Tag Archives: tax

Accountancy & Accounts, News

HURST unveils ambitious plans to double in size

Independent accounting and business advisory firm HURST has unveiled plans to double in size amid rapid expansion across the practice.

In the 12 months to March 31 2024, HURST increased fee income by 13.5 per cent from £7.9m to £9m, and is on track to exceed £11m in its latest financial year.

HURST is aiming to become a £20m-turnover practice in 2028, fuelled by a growing national client base, extensive recruitment and new service lines to support its ambitions, alongside a multimillion-pound investment in technology.

The firm moved its headquarters last spring to a flagship development in Stockport to accommodate its growing team, which includes an increasing number of recruits from larger firms across the UK.

Its relocation to 3 Stockport Exchange, where it occupies 11,000sq ft, has paved the way for the firm to expand from 120 staff to around 170 over the next few years.

HURST focuses on advising entrepreneurial owner-managed businesses across all sectors. Clients include S.J.M Concerts, Kinaxia Logistics, M&I Materials, Beechfield Brands, Duerr’s, Oliver Valves, Lancashire County Cricket Club, Krones UK, Creamline Dairies, Scapa Group and Hyde Group

During the current financial year, HURST has launched a private client tax service headed by partner Karen Chadwick to enhance its offering to business owners, entrepreneurs and high net worth individuals. It has also recently launched a dedicated corporate tax compliance service headed by Ellen Feetum.

Other highlights of the financial year to date include:

  • Recognition from Great Place to Work as one of the UK’s best workplaces in consulting and professional services, reaffirming HURST’s commitment to fostering a positive culture;
  • The launch of HURST Corporate Finance as a standalone brand with a dedicated website. HURST Corporate Finance has its strongest-ever deals pipeline;
  • Significant client wins, including Metalor Technologies, beauty brand REFY, the Rugby Football League and Green Part Specialists, reflecting HURST’s growing reputation as a trusted adviser to mid-market businesses across the UK;
  • Investing to make greater use of AI-driven digital platforms to enhance data management, improve resource planning and deliver greater efficiency to clients.

Outlining HURST’s ambitious plans, managing partner Tim Potter said the firm has a strong platform to build on to achieve its goals.

“We have good, solid foundations from which to propel our growth in a measured way,” he said.

“This involves continuing to focus on providing a genuinely caring and friendly service and excellent value to our growing client base, ensuring they have a pleasant experience with us by obtaining sound commercial advice to help them achieve their goals, together with the technical abilities of our team.

“At the same time, the essence of our firm is a great culture. Looking after our people really well so they are inspired and motivated to achieve success for our clients is key to our ethos.

“This combination is helping us to win more business nationally, although our focus remains on the north west.

“In the north west alone, we act for businesses with a combined turnover of £10bn as we continue to expand our client base. The region has a thriving business community and is a vibrant area of entrepreneurship and innovation.

“There is plenty of scope for further expansion for HURST both in the north west and beyond.”

Tim added: “Over the past 12 months we have invested in the business on a significant scale, with our new offices, key appointments, new service lines and by embedding new technologies within the firm, including AI-driven digital platforms.

“This programme will continue to enable us to further enhance our service offering. We have also stepped up our leadership training provision with a global provider to nurture the next generation of senior leaders, and will be launching a bespoke proposition to help clients integrate and develop their AI offering within their businesses, and adding further service lines.

“The practice remains buoyant and confident for the future. With our continued investment in talent, technology and service innovation, we are well-placed to deliver sustainable growth and create exciting opportunities for our people and clients alike.”

Appointments

Promotions and appointments as firm celebrates successful year

Tax and accountancy specialist Kilsby Williams has promoted two members of staff and appointed nine new employees to its business services and tax teams as the firm rounds off a successful 2024.

Abi Cornford and Phoebe Hughes, who specialise in audit services for private businesses, SMEs and UK subsidiaries of overseas groups, have been promoted to become managers.

Joining Abi and Phoebe in the business services team, which encompasses audit, accountancy and payroll services, are manager Ben Hinton, senior Tomos Hill, assistant Oliver Sims and trainees Tiffany Harris, Amelia Johnston, Hollie Tapper and Dylan Thomas.

