New collaberation will support students to set up businesses when they graduate

Hart Shaw LLP is working closely with The University of Sheffield Enterprise (USE) to help students “fully prepare their business ideas and plans for implementation in the business

Students presenting their business plans at the 2012 USE Business Planning Competition Ceremony on Wednesday 9th May

world.”

The Sheffield accounting firm has carried out workshops on financial management, helped judge the annual ‘Enterprising Ideas Business Planning Competition’ and mentored students involved in enterprise societies within The University of Sheffield.

“Hart Shaw is delighted to be working with theUniversityofSheffield Enterpriseon these numerous projects,” said Andrew Maybery, Senior Partner at Hart Shaw. “We are very keen to encourage enterprise in the local area and help develop the businesses of tomorrow, and feel that putting something like this back into the community will only enhance the success of the students.

The University of Sheffield Enterprise has been supporting students to develop enterprise skills, including those who wish to set up their own business, since 2004. USE offers a range of opportunities, events and coaching sessions to help students make ideas happen.

“This collaboration with Hart Shaw is essential for our students,” said Sara Pates, Enterprise Business Manager at The University of Sheffield. “For many it may be their first real engagement with the business community; and knowing it is with a strong, local firm experienced in the local SME sector provides us with a high degree of confidence in the quality of support and guidance they will receive.”

Hart Shaw News

Budget 2012: Balancing the books

The Chancellor’s opening comments in the 2012 Budget included reaffirming the need for stability in the UK. George Osborne had previously promised that there would be no tax giveaways and he mostly stuck to this.

So was there any good news for UK business?

The main headline for businesses was the surprise of a further 1% reduction in the main rate of corporation tax from 1 April 2012, in addition to the 1% reduction announced in 2011.

Although the main rate has been significantly reduced to 24%, with further 1% reductions planned in April 2013 and 2014, the majority of businesses are unaffected by the proposals with the small companies rate unchanged at 20%.

Furthermore, the confirmation of the previously announced reduction in the capital allowances Annual Investment Allowance to £25,000 from £100,000 will do little to encourage businesses to invest in new plant and machinery. Together with a 2% reduction in annual writing down allowances there appears to be little good news.

Having said that 100% first year capital allowances continue to be available on “energy saving technology” and the categories of qualifying expenditure will be updated in Summer 2012.

Over the past 12 months the Government has attempted to encourage new business investment by the designation of a number of specific areas as Enterprise Zones. Three sites in the Yorkshire region along the M1 corridor in Barnsley, Sheffield / Rotherham and Markham Vale are qualifying areas. As well as SME’s qualifying for business rates relief, 100% capital allowances are available for significant investment in new plant and machinery during the five year period between April 2012 and 2017 in the region.

Another area where the Government has attempted to encourage investment is through Research and Development tax credits. A number of restrictions have been lifted from April 2012 with the intention of broadening the scope for potential claims. Furthermore, the additional deduction for qualifying expenditure has been increased by a further 25% making the total deduction 225% of the actual expenditure.

In a fiscal neutral budget, there was no significant good news for business. However, it is worthwhile remembering that the UK continues to have one of the most competitive tax regimes in Europe.

For further information please contact Steve Vickers, Tax Partner on 0114 251 8850 or email: steve.vickers@hartshaw.co.uk.

Hart Shaw Budget Summary 2012

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Yorkshire 3 Peaks Challenge in aid of the Rotherham Hospice and St Luke’s Hospice

Four members of the Hart Shaw team are undertaking the Yorkshire 3 Peaks Challenge on Saturday 19th May 2012 in aid of the Rotherham Hospice and St Luke’s Hospice in Sheffield.

Adrian Dunkley, Julian Wilkinson, Ken Pearson and Steve Bell are aiming to complete the 24 mile route in less than 12 hours, but will be hoping the rain will have cleared up by then!

The Rotherham Hospice is Hart Shaw’s Rotherham based Charity of the Year and St Luke’s Hospice cared for Julian Wilkinson’s late Father. As Julian will testify, as will many other people who have had family and friends requiring their care, both charities do brilliant work and deserve all the help they can get.

Two seperate Just Giving pages have been set up for the charities for anyone who wishes to make a donation.

To donate to the Rotherham Hospice please go to: www.justgiving.com/teams/hartshaw2

To donate to St Luke’s Hospice please go to: www.justgiving.com/teams/hartshaw

Thank you for your support!

From left to right, back to front: Ken Pearson, Steve Bell, Julian Wilkinson, Adrian Dunkley

The team have reliably informed us that the motorbike and side car will not be used, nor will they be sliding down any hills in a tin bath. 

Critical issues in Exit & Succession Planning seminar at Hart Shaw on Tuesday 22nd May 2012

A joint seminar with business experts Hart Shaw, hlw Keeble Hawson and the FD Centre

You may only dispose of a business once, so make sure you get advice from people who know how and when to prepare and how to maximise the price whilst minimising the hassle.

For many entrepreneurs, the idea for starting their business was to make a difference. Not just a difference in the eyes of customers and peers, but also a difference to their own financial well-being.  Whether your business is based around generating an income or for building growth, there will come a time when disposing of the business is the right thing to do.

