Held at The Spotlight in Hoddesdon the recent Ambition Conference provided plenty of inspiration and marketing insights.
As part of our commitment to local business growth, our own Keith Grover chaired the organisation committee and we were glad to be a sponsor of the event and meet up with many business people on the day.
As the Government’s last Autumn Budget before the UK’s scheduled exit from the EU in March 2019, the Chancellor framed his announcement as reflecting an end to the era of austerity. The budget includes the commitment to provide an additional £20.5bn to the NHS over the next five years, and a variety of measures designed to protect or stimulate business growth. Here we outline the budget highlights and as always there will be winners and losers. We encourage you to discuss the impact of the budget with the team at HB Accountants. If you need an update on current tax rates, allowances and duties please get in touch.
Business rates for small retail properties in England with a rateable value below £51,000 will be cut by a third from April 2019 for two years, which the Treasury estimates will save these businesses a total of £900m altogether.
The planned increase in the personal allowance has been brought forward and the threshold for higher rate tax has been raised.
From 2021, personal allowance and tax thresholds will rise in line with inflation measured by the Consumer Price Index.
In a move regarded as an incentive to invest, businesses can claim an Annual Investment Allowance (AIA) for capital expenditure incurred on most plant and machinery items. This allowance currently gives 100% capital allowances on expenditure up to £200,000 a year, in other words the full amount spent can be deducted from profits before tax. The AIA will be increased from £200,000 to £1m for a limited period of two years. This change relates to qualifying expenditure incurred from 1 January 2019 to 31 December 2020.
A new 2% tax will apply to annual ‘UK’ revenues over £25m of specific digital services businesses with global sales of more than £500m per annum, from April 2020. The move is designed to harness tax revenues from the new generation of large, successful digital businesses, such as Google. The tax will apply to profitable businesses involved with online marketplaces, search engines and social media platforms. The tax will be introduced following consultation, with legislation in the Finance Act 2020.
Stamp Duty Land Tax is paid on properties and land in England and Northern Ireland purchased for over £125,000. Since 22 November 2017 first-time homebuyers in England and Northern Ireland qualify for a 100% relief if they buy a property for £300,000 or less, so that they don’t pay Stamp Duty. First time buyers also only start to pay 5% Stamp Duty on residential properties from £300,000 to £500,000, on the price over £300,000. Now first-time buyers’ relief will be extended to qualifying shared ownership purchases of up to £500,000 from 29 October 2018. The change will be backdated to 22 November 2017 to enable taxpayers that haven’t yet claimed first-time buyer’s relief to do so.
The Chancellor has announced a new tax on the manufacture and import of plastic packaging which is comprised of under 30% cent recycled plastic. At the same time, a tax on takeaway plastic cups which had been mooted in the media, has been ruled out. The new tax is intended to reduce single use plastics and will be in place from April 2022 following consultation.
The threshold for VAT registration remains unchanged at £85,000 until April 2022. The rates of VAT also remain the same with a standard rate of 20% and a reduced rate of 5%.
From April 2020 eligibility for the Employment Allowance will be restricted to employers with National Insurance Contributions NICs) below £100,000 in the previous tax year. This allowance lets employers claim back Class 1 NICs of up to £3,000 each year. The new restriction is aimed at targeting support to smaller employers, with 93% of small businesses still being eligible for the allowance, according to the Treasury.
Looking ahead to the Chancellor’s Spring Statement in March 2019, uncertainty over the final Brexit agreement means that the Chancellor has advised this may become a full budget announcement if necessary.
For further details of the 2018 Budget just ask us for a copy of our 2018 Budget Report.
Should you want to discuss ways to manage the implications of the budget for your business please get in touch. Contact HB Accountants by calling 01992 444466 or you can email directors@hbaccountants.co.uk
In 2014, the Government published the results of a call for views from UK businesses about corporate responsibility, and published it in a report, Good for Business & Society. In it, the authors describe corporate responsibility as a voluntary action that “creates shared value for business and society”.
