PLUS:• Seminars offer expert insights

• Get the Abbey habit – and be protected

• Charity begins with ladykillers and wolves!• “HB&O speak the same language as us”• App-y days are here again

• For peace of mind, make a will• Brandon is at the head of the cue• Free guides aim to help your business grow

Spring 2015

HR ADVICE IS JUST THE JOB Stay compliant with employment lawusing our HR service

Welcome to the latest issue of HB&O News, which brings you updates and practical advice on issues that may affect you financially.

Welcome

There have recently been some positive signs that the economy is improving. According to the Federation of Small Businesses, three in five small firms expect to grow in 2015 and January figures showed new UK car sales at their highest level in ten years.

As an independent, owner-managed business, like so many of our clients, HB&O has been dealing with the same challenges as you over the last few difficult years. Like you, we’ve also had to find new ways

to keep our firm developing and moving forward.

One of the ways we’ve done this is to respond to your needs, by offering new services, like HR advice. You can read more about how this service helped Amrik Bhabra of Coventry firm ADECS in this newsletter and it’s great to know that services like this do what we want them to – make your life easier.

We had further proof that our approach is working in the very positive client comments we gathered as part of our

entry in the 2014 Leamington Business Awards, which are also featured in this newsletter.

It’s only by listening to you that we can continue to meet your needs – so if you have any feedback on any aspect of our services, including this newsletter, please do get in touch.

Best wishes

Rob KendallManaging director

Get the Abbey habit – and be protected

Making sure every taxpayer contributes their fair share was a key feature of Chancellor George Osborne’s 2014 Autumn Statement.

The Autumn Statement document, published on 3 December, said measures taken so far by the current Parliament to tackle aggressive tax planning, avoidance and evasion would bring in £7.6 billion in extra revenues in 2015-16 and the government pledged that it would be “relentless” in continuing to tackle these issues.

While the government acknowledges that only a “persistent minority” of taxpayers is involved in tax avoidance and evasion, and that the vast majority pay the right amount at the right time, any individual or business can be selected for a compliance check, and that can be a daunting prospect.

Helen Coombes, tax director at HB&O, says: “No matter how careful your

bookkeeping may be, HM Revenue & Customs (HMRC) can decide to take a closer look at your tax affairs. Something as simple as figures on a return that appear to be wrong could be enough to trigger a visit.

“That’s why we offer an insurance policy through Abbey Tax Protection, the UK’s leading provider of this type of cover. As well as providing cover to meet the cost of our fees in the event of an HMRC enquiry into all or an aspect of business and personal tax returns, the same cover applies for VAT and PAYE compliance visits as well as for HMRC business record checks or requests for information.

“Clients with this cover who are notified that HMRC wants to look at their tax affairs need to make sure that they let

us know as soon as possible, so that they can receive any advice they need from us with the cost covered by their Abbey policy.

“We are seeing a significant increase in activity from HMRC around tax enquiries and clients who do not already have Abbey protection may want to think about taking out a policy, as it is likely to prove a very sound investment in the event of HMRC attention.

“We can offer up to six months’ free cover for new clients and because we want to make your life as easy as possible, we offer a range of payment options – direct debit, credit card, PayPal and even cash, if that suits you best.”

For more information on HB&O’s tax services, please contact us.

Data released at the end of last year by unbiased.co.uk, a website enabling consumers to find professional advisers, and Certainty, the national will register and will search scheme, revealed that 28.7 million of the UK adult population (57 per cent) have not yet made a will.

And the research also found that the West Midlands had the highest percentage of people without a will, with two-thirds (67 per cent) yet to make one.

At HB&O, we understand that people lead busy lives and it is all too easy to put off making a will to another day.

But taking the time to draw up a will means that you can be sure your assets – your property, money and other possessions – will be distributed as you wish them to be and that your loved ones will be spared the anxiety and extra expense involved in sorting out your estate without a will to guide them.

