Posts Tagged ‘Business growth’

Welsh Government funding support for businesses in Wales

Posted on: August 1st, 2012 by Mike Fenwick No Comments
Mike Fenwick, Director, MHA Broomfield Alexander

Mike Fenwick, Director, MHA Broomfield Alexander

In the current economic climate raising finance in particular for SME’s and early stage businesses, continues to be challenging.

In recognition of this the Welsh Government has recently announced the establishment of 3 new funds aimed at supporting SME’s, micro businesses and businesses operating in the Life Sciences sector.

Wales SME Investment Fund

The new £40 million Wales SME Investment Fund is a 4 year fund managed by Finance Wales that provides debt, mezzanine and equity finance to SME’s throughout Wales.

The fund consists of £20m from the Welsh Government and a further £20 million from the private sector. The new fund is able to provide support to a wider range of SME’s than were previously eligible for support under the £150 million Finance Wales JEREMIE fund.

The fund is currently open for applications.

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Warning to organisations in Wales of increasing fraud risks

Posted on: April 9th, 2012 by SarahCase No Comments
Sarah Case, Director, MHA Broomfield Alexander

Sarah Case, Director, MHA Broomfield Alexander

Companies and charities operating in Wales are being warned that they are particularly vulnerable to fraud as the faltering economy creates a combination of more desperate people and less secure organisations.

With the UK losing a staggering £38bn a year through fraud, an increase in the number of high-profile fraud cases, and a recent report which reveals that charities are foregoing 2.4 per cent of their income to fraudsters, organisations in Wales are likely to be particularly prone to becoming the victims of fraud.

The propensity of the would-be fraudster to commit their crime is largely dependent on both their motive and the existence of opportunity,

As unemployment, rates of taxation, inflation and other factors that put pressure on disposable income all rise, so to does the motivation to commit fraud.

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HMRC increase business investigations – are you covered?

Posted on: February 9th, 2012 by LeightonReed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

The current state of the UK economy has put significant pressure on HMRC to recover additional tax revenue in order to help them meet the growing deficit in the economy. Obviously, one way to achieve this goal is by carrying out additional enquiries into Tax Returns. Enquiries can be more complex than in the past and the costs of responding are consequently higher. The government have announced that they will be investing £900 million into HMRC over the next 4 years to clamp down on people and businesses who underpay their taxes. They have also suggested that they will be increasing Tax Investigations by 3000%, as a main spearhead to their new strategy. So it is increasingly important for clients to obtain protection against those costs.

We do have considerable expertise in defending clients under enquiry by HMRC and always ensure Returns are filed in a manner that should limit the possibility of an enquiry by HMRC. However HMRC select thousands of cases a year for random enquiries. If you are selected for a tax enquiry we will naturally aim to settle it quickly and minimise the final tax liabilities. However, answering all of HMRC’s questions takes time and the enquiry could take several months. As a result the costs to defend you can be significant.

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Changes to R&D tax credits following Draft Finance Bill 2012

Posted on: December 13th, 2011 by Leighton Reed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

Changes to the R&D tax credits regime announced in the recent Draft Finance Bill 2012 can be summarised as below:

SME scheme

Increase in the enhanced R&D tax deduction rate

  • The enhanced R&D tax deduction rate is set to increase to 125% from 1 April 2012.  Therefore, if £10,000 of qualifying R&D expenditure is incurred a company could claim tax relief of £22,500, providing a potential tax saving of in excess of £3,000.

Since 1 April 2011 the rate of the enhanced R&D tax deduction has been 100%, increasing from the previous rate of 75%.

Change in the amount of potential tax free cash

  • Loss making SMEs are able to surrender tax losses for a tax free cash receipt.  From 1 April 2012 the maximum cash receipt will be 24.75p for each pound spent on R&D.  Therefore, for expenditure of £10,000 a tax free cash receipt of £2,475 could be received.

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Wales Economic Growth Fund

Posted on: December 8th, 2011 by Mike Fenwick No Comments
Mike Fenwick, Director, MHA Broomfield Alexander

Mike Fenwick, Director, MHA Broomfield Alexander

The Wales Economic Growth Fund is a new £15 million short-term, fast-track fund for businesses, providing immediate access to non-repayable grant funding for capital investment that will create and retain jobs.

The minimum level of funding is £100,000 and applications are open from 12 December 2011 with a closing date of 31 January 2012. The funding will need to be spent by the 31 December 2012.

The fund is open to applications from businesses from all sectors throughout Wales, however funding is discretionary and is subject to state aid rules and limits and the onus is on the applicant company to prove need. Retail businesses and businesses which provide services to the local market will not be eligible for support.

Applicant businesses will need to submit a business plan and detailed financial forecasts in support of their application. The business plan will need to demonstrate why grant is required and at what level, and the anticipated contribution the project will make to the wider economy.