The tax team has also been strengthened with James Davies, a chartered tax advisor whose expertise lies in compliance and advisory work for corporate and personal tax, joining the firm as a manager and Lewis Sincock joining as a trainee.

The latest series of promotions and appointments follow a successful year for Kilsby Williams which has seen the firm secure work with major clients and achieve a 20% growth in fee income.

Jonathan Harrhy, partner at Kilsby Williams, said: “As we come to the end of another fantastic year for the firm, we are delighted to share the news of Abi and Phoebe’s promotions and the latest additions to our team.

“This series of appointments cements our position as one of the largest independent firms in the region and an attractive place to work for emerging and experienced accountancy and tax talent.

“This round of recruitment will help us prepare for further growth in 2025. By strengthening our capable team, we are investing in our future to enable us to meet demand as more and more businesses want to benefit from our services.”

Established in 1991, Kilsby Williams works with clients locally in south Wales, extending across the UK and globally. Their clients range from sole traders to international quoted groups.

Accountancy & Accounts, Business, Charity Events, Newport, Tax

Kilsby Williams announces charity of the year

Tax and accountancy specialist Kilsby Williams has announced that it will be supporting Calon Hearts as its charity of the year.

Calon Hearts is a Cardiff-based charity which promotes heart health in Wales and across the UK.

Less than one in ten people survive an out of hospital cardiac arrest but survival rates can be increased significantly if a defibrillator is used and CPR is performed. The charity’s mission includes teaching valuable CPR and first aid skills, and ensuring communities have access to defibrillators and are trained in how to use them.

Calon Hearts also provides free heart screenings for people aged between 16 and 25 to detect life-threatening heart conditions that often go undetected.

To kickstart their fundraising efforts, a team of around 20 from the firm has signed up to run the Cardiff Half Marathon on 6 October.

Dafydd Ford, partner at Kilsby Williams, said: “We are pleased to share that we will be supporting Calon Hearts over the next year, raising awareness of heart health and funds to support their vital work. This is a cause we are passionate about as we sadly lost our colleague Rob Harding earlier this year and we want to make a difference in his memory.

“We’ll be beginning our fundraising challenges with the Cardiff Half Marathon. A half marathon is no mean feat; the team is training hard to pound the streets of Cardiff and do Rob and his family proud.”

Sharon Owen, founder of Calon Hearts, said: “We are delighted that Newport-based accountants, Kilsby Williams, has chosen Calon Hearts as its charity of the year and are greatly appreciative of this support.

“Calon Hearts has worked tirelessly since the charity was founded over 11 years ago to raise awareness of the vital importance of heart health and, to date, has installed over 30,400 defibrillators, provided CPR training to over 99,900 people and screened over 17,000 hearts for potentially life-threatening conditions.

“Calon Hearts would like to wish the Kilsby Williams team the best of luck in the Cardiff Half Marathon, which will launch their fundraising challenges in memory of their colleague.”

Accountancy & Accounts, Finance and Banking, News, Tax

HURST expands with new private client tax service

Independent accounting and business advisory firm HURST has launched a private client tax service to enhance its offering to business owners, entrepreneurs and high net worth individuals.

Karen Chadwick, who has 30 years’ experience in the field, has joined HURST as a partner to lead the new offering.

She has moved from Azets, where she was a tax partner. She previously worked at firms including Deloitte, KPMG and CLB Coopers.

During her career, Karen has gained a wealth of personal and trust tax compliance and advisory experience and technical knowledge, particularly in the areas of trusts and inheritance tax.

She said: “HURST is on an impressive and ambitious growth trajectory, as a strong, independent north west accountancy firm whose team delivers a first-class service to a varied client base as well as contacts and intermediaries, backed by a strong, cohesive and close-knit management team.

“The partners have recognised there is a need and demand within the firm’s tax service line for a dedicated private client tax offering, and I am thrilled to take up the opportunity to lead it.

“I’m excited to be part of the firm’s journey and to complement the existing partner group and HURST’s skilled and ambitious team to assist with the future development and growth of the practice.

“I look forward to applying my experience and technical knowledge to help clients achieve their personal and family wealth objectives now and in the future.”

HURST’s managing partner Tim Potter said: ““As the firm cements its position as the number one independent north west firm working with owner-managed businesses in the £5m-£100m turnover space, we have taken the decision to enhance our offering with a new service to support our high net worth clients with inheritance tax, trusts and complex personal tax matters.

