This document discusses corporate finance structures that are relevant for small businesses and startups. It begins by introducing Simon Blake from Price Bailey LLP, who will be presenting. It then discusses different business structures like sole trader, partnership, LLP, limited company, and PLC. It notes that limited companies are the most common structure. The document provides an overview of different funding options and considerations around setting up offshore versus onshore, shareholders agreements, and what buyers typically want when acquiring a business. It also briefly discusses LLPs and provides contact information.
The internet is fast becoming Australia’s most popular shopping destination - 48% of Australians made online fashion purchases in 2012. A recent survey showed Australians spent the equivalent of £7.3 billion shopping online last year, up by 23 per cent from 2011. British companies such as ASOS and Topshop have already found firm footing in this high demand market and have opened the doors for other UK fashion labels to be successful here.
This presentation outlines the current opportunities and trends as well as tips on how to sell online effectively to Australia.
Collective Equity Ownership (CEO) is disrupting the classical venture fund model. Partners can diversify their private stock position and portfolio by contributing both equity and cash. The fund does not own the equity, and therefore no voting or decision making rights are given up. Participation in the fund is offered only to shareholders of private companies that have raised a minimum of £5M from institutional and reputable investors.
Slides from Segment 2A ‘Start Ups and businesses trading for < 2 years’ of Francis Clark's Finance in Cornwall 2015 seminar held on 12th May in Newquay.
This document provides information on sources of finance for London entrepreneurs, including:
- Bootstrapping through personal funds, friends and family, customers, and suppliers.
- Loans from banks, community finance institutions, leasing companies, and invoice lenders.
- Investors such as private investors, venture capitalists, crowdfunding sites, and government investment funds.
- It emphasizes matching the right source of finance to the entrepreneur's stage of business and financial needs.
This document provides an agenda and overview for a presentation to analysts and investors by Hiscox in June 2007. The agenda includes introductions of various Hiscox business segments from 14:30-17:00 followed by drinks and canapés. Additional sections provide overviews of the growth and performance of Hiscox's business in Global Markets, Bermuda, USA, and Europe between 2002 and 2007. Key details include expanded geographic presence, increased gross written premiums, and improved combined ratios across various business lines and regions.
This document provides an overview of working as a lawyer in offshore jurisdictions like Bermuda, the British Virgin Islands, and the Cayman Islands. It discusses the characteristics and opportunities in the legal sector in these locations, including the potential for tax-free salaries and career advancement. The document also explores some of the lifestyle benefits like weather and proximity to other destinations, while acknowledging that work hours can still be demanding at times.
This slide deck takes a look at the reasons behind why you would float a company on the stock exchange, the different methods of flotation, the initial steps to flotation and then a further look in more detail at the AIM Stock Market. To learn more or book a free consultation visit our website http://www.hbcg.co.uk
The internet is fast becoming Australia’s most popular shopping destination - 48% of Australians made online fashion purchases in 2012. A recent survey showed Australians spent the equivalent of £7.3 billion shopping online last year, up by 23 per cent from 2011. British companies such as ASOS and Topshop have already found firm footing in this high demand market and have opened the doors for other UK fashion labels to be successful here.
This presentation outlines the current opportunities and trends as well as tips on how to sell online effectively to Australia.
Collective Equity Ownership (CEO) is disrupting the classical venture fund model. Partners can diversify their private stock position and portfolio by contributing both equity and cash. The fund does not own the equity, and therefore no voting or decision making rights are given up. Participation in the fund is offered only to shareholders of private companies that have raised a minimum of £5M from institutional and reputable investors.
Slides from Segment 2A ‘Start Ups and businesses trading for < 2 years’ of Francis Clark's Finance in Cornwall 2015 seminar held on 12th May in Newquay.
This document provides information on sources of finance for London entrepreneurs, including:
- Bootstrapping through personal funds, friends and family, customers, and suppliers.
- Loans from banks, community finance institutions, leasing companies, and invoice lenders.