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Accessing finance in Wales

Posted on: November 29th, 2011 by SeamusGates No Comments
Seamus Gates, Director, MHA Broomfield Alexander

Seamus Gates, Director, MHA Broomfield Alexander

The climate for accessing finance in Wales continues to be difficult not helped by the latest concerns over global banking and financial markets.

Nonetheless there continues to be opportunities for businesses to consolidate or grow and develop.  In order to do this funding is required; set out below are some sources of funding that should be considered.

Bank funding is still the main source of finance for businesses.  Despite the difficulties, good projects can still obtain support albeit the process may be more protracted than before.   The key is to provide the bank with a clear and concise business plan, up to date accounts, robust financial projections, and a clear business case.

Bank overdrafts or structured loans require adequate security and the cost of borrowing is likely to be at least 2.5% over current base rates.

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Grant Support from WRAP Cymru

Posted on: October 25th, 2011 by Mike Fenwick No Comments
Mike Fenwick, Director, MHA Broomfield Alexander

Mike Fenwick, Director, MHA Broomfield Alexander

I recently attended a presentation by the Waste and Resources Action Programme Wales (WRAP Cymru).

WRAP Cymru is responsible for helping businesses and individuals reap the benefits of reducing waste, developing sustainable products and using resources in an efficient way by encouraging investment in

  • Collections systems and infrastructure
  • Reprocessing infrastructure
  • Quality recyclates
  • Creating demand for quality recyclates in manufacturing

WRAP is able to provide 100% funding for the following consultancy support to businesses in the recycling and reprocessing sector:

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Recent Changes to Grant Support in Wales

Posted on: October 11th, 2011 by Mike Fenwick No Comments
Mike Fenwick, Director, MHA Broomfield Alexander

Mike Fenwick, Director, MHA Broomfield Alexander

Following the introduction of the Economic Renewal Programme (ERP) in 2010 there have been a number of significant changes to how grant support is delivered to businesses in Wales.

The principal changes introduced by ERP were as follows

  • Targeting support by focussing on a number of key priority sectors
  • Moving to a model of mainly repayable business finance
  • Reallocating a significant proportion of the grant budget to investment in infrastructure and high speed broadband

The initial proposal contained in the ERP was to limit support to the following key 6 sectors

  • Creative industries
  • Information, Communication and Technology (ICT)
  • Energy and Environment
  • Advanced materials and manufacturing
  • Life Sciences
  • Financial and Professional services

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Specialist to help firms access funding

Posted on: October 7th, 2011 by RobertPreece No Comments
Robert Preece, Director, MHA Broomfield Alexander

Robert Preece, Director, MHA Broomfield Alexander

A specialist Chartered Accountant, who has over 25 years’ experience advising businesses, in particular in accessing grant funding, has been appointed to the corporate finance team of South Wales professional advisors MHA Broomfield Alexander.

As director of grants, Aberdare-born Mike Fenwick, aged 49, will bring his considerable experience to bear to work with clients on grant funding and raising finance as well as on business planning and strategy.

Mike previously spent 22 years with PricewaterhouseCoopers, 12 of them specialising in assisting companies throughout the UK with applications for grant funding, before moving to a similar role with UK top ten accountants PKF. Most recently Mike has been running his own consultancy business Fenwick Advisory.

Mike also has a keen interest in the development of the social enterprise sector and for 10 years has been Treasurer of Cardiff based charity Track 2000.

“I am looking forward to working with the team at MHA Broomfield Alexander and assisting businesses access funding to support growth and investment opportunities in what continue to be challenging economic times,” he said.

Seamus Gates, director of Corporate Finance said, “Broomfield & Alexander have experienced a busy 2011 to date and I believe the appointment of Mike will bring further growth to the department.  Mike has hit the ground running and I am excited about the coming year.”

MHA announces new members

Posted on: August 17th, 2011 by RobertPreece No Comments
Robert Preece, Director, MHA Broomfield Alexander

Robert Preece, Director, MHA Broomfield Alexander

MacIntyre Hudson Association (MHA), the national group of major regional firms, is expanding its national footprint following the new membership of Bloomer Heaven and Tait Walker.  Now with eight members in place, MHA’s combined turnover will rise to £86m.

Launched last November, MHA brought a new concept to the UK accountancy market with member firms working together to offer a wider proposition for their clients across the country.  Existing members comprise MHA Broomfield Alexander, Carpenter Box, Henderson Loggie, Larking Gowen and Moore and Smalley and MacIntyre Hudson, the Top 20 London-based firm that originated the idea. Each member will be responsible for its respective region in the UK.

Mike Brown, MHA’s Chairman said: “MHA is an innovative approach, allowing constituent firms to enhance their range of services to clients.  Through the Association, members can share knowledge, skills and resource to develop specialisms and offer them to their prospective and existing clients right across the United Kingdom.”

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