“This is an exciting development for HURST and we are delighted to welcome Karen to the fold. We expect her vast experience and knowledge to be in high demand from our enviable client base of high net worth individuals.”

HURST focuses on advising entrepreneurial owner-managed businesses across all sectors. Clients include Kinaxia Logistics, M&I Materials, Beechfield Brands, Duerr’s, Oliver Valves, Lancashire County Cricket Club, Krones UK, Creamline Dairies, Scapa Group and Hyde Group.

The firm recently moved its head office to a new flagship development in Stockport to accommodate its growing team, taking 11,000sq ft at 3 Stockport Exchange, the latest phase of a £145m project by Muse Developments and Stockport Council.

HURST had been based since 1996 in Tiviot Dale in Stockport town centre, but outgrew the premises. The firm aims to grow from 120 staff to around 170 over the next three years.

Business, FInance, Pensions

Employers must evaluate Excepted Group Life Assurance arrangements in the lead up to the abolition of the LTA, says Quantum

Quantum Advisory, the leading independent financial services consultancy today urged employers to reevaluate Excepted Group Life Assurance arrangements in the lead up to the abolition of the Lifetime Allowance (LTA) on 6 April, voicing concern that many do not have a full understanding of the potential tax charges going forward.

Graham Yearsley, Principal Consultant at Quantum said: “Many employers have implemented Excepted Group Life Assurance arrangements for their employees, these group life schemes are trust based and provide for a lump sum to be payable in the event of death in service.  As they are not registered pension schemes, they have become very popular with high earning employees as they are not tested against the current LTA.

“Whilst lump sum death in service benefits will no longer be tested against the LTA, members of a Registered pension scheme from 6 April 2024 will be tested against the new Lump Sum & Death Benefits Allowance (LSDBA). As the LSDBA will be subject to the deduction of relevant benefit crystallisation events, of which an authorised lump sum death benefit is one such event, any excess death in service lump sum above the new LSDBA will be taxed at the recipient’s marginal tax rate which could reach 45%. This will make a big difference to both employer and employee.”

Yearsley added: “There is clearly still a need for Excepted Group Life Assurance and it’s very concerning that employers may not understand the potential tax charges associated before making a decision on who should continue to be insured in that arrangement. This could lead to significant issues going forward. Employers must evaluate all potential tax charges soon and decide if they are still fit for purpose as an option for their employees.”

For more information on Quantum Advisory visit www.quantumadvisory.co.uk

Accountancy & Accounts

ACCA welcomes HMRC move to require tax agents to belong to a professional body

Regulation needs careful consideration to ensure fairness and proportionality for taxpayers and agents

 

Leading global accountancy body ACCA (the Association of Chartered Certified Accountants) has welcomed the step by HMRC to look to only work with tax agents who are members of recognised professional bodies. Although ACCA is clear that the proposal would need to be carefully implemented to ensure that taxpayers, agents and Exchequer benefit and we do not see a spiral of increased cost and non-proportionate regulation.

 

Glenn Collins, head of technical and strategic engagement, ACCA UK, said: “The idea of HMRC looking to work only with agents who are members of a recognised professional body has been raised by ACCA over many years. It has long been recognised that HMRC has issues with some agents it deals with who act in an unprofessional manner. This step is designed to deal with this problem.”

 

Collins said: “While the move would be broadly welcomed by ACCA members it is imperative that this is done in a cost effective manner. Such a move should increase the quality of tax advice which taxpayers receive and provide greater assurance to HMRC.

 

“However, HMRC will have to be clear and careful on how it defines professional body so those with clear accountability, and public benefit remit backed by clear and transparent standards are included. We will carefully support and advise HMRC to ensure the greatest possible competition and choice in the tax advice market for taxpayers while ensuring an appropriate degree of regulation and protection for taxpayers.

 

“HMRC needs to see that these professional bodies – such as ACCA – appropriately regulate and monitor their members across a range of activities including tax advice. Equally importantly taxpayers – both businesses and individuals – must not see an increase in the cost of their tax advice at a time when they are struggling with a sluggish economy and rising costs on many other fronts.

