blog

A hat-trick of awards for Dains Corporate Finance...

Fri, 11 May 2012 14:32:49 +0100

Dains Corporate Finance are celebrating after walking away with a hat-trick of awards at the Insider's prestigious East Midlands Dealmakers Dinner, which gathered 350 of the region's top professionals at the East Midlands Conference Centre to celebrate deals successfully completed in the last year.

Based on the Wyvern Business Park, Derby, Head of Corporate Finance, Simon Bursell and the corporate finance team at Dains triumphed in winning three prestigious awards. The ‘Advisory Team of the Year’ rewarded an outstanding year of notable deals which included acting as the lead adviser on Rab’s (Equip Outdoor Technologies Ltd) acquisition of Lowe Alpine. The Derbyshire-based company secured £20m of funding to support its purchase of the Lowe Alpine clothing and rucksack brand last October.

For the second consecutive year, Simon picked up the ‘Deal of the year’ award for Equip. Last year he was lead adviser on the Trekmates transaction which also took top honours.

To round off a fantastic night for Dains, Simon then received the principal award of the evening, ‘Dealmaker of the Year' from host and TV personality, Gyles Brandreth.

Speaking after his win, Simon said: “It is an honour to receive these high profile awards on behalf of the very strong team at Dains. Completing transactions in this market needs tenacity and we seek to support our clients as actively as possible during transactions. Looking forward, we are encouraged by the number of recent engagements and enquiries from business owners considering the sale of their business. As a result we are delighted to have recruited two senior staff and are optimistic about the year ahead.”

For more information please email: corporatefinance@dains.com

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

Upcoming tax deadline for submitting P46...

Thu, 19 Apr 2012 10:00:00 +0100

The deadline for submitting P46(car) is fast approaching. For those employees whose car/fuel benefits changed during the quarter to 5 April 2012 the deadline for submitting the P46 form is Thursday 3 May 2012.

What does this means for you?

This deadline is relevant to employers who provide any employees with the use of a car. The form P46 (car) only needs to be completed where a car is first provided or an additional car is provided, or an employee ceases to have the use of a car without replacement. Where one car is merely replaced with another, this does not need to be reported.

For further advise on P46 forms please contact Andy McQuillan, Tax Partner on 0800 298 3899.

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

Budget presents welcome measures to help businesses...

Thu, 22 Mar 2012 11:28:39 +0000

Businesses and individuals should review their financial affairs closely, after the Chancellor introduced a number of measures in his 2012 Budget.

The Chancellor promised his budget would “unashamedly back business” as he cut Corporation Tax to 24% next month, while there will be consultations on allowing small businesses with turnovers up to £77,000 to be taxed on the basis of the cash going through the firm. Mr Osborne also pledged to increase the £1bn Business Finance Partnership by 20%.

The Budget also saw the implementation of tax relief for the video games, animation and high end television production sectors, while the Government is considering enterprise loans for young people to start their own business.

Extra funding will also be available to help construction firms build new homes.

However the Chancellor also promised to crack down on tax avoidance, introducing a new General Anti-Tax Avoidance Rule (GAAR) by 2013 and a stamp duty level of 7% on homes worth more than £2m, while companies that buy any such homes will pay a 15% stamp duty level.

A new cap is also being introduced on tax reliefs, with a cap of 25% of total income for anyone claiming more than £50,000 in a year.

Perhaps the most controversial announcement made in the Budget was cutting the top rate of tax from 50p to 45p, with Mr Osborne telling the House 50p income tax rate was "harming the British economy" and was costing the taxpayer as money was moved to avoid the levy.

Mr Osborne also raised the personal income tax allowance to £9,205 from April 2013.

Andy McQuillan, Tax Partner said: “The Government have clearly shown that they are listening to the concerns of businesses, particularly the small business community with this Budget.

“We particularly welcome the Government’s plan to consult on simplifying the tax system for small firms with a turnover of £77,000 who are often forced to spend a huge amount of time filling in returns designed for big businesses.

