan? Any worker earning over 9,440 per year and aged between 22 and state pension age must be automaticay enroed by their empoyer into a pension pan (as of Apri 2013). You shoud aso note that any of your empoyees who earn over 5,668, who are not automaticay enroed, can ask to join the pension pan. You are obiged to make peope in this bracket aware that they can join the scheme. Mitche Charesworth Chartered Accountants Business Advisors Visit:

9 09 4. Start Panning Now for Auto-enroment CONTINUED Number of empoyees on payro on 1 Apri 2012 Staging date 120,000 or more October ,000+ By March By November By February Apri 2014 to Apri By October 2015 Beow 30 November Apri 2017 New empoyers By Feb 2018 The above is a guide to your staging date based on the number empoyees HMRC beieved you had under your PAYE reference in Apri However, knowing the correct staging date is compicated by businesses that spit their payro up into smaer schemes for administration purposes. In that instance they must use the staging date of the argest PAYE scheme in the group. For those schemes faing into the bracket, the ast two characters in their PAYE scheme is used to determine the specific staging date. Therefore, we recommend a empoyers shoud visit The Pensions Reguator website to confirm their staging date. Why you shoud seize the opportunity to start panning now: 1. Budgeting and Cost Contro: It is ikey that Auto-Enroment wi bring extra costs to your business. If you pan in advance and are aware of your costs then it is much easier to budget for the changes. To meet these costs you coud adjust your prices, constrain saary/wage rises or find another source. If these are your pans, consider when you wi put these into action. 2. Communicating with your empoyees: The key to a successfu pension scheme adoption or change is to carefuy pan communication with your empoyees and to prepare for subsequent questions and concerns. You shoud start to pan your interna communication strategy now. 3. Managing any risks: With a major change in company procedures comes a risk of errors and fines. By panning now you can reduce your risk. 4. Peace of mind: By panning your pension scheme impementation in advance, you can be safe in the knowedge that the changes are more ikey to run smoothy with ess compications. Mitche Charesworth Chartered Accountants Business Advisors Visit:

10 10 4. Start Panning Now for Auto-enroment CONTINUED Compex issues to be addressed: There are severa factors that may ead to greater compexity in the Auto-Enroment process. Consider if the foowing factors reate to your business: High staff turnover Litte or no existing pension pan Fuctuating revenue Staff on zero hours contracts Low paid staff with fuctuating earnings Internationay mobie staff Workers whose empoyment status is not cear Where other benefits are based on being a member of a pension scheme Shoud any of these issues reate to your business then you are urged to start panning for Auto-Enroment without deay. A Unified Soution Auto-Enroment Soution for Empoyers: Mitche Charesworth are abe to ca upon the knowedge of experts in both our weath management division and our payro services department to offer a unified soution for empoyers. Contact Mitche Charesworth s Pensions and Investments division for further advice regarding your pension scheme obigations and Auto-Enroment. For advice regarding the administration of Auto-Enroment and your payro requirements, contact Mitche Charesworth payro services. Our Auto-Enroment speciaists can be contacted on Te: or emai: autoenroment@mitchecharesworth.co.uk Mitche Charesworth Chartered Accountants Business Advisors Visit:

11 11 5. Take advantage of your pension annua aowance before Apri Individuas are urged to take maximum advantage of the annua aowance for pension contributions, as tax reief is avaiabe up to the highest rate. From the 2014/15 tax year the annua aowance wi fa, so individuas are advised to take advantage of the opportunity to maximise their pension contributions before the 5 Apri You shoud aso ensure that both spouses persona aowances are fuy utiised. Moving assets between spouses can be done tax free and it is sometimes possibe to utiise other famiy members tax aowances by transferring assets to them. However, you must consider both the capita gains tax and inheritance tax impications. Deadine: Apri 2014 Key Individua(s): Nei Martin nei.martin@ mitchecharesworth.co.uk WEALTH MANAGEMENT Currenty the annua aowance is 50,000 (for the year 2013/14), not forgetting any unused aowance brought forward from the previous three tax years. However, from 6 Apri 2014 the aowance wi reduce to 40,000. The annua aowance covers any pension contributions you make yoursef, and any contributions paid for you by your empoyer on your behaf. Contributions made in excess of your annua aowance wi attract an annua aowance charge payabe at the individua s margina rate of income tax. Mitche Charesworth Chartered Accountants Business Advisors Visit:

12 12 6. Make use of the extended Rea Time Information (RTI) Deadine Since the impementation of rea time reporting of Pay As You Earn (PAYE) records (known as Rea Time Information or RTI ), HMRC have announced a series of extension for smaer businesses. One of these reaxations to rea time reporting was for empoyers with up to 49 empoyees. This wi end in Apri If you empoy between 10 and 49 empoyees and are sti not aware of your responsibiities under RTI or do not have the payro systems in pace to compy with RTI, then you are urged to take advantage of these ast few months before the RTI requirements wi appy to your business. Deadine: Apri 2014 Key Individua(s): PAYROLL Ken Davies ken.davies@ mitchecharesworth.co.uk The extension of the deadine for micro businesses (with nine or fewer empoyees) to compy with rea time reporting of Pay As You Earn (PAYE) records wi sti appy and wi aow these companies to report PAYE information on or before the ast payday in the month, rather than every payday, unti Apri It shoud be noted, however, that the atest reaxation wi not extend to those that start up during the period. Utimatey, a empoyers wi have to report PAYE on or before the date they pay their empoyees by Apri Mitche Charesworth Chartered Accountants Business Advisors Visit:

13 13 7. Invest in an SEIS Sma Trading Company or Venture Capita Trust For those investors ooking for an aternative investment opportunity in the first few months of 2014, you may wish to consider investing in a sma trading company under the seed enterprise investment scheme (SEIS) which wi aow you to gain 50% income tax reief on an investment of up to 100,000. Capita gains on SEIS shares are exempt from tax if the shares are hed for at east three years, and a tax exemption is avaiabe for any capita gains that are reinvested. For 2013/14 ony 50% of reinvested gains are exempt, compared to 100% for 2012/13. You have unti 5 Apri 2014 to make a SEIS investment in respect of 2013/14 gains. Investors are urged to be prudent in regards to investing in sma companies. This can be a very risky strategy and you must hod SEIS shares for three years in order to retain your income tax credit. Deadine: Apri 2014 Key Individua(s): PERSONAL TAX Tim Adcock tim.adcock@ mitchecharesworth.co.uk David Antonia david.antonia@ mitchecharesworth.co.uk When avaiabe funds for investment are in excess of the SEIS imits, it may be possibe to secure reiefs under both SEIS and the existing Enterprise Investment Scheme (EIS). You may aso wish to consider Venture Capita Trusts as up to 200,000 can be invested for 30 per cent income tax reief. By way of exampe, a 100,000 investment woud cost 70,000 but the growth in vaue woud be free of future tax. To discuss the tax impications of various investment strategies, contact speciaist Tax Partners Tim Adcock or David Antonia. If you are considering aternative investment opportunities in 2014, contact Nei Martin, Mitche Charesworth s Head of Financia Panning. Mitche Charesworth Chartered Accountants Business Advisors Visit:

14 14 8. Take advantage of your tax free ISA maximum amount Savers and investors shoud take advantage of the opportunity offered by the increased individua savings account (ISA) investment imits in order to generate tax-free income and capita gains. The maximum annua amount which can be invested in an ISA is currenty 11,520 (2013/14) and, where possibe, you are urged to make the most of this opportunity before Apri 5th For the tax year 2014/15, the imit wi increase further to 11,880. Currenty, up to haf of the maximum imit can be in a cash ISA with the remainder being invested in a stocks and shares ISA. Savers shoud aim to transfer funds into an ISA before 5 Apri 2014 to make the most of this very tax efficient investment. Deadine: Apri 2014 Key Individua(s): Nei Martin nei.martin@ mitchecharesworth.co.uk WEALTH MANAGEMENT There are many ISAs avaiabe on the market, so it is worth seeking professiona independent financia advice to ensure the ISAs you invest in best meet your aims. To discuss your saving and investment strategy for 2014 and beyond, contact Nei Martin, Mitche Charesworth s Head of Financia Panning. Mitche Charesworth Chartered Accountants Business Advisors Visit:

15 15 9. Start Panning to Caim Entrepreneur s Reief Through the use of Entrepreneur s Reief, it is possibe to reduce the rate of Capita Gains Tax (CGT) from 18% / 28% to 10% on a quaifying disposa of a or part of a business by way of a gift, a sae or iquidation. It can aso appy to the disposa of shares in a persona company. There are certain conditions that must be met in order to quaify for entrepreneur s reief. For exampe, your business must quaify as a trading business rather than an investment company. You must start panning eary to caim entrepreneur s reief as many of the conditions required to quaify must be met for at east one year prior to sae. There is aso a ifetime imit of 10 miion of gains that can quaify for the reief. Shoud you wish to take advantage of this opportunity, Mitche Charesworth woud first estabish whether any reief is avaiabe and outine what issues might be stopping you from making an eigibe caim. Once this anaysis has been undertaken, we wi seek to structure your business affairs, prior to disposa, so as to ensure that the reief is secured. Deadine: Ongoing Key Individua(s): PERSONAL TAX Tim Adcock tim.adcock@ mitchecharesworth.co.uk David Antonia david.antonia@ mitchecharesworth.co.uk For more information about entrepreneur s reief, contact our expert tax partners Tim Adcock and David Antonia. Mitche Charesworth Chartered Accountants Business Advisors Visit:

16 Consider caiming R&D Tax Credits Has your company undertaken any activities which directy contribute to achieving an advance through the resoution of scientific or technoogica uncertainty in the ast year, or are you panning to undertake activities of this nature? If the answer to this question is yes then you may wish to consider caiming enhanced R&D tax deductions which are avaiabe to a companies. Sma companies can caim a payabe tax credit. R&D enhanced tax deductions are a company tax reief which gives an increased deduction for certain quaifying expenditure. This increased deduction reduces your company s taxabe profits and hence the amount of corporation tax that you must pay. If you quaify you may be abe to caim a repayment. It may be the case that what your company does every day can actuay be cassified as R&D, even if it appears routine, as a wide range of activities can quaify. Moreover, it is not aways easy to determine eigibe activities or to know exacty how to appy the rues to your specific industry or situation. There are aso various criteria that must be met in order for you to quaify for R&D tax credits. Deadine: Ongoing Key Individua(s): CORPORATION TAX Tim Adcock tim.adcock@ mitchecharesworth.co.uk David Antonia david.antonia@ mitchecharesworth.co.uk If you woud ike more information about R&D tax credits or think you may be eigibe for reief, you are urged to seek advice from Mitche Charesworth s tax team to find out whether your activities quaify or have quaified for R&D tax reief. Caims have to be made within 2 year s of the company s year end. Mitche Charesworth Chartered Accountants Business Advisors Visit:

17 Make Sure You Maximise your Capita Aowances Shoud you be panning to buy an asset for use in your business in 2014 (for exampe: a car, toos, machinery or other equipment) then you are urged to take advantage of the capita aowance opportunities avaiabe. Capita aowances are avaiabe to soe traders, sef-empoyed persons or partnerships, as we as companies and organisations iabe for Corporation Tax. The aim is to give tax reief for the reduction in vaue of quaifying assets that you buy and own for business use by etting you write off their cost against the taxabe income of your business. How much you can caim wi depend on which aowance you are caiming. Exampes of capita aowances incude: Equipment that you own and use in your business - Toos, machinery, office equipment, computers, vehices, pieces of pant and factory equipment may quaify for pant and machinery aowances. Capita expenditure on research and deveopment - If you are a trader and your Research and Deveopment (R&D) reates to the trade that your business carries on, and meets other conditions, it may quaify for R&D Aowances. Gifts of equipment to charity - If you donate used assets that have quaified for Pant or Machinery Aowances to a quaifying charity or Community Amateur Sports Cub, you may be abe to caim pant and machinery aowances on any eft over written down vaue. Certain fixtures and integra features in buidings - sanitary ware, fitted kitchens and certain other fixtures in a buiding may quaify for pant and machinery aowances. Expenditure on certain integra features of a buiding, for exampe, eectrica wiring, cod water systems, heating and air conditioning systems and ifts might aso quaify. New rues appy when a buiding is purchased which mean you need to agree the aowances on fixtures with the seer at the time of sae. Mitche Charesworth have a speciaist team of surveyors and capita aowance tax experts who can advise on this aspect of capita aowances. Renovating business premises - Capita expenditure on the renovation of business premises in an Assisted Area, (an area which is considered to be disadvantaged and eigibe for nationa regiona aid) may quaify for the Business Premises Renovation Aowance. However, in most cases, you cannot caim capita aowances against the purchase price of or other investment in and, buidings or property. Other expenditure: The foowing aowances may aso be avaiabe: Minera Extraction Aowance, Know How Aowance, Patent Aowance, Dredging Aowance, Assured Tenancy Aowance, Contributions Aowances. Deadine: Ongoing Key Individua(s): CORPORATION TAX Tim Adcock tim.adcock@ mitchecharesworth.co.uk David Antonia david.antonia@ mitchecharesworth.co.uk For more information about any capita aowances that may be avaiabe to you in 2014, contact Mitche Charesworth s tax team, ed by partners Tim Adcock and David Antonia. Mitche Charesworth Chartered Accountants Business Advisors Visit:

18 Don t miss out on any VAT Opportunities Seek Expert VAT Advice VAT can be a highy compex area of tax. Our understanding of the VAT egisation is constanty evoving foowing a steady stream of itigation chaenging HMRC s interpretation - whether of its pubished guidance or a decision reating to a particuar tax payer. Faiing to adhere to the most up-to-date HMRC poicy can eave a business open to attack from HMRC. It can be difficut keeping abreast of VAT changes whist running a business, so if you are thinking about entering a new market or offering additiona services to your customer base, or even moving to a arger premises, it is aways worthwhie considering the VAT impications during the panning stages, to see if you can make substantia VAT savings or avoid a potentia VAT probem. Deadine: Ongoing Key Individua(s): VAT Gemma Gower gemma.gower@ mitchecharesworth.co.uk Embrace VAT Opportunities The ever changing VAT andscape aso makes for significant VAT saving opportunities. Where HMRC s treatment is deemed to be inconsistent with the Law, it can be possibe to make caims and recover overpaid VAT. By way of exampes, there have been particuar opportunities for both Not-for-Profit Members Gof Cubs and Care Homes to recaim significant amounts of VAT from HMRC. For expert advice about VAT, or if you beieve you may have a caim to overpaid VAT, do not hesitate to contact Gemma Gower, VAT Manager, on or emai: gemma.gower@mitchecharesworth.co.uk Chaenge VAT Penaty Cases Moreover, HMRC is becoming more aggressive in its pursuit of VAT receipts, in order to improve its performance on VAT after a Nationa Audit Office report criticised the department for unpaid VAT contributing 9.6bn to the UK s estimated tax gap of 32bn. However, data in the tax assurance commissioner s atest report reveas that 60% of HMRC s decisions in VAT penaty cases are canceed upon appea. It may be the case that the taxman has become over-aggressive in hunting for cases of VAT evasion, and is making errors in issuing penaties. Furthermore, HMRC are refusing an increasing number of Defaut Surcharge Appeas by VAT registered businesses who have submitted VAT returns or payments after the due date. Increasingy, these decisions are being overturned at Tribuna eve. If you can demonstrate that you have a reasonabe excuse for ate submission of a VAT return or payment, then an appea shoud be made to HMRC. Shoud you receive a penaty or surcharge, contact Gemma Gower, VAT Manager, to find out whether we can hep you make an appea. Mitche Charesworth Chartered Accountants Business Advisors Visit:

19 Consider Corporate Restructuring to Increase Cost Savings and Efficiency This year, shoud your organisation be made up of many subsidiary companies, you may choose to ook at the number of ega entities that exist within your group and try to find ways to cut down and simpify these compex structures. Often these group structures have formed for specific ega or tax purposes or as a resut of acquisitions. Over the years, these companies may essentiay become dormant, inactive or no onger serve a usefu purpose and you may find that they are a drain on your time and resources. Moreover, the cost of managing these companies (audit fees, direct tax, fiing requirements, and management time) may significanty outweigh the benefit of keeping the companies in their current form. These dormant companies may aso house contingent iabiities that have the potentia to crystaise at a future point. Deadine: Ongoing Key Individua(s): Jeremy Oddie jeremy.oddie@ mitchecharesworth.co.uk CORPORATE RECOVERY & INSOLVENCY As a resut, you may wish to consider a project to identify and eiminate any of your unwanted, dormant or non-trading companies. After this process, you may we find that you have a more efficient and transparent group, with a simper structure that provides streamined accounting and ess onerous tax impications. The two options avaiabe to you are: Strike Off or Members Vountary Liquidation. If your dormant companies have no third party creditors or no significant surpus assets, then striking off is the simpest and most ogica procedure. However, a key disadvantage of striking off is that egay the directors are not abe to distribute the company s capita without going through a capita reduction process or simiar. Where a dormant company s previous trading activities were considerabe (significant share capita, non-distributabe reserves or potentia creditors) then a members vountary iquidation (aso known as MVL or sovent iquidation ) offers a far better soution. Whist the cost of this procedure may be higher and the process more compex than striking off, quite often such costs are offset by the saving derived from removing ongoing costs and achieving a fina and risk free outcome. For more information about simpifying your corporate structure, contact Jeremy Oddie, Partner and Head of Corporate Restructuring on te: or emai: jeremy.oddie@mitchecharesworth.co.uk to discuss the best restructuring option for your organisation that wi aow you to cut costs and concentrate on the most profitabe and efficient parts of your business. Mitche Charesworth Chartered Accountants Business Advisors Visit:

20 Look for better business insurance deas - get an insurance quote With the economy finay showing signs of recovery, this year might be the time to re-evauate your business insurance requirements and search for more competitive quotes. Whist deveoping a ong-term reationship with an insurer is not necessariy a detrimenta strategy, over the ast few chaenging years, businesses coud be forgiven for sticking with what they know when it came to accepting premium increases at insurance renewa time. Furthermore, as resut of this economic sowdown, insurers became far more risk averse and now insist on increasing premiums at renewa as they ook to increase their return to underwriting profits. Deadine: Ongoing Key Individua(s): INSURANCE Richard Gorst richard.gorst@ mitchecharesworth.co.uk Now that the economy is recovering, there is ess reason to stick with what you know when the time comes to renew your insurance and you must shop around to find the best insurance dea, rather than accepting premium increases. When it comes to renewing your insurance, you are urged to take heed of the foowing top tips: Ask your broker to expain the prevaiing insurance market and how it wi affect your renewa. Ask what has happened recenty with simiar renewas to your own. Consider insurer reputation and sovency rating. Utimatey they wi be paying any caims. Are you confident they wi sti be there when you need to caim the cheque? Caims paid and reserved are the most ikey reason for your renewa premium to increase. Higher renewa premium probaby means higher commission for your broker. Does your current broker work on your behaf to keep caims reserving ow and do they try and assist you in reducing caims and improving risk management to reduce your future premiums? Look for your broker to have a oca presence. This enabes you to benefit from a bespoke persona service and ca upon them in the event of a change or a caim. Once you are sure about your broker, ook to deveop a ong - term reationship with them. If you are seeking a review, ony invove one other aongside your existing broker. Invoving mutipe brokers wi cose down the market. Let just one new broker go to the market on your behaf to get aternative quotes but without you advising your existing broker and insurers. Insurers often cooperate more when ony one broker is active in the market. Provide your broker with as much quaity and accurate information as possibe. Faiure to provide this coud ead to big probems for you down the ine! For a review of your current business insurance poicies, or for a renewa quote, do not hesitate to contact Richard Gorst, Director of Mitche Charesworth Insurance Soutions on te: or emai: richard.gorst@mitchecharesworth.co.uk. Mitche Charesworth Chartered Accountants Business Advisors Visit:

21 Take advantage of the recovery and se your business? Now that there are genuine signs of an economic recovery, you may decide that this is the year to take the first steps to seing your business. Many business owners have been reuctant to se in the ast few years, waiting for a more preferabe economic outook and the hope that they wi achieve a more favourabe transaction. However, with dea activity increasing now coud be the time to finay start preparing your business for sae. MC Vanguard Corporate Finance can hep you through this entire saes process, from the initia vauation and financia projections stages through to the due diigence, negotiation and contract stages of the transaction. In the first instance, MC Vanguard Corporate Finance coud hep you in this regard by undertaking a Business Sae Appraisa that is taiored to your specific requirements and circumstances. In most cases our Business Sae Appraisa wi provide each of our cients with vita information on: Deadine: Ongoing Key Individua(s): Brian McCann or brian.mccann@ mcvanguard.co.uk CORPORATE FINANCE Getting their business ready for sae. Aternative routes to a successfu sae. The sae process. The current vauation range for their business. Steps which coud improve this vauation. Suggested timescae and action pan. Just as importanty, the appraisa aso provides an eary opportunity to ask any questions you might have about seing your business. We can aso arrange for you to speak with cients who have successfuy sod their business in the past. Most importanty, our business sae appraisas are entirey confidentia. Our work wi incude a written vauation report and specific advice on steps you can take to improve your chances of achieving a successfu sae. For more information about seing your business, or to arrange an initia discussion with a Corporate Finance expert, contact Brian McCann, Partner of MC Vanguard Corporate Finance. Mitche Charesworth Chartered Accountants Business Advisors Visit:

22 Start panning your Inheritance Tax Strategy It is never too eary to start panning your inheritance tax strategy to ensure that the next generation benefit from the vaue of your estate in accordance with your wishes and that you are fuy mitigated against inheritance tax. If you do not have a vaid wi, your estate passes in accordance with the intestacy rues, and not necessariy in the way you woud wish. In order to maximise your inheritance tax reief you shoud take eary action. If you have weath in excess of the ni-rate band currenty 325,000 then start panning now. Typica inheritance tax strategies might incude: 1. Giving assets away during your ifetime - Potentiay Exempt Transfers (PETs): These gifts can be effective as ong as you ive for 7 years from the date of making the gift. Deadine: Ongoing Key Individua(s): PERSONAL TAX Tim Adcock tim.adcock@ mitchecharesworth.co.uk David Antonia david.antonia@ mitchecharesworth.co.uk 2. Using Inheritance Tax Exemptions: There are various transfers which can be made which are exempt from Inheritance Tax as foows: sma Gifts Sma gifts that do not exceed 250 in a tax year to the same person. Any number of these may be made in the year. Gifts on Marriage Gifts on consideration of marriage as foows:- 5,000 by a parent 2,500 by a grandparent 1,000 to anyone ese Gifts to charities or poitica parties Gifts to charities or poitica parties are exempt Annua Exemption The first 3,000 of ifetime transfers in a tax year is exempt. If the previous years exemption has not been used then it is carried forward to the next tax year. You shoud ensure that this exemption is used annuay and that a gifts are recorded. Gifts to spouses / civi partner Gifts to spouses / civi partners are exempt. 3. making a wi: You choose how your assets are treated on death and not the state. Mitche Charesworth Chartered Accountants Business Advisors Visit:

23 Start panning your Inheritance Tax Strategy CONTINUED 4. making reguar gifts from income: Gifts from surpus income are exempt, providing the transferor is eft with sufficient income avaiabe to maintain their usua standard of iving. If the transferor has to resort to capita to meet their norma iving expenses then the exemption wi not appy. A reguar pattern has to be estabished, not just a singe one off payment. 5. Further Inheritance Tax Panning Opportunities: AIM Portfoio Quaifying AIM (Aternative Investment Market) shares which are hed for a two year period quaify for 100% Business Property Reief. A minimum investment of 100,000 is required. These shares are treated the same as private companies. Investors are recommended to take independent financia advice about investing in AIM companies, as it is important that they fa within their risk profie. Making gifts to trusts There are a number of trust structures avaiabe which can reduce the vaue of your estate and therefore your exposure to inheritance tax. Detaied consideration is required as to the creation, ongoing running and reated costs of these. Discounted Gift Trust This invoves a trust arrangement set up in connection with either an onshore or offshore investment bond. A right to income is retained, whist the capita is divested. If you were to survive seven years then the entire vaue of the trust fund woud be exempt from Inheritance Tax (see PETs above). An eement of the initia gift is immediatey exempt from Inheritance tax based on a discount of the gift cacuated by reference to actuaria vauation (based on age, heath etc). Insurance It is possibe to take out insurance to provide for a potentia Inheritance tax iabiity on any potentiay exempt transfers taking account of the tapered tax iabiity over the seven year period foowing the date of the gift. Mitche Charesworth Chartered Accountants Business Advisors Visit:

24 Seize the day and start your own business? Has there ever been a better time to start a business? Is there ever a good time to start a business? Our cients te us that persona timing is, in fact, more important than the prevaiing economic cimate. So if you have decided that you have a good idea, combined with a soid strategy, vision, determination and a motivation to succeed (not to mention a bit of uck) then this year coud be the time to start your own business. Shoud you need a business advisor to hep you make these first steps into running your own business, then the start-up experts at Mitche Charesworth are here to guide you every step of the way to ensure that, when it comes to compying with the financia technicaities of running your own business, you get it right from day one. Our start-up experts wi initiay hep you to decide on the most appropriate structure for your new business. Shoud you decide to go down the imited company route, from your eariest stage, aong with expert advice, we can specificay hep you: form your company, issue shares, register company directors, register for PAYE, VAT and corporation tax. Throughout your eary years of trading, our start-up team can aso hep you: manage your payro requirements, VAT returns and provide advice when required. Mitche Charesworth Insurance soutions can undertake an insurance review of your business to ensure you have a of the business insurance you require and then hep you find the best dea. We wi aso hep you compete your annua tax returns (both corporate and persona) which are required by aw but can be a daunting task for a new business owner. Deadine: Ongoing Key Individua(s): START UPS Pau Durrance pau.durrance@ mitchecharesworth.co.uk Lorraine Whittaker orraine.whittaker@ mitchecharesworth.co.uk Amanda Turpin amanda.turpin@ mitchecharesworth.co.uk Aison Buckey aison.buckey@ mitchecharesworth.co.uk Maron Armstrong maron.armstrong@ mitchecharesworth.co.uk Shoud your business become a rea success, then MC Vanguard Corporate Finance can hep you grow your business further. For more information about the financia requirements of running your own business, or for genera business advice about taking the first steps to starting a business, contact a member of our start-ups team without deay. If you have decided that the time is right, with a bit of ski, uck, determination and support when required, you shoud be confident that you wi turn your idea into a successfu, growing business. Mitche Charesworth Chartered Accountants Business Advisors Visit:

25 Raise Extra Finance to Support Growth on the Economic Recovery Access to Finance has been a major barrier to growth throughout the recession. However, as the economy recovers there are a wide range of funding options becoming avaiabe. Cearing banks are now activey seeking new business again - athough their requirements in terms of cear strategic pans and supporting projections have become more demanding. In addition there are a wide range of regiona debt and equity funds with cash earmarked for the private business sector. The focus of these funds ranges from start-up and eary stage, to supporting estabished businesses with equity injections from 2m upwards. Deadine: Ongoing Key Individua(s): Brian McCann or brian.mccann@ mcvanguard.co.uk CORPORATE FINANCE There is aso increasing interest from some of the speciaist sector-based funds operating out of London. Finance is now avaiabe for working capita and business growth. There is aso an appetite amongst some funders to support Management Buy-outs, athough funding Management Buy-ins remains a chaenge. Mitche Charesworth Chartered Accountants Business Advisors Visit:

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