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Intermediary rules: What your clients need to know

Posted on: December 16th, 2014 by Leighton Reed No Comments
Leighton Reed, Director, Broomfield & Alexander

Leighton Reed, Director, Broomfield & Alexander

The new rules relating to the engagement of workers via an intermediary came into operation in April 2014. From our discussions with clients there seems to be either total ignorance to the changes, or that they have misunderstood the extent of compliance they need to undertake The intermediary rules are split into three distinct categories and cover the engagement of labour when:

  1. A worker is supplied via an overseas intermediary
  2. A worker is supplied via a UK intermediary
  3. A worker is operating in the oil or gas industry

It is not my intention to cover off the third category – seeing as those operating in these industries will know of the rules that have been introduced.

It is important to appreciate that this is not just limited to the engagement of labour via an employment agency but to any arrangement for the supply of workers from one concern to another. It would therefore cover situations when one company provides workers to another say, a consultant.

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SORP 2015 bite size guidance: Accounting for liabilities

Posted on: December 11th, 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.

Liabilities arising from performance related grants

The key characteristic from a performance related grant is that the amount payable is determined by the extent of the recipient’s performance in meeting the conditions set out in the agreement. The payment is conditional on the recipient delivering a specified level of service or output. The liability and expenditure must be recognised to the extent that the recipient has provided the specified level of service or goods. A grant that is restricted to a particular purpose does not create a performance related condition.

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SORP 2015 bite size guidance: Measurement of liabilities

Posted on: December 8th, 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.

A liability must be recognised firstly at historical cost and subsequently measured at the best estimate of the amount required to settle the liability at the reporting date.

When a charity provides for a provision that it will settle over many years, the future payments required to settle the provision should be discounted to their present value.

The discount rate used should reflect the cost of money to the charity, for example the market rate of interest at which the charity could borrow over the time period.

The unwinding of the discount should be treated as a finance cost in the SOFA.

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Autumn Statement 2014: Positive announcements for charities

Posted on: December 4th, 2014 by Sarah Case No Comments
Sarah Case, Director, Broomfield & Alexander

Sarah Case, Director, Broomfield & Alexander

The festive season has got off to a great start with good news for charities in the Autumn Statement. The National Press coverage is concentrating on stamp duty reforms that will affect you if you are buying a home, amongst other announcements. Hidden behind those headlines are a number of positive measures for charities; perhaps the most direct measures are the extension of VAT rebate schemes for hospices and search and rescue charities.

These VAT news stories for charities are:

Hospice charities move to a level VAT playing field

Until now, hospice charities have been disadvantaged when competing for contracts with NHS providers as they have suffered VAT  on many non-business supplies, which NHS providers of course do not. This gives a significant disincentive to contracting out.

Following the Fair Playing Field Review, the government says that they will refund the VAT that hospice charities incur. This should give VAT savings of up to £4million per year.

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SORP 2015 bite size guidance: Introduction to expenditure

Posted on: December 4th, 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.

Expenditure is the amount of a charity’s resources that have been spent or otherwise used in carrying out its activities.  The charity will either see a decrease in assets on an increase in liabilities.

Expenses can be cash spent on goods or services, amounts paid in respect of employees, making grants to other organisations or other funding commitments to further the charity’s purpose for which the charity receives no benefit in return.

Liabilities are a legal or constructive obligation to commit the charity to expenditure.  These are recognised when all of the following are met:

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Broomfield & Alexander widens international reach

Posted on: December 4th, 2014 by Ian Thomas No Comments
Ian Thomas, Managing Director, Broomfield & Alexander

Ian Thomas, Managing Director, Broomfield & Alexander

Broomfield & Alexander has signed up to a new global network to assist its clients that have business interests abroad.

Through our membership of MHA we have become an independent member of Baker Tilly International which will give it access to experts from member firms in 137 countries worldwide.

The move means that Broomfield & Alexander can call on specific business and financial expertise ‘on the ground’ in foreign jurisdictions.

Broomfield & Alexander has joined the network as part of its membership of MHA, the UK-wide association of nine independent accountancy firms. MHA was previously part of the international association of accountancy firms Morison International.