“Red tape is a major hindrance to the running and any possible future expansion of small businesses and these measures will go someway to removing this barrier.

“In contrast Mr Osborne has also introduced measures designed to help big businesses and entrepreneurs who invest in this country, including cutting Corporation Tax.

“We are hopeful that these measures help lift the economy out of its current uncertain position.”

For more information please contact Andy McQuillan on 0845 555 8844 or email: tax@dains.com

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

Stamp duty avoidance crackdown likely...

Mon, 19 Mar 2012 12:48:48 +0000

This week’s Budget could see Chancellor George Osborne unveil new measures to clamp down on stamp duty avoidance by people buying and selling homes.

Mr Osborne has said that the Government is currently looking ‘very closely’ at the issue of stamp duty avoidance, giving a strong indication that measures to tackle the matter are likely to be included in his Budget announcement on Wednesday 21 March.

At present, anyone buying a home with a value of more than £1 million has to pay the upper level of stamp duty at five per cent, whiles homes worth £500,000 to £1 million incur a four per cent levy.

However, many people avoid the tax by transferring the deeds to offshore companies, which are then bought by the purchaser. This practice is estimated to cost the Treasury as much as £1 billion a year.

Andy McQuillan, Tax Partner at Dains said: “George Osborne has already stated that he does not think it is acceptable that people are able to avoid the levy in this way, so it will be interesting to see what measures he announces in this week’s Budget to tackle this issue.”

New powers to tackle PAYE debtors...

Fri, 16 Mar 2012 16:03:44 +0000

HM Revenue and Customs (HMRC) will soon have new powers to tackle companies which fail to pay their employees’ income tax and national insurance contributions.

From April, HMRC will be able to demand an upfront security from firms it deems to pose a serious risk of not paying. In particular, HMRC will be targeting companies which deduct money from their employees’ pay packets but have no intention of paying it to the tax office.

The new measures are an extension of existing powers which HMRC has in respect of VAT, insurance premium tax and environmental taxes.

David Bradshaw , Partner at Dains said: “Businesses failing to provide a security will face a fine of up to £5,000, which will be enforceable by the courts.

“HMRC has said that employers facing genuine payment difficulties will not be affected by the change.”

Dains appoint new Head of Commercial Services...

Wed, 07 Mar 2012 12:16:47 +0000

Dains have recently announced the appointment of John Southwell as the new Head of Commercial services.

John Southwell will head the growing Commercial Services team focusing on Burton and Lichfield's small and medium business sector. John brings a wealth of experience to Dains after spending 25 years in the profession, 13 of which have been at partner level.

Richard McNeilly, Business Development Partner at the firm comments: "Dains has had a solid presence in these areas for a number of years and over that time we have built up a familiarity and understanding of the local business community and the challenges and opportunities that exist within it. John’s appointment demonstrates our continued commitment to the owner-managed businesses and the SME market in the area.”

Commenting on his position John said: “I am delighted with my appointment to Head of Commercial Services. Many businesses here are thriving due to their entrepreneurial flair with several supplying niche products and services into niche markets, so despite the downturn, I believe the business community has a bright future and I look forward to assisting them.”

For more information please contact John Southwell on 0845 555 8844 or email: jsouthwell@dains.com

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

Inheritance tax threshold changes affect more people...

Thu, 01 Mar 2012 11:32:15 +0000

Changes to the threshold at which individuals become liable for Inheritance Tax (“IHT”) could result in more people having to pay it.

New legislation due to take effect from 6 April 2015 will see the nil rate band rise in line with the Consumer Prices Index instead of the higher Retail Prices Index.

The nil rate band last rose in 2009 and is set to remain at its current value of £325,000 until 2014-15. Had this freeze not occurred, and if the nil rate band had risen in line with RPI instead, the current threshold would now be more than £360,000.

The Treasury estimates that the move will mean that around 1,500 more estates will have to complete more complex paperwork for HM Revenue and Customs in 2015-16. Of these, more than half – around 900 – will be liable for IHT and this figure is expected to continue rising.

