HB&O Headlines - September 2019

25th September 2019

Top tips for successful succession planning
Retired couple
Whatever your reason for exiting your business, when the time comes to sell up or change direction, effective planning is essential.
That’s why we’ve put together a series of articles covering the main aspects of succession planning, from what to consider up to five years ahead of any anticipated change, through to tax implications and your future investment strategy.

The consistent theme from our corporate finance, tax and financial planning experts is to plan ahead – and start as early as possible so you have time to make any adjustments that might be needed before you make your move.

Read our succession planning series here
Harrison Beale and Owen celebrates five years of specialist corporate finance work
Corporate Finance Team

Harrison Beale & Owen (HB&O) is celebrating unprecedented growth in demand for business sales and acquisition support which has seen its Corporate Finance team expand significantly since launch five years ago. In that time, HB&O has supported over 200 projects, including over 100 business disposals or purchases with a total value of £209m.  

The firm’s Corporate Finance team has grown from one full time specialist to a team of five and works across a wide range of deals including sales, mergers, acquisitions, management buyouts and fundraising projects.
Greg Philp, Director of Corporate Finance at HB&O said: “Demand for specialist corporate finance support remains very strong across the Midlands despite the challenges posed by Brexit and other pressures. Typically, specialists focus on larger deals which has left smaller organisations with little support in what can be very complex negotiations. By focusing specifically on projects worth less than £5m, we’ve seen rapid growth in demand for our services which have been well received by our clients.”

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More challenges ahead for property investors and landlords

Whether you consider yourself a property investor or an accidental landlord, there are more changes on the horizon, which affect how your capital gains and rental income will be taxed. Some of these changes will directly impact how and when you file and pay tax, and what reliefs you can apply for, so it’s important to stay on top of the changes being introduced.

One of the biggest changes affecting those who now rent out a property they once lived in is the impending removal of Letting Relief. Currently, up to £40,000 of lettings tax relief per person can be applied to the capital gain on an additional property you once lived in. From April 2020 however, Letting Relief will cease except for those in shared-occupancy with a tenant.
Another change that could catch owners out is the new payment date for Capital Gains Tax (CGT) - within 30 days of a sale - for UK residents and non-UK residents disposing of UK property.
Finally, since April 2019, landlords have been able to claim 25% of finance costs as a deduction against income, with the remaining 75% given as a basic rate tax reducer. However, from April 2020, all financing costs incurred will be given as a basic rate tax reduction, meaning that some landlords will face an increase in their tax bill.

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HMRC delays domestic reverse charge in the building and construction industry for 12 months

Construction Site
Following pressure from businesses in the building and construction industry, HMRC has delayed the implementation of the domestic reverse charge until October 2020.

Initially due to be implemented this October, the domestic reverse charge was being introduced to change the way VAT is collected in the industry to prevent fraudsters charging and collecting VAT before disappearing without paying the said VAT to HMRC. However, unless both suppliers and sub-contractors were fully prepared, the complicated nature of the changes could have easily caused cash flow problems.

The welcome delay now gives VAT registered businesses in the building and construction industry time to adjust and prepare for the changes.
HB&O has already run seminars to help prepare affected businesses and we will continue to help all those affected to prepare as the new deadline approaches. For more information, please contact our tax team on 01926 422292.


Could you be a supplier to the 2022 Commonwealth Games?

Bullring Birmingham
The summer of 2022 will see Birmingham showcased on a global stage and preparations are well underway as the city gears up to host the next Commonwealth Games. This will present a wealth of opportunities to regional businesses and we’d like to ensure HB&O clients don’t miss out on the chance to get involved.
Business opportunities are expected to include trades and construction as well as supply of materials, goods and services - it would be great to see lots of local companies taking part to give the organisers the opportunity to capitalise on the skills of suppliers across the West Midlands.

A business portal showcasing the opportunities available to local organisations has been set up and we encourage you to take a look and register your interest in potential contracts.
For more information, visit https://www.birmingham2022.com/business

Visit the Commonwealth Games Business Portal

HB&O tackles the Yorkshire Three Peaks!