Drawing up a will with a properly qualified legal professional also means that you can be sure your will is tax-efficient – so that you don’t pay more inheritance tax than necessary – and correctly drafted, to remove the risk of disputes that a badly written will can create.

If you have already made a will, it’s sensible to make sure it continues to reflect your wishes and personal circumstances by reviewing it at least every five years or after major life events, such as marrying, buying a house, the birth of a child, separation or divorce from a partner or retiring.

For more information on our wills, trusts and probate services, please contact us.

Almost 30 million UK adults have still to make a will, according to new research.

For peace of mind, make a willFor more information please contact us - ifa@hboltd.co.uk

For more information please contact Helen Coombes - helen.coombes@hboltd.co.uk

Whether you employ one person or hundreds, it’s crucial to stay compliant with employment legislation.

HR advice is just the job

Employment law is complex and changes regularly, but failure to stay up to date with your legal responsibilities – and the rights of your employees – could leave you open to action from an unhappy worker, which could be costly and time-consuming to resolve.

Having access to expert HR advice can give employers real peace of mind when it comes to staying informed and preventing employment issues escalating into far more serious disputes.

Taking on a full-time, in-house HR professional may not be feasible for many businesses but HB&O’s HR Service, led by our HR consultant Lucy Jenkinson, provides high quality, outsourced support that delivers real value for money, as client Amrik Bhabra from Coventry-based IT

specialists ADECS can confirm.

Amrik said: “An employment situation developed that was also a sensitive commercial matter and the circumstances were complex.

“Lucy supported us in navigating through the situation, even though it seemed to change and get more complicated each day. I felt that we had someone to explain our options at each stage, and someone to answer questions about technical employment law issues.

“The matter was ultimately resolved in a fair manner for the employee and with the best commercial result for the business.

“Employing people is a great responsibility and HB&O’s HR Service has always provided us with the guidance we need on our employee-

related matters, as well as keeping us up to date with ever-changing employment legislation.”

HB&O offers HR support through our full Compliance Service, which, for a cost-effective, fixed monthly fee provides ongoing access to our HR expertise, policies, procedures, letters and best practice guidance.

Lucy has a wide range of experience across all generalist HR fields and has previously managed restructures, redundancy and relocation programmes. For more information on our HR Service, please contact us.

For more information please contact Lucy Jenkinson - lucy.jenkinson@hboltd.co.uk

“ We have always found them to be very approachable and accomplished in every field. They speak the same language as us and are genuinely concerned for the well-being of our business.”

“ Their advice and support since has been excellent. This has made the transition from being an employee to being self-employed painless. I have been able to concentrate on developing my business whilst the financial issues have all been taken care of extremely diligently and professionally.”

“ A truly far-reaching accounting firm with an excellent global network providing all services required in an easy to understand, approachable and friendly way. Sometimes I believe they are just another team in my organisation.”

“ HB&O is an excellent company and I completely trust their knowledge and advice. They look after all my financial needs – be it advice about tax and tax returns, investments, wills and inheritance provision.”

“ I’d worked, in a professional capacity, with lots of accountancy companies and so was able to assess and talk to others about HB&O and was very happy with the feedback. My company has been with them now for over seven years and they have always come up to the original expectations and often beyond that.”

“HB&O speak the same language as us”

Our firm was founded in Leamington more than 90 years ago and we’ve been actively involved in the town’s business life ever since.

So we were delighted to be nominated for and chosen as a finalist in the Large Business category of the Leamington Business Awards at the end of last year.

Although we missed out on the title, as part of the awards our clients were asked to provide feedback on our firm and services and we were delighted by the

extremely positive comments they gave. Some of these comments are featured below, and we’d like to say a very big thank you to everyone who contributed.

For more information please contact Mark Ashfield - mark.ashfield@hboltd.co.uk

App-y days are here again

It seems the world can’t get enough of apps.