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Autumn Statement 2014: Initial reflections

Posted on: December 4th, 2014 by Leighton Reed No Comments
Leighton Reed, Director, Broomfield & Alexander

Leighton Reed, Director, Broomfield & Alexander

Stamp Duty Changes could lead to increasing house prices

Changes to the way stamp duty is calculated changing the ancient system which used to produce unfair results have been broadly welcomed across the board. Purchasers buying houses under £937,500 will now be better off under the new rules which broadly equate to 98% of residential transactions.

There will however be an unintended affect on houses which are valued around the previous boundaries. These properties (which have been artificially reduced because of the boundaries) are likely to go up in value overnight and prospective vendors are likely to try and cash in on stamp duty savings on offer.


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Round sum allowances

Posted on: December 4th, 2014 by Sarah Curzon No Comments
Sarah Curzon, Tax Director, Broomfield & Alexander

Sarah Curzon, Tax Director, Broomfield & Alexander

It is important to check whether you pay round sum allowances. Do you have a dispensation from HM Revenue & Customs (HMRC) and should you update your approach to expenses?

In the past, many employers reimbursed expenses by the payment of a round sum allowance. This was particularly the case in the public sector, which had prescribed rates that annually were updated. The round sum allowances were set out in what was described as the ‘purple book’ for local authorities and called the ‘Whitley rates’ in the civil service. It was typical that such allowances covered the cost of subsistence both for those employees away from their normal employment base for a day, but also for those who stayed away overnight and incurred accommodation costs.

Today, many employers have moved away from the concept of round sum allowances and HMRC are generally no longer in favour of them and instead much prefer that employees are reimbursed based on actual costs incurred. Some employers in their expenses policy will permit an expense to be claimed up to a particular limit and then an invoice of the cost incurred will be required. So, if the employer permits employees to claim the cost of a hotel of up to £125 per night and an employee stays in a hotel costing £80 then it is the lower of these sums which will be reimbursed.

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Cyber security: What you need to know

Posted on: December 4th, 2014 by Liz Mounfield No Comments

A guest article from Sarah Edwards, Capital Network Solutions, explores the need for businesses to be aware of and prepared for cyber security breaches.

Most of us now use the internet to do business, to advertise and sell, to find new markets, customers and staff, communicate with customers and suppliers, and carry out financial transactions. The internet brings huge opportunities and benefits. But it also brings risks if unauthorised access is gained into your systems (known as a breach)

In the 2014 Information Security Breaches Survey carried out by pwc, 81% of large organisations and 60% of small organisations had experienced a security breach during the previous year, with the average cost of that breach doubling from 2013 to £600k – £1.5 Million for a large organisation and £65k to £115k for a small organisation.

What is at risk from breach?

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Autumn Statement 2014: Impact upon Welsh individuals

Posted on: December 3rd, 2014 by Lynda Kendall No Comments
Lynda Kendal, Tax Manager, Broomfield & Alexander

Lynda Kendal, Tax Manager, Broomfield & Alexander

In his last Autumn Statement before the Election next May the Chancellor, George Osbourne, announced a package of measures designed to improve the economy and also win votes.

Whilst spending cuts are still envisaged and the Universal credit allowance is to be frozen for another year, the Chancellor has announced measures that aim to make certain multinational companies and banks pay what is perceived as their fair share of tax. A 25% corporation tax charge is to be levied on multinational companies that artificially transfer profits outside of the UK and banks will only be able to reduce their profits by 50% using losses made during the banking crisis, rather than eliminate them completely.

The personal allowance will be increased from £10,000 to £10,600 from April 2015 and for the first time in many years the basic rate band will also increase by the same amount so that both basic rate and higher rate taxpayers will benefit by the reduction in tax. The ISA allowances also increase to £15,240 and these investments will from April retain their tax free status if passed on to a spouse on death.

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Latest From The Blog


Intermediary rules: What your clients need to know

Leighton Reed, Director, Broomfield & Alexander

Leighton Reed, Director, Broomfield & Alexander

The new rules relating to the engagement of workers via an intermediary came into operation in April 2014. From our discussions with clients there seems to be either total ignorance to the changes, or that they have misunderstood the extent of compliance they need to undertake The intermediary rules are split into three distinct categories...

Read more

SORP 2015 bite size guidance: Accounting for liabilities

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.

Liabilities arising from performance related grants

The key characteristic from a performance related...

Read more