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The top 10 issues facing charities and organisations

Posted on: October 30th, 2014 by Sarah Case No Comments
Sarah Case, Director, Broomfield & Alexander

Sarah Case, Director, Broomfield & Alexander

The Charity Team at MHA, the UK wide association of independent accountants and business advisers, has produced a report identifying the top ten issues currently facing charities and organisations in the Not-for-Profit (NfP) sector.

Sarah Case, head of NfP at MHA said: “The sector is dealing with many challenges and changing legislation is placing a cost burden onto organisations already struggling with funding issues. It is imperative that charities and Not-for-Profit organisations take proactive action, forward planning and timely strategic advice to deal with the regulatory and compliance requirements and ensure success.”

The top ten issues are:

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SORP 2015 bite size guidance: The new lingo…

Posted on: October 30th, 2014 by Claire Thompson No Comments
Claire Thompson, Charities and Not for Profit Assistant Manager, Broomfield & Alexander

Claire Thompson, Charities and Not for Profit Assistant Manager, Broomfield & Alexander

Welcome to our series on SORP 2015 where the specialist charities and not for profit team at Broomfield & Alexander will bring you bite size guidance on the changes that SORP 2015 will bring to your organisation.

There are many changes the new SORP brings, one of which is the revision of various headings and terms contained in the Financial Statements.

So what’s changed?

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Latest AISMA Doctors Newsline, Autumn 2014 edition, now available

Posted on: October 27th, 2014 by Sarah Curzon No Comments
Sarah Curzon, Tax Director, Broomfield & Alexander

Sarah Curzon, Tax Director, Broomfield & Alexander

The latest AISMA Doctors Newsline, Autumn 2014 edition is now available. There are a number of articles which provide food for thought and which may be relevant to you.

Kathie Applebee, a regular contributor on practice management topics, has some advice for practices on keeping it simple when introducing the Friends & Family Test which is due to start on 1 December.

AISMA committee member Chris Howe explains how useful a cash flow spreadsheet can be in helping a practice map its finances, while solicitor Alison Oliver explores some of the issues and risks involved in practice mergers.

Finally, there is some tongue-in-cheek advice on what doctors can do if they want to pay more tax!

Click here to read the full publication.

If you would like to discuss any of the issues highlighted in the newsletter, or any other matter, please contact one of our specialist medical team.

Making the most of a low interest rate environment

Posted on: October 27th, 2014 by Liz Mounfield No Comments
Austin Broad, Technical Director, Broomfield & Alexander Wealth Management

Austin Broad, Technical Director, Broomfield & Alexander Wealth Management

It is now over 5 years since the bank base rate was reduced to 0.5%, the lowest rate for over 300 years. Whilst this has been great news for mortgage holders, it has been a real challenge for savers.

Bank and building society interest rates have been decimated and those relying on interest to fund their retirement income have faced huge challenges. Inflation measured by the Consumer Prices Index (CPI) fell to 1.6% in July, while the Retail Prices Index (RPI) measured 2.5%.

Whether a taxpayer or not, trying to get this level of interest rate from the deposit market is difficult and if you don’t, your money will be worth less next year than it is today.

Current expectations are that a rise in interest rates will happen in 2015, but even then, any rise is likely to be very limited and slow in increasing.

So how do you ensure that over time your money grows at a rate higher than inflation, ensuring your money is actually worth more in the future than it is today? Well sadly, there is no magic wand and you need to accept other investment risks, which can offset the risk of inflation, which deposit-based investments currently suffer from.

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SORP 2015 bite size guidance: Implementation date

Posted on: October 27th, 2014 by Joanne Taylor No Comments
Joanne Taylor, Senior Charities & Not for Profit Manager, Broomfield & Alexander

Joanne Taylor, Senior Charities & Not for Profit Manager, Broomfield & Alexander

Welcome to our series on SORP 2015 where the specialist charities and not for profit team at Broomfield & Alexander will bring you bite size guidance on the changes that SORP 2015 will bring to your organisation.

In this article we look at the implementation date of SORP 2015.

For those charities with a December financial year end, your finance team should have already been preparing for the financial effects of the implementation of SORP 2015 back in December 2013, even though the final legislation wasn’t published until July 2014.

This is because any financial adjustments required to figures for new SORP compliance at 31 December 2015, will also need their 2014 comparatives amended.

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Changes to the annual return for charities

Posted on: October 24th, 2014 by Joanne Taylor No Comments
Joanne Taylor, Senior Charities & Not for Profit Manager, Broomfield & Alexander

Joanne Taylor, Senior Charities & Not for Profit Manager, Broomfield & Alexander

The Charity Commission has announced changes to the annual return, the tool it uses to hold charities accountable to the public.

The regulator says the changes, which will apply when charities report on their financial years ending in 2015, will strengthen its ability to identify risk and will ensure people have access to the information they need to make confident decisions about charities.