 

“Overall, ACCA believes this move could help improve trust and confidence in the tax system, reduce pressure on HMRC services and protect taxpayers. ACCA looks forward to working closely with HMRC and other professional bodies to ensure this lates regulatory move is applied proportionately, fairly and at pace.”

 

Editor’s note

 

ACCA also believes that this move could help to rebuild trust with stakeholders which we have consistently called on HMRC to do. See our letter to the Chancellor ahead of the March 2024 Budget https://www.accaglobal.com/uk/en/cam/spring-budget-24.html

 

 

Economy & Jobs News, Tax

The Spring Budget 2024 sees tax cuts and a continued push to unlock pension investment potential

In this year’s Spring Budget, the Chancellor Jeremy Hunt focused on tax cuts made possible through reported progress in the UK economy and to encourage growth in the next few years.

Where pensions are concerned, the Chancellor reiterated messaging over the last few months from the Mansion House reforms and Autumn Statement on targeting value for money for pension scheme members and encouraging pension funds to drive further growth in the UK economy.

Reduction in National Insurance contributions

The government announced plans today to reduce the basic employee rate of National Insurance contributions (affecting approximately 27 million people) from 10% to 8% with effect from 6 April 2024; a further decrease from the recent shift on 1 January 2024 from 12% to 10% and the lowest the rate has been set since the early 1980s.

From an employee benefits angle, this will make salary sacrifice arrangements (where employees can make National Insurance savings on certain benefits) a little less attractive for employees.

Simon Hubbard, a Principal Consultant at Quantum Advisory, said:

“Further reductions in National Insurance contribution rates will be welcomed by many. The change, at face value, indirectly makes saving into a pension less attractive for employees where contributions are paid before the deduction of tax and National Insurance through an arrangement known as salary sacrifice. This change reduces the National Insurance that employees save by using such an approach. 

“These tax cuts must be viewed alongside the freeze on income tax thresholds until 2027. Given this, we expect that salary sacrifice arrangements will remain the most efficient way for employees to pay their pension contributions and there is no impact on the National Insurance savings made by the employer.

“Cuts in National Insurance will only benefit income earned through work, so pensioners will not benefit in the same way that employees do.”

Disclosure and value for money for DC Schemes and LGPS arrangements

The government reiterated planned changes in disclosure requirements for defined contribution (DC) pension funds, such that funds will need to publicly state their level of UK investment and compare their performance level against other schemes (at least £10bn in size).

Where it is determined that schemes are providing relatively poor returns for members compared to that provided elsewhere, schemes may not be allowed to take on new members.

There will separately be revised reporting guidance for Local Government Pension Scheme (LGPS) Funds from April 2024, such that a summary of asset allocation, including UK equity investment, as well as providing greater clarity on pooling will need to be disclosed.

Simon Hubbard, a Principal Consultant at Quantum Advisory, said:

“The announcement from the government will help concentrate DC pension funds on delivering the best returns for members whilst encouraging further investment in the UK economy. We welcome the aim to target good investment returns for every member. Careful consideration will need to be given in the coming months on how to encourage this for DC schemes whilst allowing funds to invest in long-term growth assets that may be volatile in the short-term.”  

Abolition of the Lifetime Allowance

The Lifetime allowance (LTA) is being removed from 6 April 2024 following the Spring Budget announcement last year; a move that is hoped to alleviate pressure on the NHS as well as other industries to prevent early retirements from experienced individuals.

HMRC have since referenced that there will continue to be a fixed cap on tax-free cash sums of £268,275 (25% of the current LTA) and a fixed cap of £1,073,100 (the current LTA) on the total tax-free cash sums that can be paid to an individual.

Simon Hubbard, a Principal Consultant at Quantum Advisory, said:

“The abolition of the LTA will, as a whole, simplify the pensions industry and encourage more to save for retirement and work for longer. It remains to be seen whether this policy will change if there was a new government following the imminent General Election given the Labour party’s opposition to the abolition of the LTA.”

State Pension

The government has committed to applying the triple lock to the State Pension for 2024-2025, such that it will increase from £10,600.20 pa to £11,502.40 pa.

Simon Hubbard, a Principal Consultant at Quantum Advisory, said:

“The triple lock guarantee for 2024/25 (which the Labour Party has also committed to retaining) will ease pensioner fears, particularly given the recent years of high inflation. Whilst this news will be welcomed, wider issues remain with the functionality of the State Pension, which is becoming increasingly more expensive in real terms due to current birth / death rates. We expect there will be further discussions around the State Pension following the election.”