Apple’s App Store began life in 2008 with just 500 apps – now it offers more than 1.4 million and in January 2015, Apple revealed that the developers of apps sold on the site generated more than $10 billion in revenue over the previous 12 months.

Our approach is all about making life easier for you, which is why we became one of the first accountancy practices in the region to launch a free accountancy app, way back in 2011.

The app can be downloaded onto iPhone and Android devices and provides details of developments in our services, news and useful advice and a range of handy calculators for fast, easy access to information on taxes including corporation tax, income tax, capital gains tax, VAT and stamp duty.

The information is regularly updated to keep the app current with any changes to tax rules or rates.

HB&O managing director Rob Kendall said: “Smartphones and other mobile devices are part of everyday life now and we’re delighted that our app has proved to be so popular and useful.”

The free app can be downloaded from:

• the App Store for iPhones and iPads

• the Android Market for Android phones.

For more information please contact Rob Kendall - rob.kendall@hboltd.co.uk

To help the people we work with stay informed, we run regular seminars and briefings to provide a free, expert insight into current business issues, with November proving to be a particularly busy month.

HR is always a hot topic for employers, so on 9 November our HR consultant Lucy Jenkinson ran a free breakfast briefing covering retirement and age discrimination, forthcoming changes in employment law, including around maternity, paternity and parental leave, and a landmark employment appeals tribunal decision earlier that month with potentially far-reaching consequences for the way holiday pay is calculated.

A key question for every business owner is How Much is My Business Worth?, which was the title of our seminar on 18 November. The event explored issues including the “myths and maths” of business valuations, the differences between earnings-based or

asset-based calculations and how the motivations of the buyer and seller can affect the value.

Greg Philp, head of HB&O Corporate Finance, who led the seminar, said: “While an owner will know more about their business than anyone else, its market value is one area where they are often in the dark.

“Yet establishing a value is the starting point for increasing the worth of every business; helping the owner to maximise their return on the time, money and hard work they have invested in building a successful enterprise.”

From 1 January 2015, the existing Charities Statement of Recommended Practice (SORP) was replaced by two new versions of the SORP.

Ahead of the change, HB&O teamed up with Coventry solicitors Band Hatton Button on 26 November for a

seminar looking at the key differences and similarities between the two new SORPs as well as how they have changed from the old version.

Our first seminar of 2015 focused on auto-enrolment, with HB&O Financial Services’ pensions experts hosting an event on 28 January looking at the key questions employers yet to start auto-enrolling need to be asking themselves and how our team can help.

As part of the seminar, delegates each received a free, bespoke report, based on information provided beforehand, identifying the key dates in their auto-enrolment process and the actions they need to take.

We run our auto-enrolment seminars on a regular basis, so if you are interested in attending a future event, please contact Caroline Trainor at caroline.trainor@hboltd.co.uk or on 01926 422 292 for details.

Running a business is a full-time job, so it can be hard for owners and managers to stay up to date on key issues likely to affect their operations.

Seminars offer expert insightsFor more information please contact Caroline Trainor - caroline.trainor@hboltd.co.uk

Corporate finance

• Therearemanytheoriesandformulasthatcanbeused to calculate a business’s value but most are not appropriate for owner-managed or family businesses.

• Intherealworld,thevalueofowner-managedandfamily businesses is assessed using two key factors:

- a multiple of adjusted profits before tax- adjusted net assets, after allowing for goodwill.

• Alargenumberofothernon-financialissuescanaffecta business’s value and it is important to take sensible commercial advice when trying to establish the real market value.

Charities

Act now: discuss the potential impact of the new SORPs on your charity’s financial statements with your accountants now, so that are fully prepared for the change and how this will affect your organisation.

Auto-enrolment

Don’t put off what you can do today – the experience of businesses that have already been through auto-enrolment suggests they need to allow at least six to nine months before the date when they start auto-enrolling to ensure they fully understand what they need to do and draw up and implement their action plan.