Today’s announcement follows a full consultation on proposed changes. The commission has listened carefully to the arguments made by charities and its decisions take into account concerns that were raised about some of the proposals. A summary of the consultation responses is published today, alongside the commission’s analysis.

The annual return 2015 will include three new question areas, which received broad support in the consultation:

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SORP 2015 bite size guidance: Income recognition

Posted on: October 23rd, 2014 by Sarah Case No Comments
Sarah Case, Director, Broomfield & Alexander

Sarah Case, Director, Broomfield & Alexander

Welcome to our series on SORP 2015 where the specialist charities and not for profit team at Broomfield & Alexander will bring you bite size guidance on the changes that SORP 2015 will bring to your organisation.

In this series we’ve looked at a number of changes specific to SORP 2015 and we continue now with changes to income recognition.

As a consequence of FRS 102 the FRS 102 SORP changes income recognition in charities. Previously income under SORP 2005 was recognised when there was entitlement, an ability to measure it and that it was virtually certain that it was receivable.

The changed rules under FRS102 SORP for income recognition are as follows:

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SORP 2015 bite size guidance: Trustees report – requirements

Posted on: October 20th, 2014 by Sarah Case No Comments
Sarah Case, Director, Broomfield & Alexander

Sarah Case, Director, Broomfield & Alexander

Welcome to our series on SORP 2015 where the specialist charities and not for profit team at Broomfield & Alexander will bring you bite size guidance on the changes that SORP 2015 will bring to your organisation.

We’ve already looked at the new terminology of SORP 2015 and the differences between FRS102 SORP and FRSSE SORP and in this bite sized article we focus on the requirements of the Trustees’ Report.

The primary purpose for the Trustees Annual Report is to ensure that the charity is publicly accountable to its stakeholders for the stewardship and management of the funds it holds. Trustees should consider this when preparing their Trustees’ Reports. SORP 2015 notes that the documents should provide a fair and balance review.  A good report will explain what the charity is set up to do, how it goes about it doing this and what is achieved as a result of this work.

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Reserves: what level of reserves should your charity hold?

Posted on: October 17th, 2014 by Sarah Case No Comments
Sarah Case, Director, Broomfield & Alexander

Sarah Case, Director, Broomfield & Alexander

This is an age old question, and one you will not find a definitive answer to on the Charity Commission website. The guidance tells us that the level of reserves should be justifiable in relation to the current position and future prospects of the charity.

If you want to benchmark the amount you need, consider if a reasonable, prudent person would feel the current needs of the charity are balanced against its future plans.

Charities must also be aware of the need to look at this reserves figure in relation to its ‘free reserves’ thereby separating out restricted reserves, designated reserves and those reserves held in fixed assets.

There are various methods of calculating the level of reserves a charity requires for example you can look at the risk; you should firstly examine the risk associated with your income streams. You then need to review the expenditure commitments and finally review your risk register and the risks you have identified therein.

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Second Motor Trader MHA Dealer Confidence Barometer shows a change in levels of optimism

Posted on: October 16th, 2014 by Matthew Thomas No Comments
Matt Thomas, Director, Broomfield & Alexander

Matt Thomas, Director, Broomfield & Alexander

MHA and Motor Trader’s second joint industry barometer survey shows that the optimism shown at the beginning of the year has certainly been eroded in the second half of the year, particularly in relation to margins and the delivery of profit levels

Steve Freeman, MHA Head of Motor Sector and Partner at MacIntyre Hudson comments “My dealer clients, whilst continuing to deliver strong volume growth and good profits, are now setting full year profit expectations more cautiously than anticipated in the first half of the year, principally due to the margin pressures from increased manufacturer targets.”

The survey also shows that whilst sourcing used cars clearly remains a challenge for many dealers, those who have excelled in this area and maximised the impact of their websites have generated very strong used car profits.

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Latest From The Blog


The top 10 issues facing charities and organisations

Sarah Case, Director, Broomfield & Alexander

Sarah Case, Director, Broomfield & Alexander

The Charity Team at MHA, the UK wide association of independent accountants and business advisers, has produced a report identifying the top ten issues currently facing charities and organisations in the Not-for-Profit (NfP) sector.

Sarah Case, head of NfP at MHA said: “The sector is dealing with many challenges and changing legislation is placing...

Read more

SORP 2015 bite size guidance: The new lingo…

Claire Thompson, Charities and Not for Profit Assistant Manager, Broomfield & Alexander

Claire Thompson, Charities and Not for Profit Assistant Manager, Broomfield & Alexander

Welcome to our series on SORP 2015 where the specialist charities and not for profit team at Broomfield & Alexander will bring you bite size guidance on the changes that SORP 2015 will bring to your organisation.

There are many changes the new SORP brings, one of which is the...

Read more