Pension ‘Pot for Life’

The government is continuing to consult on plans to allow individuals to choose one provider to hold their pension pot throughout their life; aiming to improve outcomes for savers as well as convenience of access.

Simon Hubbard, a Principal Consultant at Quantum Advisory, said:

“We look forward to the government providing further detail on the lifetime provider model they have set out, noting that challenges with economies of scale will need to be carefully managed.  This will help people who change jobs frequently or who have multiple jobs at any one time, because under the current system some workers can end up with a large number of small pensions which can be difficult to manage and to keep track of.”

ISAs

The government announced the launch of a new British ISA which will allow individuals to invest £5,000 tax-free cash per year in UK assets in addition to the current ISA allowance of £20,000. The government intends this to help the UK economy grow.

About Quantum Advisory

Established in 2000, we are an independent, owner-managed actuarial and employee benefits consultancy that provides straight-talking, no-nonsense advice to employers and pension scheme trustees.  We design, maintain and review pension schemes and related employee benefits so that they operate efficiently and effectively.  We also help communicate these benefits in a straightforward way so that employees understand their real value.

 

Simon Hubbard

Principal Consultant

Quantum Advisory

Appointments, Finance and Banking, Finance News, News

Duo gain promotion in HURST’s tax team

Independent accounting and business advisory firm HURST has announced two promotions in its tax team.

Sam Ryan, who joined HURST in 2022, has been promoted to tax manager. He works with clients on a range of matters, including transactions, due diligence and restructuring.

Liza Whiley, who moved to HURST in 2021, has become an associate tax manager. She has a dual role, covering personal tax advisory and research and development.

HURST partner Liz Gallagher, head of the tax team, said: “Sam and Liza are integral to the success of our tax advisory department and have both contributed significantly to what will be our best-ever year.

“As a firm, it’s important that we recognise their hard work and dedication as they progress their tax careers with us.

“In addition to reflecting their individual contributions to the business, their promotions underline our commitment to helping colleagues actively develop their careers with us.

“On a personal level, I’m delighted that Sam and Liza have made these important career steps with HURST and I and look forward to working with them as we go forward to the next phase of our firm’s growth.”

HURST focuses on advising entrepreneurial owner-managed businesses with turnover of £10m and above across all sectors. Clients include Kinaxia Logistics, M&I Materials, Beechfield Brands, Duerr’s, Oliver Valves, Lancashire County Cricket Club, Krones UK, Creamline Dairies, Arighi Bianchi, Scapa Group and Hyde Group.

The tax team promotions follow a raft of recent promotions in HURST’s business services team. Four of those five individuals began their careers with the firm as trainees.

HURST is due to move its head office to a new flagship development in Stockport in the spring to accommodate its growing team.

The firm is taking 11,000sq ft at 3 Stockport Exchange, the latest phase of a £145m project by Muse Developments and Stockport Council.

HURST is taking a 10-year lease and will occupy the entire fifth floor at the building. It has been based since 1998 in Tiviot Dale in Stockport town centre, but has outgrown those premises.

The new HQ will give the firm scope to expand from 120 staff to around 170, which it aims to achieve over the next three years.

Accountancy & Accounts, News, Tax

How to Give Your Staff a Tax-Free Christmas Bonus

December is often a time when businesses look to give back to their employees and celebrate the company’s success over the last year. The most common way to do so is through a Christmas bonus, usually in the form of some extra cash, but this is not always the best way to get the most from your money.

Cash bonuses paid by businesses are subject to Income Tax, which means that anyone who receives a bonus will not benefit from the full value of your Christmas gift. If you give goods with a cash value, these will also be subject to a tax liability that will reduce their value in most cases. These factors can make it difficult to decide how much to offer as a bonus, and may lead you to ask whether you can give a Christmas bonus without incurring this tax liability.

Thankfully, there is a way. By using the trivial benefits exemption to offer staff (including company directors) bonuses in the form of gift vouchers, you can avoid any tax liability for the business and for the recipient and let your staff enjoy the full value of a well-earned Christmas bonus.