- Investors such as private investors, venture capitalists, crowdfunding sites, and government investment funds.
- It emphasizes matching the right source of finance to the entrepreneur's stage of business and financial needs.
This document provides an agenda and overview for a presentation to analysts and investors by Hiscox in June 2007. The agenda includes introductions of various Hiscox business segments from 14:30-17:00 followed by drinks and canapés. Additional sections provide overviews of the growth and performance of Hiscox's business in Global Markets, Bermuda, USA, and Europe between 2002 and 2007. Key details include expanded geographic presence, increased gross written premiums, and improved combined ratios across various business lines and regions.
This document provides an overview of working as a lawyer in offshore jurisdictions like Bermuda, the British Virgin Islands, and the Cayman Islands. It discusses the characteristics and opportunities in the legal sector in these locations, including the potential for tax-free salaries and career advancement. The document also explores some of the lifestyle benefits like weather and proximity to other destinations, while acknowledging that work hours can still be demanding at times.
This slide deck takes a look at the reasons behind why you would float a company on the stock exchange, the different methods of flotation, the initial steps to flotation and then a further look in more detail at the AIM Stock Market. To learn more or book a free consultation visit our website http://www.hbcg.co.uk
This document discusses the growing complexity of accessing government information in India due to the hybrid situation of both print and online materials. It notes that government information is increasingly available online through e-government initiatives, but that ensuring long-term access and preservation of these online materials remains a challenge. The document proposes a research project to document how individuals can access both print and digital Indian government information from 2014-2016. This will include a handbook guiding users to materials across central and state governments available both on websites and in physical libraries and archives.
The document is a presentation on starting a business. It discusses reasons for starting a business, survival rates of startups, reasons businesses cease, positives and negatives of business ownership, alternatives to starting a full business, and provides 10 tips for starting a successful business including doing research, writing a business plan, securing adequate financing, hiring the best employees, finding a mentor, and treating it as a learning experience.
This document provides recipes and information about traditional cuisine from the Podkarpackie region of Poland. It discusses dishes that originated from various ethnic groups that inhabited the region, including Polish, Ukrainian, Jewish, German and Hungarian influences. Specific dishes mentioned include mushroom soup, boar pork, salted deer leg, pickled dogwood, bryndza cheese, proziaki bread, knysze dumplings, and poppy seed filled pastries. The document also provides several recipes for dishes like sour rye soup, sauerkraut stew, beetroot soup, carp in aspic, and poppy seed filled cakes.
This document summarizes the services provided by the group of companies "Alla Konyaeva and Partners" in Ukraine. It includes consulting, executive search, HR outsourcing, and education services. The group aims to be an ethical provider of high quality personnel management solutions and help clients, employees, and the Ukrainian economy. It emphasizes partnership, confidentiality, and putting clients' interests first.
Concur is an automated travel and expense solution that processes $50 billion in annual spend for over 15,000 clients in more than 90 countries with 1,500 employees worldwide. The document discusses the business issues companies face in 2012 like operational efficiency, revenue growth, compliance, cost containment, control, and risk visibility that Concur's solution addresses by providing control over spending, visibility into spending through automated reporting, accommodating growth, ensuring compliance and reducing risk, improving employee satisfaction, and saving time with a single integrated system.
Slides from the Equity for SMEs event held on 22nd October 2014 at Francis Clark offices, Truro. Joint event with Francis Clark, Stephens Scown and Get Set for Growth.
Slides from the Crowdfunding / Crowdcube Breakfast event held on 20th October 2014 at Francis Clark offices, Taunton. Joint event with Francis Clark, Ashfords and Crowdcube.
The document outlines 7 methods for legally avoiding property tax:
1. Capital gains tax exemptions for principal private residences and partial letting exemptions.
2. Claiming repairs and maintenance as expenses to reduce taxable profits rather than improvements which reduce capital gains.