Phil Pellegrini, Private Client Director at Dains, said: “People often put off estate planning because they feel it is too early to be thinking about Inheritance Tax, but it is never too early to start planning where tax is concerned.

“With these changes set to come into force, more people will be affected by IHT than before, making it all the more important to plan ahead to mitigate the impact.”

For more information please contact Phil Pellegrini on 0845 555 8844 or email: tax@dains.com

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

HMRC to continue records checks scheme...

Thu, 23 Feb 2012 12:48:47 +0000

HM Revenue and Customs will continue to carry out its controversial business records checks (BRCs) while the scheme is under review.

HMRC announced before Christmas that it would be reviewing BRCs following criticism that it was unfairly targeting small businesses.

The checks involve HMRC reviewing the quality of records in real time, even before a tax return has been submitted. If a business’ record-keeping is not up to standard, HMRC can, in principle, impose penalties of up to £3,000 in relation to a year of assessment or accounting period, but the question is whether this should be applicable ‘in-year’.

HMRC have confirmed that they will continue with its target of carrying out 12,000 BRCs by April.

David Bradshaw, Partner at Dains said: “While HMRC has agreed to review the business records checks scheme, it seems that the taxman still plans to press ahead with his target of carrying out 12,000 checks by April.

“Small business owners who have not already done so should ensure their records are in order or may risk a financial penalty.”

For more information please contact David Bradshaw on 0845 555 8844 or email: tax@dains.com

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

Mobile phones and tax charges...

Fri, 20 Jan 2012 12:29:16 +0000

Dains are warning both employers and employees to examine tax rules on the use of mobile phones and similar devices so they are not being left out of pocket.

Andy McQuillan, Tax Partner at Dains said: “In principle, if an employee makes an asset available for an employee’s private use there is a charge to tax. Ignoring special cases like vans and cars, assets are liable to a “benefit in kind” tax charge on 20% of its initial market value. If the annual cost to the employers of renting or hiring the asset is more than 20% of the market value, the tax charge is based on the rent or hire payment.

“Mobile phones are different however, as an employer can make available one mobile phone (including call charges) to each employee without giving rise to a tax charge.

“HMRC defines a mobile phone as a device used for talking to people – thus ‘personal digital assistants’ such as smart-phones will, in principle, give rise to a tax charge because they additionally have functions associated with a computer.”

The mobile phone exemption also only applies where the phone is owned (or rented) by the employer – it does not apply where the employee himself contracts with the operator even if reimbursed all or part of the cost by the employer.

However, Andy McQuillan notes that there is no tax charge on anything which is provided for the sole purpose of carrying out the duties of the employment and which is not in fact used to any significant extent for any private purpose.

So, the provision of a smart-phone gives rise to no tax charge if used only for business purposes. No tax charge will also rise if the employer reimburses mobile phone charges only to the extent of business usage.

For more information please contact Andy McQuillan on 0845 555 8844 or email: tax@dains.com

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

Charity wins £61,500 VAT case...

Fri, 13 Jan 2012 12:15:44 +0000

The First Tier Tax Tribunal has recently released its decision in favour of Three Counties Dog Rescue in the case concerning reclaiming £61,500 of VAT over a 4 year period in respect of veterinary fees and kennelling costs incurred by the charity.

Representing the charity - Phil Luty, VAT Director at Dains, successfully argued that the re-homing of animals for a specified ‘donation’ of a minimum sum constituted a supply for VAT purposes, such that the Three Counties Dog Rescue could register for VAT and recover VAT on its expenditure in relation to those supplies.

The tribunal was told during the one-day hearing that the charity, which is based in Bourne, Lincolnshire, expected people who were re-homing a dog to pay £150, which Three Counties referred to as a “donation”.

The charity accepts it should have been calling the £150 donation a charge and has since rephrased it as a “payment”.

But Three Counties argued that everyone who has re-homed a dog had paid the fee and received a dog in return. Several letters from satisfied people who had adopted dogs were shown to the tribunal panel.