Whilst many companies have defined their CSR policies, we feel that because all the fundraising we do as a team are activities we’d get involved with anyway, we don’t need to make it official, whether it’s for the benefit of charity fundraising, helping out in the local community, or giving local businesses a boost.
Charities
Our official charity of the year – as last year – is Teens Unite. Karen Chase, one of our directors, explains why she organises so many fundraising and awareness-raising activities for the charity. “It makes me sad when I think about the young people they help, so I not only wanted to raise money for them, but in doing so I also hope to encourage other companies to do the same. On a personal level, I organise lots of little events in the office throughout the year, such as dress down days, cake sales and a ‘tuck shop’. I also use networking events as an opportunity to talk about the work of Teens Unite which, let’s be honest, people are far more interested in than if I was talking about accounts! As a company, we run stalls at local events to help the charity sell goods that have been donated to them. So although our fundraising for Teens Unite can technically be described as CSR, it’s purely coincidental.”
Every year, the whole team come together to help organise a quiz night to raise funds for a good cause. In 2016 we raised £1,600 to help the Paralympian ambitions of Herts sportsman Shaun Whiter who had recently lost both legs in a traffic accident.
Community
Mark White runs Hoddesdon’s Give Your Town The Run Around initiative, which HB also sponsors. It was launched in 2014 as a way of encouraging the town to get fit, and gets the entire community to turn out for the race and to cheer on the runners. The number of runners taking part is rising year-on-year, and in 2016 there were 750 entrants. This year Mark will ensure that HB Accountants is involved: “Local businesses will enter teams for the run – whether we will find enough volunteer runners from the office this year remains to be seen, but we will encourage as many of our team as possible to come and help raise money for charity on the day”.
Business
The Love Hoddesdon initiative was launched by independent retailers in 2014 to attract shoppers to the town. Catherine and Charlotte have offered their support by being on the Love Hoddesdon committee to help promote the town and all the events that take place in it.
We are also a sponsor of the annual Ambition conferences in which sales and marketing experts give presentations to local small businesses and sole traders in Hertfordshire to help them succeed in business. Ambition 2017 will take place on Thursday 30 November in Hoddesdon – so save the date!
Networking
We get involved in a lot of local business networking groups which are a great way of connecting with and supporting the business community. We also run the administration for the Hoddesdon Networking Breakfast, an informal and well-attended ‘drop in, drop out’ event, which is held once a month so local business people have the opportunity to meet. Every other month, HNB is held in the Your Town hub which was set up as a business and community centre in 2015 for the benefit of community groups and start-up businesses.
If you would like more information about the Hoddesdon Networking Breakfast, or details of any of our charitable events, contact charlotte@hbaccountants.co.uk.
The Borough of Broxbourne is extraordinarily well placed to become a lively and prosperous place for businesses to be.
Just outside the M25, it has all the advantages of being close to London without actually being in London. It’s already home to major companies such as Tesco, News UK, Merck Sharp & Dohme and VolkerWessels UK. Stansted and Luton Airports are easily accessible, it has good road and rail links and will offer easy access to the proposed Crossrail 2 route.
But most importantly, it is being supported by the government in the form of Ambition Broxbourne which was launched in 2014.
The Council’s vision for the area is that by 2030 the Borough of Broxbourne will “have a thriving, vibrant and prosperous economy that is underpinned by innovation, enterprise and entrepreneurship”. It is aiming for a knowledge-driven economy, where the educational institutions meet the current and future needs of business, and with a well-educated and skilled population willing and able to compete in the local and global economy.
Work is already underway on a £3.9m purpose-built Enterprise Centre to provide quality workspace for SMEs and start-ups. The Centre is due to open in Autumn 2016.
As part of the new initiative, a business and community support centre has been set up in Hoddesdon town centre under the name Give Your Town The Run Around. The centre is a café hub which offers works booths and meeting space with wifi, as well as a space to educate and engage the local community. It aims to raise event sponsorship locally, to bring awareness of what is great about the area and to give back to a selection of good causes centred around charity and fitness incentives. Give Your Town The Run Around also supports local ideas and is a building towards being a platform that encourages local creativity.