3. Using intermediaries like letting agencies to divert rental profits to lower-tax entities.
4. Claiming interest deductions on mortgages and loans related to investment properties.
5. Strategies for avoiding stamp duty land tax, though some may no longer be valid after recent changes.
6. Claiming capital allowances for properties with communal facilities like houses of multiple occupancy.
7. Hiring a
Sponsored by our partners at Taxwise and Ashfords, this event consists of a variety of topics that our clients are telling us are giving them the biggest challenges.
Finance & Funding in Travel and Tourism - cost, volume & profitKaren Houston
This document discusses different types of business entities and financial concepts related to business management. It describes sole proprietorships, partnerships, and limited companies. It then covers topics like costs (fixed, variable, semi-fixed), break-even analysis, contribution margin, and different costing methods like full costing, direct/indirect costing, and job costing. The purpose is to explain key financial concepts for tourism and travel sector managers to help with decision making.
Exiting your business is a common obstacle for many entrepreneurs. You are ready to sell but how do you develop an exit strategy that meets your
needs? Preview our slides to learn how you can get your business ready for sale, develop your exit plan and be mindful of tax and legal considerations.
To view our video coverage of the event, visit: http://www.welchllp.com/resource-centre/videos/events/
'Starting a Business - the basics' - Business in Focus presentation slidesSarah Toomey
Business in Focus is a business support company that helps businesses start and grow. The document provides an overview of starting a business, including developing an idea, writing a business plan, legal structures like sole trader or limited company, finding customers and suppliers, financing options, and how Business in Focus can assist. It notes that starting a small business involves both advantages like financial rewards but also disadvantages like long hours and financial pressure.
Business in Focus is a business support company that helps startups and growing businesses. The document provides an overview of starting a business, including developing an idea, writing a business plan, legal structures like sole proprietorship or limited company, finding customers and suppliers, financing options, and the support Business in Focus can provide. It notes that starting a small business involves both advantages like financial rewards but also disadvantages like long hours and financial pressure.
Business in Focus is a business support company that helps startups and growing businesses. The document provides an overview of starting a business, including developing an idea, writing a business plan, legal structures like sole proprietorship or limited company, finding customers and suppliers, financing options, and the support Business in Focus can provide. It notes that starting a small business involves both advantages like financial rewards but also disadvantages like long hours and financial pressure.
Tax planning seminar delivered to Mercia on 14 May 2012derand
This document discusses commercial approaches to taxation and asset protection. It begins by outlining issues clients may have with keeping private financial details and separating cash reserves from business operations and risks. It then provides several tips for addressing these issues, including establishing a group structure with a holding company to hive off trade operations and pay dividends without tax leakage. The document also provides tips for cash extraction from companies, protecting personal assets, addressing directors' loan issues, and avoiding the professional close company surcharge.
This document discusses the growing complexity of accessing government information in India due to the hybrid situation of both print and online materials. It notes that government information is increasingly available online through e-government initiatives, but that ensuring long-term access and preservation of these online materials remains a challenge. The document proposes a research project to document how individuals can access both print and digital Indian government information from 2014-2016. This will include a handbook guiding users to materials across central and state governments available both on websites and in physical libraries and archives.
The document is a presentation on starting a business. It discusses reasons for starting a business, survival rates of startups, reasons businesses cease, positives and negatives of business ownership, alternatives to starting a full business, and provides 10 tips for starting a successful business including doing research, writing a business plan, securing adequate financing, hiring the best employees, finding a mentor, and treating it as a learning experience.
This document provides recipes and information about traditional cuisine from the Podkarpackie region of Poland. It discusses dishes that originated from various ethnic groups that inhabited the region, including Polish, Ukrainian, Jewish, German and Hungarian influences. Specific dishes mentioned include mushroom soup, boar pork, salted deer leg, pickled dogwood, bryndza cheese, proziaki bread, knysze dumplings, and poppy seed filled pastries. The document also provides several recipes for dishes like sour rye soup, sauerkraut stew, beetroot soup, carp in aspic, and poppy seed filled cakes.