HMRC argued that there was not a supply because the payment was called a ‘donation’. The Judge, Lady Mitting, ruled in favour of the charity on all counts.

Phil Luty comments: “I was happy Lady Mitting understood our arguments to the true substance of the transaction for VAT purposes. The centre costs more than £100,000 a year to run and relies heavily on fundraising so this ruling has secured much needed funds. The charity, which has rescued and re-homed more than 5,400 animals since it has been running, can now also enjoy the ongoing benefits of recovery of VAT on its future expenditure.”

For further information please contact Phil Luty on 0845 555 8844 or email: tax@dains.com .

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

Businesses warned over employees’ tax bills

Tue, 10 Jan 2012 16:42:49 +0000

Dains are warning employers to take extra care over PAYE, as they could be liable for their employees’ tax bills.

Many employees have recently received tax bills for 2010/11 and where there is a mistake in working out the PAYE due, employers can be caught out.

Andy McQuillan, Tax Partner at Dains said “One common problem identified is the failure of employers to operate the correct tax code. Even though this may be because they have not realised it has changed, employers could still be responsible for footing the bill.

“However, if employers show that “reasonable care” was taken in working out employees’ PAYE, HMRC may rule that the payment can be collected from the employee”.

Employers are being urged to request from their employees any notices they receive from HMRC, particularly around February or March, as the new code might relate to the following tax year starting in April.

If employers do spot an error in PAYE calculations during the tax year, they can correct it without asking permission of HMRC.

But where this will result in a large tax deduction in one pay period, employers can contact HMRC and ask to operate PAYE on a “week1/month1” basis.

This should reduce the big hit for the employee and also demonstrate that “reasonable care” has taken place which could mean HMRC will not come after the employer to settle the bill.

Administrators deliver New Year cheer for Manchester Hosiery...

Thu, 05 Jan 2012 10:46:53 +0000

Dains LLP, the Administrators of Manchester Hosiery Ltd are pleased to announce that 30 jobs have been saved following the sale of the business to Aikon International Ltd.

Manchester Hosiery Ltd of Queens Road, Hinckley, are one of the few remaining knitwear manufacturers in the UK and in addition to securing jobs for thirty long serving staff, the sale has secured an important part of knitwear manufacturing history as the firm have been in existence for over one hundred years.

The company manufactures both underwear and outerwear for men, women and children, specialising in women’s seam-free fancy knit garments and men’s traditional cotton, thermal and woollen underwear.

Dains LLP were appointed in April 2011, following a review of the company’s financial position. In their capacity as Joint Administrators, Martin Smith and Nicki Hawksley have continued to trade the business for nine months, ensuring the continual supply to customers whilst maintaining the value of the brands they manufactured, and undertaking negotiations with a number of interested parties.

Andy Stevens a Director of Dains praised the staff for their continued support throughout the period of Administration.

The deal which has been completed for an undisclosed sum, sees Aikon International Ltd, www.aikonhk.com a Hong Kong based international supplier of thermal and hosiery textile products take over the business with immediate effect. The acquisition of the brands Palm, White Swan, Guardian and High Cross which are manufactured by Manchester Hosiery will play a significant role in assisting Aikon to expand their already significant southern hemisphere underwear and hosiery business into Europe, with their added pledge of continuing manufacture from the Hinckley factory.

Charitable accountants donate ‘sweet treats’ to local charity...

Tue, 20 Dec 2011 17:10:30 +0000

A local accountancy firm has joined in the festive season's spirit of goodwill by donating Christmas treats to Safe & Sound Derby, the local charity that works with children and young people who are at risk of being exploited through criminal practices. Staff at Dains Derby Office have rallied together over the last few months donating special food treats to make up gift bags for the children.

Safe & Sound Derby has been working for over nine years in the City supporting vulnerable children and young people who are the victims of sexual exploitation and abuse.

Tina Crawford, pictured above, from ‘Dains in the Community’ - the corporate social responsibility team within the firm, recently presented Safe & Sound Derby with the treats for the children. Tina said: “We try to support local charities and good causes throughout the year and we made similar donations at Easter time. Our contributions were so gratefully received we wanted to support the organisation again at this special time of year.”

