Do not bury your head in the sand

Sheffield based accountants Hart Shaw is urging business not to be complacent if they receive accelerated payment notices (APNs), after new figures reveal that the government has collected more than £1 billion through their use.

HM Revenue & Customs (HMRC) recently announced that it has collected more than a billion pound using APNs, since it was granted the new powers in 2014/15.

Under the accelerated payment rules, HMRC is able to make taxpayers pay disputed tax in advance, rather than waiting for the outcome of a tax tribunal ruling.

Once an APN is received taxpayers have 90 days to pay the outstanding tax, whether they feel it is due or not or face additional penalties. If the taxpayer wins the case the money is reimbursed to them with interest.

During the first year HMRC issued more than 10,000 notices to businesses or individuals who had used a disclosable scheme under the Disclosure of Tax Avoidance Schemes (DOTAS) rules.

Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw said: ““Receiving an APN should not be taken lightly, as it can have a serious effect on the liquidity and reputation of you and your business.

“The fact that HMRC have collected more than £1 billion, shows that they are serious when it comes to potential tax avoidance.”

Earlier this year, it was revealed in HMRC’s annual report on tax avoidance, that of the £596m received from APNs during 2014/15, some £28m was refunded after legal challenges.

“While many of those targeted by these new powers may have legitimately avoided paying tax, there will be some individuals and business who have been unfairly targeted and this is evident in the number of refunds already issued by HMRC,” added Christopher.  “Seeking professional advice sooner rather than later is critical.”

For more information please contact Christopher Brown on 0114 251 8850 or chris.brown@hartshaw.co.uk.

 

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New EU court ruling could have significant impact on businesses

Sheffield based Chartered Accountants Hart Shaw is warning businesses to be aware of a new European court ruling which has clarified that travelling time to and from work could itself be classed as work.

In a landmark ruling, the European Court of Justice has said that time spent to and from first and last appointments by workers without a fixed office should be regarded as working time and that wages should be paid in relation to this.

Within most businesses this time has not previously been considered as work and it means that firms operating without a fixed office may be in breach of EU working time regulations.

Failing to meet these regulations could see an employer brought before the Health and Safety Executive in the UK, which could lead to improvement notices being issued. Subsequent failure to comply can lead to unlimited fines and imprisonment.

Christopher Brown, Business Recovery Partner at Hart Shaw said: “This new ruling represents a significant change to the current Working Time Regulations and could have a number of implications on a business, ranging from additional wage costs for travelling time to fines or even imprisonment for those who fail to meet its requirements.

“While some business owners may not be happy with this new measure it is important that they comply with it, or face the prospect of an investigation that could have a significant effect on them and their business.”

Christopher added that this new ruling is most likely to affect care businesses, sales representatives and tradesmen who begin and end their working day at home.

“Speaking to a professional regarding your responsibilities as an employer in regards to the Working Time Regulations could save you a lot of problems further down the line,” added Christopher.

To help keep track of business and travel expenses please download our mobile app where such expenses can be logged and calculated accurately. 

For further information please contact Christopher Brown on T: 0114 251 8850 or email: chris.brown@hartshaw.co.uk.

 

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Business confidence remains high

Sheffield based Chartered Accountants, Hart Shaw has commented on news that, according to the latest Business in Britain report from Lloyds Bank, overall business confidence remains strong and stable.

This positive attitude is largely underpinned by companies’ expectations of an improvement in exports, as well as an anticipated increase in investment levels.

The twice-yearly Lloyds Bank report gathers the views of 1,500 UK companies – predominantly small to medium sized businesses, or SMEs – and tracks the overall balance of opinion on a range of important performance and confidence measures.

The report’s overall key confidence index, which looks at businesses sentiment over the coming six months, has remained stable at 43 per cent compared with January 2015. Although the latest reading is down from the survey’s high of 53 per cent recorded 12 months ago, it remains above the long-term average reading of 23 per cent. Expectations of employment growth and a resurgent export market suggest strong economic prospects for the second half of the year.

Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw said: “Some 29 per cent of the firms surveyed said that weaker UK demand poses the greatest threat to their business in the next six months. This could explain why firms expect to increase their sales in global markets.”

The net balance of exporters expecting an increase in total exports across the globe has risen to 46 per cent. This has been boosted by firms’ intentions to export to growing regions such as the Middle East and Africa. In particular, the increase in total exports has been driven by the number of exporters expecting an increase in trade with Europe in the next six months.

“Business confidence has remained relatively strong with encouraging expectations for sales, orders and profits for the rest of the year,” noted Christopher. “This has been underlined by a bounce back in exports to Europe as well as companies’ intentions to grow their presence further on the international stage. However, we’ll be keeping an eye on how the situation in Greece affects British SMEs,” they concluded.

