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Changes to the Tax Treatment of Distributions on Liquidation

Posted on: February 9th, 2016 by Sarah Curzon No Comments

Sarah CurzonIn The Chancellor’s Autumn Statement he included a very brief reference to proposed changes to entrepreneurs’ relief to target “contrived schemes” whilst ensuring that the relief remained available for genuine commercial transactions.

On 9th December draft clauses for inclusion in next year’s Finance Act were published, which provided detail on these proposals and reveals how the ability to claim entrepreneurs’ relief will be affected in many situations.

The proposal is that these changes will be effective from 6 April 2016.

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Why bigger isn’t always better: Lessons to learn from the collapse of the charity Kid’s Company

Posted on: February 8th, 2016 by Sarah Case No Comments

Sarah CaseIncreasingly the third sector is being encouraged to share, amalgamate, merge.  Like minded organisations  are becoming much larger organisations and then absorbing smaller charities to create multi-million pound bodies that are geographically spread and have a number of differing aims and objectives.

This strategy does of course have its place in the third sector and efficiencies can be made in a merger that ensure the funds raised are spent on charitable activities as opposed to governance and administration costs.

However, there are many occasions where bigger isn’t always better.

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National Minimum Wage rates

Posted on: February 5th, 2016 by Sarah Curzon No Comments

The National Minimum Wage rate per hour depends on your age and whether you’re an apprentice – you must be at least school leaving age to get it.

Year 21 and over 18 to 20 Under 18 Apprentice*
2015 (current rate) £6.70 £5.30 £3.87 £3.30
2014 £6.50 £5.13 £3.79 £2.73
2013 £6.31 £5.03 £3.72 £2.68
2012 £6.19 £4.98 £3.68 £2.65
2011 £6.08 £4.98 £3.68 £2.60
2010 £5.93 £4.92 £3.64 £2.50

*This rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage for their age.

The rates are usually updated every October – the current rates apply from October 2015.

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Charity SORP 2015

Posted on: January 28th, 2016 by Sarah Case No Comments

Sarah CaseAlongside our bite-sized articles on the Charity SORP 2015, we have produced a sheet of questions that we are frequently being asked around the new updates.

These Charity SORP FAQs should hopefully provide you with some further guidance as required.

If we can be of any further assistance, please do not hesitate to contact our specialist Charities and Not for Profit team on charities@broomfield.co.uk

FRS102 and its impact on Corporate Finance Assignments

Posted on: January 28th, 2016 by Katherine Broadhurst No Comments

Katherine BroadhurstThere are a number of areas that FRS102 is changing in UK GAAP which will have an impact on transactions and other corporate finance work.

Asset Values

A key change in the new GAAP in the UK as a result of FRS102 is the valuation of many assets at Fair Value including investment properties, some financial instruments, biological assets and investments in associates and joint ventures. In addition, the movements in fair value in these items each year are taken to the profit and loss account, rather than the movements being accounted for through reserves.

With the movements being within the main profit and loss account, now called the Statement of Comprehensive Income, there will be new items which will impact on the profits of the business which previously have not.

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Changes to SRA Accounts Rules 2011

Posted on: January 28th, 2016 by Seamus Gates No Comments

Seamus GatesThe SRA (Solicitors Regulation Authority) has recently issued new guidance in relation to the changes to both the rules and requirements to submit the Accountant’s Report (AR1 Form).

For accounting periods ending on or after 1 November 2015, there is no longer a need to submit an Accountant’s Report if you meet either of the following requirements:

  1. If you hold less than £250,000 of client money in total, and hold on average less than £10,000 of client money per month.
  2. If client money held is only money from the Legal Aid Agency.

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Life after debt in 2016?

Posted on: January 28th, 2016 by Liz Mounfield No Comments

You’re the owner of an established Welsh small or medium-sized business (SMEs), but what does 2016 hold for you?

Are you happy with your business’ current revenues and profits or will 2016 be the year your business steps up a gear?

