Tag Archives: tax

News

Accounting firm HURST strengthens tax advisory team with two recruits

Accounting and business advisory firm HURST has strengthened its tax advisory team with two new recruits.

Chartered tax adviser Sam Ryan has joined HURST from Crowe UK as an associate tax manager. He will be using his expertise to advise clients on a range of matters, including transactions, group restructuring and succession planning.

HURST has also welcomed Joseph Bourke to its tax team as a graduate trainee. He recently graduated with an accounting and finance degree from Manchester Metropolitan University.

Liz Gallagher, head of HURST’s tax advisory team, said: “We are really pleased to welcome these two talented individuals to the firm and in particular to our tax department.

“Due to the rapid growth in our client base, both in terms of numbers and sophistication, we are experiencing an ever-increasing demand for high-quality taxation advice, and we are constantly on the lookout for new additions to our highly-experienced team.”

Joseph is the latest graduate to join HURST’s training programme, following the arrival earlier this year of Ewan Lawson, Tirath Panesar and Miles Redgrave as trainees in the business services department.

Meanwhile, Jack Skilton has joined the HURST Digital team on a full-time basis after being seconded from the business services team. He joined HURST in 2017 as a trainee chartered accountant.

HURST created its specialist digital team in 2018 to support companies in embracing technology to drive improved performance and efficiency. It is led by Jo Gibson, a partner in the firm’s business services team.

The digital team works with owner-managed companies across the UK to review their operations and implement bespoke digital strategies, including making better use of data, new business reporting methods and the integration and automation of processes. The team also helps businesses to meet the requirements of the government’s Making Tax Digital legislation.

HURST, which is celebrating its 40th anniversary this year, focuses on advising entrepreneurial owner-managed companies with turnover of £5m and above.

Clients including leading entrepreneurial businesses such as Kinaxia Logistics, M&I Materials, London Lash, Beechfield Brands, Duerr’s, Oliver Valves and Delamere Dairy.

Appointments, News

Trio promoted at accountancy firm HURST

Accounting and business advisory firm HURST has promoted three rising stars to associate manager level.

The trio are Oliver Cross and Ellie Wild in HURST’s business services team and Jack Moore in the tax team.

Oliver was recruited to the practice in 2017 as an audit senior while Ellie joined as a graduate trainee accountant in 2015 and qualified two years later. Jack joined HURST in April last year as a tax senior.

HURST partner and director of practice development Simon Brownbill said: “Joining us early in their careers, Ollie and Ellie have become invaluable members of the team, and we welcome their promotion to management positions.

“In a short period of time, Jack has really impressed us with his skills and knowledge. We see his promotion as recognition of his stellar performance, and the central role he will play as the team continues to grow and develop.

“These promotions reflect our ongoing commitment to promoting talented individuals within the firm and giving them the opportunity to further their careers with us.”

HURST, which is celebrating its 40th anniversary this year, focuses on advising entrepreneurial owner-managed companies with turnover of £5m and above.

Clients include leading entrepreneurial businesses such as Kinaxia Logistics, M&I Materials, London Lash, Beechfield Brands, Duerr’s, Oliver Valves and Delamere Dairy.

Meanwhile the firm has also recruited three trainee accountants to its growing team.

They are Ewan Lawson, who has a maths and economics degree from the University of Strathclyde, Tirath Panesar, who graduated in accounting and finance at the University of Leeds, and Miles Redgrave, who has an astrophysics degree from Loughborough University.

In another development, Mimi Weir-Bennett has taken on a new role at HURST as its dedicated HR and quality associate. She joined the practice as a personal assistant in 2015, then moved to its HR and business support team.

Mimi’s new role will see her support and promote best practice across the firm.

News, Tax

WhisperClaims Expands its R&D Tax Claims Offering with Automated Risk Assessment and Claims Review Service

WhisperClaims, the award-winning R&D tax claims software for accountants, today announces the addition of new Risk Assessment functionality within the WhisperClaims app and a new expert Claims Review service, both designed to help accountancy firms raise standards in the R&D tax relief world.