For further details contact Christopher on 0114 251 8850 or chris.brown@hartshaw.co.uk.

 

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New website for Hart Shaw Business Recovery & Insolvency

Hart Shaw Business Recovery & Insolvency has developed a new website, embracing new technological methods for better usability.

The new mobile friendly website has better functionality for users accessing the site via different devices.

It is up to date with practical solutions and video content to address businesses and individuals who may be experiencing financial difficulty. In addition to this there is a section on how other professional advisers can access the range of services on offer from Hart Shaw to assist their clients who may be experiencing problems.

The new Hart Shaw Business Recovery & Insolvency website

Brendan Hall, Marketing Co-ordinator at Hart Shaw comments: “The new website has been designed specifically to increase the user experience, making it easier to navigate and find information depending on the specific requirements of the visitor.

“We offer a range of services to businesses, individuals and professional advisers and have broken down these services to enable our visitors to find the information they require quickly and easily.

“Our website can be read easily on mobile phones and tablets, as well as PCs and Laptops to make it more accessible in the office, at home or on the move.”

 

View the new Hart Shaw Business Recovery & Insolvency website here: www.hartshaw-bri.co.uk.

Is your business experiencing financial difficulty?

Do you need to know what options are available to your business in troubling times?

Watch our service insight to gain more understanding of the options that can be available and how you can start taking the right steps to safeguard the long term future of your business.

The team at Hart Shaw Business Recovery & Insolvency have helped to turn around and keep trading over 60% of the troubled businesses that have sought help and advice from us.

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More UK start-ups survive first year of business than European counterparts

Sheffield based Hart Shaw has commented on a recent study that shows more of Britain’ start-ups are surviving their first year of business than their European peers.

The research conducted by Rosseau Associates highlights that of the 234,000 UK businesses launched in 2011, 93 per cent of start-ups survived their first year of business. This compares to an average survival rate of 83 per cent across Europe.

Britain’s start-up scene has enjoyed considerably more robust health than Europe’s other major economies of France (79 per cent) and Germany (78 per cent), and has experienced the strongest economic growth in Europe as a whole.

Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw said: “This is very encouraging news for Britain’s SMEs and shows that we really are leading the way. Despite the tough economic conditions of recent years, the recession appears to have created innovation and entrepreneurs, so Britain’s start-ups are clearly flourishing. Add to that the recent Enterprise Bill and perhaps we will see an even higher survival rate in the coming years.

“Business Secretary Sajid Javid said last month that small businesses are ‘Britain’s engine room’ and at Hart Shaw, we’re proud to be able to assist SMEs and offer a range of services for business owners.”

If you would like advice on how to grow your business and achieve success, please contact Christopher on 0114 251 8850 or chris.brown@hartshaw.co.uk.

Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw

 

 

 

 

 

 

 

 

 

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SMEs face barriers to growth

46 per cent of SME owners believe that a lack of access to skilled workers is the main obstacle to growing their business. The figure comes from research conducted by the British Insurance Brokers’ Association (BIBA) and Populus in which 500 directors, senior leaders and SME owners were polled.

A similar number (43 per cent) believe that cutting so-called ‘red tape’ would be the quickest way to stimulate growth among mid-market businesses.

For smaller companies – those with 10-49 employees – access to credit is a wide concern, with 26 per cent citing this as the biggest barrier to expansion.

According to the BIBA and Populus survey, the biggest barriers to growth are:

• Lack of talent/skills: 46 per cent
• Red tape: 43 per cent
• Rising supplier costs: 36 per cent
• Lack of tax breaks for small business: 24 per cent
• Lack of business opportunities/sufficient network: 23 per cent
• Availability of credit: 23 per cent
• Knowledge of overseas markets: 13 per cent
• Protective overseas markets: 11 per cent
• Lack of cost-effective transport: 10 per cent

One of the biggest obstacles to growth is a lack of effectively skilled staff, so more needs to be done to encourage SMEs to take on apprentices.

Interestingly, availability of credit is seen as a barrier for nearly a quarter of those polled. Clearly, banks need to review their lending policies.

Hart Shaw is experienced at assisting SMEs and can offer a range of services to help owners facing any of the problems highlighted in the survey. For more details, please Christopher Brown, Business Recovery & Insolvency Partner on T: 0114 251 8850 or email: chris.brown@hartshaw.co.uk.  

 

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No business is immune from failure

The recent insolvency of the Rotherham based MTL Group is a timely reminder that no company, however large and high profile, is immune from failure. Administrators were appointed to MTL Group on 2 February 2015 with the immediate loss of 157 jobs and leaving creditors owed circa £10m.

