Monthly Archives: August 2018

PM+M apprentice James Cocker appears on Sky News

Yesterday saw thousands of students across the UK receive their highly anticipated A-Level results, which for many acted as a deciding factor of where they were going to spend the next three years at university.

Recent statistics however have shown that more and more students are opting for apprenticeships over university degrees, as a way of kickstarting their careers through work-based learning without the burden of debt.

As a firm committed to supporting the region’s young people and producing home grown talent, PM+M recruits a number of apprentices each year. This year’s intake of 7 apprentices was our largest to date. We are so pleased that the first 5 are settling in well and taking working life in their stride and are looking forward to the remaining 2 joining us in September.

Yesterday was a particularly eventful day for James Cocker, one of our new Run My Business team apprentices, who alongside receiving his own A-Level results, also made an appearance on Sky News discussing the benefits of apprenticeships compared to university tuition.

In his interview, James commented, “I know there’s a chance I’m missing out on some of the social aspects of university, but I can easily visit my friends at uni and I’m already making new friends at work, so I’m definitely going to have a good social life.

“Plus, instead of being £60,000 in debt after three or four years, I might have earned a similar amount, so I’ll effectively be £120,000 better off.”

We would like to offer our congratulations to James and our corporate services apprentice, Rebecca Nuttall, on their outstanding A-Level results, and a huge thank you to all of our apprentices for choosing to join us at PM+M.

Introducing new Xero Expenses

Expense claims are a part of running any business, from fuel to office supplies and everything in between. However, a what should be simple task of reimbursing employees can quickly turn into a laborious, paper work nightmare.

Well, not anymore. Recently Xero launched their new Xero Expenses to tackle several issues within Xero. The new function will run along aside the existing and gives accountants, bookkeepers and small businesses all the tools needed to process expense claim simply and efficiently.

What’s new?

  • Faster expense capture – Reduces the need to keep paper receipts, a quick picture taken on a smart phone can be automatically scanned in.
  • Push notifications – To keep businesses, employees and advisors up to date with claims from anywhere.
  • More flexible user permissions –  Giving complete control of who can view, submit, and approve an expense claim for or on behalf of someone else.
  • Simple and intuitive workflows – Making it easy to monitor, review and approve any unpaid expenses.
  • Greater insights and powerful analytics – Helping businesses to understand their spending habits and patterns with a detailed and real-time understanding.

If you have been using classic expense claims in the six months prior 10 July 2018, you can continue using it for the foreseeable future. However, you’ll also be able to try out Xero Expenses for free until 28 September 2018.

For any further information, help or advice with Xero, please do not hesitate to contact us on 01254 679131 or email cloudaccounting@pmm.co.uk.

House of Fraser: The same old story

The owner of Sports Direct has agreed to buy House of Fraser for £90 million when not so many years ago it was acquired by a Chinese group for about £480 million. We all know that retail is a challenging place to be right now, but there are parallels to be drawn with other industries. How is value created and maintained?

Four key conclusions are being put forward in the financial press.

The internet

If you don’t evolve, you get left behind. House of Fraser was investing in digital technology but at a fraction of the rate of and later than its main competitors. It isn’t a lot different in a manufacturing environment. If you don’t invest in new plant and equipment that works more quickly or to greater precision, you risk losing customers who will seek out a better solution.

No USP

What was House of Fraser all about? Lots of swallowed up defunct brands and stores dominated by third party concession owners. No reason to say, “I have to visit House of Fraser because…..”. What is your business known for? Where is it world class and what is holding it back?

Too many stores

It’s all very well investing in expansion, but those assets do need to be sweated to generate a healthy return. They need to be utilised optimally. There is no point having a factory full of state of the art assets if half of them are only working at a fraction of their potential.

Management troubles

Usually the root cause of everything…

The question is, what has a high-profile retail failure got to do with the owner-managed business around the corner? The answer: the same things drive value.

Invest appropriately. This doesn’t mean being at the bleeding edge, but you can’t keep relying on assets 20 years out of date.

Understand what your customers want, what you are good at and how that can create lasting value. What needs to be changed?

Make sure you are efficient. Efficient businesses make more money which puts them at an advantage over inefficient ones.

Invest in your management team so they are running things on a day to day basis. This leaves you much more space for working on the business and not in it.

If you are considering the value of your business, get in touch today on 01254 679131 or via email at jim.akrill@pmm.co.uk. We can help you understand where you are now, where you want to be, and how you can get there.

Contractor loan schemes – HMRC offers settlement opportunity

 

 

Have you ever used a contractor loan scheme or alternative arrangement to be paid more tax efficiently than your salary?

If you have then you are probably now in receipt of correspondence from HMRC, offering you the chance to pay the tax and national insurance that you should have paid on the loans you have received.

This could be a substantial amount, however, the main thing we are telling people is not to panic – there are things you can do.

If you have a loan outstanding and you have the funds to repay it, then we advise that you do so before March 2019. You will still have to notify HMRC of the arrangement but the tax charge that arises on that date will not apply.

If you cannot repay the loan, then you need to understand what your potential exposure to tax and National Insurance will be. We can help you with that and arrange for a settlement contract to be agreed with HMRC.

Once the formalities are concluded, you can arrange to pay the amount you owe over a longer period of time and, depending on your circumstances, this could be five years or more.

So, if you think you may be affected by this and need some help to settle the matter, please get in touch with Julie Walsh (julie.walsh@pmm.co.uk or 01254 604312) as soon as possible.

Inheritance tax hits record high

Inheritance tax planning is something that many of us don’t want to think about. Facing your own mortality isn’t easy and can involve some difficult decisions, particularly in complex and extended families.

Recent statistics released by the government have revealed that over the last financial year, inheritance tax receipts reached their highest-ever level (totalling £5.2bn in 2017/18), a value that has increased by a staggering 8% (£388m) since the 2016/17 financial year.

There can be significant benefits from doing some basic tax planning at the right time, providing reassurance that your affairs are in order and your family aren’t going to face a huge tax bill. We always tell our clients to keep it simple. There are some elaborate schemes out there, but they usually bring lots of complexity and can reduce future flexibility. More often than not, some sensible advance planning can achieve substantial benefits without the complexity.

The right tax planning can help you steer clear of large inheritance tax bills and make sure that you avoid adding to this tax take, allowing you to achieve more from your money and secure your family’s future. The key to inheritance tax efficiency is to think about it early and be open with your family. Having conversations now can avoid problems later and pave the way for some effective tax planning.

To find out more about how we can help you plan efficiently to reduce future tax liabilities, please feel free to contact either Jane Parry (jane.parry@pmm.co.uk) or Wendy Anderson (wendy.anderson@pmm.co.uk).

Full article and latest statistics available here