Since its foundation in 2018, WhisperClaims has sought to bring openness, transparency and efficiency to the R&D tax space, helping the UK’s SME business community benefit from the HMRC scheme by empowering accountants with software and support that enables them to provide R&D tax claims services with confidence[i].

These latest additions to both its cloud-based software platform and customer support service are designed to help accountancy firms make more informed decisions about their clients’ claims, and ensure submitted claims are robust and defensible.

Mike Dean, Managing Director, WhisperClaims, comments: “R&D tax claims represent a potentially huge service line for accountancy firms, as many recognise in their quest to move beyond compliance to the provision of advisory services. But it remains largely untapped. WhisperClaims recognises that accountants need support: support in navigating the complexity of clients’ eligibility criteria for the tax relief scheme; support in understanding which of their client portfolio qualifies; and support in mitigating the arduous and manual processes associated with completing an effective and audited claim. These additions to our product and service offering are designed to provide that much needed support to our clients.”

WhisperClaims’ Risk Assessment is an automated tool in its award-winning app. Every claim prepared is automatically assessed against at a variety of factors, including company sector, size of claim and company turnover, in order to benchmark the claim against claims for similar companies and give a rating of how likely the claim is to a) attract attention from HMRC and b) stand up to their questions. It’s not a measure of the eligibility of a claim, but a tool to help accountants understand the weaknesses of the claim and take steps to mitigate the highlighted risks.

The Claims Review service is a manual process whereby one of WhisperClaims’ R&D experts takes a deep-dive into the prepared claim and any other publicly available information about the claimant company, to produce a detailed document about the claim. The review looks at the likelihood that projects are eligible, based on the information provided, and analyses the costs to ensure that the claim hangs together.

Building upon WhisperClaims’ existing Portfolio Review tool, which helps firms understand which of their clients are likely to be eligible for R&D tax relief, the services underpin the company’s mission to help accountants and their clients successfully and effectively navigate the complexities of the scheme.

Mike adds, “HMRC has conducted several consultations around the scheme and has recognised the need to clamp down on what can only be described as ‘cowboy claims’. One of the measures they are introducing from April 2023 is that every claim submitted must be supported by a written report, signed off by the client and identifying the advisor. As regulated and accredited professionals, HMRC recognises that accountants are ideally positioned to provide this service. This is why WhisperClaims is committed to helping our clients raise the standards in R&D tax relief, by providing them with the right tools to have confidence in the process.”

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About WhisperClaims

WhisperClaims is an R&D tax fintech company based in Edinburgh. Founded in 2018, it offers award-winning R&D tax credit software and support that enables the accounting industry to deliver a comprehensive R&D tax relief service to their clients.

Since inception, WhisperClaims has so far enabled over 160 firms across the UK to process over 2200 claims worth over £310m in eligible R&D spend. Its subscriber base includes all sizes of accounting and consulting businesses, from one-man-bands to several UK Top100 firms.

The company won the ‘Best use of Innovation’ award at the 2018 UK Business Tech Awards; the ‘Emerging FinTech Company of the Year’ award at the Scottish Accountancy & Financial Technology Awards 2019; the “Non-Accounting Cloud or Banking App of the Year” award at the 2020 Accounting Excellence Awards and in October 2021 they were chosen as part of the TechNation Fintech 4.0 programme.

 

[i] In 2021, over 1% of all claims submitted to HMRC were processed using WhisperClaims software. To date, its users have realised over £80m in tax benefits for their clients.

News

Why is the gambling industry lobbying against a crackdown?

Written by Kunal Sawhney, CEO, Kalkine

A report from The Observer is doing the round that three of Britain’s top betting companies lobbied Treasury officials against a proposed industry crackdown. It has been reported that top executives of Bet365, Ladbrokes, and Paddy Power met officials from the Treasury and Revenue and Customs; they are said to have warned that a radical move on the tax front would cost millions of pounds in lost tax receipts to the exchequer as tightening up of the gambling laws can drive gamblers to the black market.

What is the expected crackdown?

It has been reported that the government is working on a white paper that will be released soon and aims to completely overhaul the gambling industry. It has been reported that the government would introduce safer gambling mechanisms, including affordability checks on punters, through the new crackdown.

