Monthly Archives: December 2015

Client Corner – Riz Riley Launches “Songs From Saturday Mourning” In Aid Of Youth Music

Riz

David “Riz” Riley launched his debut album “Songs for Saturday Mourning” last week in aid of the charity Youth Music. The album has been David’s labour of love for the past 2 years and is dedicated to “life and love both won and lost”.

The album is available for download here. Whilst the album is free to download, donations to Youth Music (a charity which invests in music-making projects for children and young people experiencing challenging circumstances) would be appreciated. Hard copies of the album can also be purchased for £10 via the website – www.rizmusic.co.uk.

David, a client of PM+M since 2013, is a musician in his spare time and runs the locally loved business A White Room in Colne. Run My Business Partner Jackie Fisher, along with the rest of the team, would like to wish David every success.

PM+M Christmas Message

Xmas E-Shot 2

As we come to the end of another successful year, we would like to take this opportunity to wish all our clients and friends a very Merry Christmas.

This year has extremely been busy for PM+M with the appointment of 18 new team members, including two new partners, Helen Clayton (Head of Corporate Services) and Andrew Cowking (Run My Business Partner).  Jane Parry has also taken over as Managing Partner with David Gorton being named Senior Partner.

Jane Parry said: “It’s been a fantastic year for PM+M and the team have been working tirelessly to serve our clients, focusing on giving them an excellent experience and, by doing so, achieving our growth plans. The new Burnley office is a core part of our growth strategy and this will act as a great foundation as we continue to move forward over the next few years.”

Christmas present appeal 2015

PM & M pic 1

Since starting the Christmas Present appeal five years ago, the PM+M team, clients and friends have donated hundreds of gifts to the most vulnerable children in the local area. We would like to say a massive thank you to everyone who has contributed to this worthy cause.  We know that your donations will be greatly appreciated by those most in need this Christmas.

Office opening hours

Our offices will be closing at 12:30pm on Thursday 24 December and will re-open on at 8:45am on Monday 4 January.  If you need emergency assistance between those dates, please call and leave a voicemail message as we will be checking the inbox regularly and will ensure that we get back to you.

Merry Christmas from everyone at PM+M.

FRS 105 & Micro-Entities

shutterstock_333278366There has been a hive of activity recently in the lives of accountants due to the introduction of one consolidated set of accounting rules in the UK, FRS 102.  Having read a lot and talked even more to businesses about the implications on the presentation of financials and disclosures in their accounts and any related tax considerations, we now have another flurry of activity for Micro-entities.

What is a Micro-entity?

A Micro-entity can only be an incorporated, stand-alone entity; group accounts, charities and LLPs, amongst others, are exempt.  Unless it is a start-up and in its first year of trade, the company must satisfy 2 of the following 3 criteria, for 2 successive years, to qualify as a Micro-entity:

  • Turnover less than £632,000
  • Total assets less than £316,000
  • Not more than 10 employees

FRS 105

We have an optional new accounting standard for micro-entities (called FRS 105), which applies for the first time for accounts with an accounting period starting on or after 1 January 2016. If FRS 105 is not appropriate for a business, then FRS 102, as mentioned earlier, will apply instead.

It will be necessary to review whether FRS105 is appropriate for a business on a case by case basis. One size does not fit all.

Under FRS105, disclosure information in the accounts will be negligible and any revaluations, for example on land and buildings and investment properties, will need to be removed; this could significantly change the figures in a balance sheet and therefore could impact on lending availability, since net assets will reduce. Remuneration planning may also be impacted as a result.  For a growing business or a property investor, my thoughts are that FRS105 would not be the way forward.

For all micro-entities, consideration should be given as soon as possible as to what is appropriate. This is not just how your accounts will look; it’s about the figures involved, how readers and users of the accounts will react to any changes (e.g. banks, alternative lenders, future investors) and whether tax costs and timing of tax payments will change as a result.

If you want to understand how this could impact your business, please contact Helen Clayton (helen.clayton@pmm.co.uk) or Chris Johnson (chris.johnson@pmm.co.uk). Chris can also be contacted on 01254 604371.

Launch of Research & Development Advance Assurance Service

R&D BlogHMRC have announced the imminent launch of an advance assurance service for smaller companies who are looking at making a claim for R&D tax relief for the first time.

The service will be aimed at companies with a turnover of less than £2 million per annum and having less than 50 employees.  It will be a voluntary, non-statutory scheme and successful applicants will receive assurance that HMRC will allow their first three years of R&D tax relief claims without further enquiry.

The information provided through the service will include bespoke guidance on R&D for smaller businesses and aims to give claimants a better understanding of how the R&D tax relief rules affect their business.

Information on how to access the service has yet to be released but, if it works as indicated, it will give smaller businesses much more certainty regarding their R&D claims, enabling them to plan more effectively for the future.

If you would be interested in this service please contact Claire Astley (claire.astley@pmm.co.uk) or Jonathan Cunningham (jonathan.cunningham@pmm.co.uk) who can assist with making an application.

Are You Aware Of The Rising National Insurance Rate?

shutterstock_137697149 (1)The rate of National Insurance (NI) is set to rise following the introduction of the new state pension from 6 April 2016. Normally people in full-time employment pay 12% NI on any earnings between £5,824 and £42,385. However, anyone contracted out of the state second pension, often those people who are in an employer’s pension scheme, pay at a reduced rate of 10.4% NI.

The Government has recently confirmed plans to scrap the state second pension and remove the right to opt out. As a result, from April 2016 those people in company pension schemes and their employers will be required to pay higher NI contributions. Government estimates suggest these changes will affect about 6.4 million people of whom around 1 million will be private sector workers and 5.4 million public sector workers.

If you are worried about the impending changes to the National Insurance rates and you are left wondering what this means for you, please contact our tax team at tax@pmm.co.uk.

Helen Clayton Advises Law Firms & Businesses To Revisit Their IT Strategy

shutterstock_70728256On the back of the Talk Talk cyber attack, it’s a timely reminder for law firms and other businesses to revisit their IT strategy, disaster recovery and of course fraud prevention processes.

Law firm partners and IT departments may believe that their firm is at minimal risk of such an attack; you may consider your firm to be relatively small compared to the giants of Talk Talk, but consider the client money held in bank accounts that you control. These levels of funds tend not to be insignificant.

Phone calls, letters, emails and texts from scammers can seem legitimate and convincing so it’s important to be vigilant and keep an eye out for anything suspicious. Be aware of the various and increasing ways in which scams can occur – phishing, vishing or via your firm’s software to name a few. Training and on-going education of your finance teams and cashiers should be high on agendas – the social aspect of these scams can be so effective that it often results in someone in the business who actually makes the transactions to the suspect’s account. In these cases, it is less likely that your bank will refund the money.

Consider a loss of funds from your firm’s client account – repercussions from breaches of SRA Accounts Rules, regulatory impacts, brand damage, not to mention having to fund the shortfall from the firm’s own money and management’s time swallowed up in rectifying the position.

Actions to undertake: 

  • Ensure your systems are robust.
  • Ensure your teams are alert and aware of the increasing ways in which scams can occur.
  • Ensure you continually review and test compliance with your own processes.

Helen Clayton – Corporate Service Partner & Legal Specialist