Monthly Archives: January 2012

Clegg launches employee ownership plan

Addressing the city earlier this week, Clegg urged firms to offer shares to their employees in a bid to boost productivity and ‘unlock growth’.

The Government hopes the plans will create a so-called ‘John Lewis economy’ and encourage ‘responsible capitalism’.

One proposal under consideration is a ‘right to request’ rule, which would give staff an automatic opportunity to ask their employer for shares.

The Chief Secretary to the Treasury, Danny Alexander, is also thought to be ‘[looking] at the tax arrangements for employee-owned firms’.

At an event hosted by the City of London Corporation and Centre Forum think tank, the Deputy PM said: ‘We don’t believe our problem is too much capitalism – we think it’s that too few people have capital.

‘We need more individuals to have a real stake in their firms. More of a John Lewis economy, if you like. And what many people don’t realise about employee ownership is that it is a hugely underused tool in unlocking growth.’

He added: ‘Firms that have engaged employees, who own a chunk of their company, are just as dynamic, just as savvy, as their competitors. In fact, they often perform better. Lower absenteeism. Less staff turnover. Lower production costs. In general, higher productivity and higher wages. They weathered the economic downturn better than other companies.’

Revenue issues crackdown on post-cessation trade relief

Post-cessation trade relief allows individuals to claim a deduction in their income tax calculations for certain costs and bad debts after a trade, profession or vocation has ceased.

HMRC has highlighted an avoidance scheme which involves individuals artificially exploiting the relief in order to claim a tax deduction.

David Gauke, Exchequer Secretary to the Treasury, announced that the new legislation would prevent the relief from being available where a main purpose of the arrangements is to obtain a reduction in tax.

The legislation supporting the change will be included in the 2012 Finance Bill.

PM+M launches as the “North West Centre For Family Businesses”

NWFamilyBusiness

The only corporate member of the highly regarded International Centre For Families in Business (ICFIB) in the region, PM+M has announced a number of services, specifically tailored for the complex needs of family owned and managed businesses.

Opened by Ian Brown of established local family company Graham & Brown, the new centre is a unique offering which will provide a hub for family businesses to gain expert advice in areas such as management and ownership succession, integration of business planning with family goals, family tax and wealth management and even conflict resolution.

Jane Parry, Partner at PM+M commented: “For nearly a century, PM+M has been providing family businesses with quality advice. Through our continuing investment in resource, training and expertise, we have developed an innovative offering which our clients can be confident is the best available to them.”

Ken Austin, owner of Savile Row tailors Benson & Clegg, a client of PM+M for nearly 75 years, explained: “What makes the company really stand head and shoulders above the competition is the level of service provided. I get regular calls explaining recent developments in the financial world and how we should take advantage. PM+M bring with them ideas which I would never have dreamt of by myself.”

Ken added: “We’ve had many companies pitch for the contract over the decades, but there’s simply no reason to entertain them. PM+M’s service is invaluable to us and I can’t imagine that we’d be looked after this well by anybody else.”

Working to the continuing ethos of helping family businesses to succeed through the generations, PM+M has collaborated to produce supporting resources including a book ‘Living in a Family Business’ for new and existing clients, cementing their commitment and support for generations to come.

For a free copy of the book, please contact Claire Jewsbury on Claire.jewsbury@pmm.co.uk or 01254 679131.