For a long, there has been a demand for greater regulation of gambling in the country, even at the cost of profit, as gambling harm has become a real concern in the UK context, and as per some reports, on an average, a problem gambler commits suicide every day.

Gambling and tax implications

In principle, the UK has no tax on gambling, though the government takes it directly from bookies in the form of consumption tax. Casinos and other betting sites in the UK, instead of paying taxes on their profits, pay a 15 per cent tax on remote gaming revenues. Business in the country is presently monitored by the UK Gambling Commission (UKGC), under the direction of the DCMS (Digital, Culture, Media, and Sport). For citizens or the players also, the nation offers tax-free gambling winnings, contrary to what players in other countries, such as the USA and France, pay anywhere between 1% to 25% in gambling taxes.

From 2001 to 2021, there has been a constant increase in betting and gaming tax receipts in the United Kingdom. The industry that was paying around £1,510 million in 2001 paid more than double to around £3,074 million in 2021. Since 2007, when the Gambling Act 2005 came into force, the government has been generating a decent amount of revenue from gambling taxes.

Online betting is less regulated than betting shop gambling in the UK. All the betting companies with an online presence have to pay 21% income tax on the gross profits that they generate from the domestic activities of their customers.

Industry warns of lost tax receipts

The Betting and Gaming Council (BGC), one of the lobby groups for the gambling industry, which claims to represent and regulate around 90% of the gaming and betting industry, is up in arms against tightening gambling rules and has warned that there is a possibility that the levy of over £3 billion a year paid by it to the Treasury could be impacted if stringent measures were brought in. It has been argued that the actual threat is from unlicensed and illegal gambling operators.

The past two years had seen an unprecedented change in the gaming and betting habits when the nation and the whole world were suffering the onslaught of coronavirus. When the gaming venues were closed, initially there was a reduction in overall gambling in the initial days due to limited access to gambling within the UK. However, with the online presence, the gamblers moved to far riskier online casinos and slot games, and the pandemic served to promote this gambling format, which resulted in a many-fold increase in their business. Hence, if a safer mechanism is on the anvil, it should be welcomed by all, and a meaningful way needs to be found for the problem gamblers.

News

IR35 reforms one year on: 60% of contractors report drop in income

Caunce O’Hara, the specialist insurance broker for freelancers and small businesses, have released the results of their survey on the impact of April 2021 IR35 reforms on contractors.

The survey looked at whether contractors felt the reforms were of benefit, whether the reforms had impacted their earnings, whether they had seen an increase or decrease in work opportunities since the reforms, and whether there had been any change to their work-life balance.

With the first year anniversary of the Private Sector IR35 reforms approaching, the research has revealed 60% of contractors reported their income had been reduced due to the change in legislation.

The overwhelming majority (74%) felt the system benefited neither the hiring business or the contractor, with just 4% saying they would keep the regulations as they currently stand.

A further 60% of respondents reporting they had seen a decrease in work opportunities as a direct result of the rule changes. Despite this decrease in opportunities, 79% of those surveyed said they were either working the same amount of hours or more as years previously.

Dominique, one of the survey respondents who works in business consultancy, said she used to have 52 weekends a year and now she is lucky to get just 10. She explains: “Previously I ran a company that had a good turnover, now I have to work for a contract inside IR35, then use my spare time to keep the company trading. So I work at weekends and holidays as well to make sure my family is provided for and the company remains trading.”

Despite this, Dominique is hopeful that the worst is behind them in terms of lower profits now that IR35 is a little more stable, however she says this is dependent on the government being willing to provide the necessary support. She reported that many past colleagues had already given up their companies and are now working as full-time staff for private companies, as they have families to support and simply cannot afford to “argue” with the system.

As part of the reforms, medium-to-large private sector companies became responsible for determining whether the limited company contractors they engaged with should be taxed in the same way as salaried employees (inside IR35) or off-payroll workers (outside IR35).

In principle falling within IR35 would mean that contractors would receive the benefits of PAYE workers. Yet, of those respondents that had moved into umbrella companies or onto end-client payroll, 46% said they didn’t enjoy any perks by working this way. Those who did valued holiday pay and pension plans the most.