The immediate effect of any insolvency is that creditors suddenly have a bad debt to deal with, and the larger the debt, the more likely that there will be a domino effect, causing otherwise solvent companies to have cash flow problems which could ultimately lead to failure. When the initial insolvency involves such a high profile company as MTL Group the risk of the domino effect only increases.

We are currently helping one of the creditors of MTL who has a large bad debt. Fortunately this company is financially sound but even so, the disruption to its immediate cash flow caused by MTL is such that we are currently negotiating with HM Revenue & Customs a time to pay arrangement for the current VAT Quarter. This will enable the Company to avoid penalties and make nominal payments until, over the next six months, it can claim VAT Bad Debt relief on the MTL debt and so satisfy the current VAT quarter.

Other Companies in less financial health may need to negotiate with their creditors generally and this is where an Insolvency Practitioner can provide valuable help. Of course this is dealing with the effects of a bad debt after it has happened. But what practical things can a Company do to lessen the effects of a bad debt before it happens?

The first thing is to know your customer, assess their credit worthiness and set a credit limit which reflects the commercial risk you are prepared to take, because were your customer to fail that is how much you stand to lose.  Once set, stick to it. We often see cases where although a credit limit was in place, the company has ignored it and gone on supplying the customer which has ultimately failed. If possible incorporate a personal guarantee into your credit application form, it may not always be possible, especially with larger customers, but it is worth trying. Finally consider credit insurance to protect against non-payment should a customer fail. The benefits of credit insurance are not only that the debt being insured would be paid, but that you will have access to improved credit intelligence on your customers.

If your require any assistance in dealing with your creditors or require further information about credit insurance please contact Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw on T: 0114 251 8850 or email: chris.brown@hartshaw.co.uk.

Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw

 

 

 

 

 

 

 

 

 

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Have you checked for fraud and error?

Businesses are being advised to check their accounts regularly to identify errors and fraudulent acts that could potentially harm their business.

It comes after a new report produced by the Centre for Counter Fraud Studies at the University of Portsmouth uncovered an increase in the amount of fraud and error found within UK businesses and the public sector during the last year.

Their research revealed that these mistakes cost organisations more than £98.6 billion a year in turnover. It also discovered that losses from these activities as a percentage of annual expenditure increased by 18 per cent from 2010/11 to 2012/13.

The report’s figures are based upon valid loss measurement exercises, which estimate fraud in an organisation by checking one type of its expenditure for fraud and extrapolating it across the other areas of the business.

Fraudulent actions and errors can easily be missed within a busy business, but failing to spot them and rectify the problem could soon eat into profits and turnover.

This report highlights what a significant issue this is in the UK and with many small and medium-sized enterprises already facing issues with late payments; this is the last thing they need.

However, by ensuring you have a robust set of accounts and a monitoring system in place you can identify problems and deal with them quickly.

Many firms need to create a culture that makes reporting fraud and errors in the workplace second nature. Tougher internal guidelines should also be put in place to reduce complacency and prevent mistakes from happening in the future.

For further details please contact Christopher Brown, Business Recovery & Insolvency Partner on T: 0114 251 8850 or email: chris.brown@hartshaw.co.uk.

Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw

 

 

 

 

 

 

 

 

 

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Hart Shaw Business Recovery & Insolvency wine tasting event

Accountants, solicitors, business finance providers and business coaches in the East Midlands area are being invited to join Hart Shaw’s Business Recovery & Insolvency department for an evening of fine wine tasting at Mansfield Manor Hotel on July 16^th.

The aim of the evening is to develop and foster relationships between Hart Shaw and its current referrers and potential referrers that may know of businesses which require recovery & insolvency advice and/or complex tax work.

Hart Shaw, which is based in Sheffield, often works with other accountants to find the best solutions for their clients as Brendan Hall from Hart Shaw explains: “When working with other business professionals that don’t have our expertise in recovery and insolvency, our aim is always to try and turn their client’s business around and keep it trading. The wine tasting event is an opportunity for us to say thank you to existing referrers and to meet new people that we may be able to work with in future. Those attending will get the chance to meet our Insolvency Practitioners and Tax Specialists, network with other professionals from neighbouring areas and learn more about the specialist services we can offer – which can often be the difference in a referrer losing or keeping a client.”

Mansfield Manor Hotel is located in Carr Bank Park in Mansfield.

The evening starts with a 6.30pm registration and networking followed by the wine tasting session which will be hosted by specialist wine importer Emilios Polimos, owner of Emilios Greek Restaurant and a wine importer with Pegasus Wines

To book a place for the free to attend event, please contact Sarah Anyan on 07876 765592 or email sarah.anyan@hartshaw.co.uk

 

Hart Shaw Business Recovery & Insolvency