HB&O Headlines - October 2019

24th October 2019

Have you missed any of our Brexit blogs?
Brexit

Over the last few weeks, our VAT specialist, Jessica Mason has been looking closely at areas of legislation that may change once the UK leaves the EU, whether that be with or without a deal.

Our most recent blogs have covered various aspects including the changes to the accounting process, specifically surrounding Import VAT, in the case of a No Deal Brexit. We've also taken a closer look at Transitional Simplified Procedures, which have been designed to simplify the import and export process in the case of a no-deal. Finally, our third Brexit blog takes a look at the implications on VAT when providing services to the EU, post-Brexit. 

If you've got any specific queries surrounding Brexit, and how it may affect your business, contact our team today on 01926 422292.

Read our Brexit series here
 
Property as an investment for landlords - implications to consider
Properties to let

As the global financial crisis began to bite in 2008, central banks in several nations took action, attempting to shock the world economy back to life by slashing base interest rates.

In the UK, the Bank of England reduced interest rates to 2% in late 2008 and to 0.5% in early 2009, where they sat until 2016 when they dipped yet further, to an astonishing 0.25%. A decade on from the recession, they’ve yet to recover in any meaningful way, sitting today at a meagre 0.75% – a far cry from 14.88% of 30 years ago this month. If you take into account inflation, which runs at around 2% in the UK, then the value of any savings at 0.75% interest is falling: it will effectively lose value the longer you leave it in the bank.

For many people with money to invest, property feels like one of the few opportunities that can provide a reliable, substantial return over time. However, there are reasons to be cautious. The more property is treated as an investment, the more likely it will attract speculators, especially from overseas.

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The electric vehicle revolution - tax implications for electric company cars

Electric Car
Electric vehicles are rapidly changing the face of the automotive industry, and with the impact of increased accessibility and environmental awareness, the amount of electric vehicles globally reached 5 million by the end of 2018, compared with just 14,260 in 2010.
 
The Committee on Climate Change (CCC) has proposed a recommendation to the UK government regarding electric vehicle growth, suggesting 60% of all new cars sold by 2030 should be electric. With poor air quality currently one of the greatest environmental risks to health in the UK, causing an estimated 40,000 early associated deaths each year and £20 billion per annum cost to the economy, there’s an increased momentum towards change.
 
In response, the government has introduced a range of special tax measures to encourage the take up of low and zero-emissions vehicles. There are tax implications for both employee and employer when using electric vehicles as a company car so it’s important to get up to speed on these if you are considering investing in them.
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One year to prepare: how businesses in the construction industry can get set for the VAT reverse charge 

Crane
If you operate a VAT registered business within the building and construction industry, you will likely have heard about the ‘Domestic Reverse Charge’ which will change the way VAT is to be collected. Initially, the new legislation was due to be implemented from 1 October 2019 however, due to lack of guidance from HMRC and pressure from industry experts, the implementation has been delayed for 12 months.

The changes would have caused major cash flow issues for suppliers and sub-contractors had they not been fully up to speed with the new regulations so the delay provides a welcome extension. Nevertheless, the changes are still due to be implemented in October 2020, therefore it is important for businesses to assess how the changes will affect them to ensure they are fully prepared next year.

If you are unsure if you will be affected by the domestic reverse charge, or have any queries in relation to the changes, please contact Neil Allcroft or Jess Mason on 01926 422292.

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Final fundraising total for the Yorkshire Three Peaks sees HB&O raise over £6000!

Back in September, 16 staff members from HB&O travelled up north to complete the Yorkshire Three Peaks as a charity challenge, raising money for Myton Hospice. The team had an aim to raise £2000 but after extremely generous support from friends, colleagues and clients, the grand total amounted to £6035.
 
Chris Willmott, Corporate Fundraiser at Myton Hospice said: ‘The generosity of HB&O’s supporters will allow Myton Hospice to continue providing vital services and support to terminally ill people and their families across Coventry and Warwickshire. To put things into perspective, £158 funds one day at our Day Hospice, so the donation from HB&O will help fund over 38 days. It could also provide 57 Myton At Home visits – or even an amazing 370 children’s bereavement counselling sessions.

“We want to extend a huge thank you to the team at Harrison Beale & Owen for their amazing fundraising effort and for making a real difference to the lives of our patients and families. Thank you.’

Learn more about Myton Hospice
 

Register to receive the latest edition of The Bottom Line

Bottom Line Autumn 2019
Have you received the Autumn edition of our quarterly magazine, The Bottom Line? Our newest edition includes a spotlight on when to review your annual accounts, advice on how to take your business international and a deeper look into ‘pension freedom’ reforms.

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