For contractors like Yvette, who works in HR & Learning, umbrella company benefits is one of the major issues with the current system. She told Caunce O’Hara that currently she pays tax at the same rate as an employee but with no benefits such as sick pay, holiday or pension, but with all the extra costs of running a business and the time commitment.

Yvette went on to say that the biggest change the government could implement to make the system fairer is to “make it clearer for a company to identify the difference between inside and outside IR35”.

Of all the contractors that Caunce O’Hara spoke to, nearly two thirds (64%) were currently engaged by either a public sector body or a medium to large organisation, meaning the decision of where they fell within the reformed legislation was taken out of their hands.

And according to Liam, who works in IT, some companies are not taking sufficient care when determining status. He told Caunce O’Hara how the company he was working for has a blanket ‘insideIR35 or leave’ policy. He went on to say that many clients don’t want to “take the risk” of doing proper assessments.

Rob Rees from Caunce O’Hara adds:

“Six months ago, it was reported that six in 10 medium sized firms were operating without any IR35 off-payroll process in place, and our research suggests contractors are being impacted by this. Almost three quarters (72%) of contractors we spoke to felt that hiring businesses are not taking reasonable care when it comes to determining the status of an engagement.

“This, combined with the fact the majority of contractors are earning less and seeing fewer work opportunities, suggests few contractors have benefitted from the wide-reaching IR35 reforms one year ago.”

Recent data from the ONS on the current Labour force shows that the number of payrolled employees hit a record high of 29.5 million in January 2022 – a year-on-year increase of 4.8% which equates to about 1.35 million people becoming payrolled employees since January 2021.

Any contractors who, in the wake of the reforms, opted to close their limited company to take on a permanent position or join an umbrella company would be included in this figure.

That same ONS data also reveals that 793,000 people stopped identifying as self-employed between the first quarter of 2020 and final quarter of 2021.

Contractors and hiring businesses can find the full results of the survey, as well as support for navigating IR35, at the Caunce O’Hara website.

News, Tax

Stealth tax could increase the misery of Britons struggling with inflation

Written by Kunal Sawhney, CEO, Kalkine

Amid soaring inflationary pressure, millions of Britons’ cost of living woes are going to amplify with the proposed £40 billion stealth tax imposed by chancellor Rishi Sunak in his last year’s budget. The measure, which was overlooked and not noticed at the time, has now become a threat for more than nine million Brits who are being pushed towards higher tax bands during these rough times.

Freeze on allowances and inflation surge

A four-year freeze was imposed by Rishi Sunak on the income tax thresholds, starting from April 2022 to March 2026, for which he is facing backlash now. According to the latest figures released by the Centre for Economics and Business Research (CEBR), the freeze would compel over nine million workers to pay higher taxes. The abandonment of the four-year freeze is thus being demanded from Sunak, and he is being pressured to raise the income tax thresholds in accordance with the inflation levels.

Over the coming four years, around 5 million workers who belong to the lower-income category are all set to enter the tax bracket, as per the CEBR analysis. These workers, who are currently not paying any taxes, would have to give up 20% of their income, which would further squeeze their budget. In the meantime, about four million additional Brits would potentially be pulled into the tax band with a 40% higher rate.

This stealth tax blow has come when Britons are already burdened with high inflation, surging energy costs, and a 1.25% National Insurance (NI) hike. Consumer price inflation has hit its 30-year high, touching 5.5% recently, though, the freeze was imposed by Sunak before this. The budget of the households is facing double the burden now due to allowances being frozen amid rising prices accompanied by rising tax bills.

Workers earning over £12,570 per year pay a basic rate of tax at 20%, while on incomes of over £50,271 and £150,000, 40% and 45% tax is levied, respectively. By 2026, five million additional workers would be paying the basic rate, while the number of taxpayers paying the higher rate would double up to 8 million.  Based on this, the Treasury would potentially receive additional tax payments worth over £40 billion due to the wage hikes, as per CEBR.