Yorkshire Three Peaks
Last weekend, 16 staff members from HB&O travelled up north to complete the Yorkshire Three Peaks as a charity challenge, raising money for The Myton Hospices. The team had an aim to raise £2000 but have surpassed this target with over £4000 raised so far thanks to generous contributions from friends, colleagues and clients.
The challenge was to take on the peaks of Pen-y-Ghent, Whernside and Ingleborough located in the Yorkshire Dales National Park, covering a total of just over 25 miles and 1585m of ascent, in under 12 hours.
Alex Clarke, Jatinder Hayer and Fred Gorvin were the quickest team members, completing the challenge in nine hours and twenty minutes, and all 16 members of the team crossed the finish line.
Mark Ashfield, Managing Director at HB&O, who also completed the challenge, commented “I am so proud of the grit and determination of each and every team member. They pulled together to support each other when times were hard to complete this tough challenge, with the aim of raising money to support a great local cause”.
If you would like to donate, it isn’t too late as the fundraising page is still open!
Donate to The Myton Hospices

120,000 businesses miss MTD for VAT deadline

Making Tax Digital
We were pleased to see so many of our eligible clients file their VAT return successfully through Making Tax Digital (MTD) in August. However, across the UK, more than 120,000 VAT-registered businesses missed the deadline. HMRC confirmed that around 116,000 businesses with quarterly obligations and 5,000 firms that file monthly returns did not sign up in time.
Most VAT-registered businesses with annual taxable turnover of more than £85,000 now have to keep digital records for periods starting on or after 1 April 2019. Usually, non-compliant businesses would expect a fine of up to £400 for missing their VAT return deadline. However, HMRC is adopting a light-touch approach to penalties until 1 April 2020, to give businesses enough time to adjust.
Mark Ashfield, Managing Director of HB&O, said: “We’re pleased that HMRC is adopting a light touch approach to penalties for now, but that 1 April deadline will be here all too quickly. Many of our clients have successfully switched to cloud accounting or other MTD-compliant returns and we’re keen to help those still needing to change their systems to do so well before the penalties start coming in. Please speak to your account manager if you have any queries or need help with complying with MTD.”
For help with all aspects of MTD, contact our team today on 01926 422292.

HB&O raises £3,160 for Heart of England Community Foundation at Charity Golf Day

Chris White, Nick Kirby, Thomas Dawe, and Andrew Brough

On Thursday 12th September, HB&O welcomed 70 guests to its annual charity golf day at Welcombe Hotel in Stratford upon Avon, to raise money for the Heart of England Community Foundation (HOECF). As well as the traditional round of eighteen holes, there was a new challenge this year in the shape of a crazy golf course.
Through sponsorship and a raffle, the event raised £3,160 to help fund community projects and voluntary groups in Coventry and Warwickshire.

Thomas Dawe, Director of HB&O Financial Services, achieved the highest individual score and the winning overall team consisted of Chris White, Nick Kirby, Thomas Dawe, and Andrew Brough (pictured from left to right above). The winner of the crazy golf tournament was Roger Scott from Lloyds Bank, with an impressive score of 21 over the 9 holes.
Mark Ashfield, Managing Director at HB&O said: “We take fundraising seriously at HB&O – but we do like to have a bit of fun too which is what this event is all about. I’d like to thank everyone who took part, including our sponsors, all of whom have helped us support the valuable work done by voluntary groups in our local communities.”

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Commitment to reduce plastics sees all HB&O staff kitted out with reusable water bottles

Chilly's bottles
HB&O has taken steps to improve its sustainability by offering reusable bottles to all staff members. Brightly branded Chilly's bottle's were distributed to staff in Leamington and Coventry in an effort to cut the amount of single-use plastic used by the firm and its employees.
The bottles, which combine the convenience of having a cold bottle of water with the eco-friendly benefits of a traditional flask, have been extremely well received and the team feedback has been overwhelmingly positive.

Hannah Roe, VFO Manager at HB&O, said:

"I absolutely love my bottle! It's environmentally friendly, helps me cut down on the amount of single-use plastic I use every day and it's really vibrant and fun too. I take it everywhere with me and can't see myself buying another bottle of water again!"
This small gift is the start of an ongoing plan to reduce HB&O’s impact on the environment and HB&O has asked the team for ideas and recommendations for ways in which the company can further improve.