This seminar will focus on:

• Improving the value of your business
• Making it an attractive proposition to potential buyers
• When to build an exit or succession strategy into your business plans
• What potential buyers look for
• Deal structures
• The sales process
• Pre and post sale tax planning
• Legal documentation
• Completion of sale

We will provide you with experienced insights from the role of finance director, corporate finance adviser, tax specialist and corporate lawyer. Our intention is to help you maximise your business potential for when the time is right to move on to new challenges.

Join Steve Bell, Head of Corporate Finance at Hart Shaw, Steve Vickers, Tax Partner at Hart Shaw, Andy Collier, Regional Director at the FD Centre and Roger Dyson, Head of Corporate at hlw Keeble Hawson over breakfast at Hart Shaw’s offices for a seminar that provides a crucial insight into the issues surrounding a business disposal.

The details are:

• Date: Tuesday 22^nd May 2012
• Time: 8:00am for tea, coffee and breakfast sandwiches, 8:30am start, 9:30am finish with Q&A and optional networking until 10am
• Venue: Hart Shaw Building, Europa Link, Sheffield Business Park, Sheffield, S9 1XU

The seminar is FREE to attend and you are very welcome to bring a guest or a colleague.

To confirm your attendance please contact Brendan Hallat Hart Shaw on T: 0114 251 8872 or email: brendan.hall@hartshaw.co.uk. Places are limited so please book early to avoid disappointment.

Forthcoming events at Hart Shaw

Past events at Hart Shaw

UK launch of AMPLIFi Governance UK at Hart Shaw on 18th April

On Wednesday 18th April 2012, Hart Shaw is hosting the northern region UK launch of AMPLIFi Governance UK.

AMPLIFi Governance UK helps family and private businesses to improve performance, accountability, sustainability and innovation by creating a boardroom culture through the placement of a carefully selected independent director.

They can assist businesses with finding and appointing a qualified independent director who can assume the role of Chair and will help create or enhance the Board to deliver an effective Governance Culture.

The details are:

• Date: Wednesday 18th April 2012
• Time: 5pm Registration, refreshments and networking, 5:30pm start and 7:00pm finish
• Venue: The Hart Shaw Building, Europa Link, Sheffield Business Park, Sheffield, S9 1XU

The launch event is aimed at SME & Owner Managed Business owners and their advisers to come and find out more about the service.

This is a free event and you are welcome to bring a guest or a colleague.

Click here for details of how to register your place.

Places are limited so please book early to avoid disappointment.

Four deals in one day

Deal makers from Hart Shaw Corporate Finance and legal firm, HLW Keeble Hawson LLP have completed the sale of four businesses on the same day. The four independent businesses, franchisees for a leading mobile phone operator, were all acquired by Talk Direct (Leeds) Limited, a company that has consolidated a number of other franchisees in the recent past.

Hart Shaw Corporate Finance

WAP Communications Limited, 24-7 Connect Limited, 635 Connect Limited and Crystal Connect Limited are all based in South Yorkshire and are independent companies with common shareholders.

Dan Fountain, Joint Managing Director of the Companies comments “Having been one of the earliest franchisees for this mobile phone brand we have consistently innovated to deliver the growth required. We realised that the market is moving to larger “super franchisees” and that long term value could only be generated by consolidating our companies into a larger structure. For this reason we worked with Hart Shaw to identify a strategic acquirer. Talk Direct are already a significant player in the market and the acquisitions strengthen their position within the franchisee network”  

Steve Bell, Head of Corporate Finance at Hart Shaw comments “The companies are long standing clients of the practice and real value was generated through the identification of a strategic acquirer that would pay a premium to secure these companies. Whilst the transaction in itself was straightforward, complexities arose out of the fact we were dealing with four independent companies alongside a Franchisor that had a right of veto.”

Chris Wilson, Corporate Partner at hlw Keeble Hawson comments “The need to co-ordinate the sale of four separate companies on the same day posed a number of logistical challenges.  These were overcome largely through the close co-operation between the Sellers’ legal and financial teams.  The transaction also demonstrates that, given the right clients and professional advisors, there are corporate deals to be done in South Yorkshire which bodes well for the year ahead.”

Steve Bell, Head of Corporate Finance

steve.bell@hartshaw.co.uk

Hart Shaw Corporate Finance

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VAT Changes – Compulsory online filing and electronic payment

From 1 April 2012 nearly all VAT registered businesses must submit and pay their VAT electronically. This will apply to VAT periods beginning on or after 1 April 2012.

VAT registered businesses subject to an insolvency procedure or those run by practicing members of a religious society, whose beliefs prevent them from using computers will be exempt from online filing. They must write to the HMRC VAT Mandation Review Team explaining which exemption applies and provide supporting documentation.

For everyone else, using online services is quick and easy and usually gives a business extra time to submit a return and pay any VAT that may be due. 

For those who are still submitting paper returns the sooner you register for online services the better.  By registering for online services now you will avoid a last minute rush and potentially penalties if you do not get registered in time.