Inflation has made a case for the reversal of stealth tax hike

The £40 billion stealth tax rise seems to be highly unfair towards households, especially the poor ones, who are struggling to meet their basic needs amid the cost-of-living squeeze. Rising energy cost, which is a major contributor to high inflation levels in the UK at present, is already pushing households towards fuel poverty. It is unjust to push households to pay higher taxes when they are still trying to cope with the existing issues that they have been facing through the pandemic phase.

There has hardly been an uproar against Sunak’s move made in March last year, however, it is anticipated that the move may prove out to be substantially more distressing because of the skyrocketing inflation. The 1.25% hike in NI contributions very well concealed Sunak’s announcement regarding the freeze on income tax thresholds; however, several economists have said that the freeze could potentially burden the households more than the rise in NI contributions. If this is true, then the stealth tax hike would not be a judicious move.

News

HURST scores with National Football Museum

The National Football Museum has appointed accounting and business advisory firm HURST to provide audit and tax services following a competitive tender.

The museum is the latest addition to a growing roster of sports, leisure and not-for-profit sector clients for HURST.

It already counts Lancashire County Cricket Club, Super League Europe, Chill Factore, the Royal Exchange Theatre Company, Manchester Art Gallery and Life Leisure among its client base in these sectors.

The HURST specialists acting for the museum include Helen Besant-Roberts and Greg Wilson of the firm’s business services team.

The National Football Museum spans seven floors of the Urbis building in Manchester city centre and includes a number of event spaces to hire.

It attracts nearly 200,000 visitors a year from around the UK and overseas, and its highlights include a Hall of Fame, trophies, exhibitions, artefacts, interactive games and an educational space for schools and other groups.

Housing the largest accredited collection of football memorabilia in the world, it holds 140,000 items, with 2,500 on display at any one time.

Its collection includes both of the balls used in the first World Cup Final in 1930, the ball from the 1966 World Cup Final and the replica of the Jules Rimet Trophy, which was made in secret by the Football Association after the original was stolen and was paraded by the England players after their victory over West Germany.

There is also a range of memorabilia from footballing legends such as George Best, Diego Maradona and Pelé, including international caps and medals, as well as the original rules of Association Football written when the FA was formed in 1863.

The Hall of Fame is supported by the Professional Footballers’ Association and celebrates the achievements of those who have made an outstanding contribution to the game, on and off the pitch. Recent inductees include Terry Butcher, Paul Ince, Justin Fashanu, Carol Thomas and Walter Tull.

Helen Besant-Roberts said: “We are delighted to be teaming up with the National Football Museum. Football is of immense national cultural and historical significance and we are excited to be able to play a part in helping the museum to share everything that is great about the sport.

“Using our experience, we will support the museum in the next phase of its development, through deployment of our specialist charity accounting and tax team and our digital enablement service.”

Tim Desmond, chief executive of the National Football Museum, said: “We’re excited to move into 2022 with HURST, who align perfectly with our aims for the museum.

“They have shown a real passion for what we do, and we look forward to working together to engage an increased and wider diversity of visitors to our exhibitions and online.”

Midlands News, News

Midlands-based Catherine Desmond delighted to further support the Country Land and Business Association (CLA) by accepting a seat on the National Tax Committee

Head of Private Client Services and Landed Estates at PKF Smith Cooper, Catherine has welcomed the chance to play a role in shaping rural tax policy by joining the CLA’s Tax Committee.

A membership organisation dedicated to upholding and highlighting the needs of land, property, and business owners in rural locations across England and Wales, the CLA is a highly regarded organisation in the sector for their level of service and support.

The CLA – originally called the Country Landowners’ Association – was founded in 1907 and, remarkably, celebrated its centenary in 2007. In their work, the CLA has always sought to reflect the theme of countryside cooperation to champion common interests.

Since its inception, the CLA has lobbied to protect members’ interests at local and national levels. It estimates that almost 50% of rural land in England and Wales – equating to 10 million acres – is either owned or managed by their approximately 33,000-strong membership, of which farmers and landed estates form a significant portion. This renders the longstanding organisation of profound importance in the formulation of legislation surrounding land ownership and management in rural locations.

Catherine comments: “Many of my clients are also involved with the CLA and both contribute to, and benefit from, the work that they do.