Charitable accountants offer food support to City’s women’s refuge...

Tue, 20 Dec 2011 10:57:41 +0000

Dains has joined in the festive season's spirit of goodwill by donating food parcels to Lichfield's Pathway Project which supports women and their families who have suffered domestic abuse. Staff at Dains Lichfield Office have rallied together over the last few months donating basic foods to make up much needed food essentials for women and children escaping domestic abuse this Christmas time.

The Pathway Project was established in 1991 and provides support to women and children suffering domestic violence. The project manages three women's refuges in Burntwood, Tamworth and Lichfield whilst also providing support services, counselling and a 24 hour helpline.

Chairperson of ‘Dains in the Community’ - the corporate social responsibility team within the firm, Georgina Felles recently presented Project Pathway with the food hamper. Georgina said: “We try to support local charities and good causes throughout the year and felt that the Lichfield Project Pathway was a very worthy recipient. We are very happy to be able to help them by donating food during this season of giving and hope it will make a difference."

Children’s ward benefits from generosity of local accountants...

Mon, 19 Dec 2011 11:04:02 +0000

Dains has joined in the festive season's spirit of goodwill by donating toys to the Children’s Ward of Stafford Hospital. Staff at Dains Rugeley Office have rallied together over the last few months donating toys and games to help make Christmas a little brighter for those children who unfortunately have to spend the festivities in hospital this year.

A representative from ‘Dains in the Community’ - the corporate social responsibility team within the firm, Gemma Goodhand recently presented staff at the children’s ward with the gifts. Gemma said: “We try to support local charities and good causes throughout the year and felt that the Children’s Ward at Stafford Hospital was a very worthy recipient. It’s no fun being in hospital, particularly at this time of year, but staff on the Shugborough Ward do their best to make things as normal as possible. Hopefully these extra gifts will help them to do this."

Businesses warned over dual SIM mobile phones...

Wed, 14 Dec 2011 12:15:18 +0000

Dains are warning businesses who provide their employees with dual SIM mobile phones that they should be aware of rules which could jeopardise a favourable tax exemption.

Employers can provide their workers with one mobile phone for private use as a tax-free benefit-in-kind (BiK), however this exemption only extends to one phone number.

A dual SIM phone where the employer can use both numbers for private calls will trigger a tax charge.

Andy McQuillan, Tax Partner at Dains said “We are urging employers to tell their employees to only use one of their numbers for personal calls.

“The other SIM should be reserved for business use only, meaning that the tax and NI exemption will continue to apply to the handset and the mixed use SIM, while there would be no BiK charge on the other because it’s not available for private use”.

Employers are being advised to formally put this policy in writing to avoid trouble with HM Revenue and Customs.

Alternatively employees may buy a pay-as-you-go (PAYG) SIM (UK or overseas) to load in the phone for when they want to make private calls without using the second SIM number.

If the company pays for the PAYG SIM, the taxable BiK will be equal to the cost of this, rather than for the full cost of the contract on the second SIM.

For more information please contact Andy McQuillan on 0845 555 8844 or email: tax@dains.com

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

New Electricians Tax Safe Plan will be introduced in the New Year...

Fri, 02 Dec 2011 11:30:47 +0000

The new plan will be launched in February 2012 and will offer favourable terms for electricians to come forward and declare any underpaid tax. This follows similar amnesties previously announced for private tutors and plumbers.

Following this initial amnesty, HMRC will then probe those who fail to come forward under the plan and specifically target those whom HMRC consider to be under-declaring their income.

The introduction of this new plan comes following the success of the Plumber's Tax Safe Plan, which resulted in over 1,200 investigations and five arrests.

HMRC’s website defines an electrician or electrical fitter as “anyone who installs, maintains and tests electrical systems, equipment and appliances under stringent safety regulations”. This very broad definition is likely to have been purposefully set to ensure maximum possible participation in the plan.

