The Insider - September 2012


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The Insider - September 2012

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The Insider - September 2012

  1. 1. 18 Hyde Gardens Eastbourne BN21 4PT East Sussex 01323 431 200 INSIDER SEPT 2012Welcome to yourSeptember newsletter. Withthe Olympics over, we take alook at some of the opportunitiesthe Government believes the Olympiclegacy may bring to the economy –have you considered what business are available for you?Elsewhere, we look at why you should be sure to consult or inform us of any changes to your business - it could alter your taxposition with HMRC. Meanwhile, we take a look at the new Seed Enterprise Investment Scheme (SEIS) which offers tax reliefs toinvestors financing small fledgling businesses. Finally, in Your Money, we consider how the new £9,000 a year tuition fee couldprompt you to review your personal finances.The Olympic legacy – gold standard? Don’t get caught out – keep your businessThe Olympics have come and gone, žž£4 billion of overseas records up to dateand it was hard for most not to opportunities for UK firms žžA £2.3 billion boost for theget swept up in Olympic fever. It We know that as a business owner,is estimated that the build-up to you’ll have hundreds of responsibilitiesthe Games pumped an additional tourism industry to keep on top of. However, it’s žžThe Olympic Village will be£14 billion into the economy. But important to keep your businesswhat now? The Government is keen records up to date by informing us transformed into the Queento make sure that UK businesses of any changes to your business Elizabeth Olympic Park in a £300capitalise on the Olympic legacy for circumstances, no matter how small million construction project,years to come, with hopes it could they may appear, as soon as they arise. creating:bring in a further £13 billion to the The advice comes after one ownerUK economy over the next few years. —ž 29,000 square metres of received hefty fines from HMRC afterHow? office space and 69,000 failing to tell them of a change of square metres of business company name.The Olympics in numbers: development space availabležžThe Government hopes £1 in the Olympic Park You should inform us regarding your business if: —ž Up to 8,000 new homes billion will come from extra sales for businesses taking part as a result of 5 new žžThe company name or address in the British Business Embassy changes neighbourhoods (yet to be programme developed) žžThe legal status or structure ofžžUp to £6 billion of inward —ž Up to 8,000 permanent your business changes investment into the country jobs, in addition to 2,500 žžThere are changes to your temporary construction jobs. partnership structure Could your business take advantage of an Olympic opportunity? žžYou change the goods or services you supply [continued...]
  2. 2. žžThere is a death or illness in the company Investors are able to:žžYou see a reduction or increase in your turnover or žžReceive up to 50 per cent tax relief on shares in the international trade tax year the investment is madežžYour bank details change. žžInvest a maximum of £100,000 in a single tax year, which can be distributed across a number ofCertain changes may affect your tax liabilities such as companiesyour VAT registration, or cancel it all together. We canwork with you to keep your records and registrations as žžReceive a maximum 30 per cent stake in the companyaccurate and as timely as possible, but it is best to consult in which they invest, although they cannot control thewith us in advance notice of any of these changes to company žžAlso take advantage of Capital Gains Tax (CGT)minimise the chance of receiving financial penalties. Please talk to us about any planned or holidays – on gains on shares, and a first year holiday upcoming changes to your business. on the gains realised on the disposal of assets in 2012- 13 that are reinvested through the scheme will be exempt from CGT.Could the Seed Enterprise Investment Small businesses with 25 or fewer employees and assetsScheme (SEIS) help your business of up to £200,000 can take advantage of the scheme, and:grow? žžRaise up to £150,000 in total SEIS investment žžBenefit from a larger group of investors with access toThe Government’s new SEIS scheme, aimed at helpingsmall businesses access finance, has officially comeinto force. Like its bigger brother, the Enterprise insider knowledge and industry expertiseInvestment Scheme (EIS), the SEIS is designed to stimulate žžRetain control of the business.entrepreneurship and kick start the economy by offeringinvestors in smaller companies tax relief incentives in The Treasury hopes that up to 300 or more companies willreturn for shares, or a stake in the company. It offers a benefit from the investment under the scheme in this firsthigher rate of tax relief than the EIS in recognition that year, in turn increasing investment into these companiesvery early-stage companies face particular difficulties and contribute to a wider economic growth.attracting investment. Although the scheme received We can help with business finance andRoyal Assent in July 2012, the tax reliefs available will investment. Talk to us to find out moreapply to shares issued on or after 6 April 2012. about the SEIS and other schemes. rate of RPI inflation, plus three per cent (again means assessed).YOUR MONEY It’s not surprising that initial reports suggest the new fees have affected the numbers applying for university this year. With this in mind it is now more important than everNew university tuition fees come into to consider how you can plan to assist with funding yourforce child’s higher education costs, as it is estimated that for those starting this year eventual student debt could rise toSeptember 2012 ushers in a new era for university tuition £40,000 and beyond.fees, with some establishments able to charge up to£9,000 a year – almost a threefold increase (universitiesin Scotland, Wales and Northern Ireland are also able We can help you towards meeting yourto raise their fees from 2012 but their home students personal financial goals.will not be affected). As a parent or a young adult, thedecision to go to university could now be one of thebiggest investments that you ever make. September’s Money FactsWhile support is available for most students so that tuitionfees do not need to be paid up front, this will depend on Current bank rate 0.5%the family’s total income. Again, maintenance loans and Quantitative Easing £375 billiongrants are also available but on a mean’s tested basis such Schemeas where you live. Students starting this year will begin Current inflation 2.6%to pay back their student loan once they earn £21,000a year, in addition to the interest accrued charged at the