If you are looking for faster growth in 2016, you might need to think differently about funding. What are your options if your business doesn’t have enough money in the bank to finance your plans?

Well, if you’ve grown your business from the ground up, you may think of taking out a loan as you’ve done in the past, but will a loan really give you the flexibility you now need?

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National Living Wage

Posted on: January 26th, 2016 by Sarah Curzon No Comments

Sarah CurzonThe National Living Wage (announced by the Chancellor in Budget 2015) is due to be introduced from April this year to £7.20 per hour for over 25 year olds. This could potentially cost small businesses as much as £2 billion, so planning cash-flow will be key for small businesses, especially as the National Living Wage is set to rise to £9.00 per hour by 2020.

The cost to business is likely to be significant, especially for businesses who are reliant on part-time workers such as the tourism and hospitality sector and those in the care sector.

From an employee’s perspective the Government have put a very positive spin on this announcement but for business owners this could have negative repercussions. Many businesses fear that they will be forced to make redundancies to manage ever increasing salary costs. This comes at a time when the Government are also ensuring employers provide pensions for employees through Auto-Enrolment. Many employers have still not yet gone through the Auto-Enrolment process and may have no idea of the impact of the cost increases that face them.

The wage hike will affect workers aged 25 and over, and is reportedly set to boost the salaries of over six million people. The National Minimum Wage rates will stay the same for workers aged 24 and under.

For advice on how this can affect your business and help with cash flow management and forecasting please contact us on tax@broomfield.co.uk.

Budget 2016: Reform of pension tax relief

Posted on: January 25th, 2016 by Denise Roberts No Comments

Denise Roberts (2)David Gauke, the Financial Secretary to the Treasury was recently reported as noting that a review of pensions taxation in the March Budget would keep savers in mind. This announcement is likely to be seen as encouraging for those who wish pensions to continue to be taxed on withdrawal rather then on contributions.

However, on the other side of the coin ministers are considering changes to replace the current variable tax relief for pension contributions with a new flat rate. This reform would have significant implications for both savers and the exchequer.

At the current time basic rate taxpayers receive 20% tax relief, with higher rate tax payers receiving 40% and top rate tax payers receiving 45%.

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Mandate fraud: charities should remain vigilant to the continuing threat

Posted on: January 15th, 2016 by Joanne Taylor No Comments

Joanne TaylorThe Charity Commission is urging charities to remain vigilant to the continuing threat of mandate fraud and the changing tactics that fraudsters are using to target charities.  This type of fraud occurs when a fraudster tricks a victim into changing bank details in order to divert legitimate payments intended for a genuine organisation (e.g. a charity supplier) to bank accounts instead controlled by fraudsters. This often involves the fraudster impersonating an organisation representative, either by email, direct mail or telephone communication. The fraudster may also use headed paper and/or the company logo to lend credibility and to gain the charity’s trust.

In recent months, the Commission has become aware of mandate fraud attempts where the fraudster has been able to use the email address of a regular contact at the legitimate organisation to deceive charities into changing change bank details.

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Latest From The Blog


Changes to the Tax Treatment of Distributions on Liquidation

Sarah CurzonIn The Chancellor’s Autumn Statement he included a very brief reference to proposed changes to entrepreneurs’ relief to target “contrived schemes” whilst ensuring that the relief remained available for genuine commercial transactions.

On 9th December draft clauses for inclusion in next year’s Finance Act were published, which provided detail on these proposals and reveals how the ability to...

Read more

Why bigger isn’t always better: Lessons to learn from the collapse of the charity Kid’s Company

Sarah CaseIncreasingly the third sector is being encouraged to share, amalgamate, merge.  Like minded organisations  are becoming much larger organisations and then absorbing smaller charities to create multi-million pound bodies that are geographically spread and have a number of differing aims and objectives.

This strategy does of course have its place in the third sector and efficiencies can be made in...

Read more