In addition, there are already numerous business networking groups established by and for small businesses in the area which are complemented by exhibitions and showcases.
Broxbourne is also a great place to live. Bordered by the Lea Valley Park and surrounded by ancient woodlands, it combines the best in small city living with the countryside on the doorstep.
HB Accountants has been established in Hoddesdon for more than 30 years. As an active part of the community we enjoy helping other businesses and organising local events. We’re passionate about the Broxbourne Borough and would love to talk to you about its advantages and attractions. So if you’re thinking about moving your business to the area, get in touch!
It’s tempting to think that if a car is generally available to anyone who needs to drive it, it must be a pool car and therefore not taxable as a benefit in kind on anyone. Tempting but, sadly, not often true. To be exempt, the car must be one which is
– Actually used by more than one employee or director
– Not ordinarily used by on employee or director to the exclusion of all others
– Not normally kept overnight at or near the home of a director or employee (except where it’s kept overnight on premises occupied by the employer)
– Not used by anyone for private (including home-to-work) travel at all (except for private use which is “incidental” to business use, such as taking a car home overnight in readiness for a business trip starting very early the next day)
The rules are strict and are notoriously strictly applied. Be prepared to prove, if challenged, that they are met.
1 Employment Allowance
This is increasing to £3,000 from £2,000 from April 2016. However, sole director companies will no longer receive any of the allowance. Consideration should be given to appointing another director of a spouse/partner.
2 Savings Income
For basic rate tax payers, from April 2016 interest will be paid gross and the first £1,000 will be tax free. Dividends will no longer be paid with a tax credit and up to £5,000 will be tax free. So these two, together with the personal allowance of £11,000 will mean that is possible to earn £17,000 without paying any tax.
3 Self Employment
(i) Control – does the employer have significant control over you
(ii) Mutuality of obligations – Does the employer have to offer work and you are obligated to perform it
(iii) Substitution – who decided who can do the work if you are unable to do it?
(iv) Insurance – Do you pay public liability, professional indemnity and product liability insurance?
(v) Mistakes – Are you require to correct and rectify your work in your own time, for no further payment?
(vi) Does a proper self-employed contract exist?
1 Prepare a business plan
A robust business plan helps potential investors understand the vision and goals of the business, and brings focus to management’s understanding of the business strategy.
2 Do your research
The funding landscape has evolved considerably over recent years; think about how appropriate and attainable the various forms of finance may be.
3 Utilise tax-relief
When seeking investment your business may wish to make potential investors aware of three HMRC tax relief schemes – the Enterprise Investment Scheme, Seed Enterprise Investment Scheme and Venture Capital Trust Scheme.
4 Invest in management
A strong management is the backbone of a successful company. Businesses with a full management team and advisory board in place will increase investor confidence and become more attractive investment propositions.
5 Manage your cash
Before seeking external capital, it is vital your business is managing cash effectively. A weekly cashflow forecast is essential, as is an understanding of the volume of cash and working capital required to grow.
6 Use external advice
In the early stages a business is likely to require outside advice to ensure that it is ‘investment ready’. Sources of advice include trade associations, such as ICAEW, whose Business Advice Service offers micro businesses free advice.
7 Set realistic targets
Ensure your business sets realistic KPI and milestone targets that can be relayed back to investors. Doing so will help you implement your business plan as you grow, and help investors monitor the progress of their finance.
8 Work with investors
In some investment circumstances, such as receiving equity finance, growth businesses should be aware that investors may wish to input into the strategic direction of the business.
9 Know your market
A review of the potential upturns and downturns in your respective market needs to be carried out and their impact assessed. Doing so will ensure your business is prepared for any unforeseen market developments.
10 Be flexible
Your business plan may have been produced when the business was little more than an idea. Circumstances change, so you must ensure you make regular fresh assessments of where your business is and what new challenges you may face.
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