Here, the expert chartered accountants at Sherlock & Co will explain how the trivial benefits exemption works, the restrictions that apply, and what businesses need to do in order to take advantage of this exemption in time for Christmas.

How can I make sure gift vouchers qualify as tax-free bonuses?

Gift vouchers are among a number of possible items that may be considered “trivial benefits” under tax law. Unlike cash bonuses or goods, trivial benefits are not subject to Income Tax, although there are some conditions that you must meet when giving vouchers to ensure that they qualify as trivial benefits.

If the gift vouchers meet all of the following restrictions, it will be considered a trivial benefit:

– Each voucher must cost a maximum of £50
– The voucher must not be a cash voucher or be exchangeable for cash
– The recipient must not be entitled to the voucher through the terms of their contract
– The voucher cannot be given as a reward or performance incentive
– The voucher cannot be provided as part of a salary sacrifice arrangement

Not only are vouchers that meet these conditions free from any Income Tax liability, but their cost is a tax-deductible expense for the business. It does not matter where you buy the voucher from, so you are free to pick something your staff will like. You might choose a popular high-street shop, an online outlet, or a voucher that they can spend in multiple places to allow them to choose for themselves.

Are there limits to how many vouchers I can give?

There are no limits on how many vouchers you can give, but there are some limitations on how many staff members and directors can receive. For employees, there are very few restrictions and they can enjoy essentially unlimited trivial benefits each year (that meet the above conditions), but they cannot receive more than one per day.

For directors of companies with five or fewer shareholders, there is an annual limit of £300 per tax year on the trivial benefits they can receive. These businesses are referred to as “close” companies and this £300 limit extends to anyone who lives in the same household. Nevertheless, this means that directors can enjoy up to six £50 gift vouchers each year without incurring any additional tax liability.

For these reasons, vouchers that qualify for the trivial benefits exemption can be a good way to offer bonuses throughout the year. What is more, trivial benefits are discretionary, which means that you do not have to give them to every employee. You can give to one employee, a group, or your entire staff – just remember, you cannot give them in recognition of hard work without incurring a tax liability and this may be more difficult to prove if you give them to only a few select recipients.

With all of this in mind, we hope that you take advantage of the trivial benefits exemption and give a generous, tax-free Christmas bonus to your staff this year.

News

Tax Systems Announces the Appointment of Bruce Martin as Chief Executive Officer

Tax Systems, the tax software supplier to accountancy firms and corporates, has announced the appointment of Bruce Martin to the role of CEO, post a 12-month succession planning programme. Martin joined Tax Systems as Chief Finance Officer in 2021 and was promoted to MD and CFO in February 2022. He now succeeds Gavin Lyons as CEO, who remains with the business as a strategic advisor and Board member.

In his role as MD, Martin has been instrumental to the business; delivering excellent financial results, overseeing the development of a new cloud platform as part of a strategic move to become a Software-as-a-Service (SaaS) provider, building out the senior management team and ensuring the business continues to deliver an exceptional customer experience.

Prior to joining Tax Systems, Martin was CFO/COO at Arrowpoint Advisory, an international mid-market M&A advisory firm. Before that, he was Head of FP&A and Operations at eFront. As he steps into the role of CEO, he will be replaced by Tax Systems’ Head of Finance, Adam Feigin, who is promoted to Group Finance Director. Feigin will also join the leadership team.

“Tax Systems is a special place to work. The large and expanding market opportunity, together with the impending launch of our new business model into a pure SaaS provider with a new to market, purpose-built platform, marks this out to be a very exciting journey,” commented Martin. “This transformation will cement our place as market leader in the UK and Ireland and will create the springboard for exciting future growth (plans of which are already underway). We pride ourselves in pushing the tax compliance industry to evolve with changing technology capability and doing our bit to reduce the well-documented tax gap. We have lots to do and I am eager to lead our team on this exciting journey!”

“Bruce has made a significant impact on the leadership team and our business since joining in 2021. We are delighted to appoint him at this key point in the Company’s evolution and we are confident he will lead us well during this period and beyond,” commented Mark Rogerson, Chairman of Tax Systems. “As a Board, we are extremely grateful to Gavin Lyons who has led the Business with considerable success as Co-Founder and CEO over the last six years and are truly delighted to be continuing to work with him and benefit from his support and guidance in the years ahead.”