I am delighted to be able to play my part and look forward to hearing views from clients and contacts on the impacts taxation policy has on the rural economy that can be taken forward to the Committee.

I also sit on the local Derbyshire Committee and am happy to hear of rural issues other than taxation that others would like aired in that forum”.

Prior to beginning her tax career, Catherine completed a law degree, moving on to qualify as a chartered tax advisor specialising in private wealth and landed estates. She has gained an expert reputation for land and business succession planning, property taxes, and capital taxes, and looks after a number of Landed Estates across the Midlands and North-West.

Catherine said the following about her recent appointment: “This is a fantastic opportunity to utilise the expertise I’ve gathered over the years, whilst also gaining valuable insights from others on the Tax Committee.

I’m thrilled to be associated with such a distinguished organisation, particularly as they are dedicated to advocating for rural communities and landowners.

I look forward to the continued development of my relationship with the CLA and getting started.”

Midlands News, News

PKF Smith Cooper announce latest promotions

Starting the year on a positive note, and effective from 1st January, the award-winning accountancy and business advisory firm announces a string of promotions across a number of divisions.

PKF Smith Cooper’s promotions across their Derby, Nottingham, and Birmingham offices follow a period of sustained, strategic growth for the Midlands firm, not only signalling its aim to continue expanding but also the focused investments in team members, which Managing Partner James Bagley cites as their “most important asset”.

Within the Corporate Finance division, Tom Joy has been promoted to Corporate Finance Manager, which acknowledges the integral nature of his role in a number of deals for the team throughout 2021. His talents have already earned him a nomination for Insider Media’s ‘Emerging Dealmaker of the Year 2021’, marking him as ‘one to watch’.

The Audit and Tax teams have also been strengthened by promotions, with Beckie Furniss and Charlotte Martinazzoli being promoted to Assistant Managers in Derby, while Jessica Richardson has become Assistant Manager in the Nottingham office.

Stacey Sykes, who joined the firm in 2018 as an Assistant Manager, has continued to climb the ranks and has now been promoted to Senior Tax Manager, recognising her role in developing and growing the tax compliance service in Derby.

Meanwhile, Charlotte Smith has been successfully promoted to Senior Executive within the marketing team, a move that celebrates her fundamental role in shaping the firm’s marketing strategy.

James Bagley, Managing Partner comments: “Nurturing and growing talent is something we pride ourselves on here at PKF Smith Cooper, which is why I am particularly proud to announce these latest promotions. These team members have been with us since very early in their careers – with the majority initially joining us as an apprentice or graduate – and have worked their way up through the ranks.

All six promotions are really well deserved, and I wish Tom, Stacey, Jessica, Beckie, Charlotte, and Charlotte all continued success in the future.”

News

Retiring former PKF Smith Cooper Partner was ‘one of the foundations upon which the firm was built’

Respected former Partner and Audit Director Janet Morgan retires after dedicating 20 years of her career to PKF Smith Cooper.

 Janet’s illustrious career began back in 1984, when she qualified as a Chartered Accountant for a sole practitioner. This was followed by a position at Deloitte Haskins & Sells and PriceWaterhouseCoopers.

In February 2002, Janet joined PKF Smith Cooper in a Senior Manager role within the audit and assurance department, quickly being promoted to Partner.

During her time with the firm, Janet held numerous voluntary and charity positions with The University of Derby, Derby College, and the RSPCA.

Of her time at PKF Smith Cooper, Janet commented: “During my 20 years with the firm, I’ve been lucky to have had the pleasure of working with lots of amazing people and clients, many of whom are still with the firm. I would just like to thank all of these people for making my time with PKF Smith Cooper such a fun and happy one.

I have always felt proud and privileged to say I was part of PKF Smith Cooper, and I wish the firm every success in the future.”

Senior Partner, David Nelson, said: “I’d like to congratulate Janet on her retirement and the fantastic career she has had. She is one of the foundations upon which the modern PKF Smith Cooper business was built and has enjoyed excellent relationships with her colleagues and clients throughout.

“I’ve enjoyed working with, and learning from, Janet and wish both her and husband, Ian, every future success for a long and happy retirement.”