For more information please contact Andy McQuillan on 0845 555 8844 or email tax@dains.com

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

Spencer Wright is guest panellist at AccountancyAge’s ‘Best Practice Conference’

Thu, 01 Dec 2011 15:03:50 +0000

Following on from the Accountancy Age's inaugural Best Practice conference in June this year the AccountancyAge’s Best Practice Conference will be held in December 2011.

The Manchester conference will seek to unite partners from a host of leading accountancy firms to explore strategy and development for the modern practice in today's challenging economic environment.

With speakers and panellists from among the top names in the profession including our very own Spencer Wright, Best Practice Manchester will seek to reveal the opportunities and measures needed to capitalise on current trends.

Date of conference: December 7, 2011

Click here for to see full programme

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

Help for SME’s - Dains comment on Chancellors Autumn Statement...

Wed, 30 Nov 2011 15:32:39 +0000

Dains are urging businesses to carefully study the Chancellor’s Autumn Statement to see if they can benefit from any of his newly announced measures.

George Osborne announced a range of measures aimed at helping small and medium-sized businesses, include a £40 billion National Loan Guarantee Scheme where the Government will underwrite low-interest loans.

From April 2012, anyone investing up to £100,000 in a new start-up business will be eligible for Income Tax relief of 50% under a new Seed Enterprise Investment Scheme (SEIS).

In 2012, any tax on Capital Gains invested in such businesses will also be waived. The Government will also freeze the annual exempt amount for Capital Gains Tax at £10,600 for 2012-13.

Another measure announced is a £1 billion Business Finance Partnership aimed at Britain’s mid-sized companies.

For small businesses, the Government has extended the current business rate relief holiday until April 2013, while other firms will be able to defer 60% of next year’s business rate increase, instead repaying this equally across the following two years.

Mr Osborne announced an “above the line” research and development (R&D) tax credit in 2013 to encourage research and development activity by larger companies. This will be consulted on for the 2012 Budget to ensure that SME R&D tax credits are not reduced as a result of this change.

Richard McNeilly, Business Development Partner at Dains said: “George Osborne has announced a raft of proposals, which, on the face of it, will benefit small and medium-sized business.

“We particularly welcome the measures announced regarding the National Loan Guarantee Scheme (NLGS), the new SEIS and the extended rate relief holiday.

“SMEs (small and medium-sized businesses) often find it difficult to access funding. Hopefully, the NLGS will open up new credit lines to help struggling businesses stay afloat.

“However, because of the current uncertain economic climate, it is too early to say whether these measures will help the country get back on its feet.

“Over the coming days and weeks we will be studying the detail and will be happy to talk to local businesses seeking to take advantage of any of the measures announced”.

For further information contact Richard McNeilly on 0854 555 8844 or email rmcneilly@dains.com

Primary offices at…Birmingham ● Burton ● Derby ● Lichfield ● Rugeley

SMEs slipping up on credit checks

Wed, 30 Nov 2011 10:29:14 +0000

Dains say that almost three-quarters of small and medium-sized UK businesses are failing to check on their customers’ creditworthiness, according to new research.

Global information services company Experian surveyed nearly 700 UK small businesses and found that 71 per cent did not check their customers’ credit status, increasing their risk of being paid late or not at all.

Richard McNeilly, Business Development Partner at Dains said “The September survey also found that 39 per cent of small businesses did not know what a credit score was and 61 per cent have never checked their own score, leaving them unaware of issues that could lead to them being turned down for finance or refused materials by a new supplier”.

Experian said that for small businesses, low scores can stem from a lack of detailed data about the business or a failure to file complete or accurate information, rather than underlying financial insecurity.

McNeilly continues “Two-thirds of small businesses may be blind to their credit scores, but their larger customers, suppliers and banks certainly won’t be.

“It is important for businesses to monitor their credit score on a regular basis to ensure it reflects their situation accurately and to be able to take action to resolve any issues that are highlighted.

“Simply taking the steps to check the credit score of firms before doing business with them is straightforward and affordable, and it could make all the difference.”