HR

Not all employers are aware that there is no longer a default retirement age which means that employees can choose to continue working. Employers should no longer have expectations of employees ‘retiring’, and should make their business plans with this in mind. 2014 saw some landmark rulings with regard to how to calculate holiday pay for employees with variable pay such as overtime, commission and other regular non-standard payments. The impact of these rulings is still developing but employers who pay any kind of variable pay should seek advice on how this should be calculated.

Charity begins with ladykillers and wolves!

In September, more than 40 people swung into action at our annual charity golf day at Kenilworth Golf Club in Warwickshire, raising £3,000 in the process, which was split between our two charities – Zoe’s Place Baby Hospice in Coventry and the Warwickshire and Northamptonshire Air Ambulance Service.

In November, members of our team answered the call of the wild to tackle a challenging off-road run in aid of the firm’s chosen charities.

Chris Bowler, Taher Abul, Michaela Neil, Kieran Crowe, Jason Strain, Michael Jefferson, Daniel Ferrar and Kirsty Foster travelled to a remote farm in Warwickshire, to take part in the Wolf Run, an event that takes competitors across natural terrain including open ground, woodland, lakes and thick mud. The Wolf Run involves a series of obstacles – both man-made and natural – designed to test runners’ mental and physical strength, skill and stamina.

Also in November, we hosted a special fundraising performance of The Ladykillers – the classic tale of a sweet old lady who has to pit her wits against a gang of crooks posing as amateur musicians who have rented rooms in her house – at the Priory Theatre in Kenilworth. The event featured a seat prize and raffle, with all profits going to our charities.

In the same month, our tax manager Mark Johnson and his Coventry-based covers band Rewind showed their support for our charities by playing a benefit gig at Hen Lane Social Club in Coventry.

A good time was had by all as the audience danced the night away to classic tunes made famous by great

performers like James Brown, Billy Idol and David Bowie.

The three events together boosted Zoe’s Place and the air ambulance by a

total of £2,428. Throughout 2014, we raised £10,054 for their work. More information on the charities is available at www.zoes-place.org.uk and www.wnaa.co.uk

Ladykillers, “wolves” and a tax manager with a second career as lead singer in a rock band have all featured in fundraising events for our chosen charities.

For more information please contact Phil Ewing - phil.ewing@hboltd.co.uk

Top tips from our seminars

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Brandon is at the head of the cue

A new member of our team believes in making an early start, whether he’s getting to grips with sets of accounts or with a pool cue.

Brandon Tatlow joined HB&O last September after completing his A levels to start training for his Association of Accounting Technicians qualifications.

But he had already started developing his accountancy skills, as his interest in maths meant that he had been analysing financial spreadsheets for his stepfather, a sole trader, since he was 16 and still at school.

Brandon says he’s enjoying all aspects of his role and that he is “learning every day” but when he’s not at work, he’s kept busy with playing for four pub pool teams and for the Warwickshire squad.

That team has won through to the 2015 County Finals tournament organised by the English Blackball Pool Federation (EBPF), which will take place at Selsey, West Sussex in March.

Brandon began his playing career at the age of eight, when he became an occasional member of the pool team at his father’s pub, and now he fits in two or three three-hour training sessions at week on his pool table at home.

Brandon has also played in the under-18s national squad for the EBPF and now he is too old for that age group he is hoping to take part in trials for the under-23s later in the year.

Free guides aim to help your business grow

If you’re looking for some bright ideas to boost your business, we’ve got just what you need.

57 Ways to Grow Your Business is one of a series of free guides we produce to provide our clients with quick, easy access to expert advice designed to help their businesses operate more efficiently and cost-effectively.

The 57 ways to grow include a step-by-step guide to writing a business plan, how to set and track key performance indicators, the benefits of gathering customer feedback and getting your pricing right.

Our other free publications are a Guide to Running a Limited Company and Tax Planning Tips 2014/15.

If you would like a copy of any or all of our guides, please email Caroline Trainor at caroline.trainor@hboltd.co.uk.