Insights

In my previous blog I discussed how a legal firm could fall foul to CEO fraud through information fraudsters can find on social media sites. In this update I’m going to look at another scheme that members in a legal firm can be tricked into.

It’s a question I’m sure many farmers ask themselves at some point … should I consider doing something different? If you love farming then I’m sure the answer is a quick and confident no, but should it be?

For many years farm business owners have enjoyed a regime of capital taxes that have been extremely helpful in terms of planning for family succession. Wealth is largely protected on death with holdover relief to defer capital gains tax (CGT) to allow lifetime gifts to be made, or 100% relief for agricultural property and business property.

There are many sayings about managing cash in a business – “cash is king” and “turnover is vanity; profit is sanity; cash is reality” to name but two. With many farms and estates diversifying their businesses, how can you be sure which part of the business is contributing to the cash inflow?

Recent research found that only 25% of law firms believed they were in compliance with the new General Data Protection Regulation (GDPR) that comes into force on 25 May 2018. What should law firms be doing?

It’s not unusual for buyers to identify specific sellers and make offers. This is known as an off-market approach. It is often flattering for a seller, who may have not been thinking about a sale but is intrigued to explore it further.

In February the Government published a consultation document entitled “Health and harmony: the future for food, farming and the environment in a Green Brexit.” The document runs to 64 pages and sets out possible options for the future of UK farming over the next generation. It should be regarded as compulsory reading (The NFU have produced a more manageable 14-page summary).

As one tax tear ends and another begins, there are employment tax issues that employers need to be thinking about. My previous blog covered reporting requirements for employment related securities. In this blog, I’ll look at some changes in legislation.

I’m guessing that most people’s answer to this is no. However, if you don’t plan to receive your income in the most tax efficient manner, you may well end up paying more.

Whilst time is short to get things changed prior to 5 April 2018, a review now may save tax in 2018/2019.

In the lead-up to 5 April each year there are plenty of employment tax issues to be thinking about, both in relation to reporting requirements for the tax year now ending as well as the legislative changes going forward. One area that employers need to consider is that of employment related securities.

VAT is an increasingly complex tax, particularly in the motor trade where mistakes can be costly due to the high unit values involved. HMRC continue to target motor dealers using specially trained officers, so it’s always worth reviewing your VAT accounting.

By now, everyone will have seen the reports about Oxfam, and the resulting damage to its reputation. Donations to Oxfam have certainly been hit but it appears that donations to charities in general may fall as the public’s mistrust of charities increases.  

With Christmas a distant memory, and January and February out of the way, we can look forward to spring with renewed optimism. The depressing dark days are behind us and we’ve got over ‘Blue Monday’. What else can we do to brighten the outlook? What do you need to start thinking about in terms of tax affairs?

Is your firm’s cash under strain? Are you hoping to invest in improvements but don’t have the ready cash? Do you have a retirement looming? What are your options?

With charities under increasing public scrutiny, there is added pressure to be seen to be ‘doing the right thing’ by potential donors. The recent high-profile allegations against the Presidents Club have resulted in some charities returning donations received from the Presidents Club Charitable Trust.   The Charity Commission has issued a news story on this area called Returning Money to Charities.

The Museums and Galleries Exhibition tax relief (MGETR) is now law and fully in effect. HMRC have updated their guidance so we also know more about how it works.

The results have just been released for the levels of business sales in 2017 and, despite a national 5.5% downturn in the number of completed deals, 2017 proved to be another busy year for the Corporate Finance team at  Larking Gowen.  

Changes to accounting rules – will your charity need a deed of covenant?

Charities with subsidiary companies need to understand changes to accounting rules that were announced by the Financial Reporting Council in December 2017. They may have to create a deed of covenant to allow the accounts to show the gift of that year’s profits from subsidiary to the parent charity.

The UK construction giant Carillion was placed into compulsory liquidation on 15 January 2018, threatening the jobs of more than 43,000 employees worldwide. Could this affect your business?

The aim of a rebrand is to breathe new life into a business or product, but it has to be done with a real focus on strategy.

What is a brand and how can you create a new brand? What unique challenges do small businesses face in developing or updating a brand?

While business owners are experts in running their businesses, the sale or acquisition of a company is a complex, strategic, financial and legal process that should not be underestimated. For such a crucial financial transaction, it is always best pursued with highly skilled financial and legal professionals by your side.