For further information regarding online registration or any other VAT queries please contact Carla Davis, VAT Adviser on T: 0114 251 8850 or email: carla.davis@hartshaw.co.uk.

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Hart Shaw Taxation

Tax rates 2012-13

Another Budget has come and gone after weeks of press speculation. In fact, this was  George Osborne’s third budget speech. After so much talk of austerity, were there any glimmers of hope?

 

Many of the figures are fundamental to our business and personal lives and you will find the key taxes summarised on our website at http://www.hartshaw.co.uk/TaxRates2012-13.pdf. We are sure that you will find it a useful point of reference throughout the coming tax year and below we have listed just a few examples of how it can be used. 

 

To quote Lord Bramwell, ‘Like mothers, taxes are often misunderstood, but seldom forgotten.’

Our tax rates contain lots of information to reduce those misunderstandings!

 

Property taxes

 

Prior to the Budget, there had been a lot of talk about expensive homes. Our tax rates highlight the rates of Stamp Duty Land Tax to help you calculate the exact cost when buying a property.

 

Asset sales

 

If you sell an asset such as land, capital gains may be due. Our tax rates highlight the main rates so that you can consider the tax bill that may arise.

 

Rates for businesses

 

If you run a business, obtaining the right allowances on equipment that your business buys can affect the tax that your business has to pay each year. There are a number of changes this year, so our tax rates highlight the main allowances that are available, including rates available on business cars.

 

Rates for employees

 

This is always an area that is close to peoples’ hearts. Am I paying the right amount of tax?

 

Benefits that employees’ receive from their job, like company cars and fuel, affect the tax that they pay. There are a number of changes to the company car regime this year, so our tax rates explain how these are computed to help ensure that you are paying the correct amount of tax.

 

Travel is a daily part of business life. If you drive your own car on business, HMRC allow certain tax free mileage allowances to be paid. If you are paid less than these rates, you may be entitled to a tax refund. Our tax rates highlight the rates.

 

Rates that affect us all

 

Long term planning for a comfortable retirement can never start too early. Our tax rates explain how much can be contributed to an approved pension scheme each year tax efficiently.

 

Our tax rates contain the main inheritance tax rates and exemptions but early planning can mitigate these tremendously. For example, a bit of simple tax planning can often make a world of difference – getting the right Will in place could save your family £130,000!

 

These rates are intended for use as a quick point of reference. Should you require any further information, have a simple question or require detailed advice we are only a phone call away.

Steve Vickers, Tax Partner, 0114 251 8850

steve.vickers@hartshaw.co.uk

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Hart Shaw Taxation

 

Budget presents welcome measures to help businesses

Hart Shaw is advising businesses and individuals to review their financial affairs closely, after the Chancellor introduced a number of measures in his 2012 Budget.

The Chancellor promised his budget would “unashamedly back business” as he cut Corporation Tax to 24% next month, while there will be consultations on allowing small businesses with turnovers up to £77,000 to be taxed on the basis of the cash going through the firm. Mr Osborne also pledged to increase the £1bn Business Finance Partnership by 20%. The Budget also saw the implementation of tax relief for the video games, animation and high end television production sectors, while the Government is considering enterprise loans for young people to start their own business.

Extra funding will also be available to help construction firms build new homes.

However the Chancellor also promised to crack down on tax avoidance, introducing a new General Anti-Tax Avoidance Rule (GAAR) by 2013 and a stamp duty level of 7% on homes worth more than £2m, while companies that buy any such homes will pay a 15% stamp duty level.

A new cap is also being introduced on tax reliefs, with a cap of 25% of total income for anyone claiming more than £50,000 in a year.

Perhaps the most controversial announcement made in the Budget was cutting the top rate of tax from 50p to 45p, with Mr Osborne telling the House 50p income tax rate was “harming the British economy” and was costing the taxpayer as money was moved to avoid the levy.

Mr Osborne also raised the personal income tax allowance to £9,205 from April 2013.

Steve Vickers, Tax Partner at Hart Shaw comments “We are encouraged by the moves to support businesses, particularly in a time of “austerity” but we are less enthusiastic about the effect the budget will have on individuals.”

Click here to read and download a full review of the 2012 budget from Hart Shaw’s website.

steve.vickers@hartshaw.co.uk

Hart Shaw Taxation

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Capital allowances – drastic cut in Annual Investment Allowance

If your business is contemplating capital expenditure of plant and machinery in excess of £25,000 per annum, you need to act sooner rather than later in order to make the best use of the Annual Investment Allowance (AIA).

The AIA currently provides a full 100% deduction against taxable profits on expenditure of up to £100,000. This level is reducing to just £25,000 per annum from 1 April 2012 for companies and 6 April 2012 for individuals and partnerships. Where your year end date straddles the changeover, the two rates of AIA are apportioned. However, there are further complications to the rules with the AIA entitlement being restricted if expenditure is delayed until after the beginning of April even though it is still incurred in the same financial year.

If you would like to discuss how the above will impact your business and any actions that you can take to maximise your AIA entitlement, please contact Adrian Dunkley, Tax Manager on T: 0114 251 8850 or email: adrian.dunkley@hartshaw.co.uk.

Hart Shaw Taxation

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