This document summarizes the services provided by the group of companies "Alla Konyaeva and Partners" in Ukraine. It includes consulting, executive search, HR outsourcing, and education services. The group aims to be an ethical provider of high quality personnel management solutions and help clients, employees, and the Ukrainian economy. It emphasizes partnership, confidentiality, and putting clients' interests first.
Concur is an automated travel and expense solution that processes $50 billion in annual spend for over 15,000 clients in more than 90 countries with 1,500 employees worldwide. The document discusses the business issues companies face in 2012 like operational efficiency, revenue growth, compliance, cost containment, control, and risk visibility that Concur's solution addresses by providing control over spending, visibility into spending through automated reporting, accommodating growth, ensuring compliance and reducing risk, improving employee satisfaction, and saving time with a single integrated system.
Slides from the Equity for SMEs event held on 22nd October 2014 at Francis Clark offices, Truro. Joint event with Francis Clark, Stephens Scown and Get Set for Growth.
Slides from the Crowdfunding / Crowdcube Breakfast event held on 20th October 2014 at Francis Clark offices, Taunton. Joint event with Francis Clark, Ashfords and Crowdcube.
The document outlines 7 methods for legally avoiding property tax:
1. Capital gains tax exemptions for principal private residences and partial letting exemptions.
2. Claiming repairs and maintenance as expenses to reduce taxable profits rather than improvements which reduce capital gains.
3. Using intermediaries like letting agencies to divert rental profits to lower-tax entities.
4. Claiming interest deductions on mortgages and loans related to investment properties.
5. Strategies for avoiding stamp duty land tax, though some may no longer be valid after recent changes.
6. Claiming capital allowances for properties with communal facilities like houses of multiple occupancy.
7. Hiring a
Sponsored by our partners at Taxwise and Ashfords, this event consists of a variety of topics that our clients are telling us are giving them the biggest challenges.
Finance & Funding in Travel and Tourism - cost, volume & profitKaren Houston
This document discusses different types of business entities and financial concepts related to business management. It describes sole proprietorships, partnerships, and limited companies. It then covers topics like costs (fixed, variable, semi-fixed), break-even analysis, contribution margin, and different costing methods like full costing, direct/indirect costing, and job costing. The purpose is to explain key financial concepts for tourism and travel sector managers to help with decision making.
Exiting your business is a common obstacle for many entrepreneurs. You are ready to sell but how do you develop an exit strategy that meets your
needs? Preview our slides to learn how you can get your business ready for sale, develop your exit plan and be mindful of tax and legal considerations.
To view our video coverage of the event, visit: http://www.welchllp.com/resource-centre/videos/events/
'Starting a Business - the basics' - Business in Focus presentation slidesSarah Toomey
Business in Focus is a business support company that helps businesses start and grow. The document provides an overview of starting a business, including developing an idea, writing a business plan, legal structures like sole trader or limited company, finding customers and suppliers, financing options, and how Business in Focus can assist. It notes that starting a small business involves both advantages like financial rewards but also disadvantages like long hours and financial pressure.
Business in Focus is a business support company that helps startups and growing businesses. The document provides an overview of starting a business, including developing an idea, writing a business plan, legal structures like sole proprietorship or limited company, finding customers and suppliers, financing options, and the support Business in Focus can provide. It notes that starting a small business involves both advantages like financial rewards but also disadvantages like long hours and financial pressure.
Business in Focus is a business support company that helps startups and growing businesses. The document provides an overview of starting a business, including developing an idea, writing a business plan, legal structures like sole proprietorship or limited company, finding customers and suppliers, financing options, and the support Business in Focus can provide. It notes that starting a small business involves both advantages like financial rewards but also disadvantages like long hours and financial pressure.
Tax planning seminar delivered to Mercia on 14 May 2012derand
This document discusses commercial approaches to taxation and asset protection. It begins by outlining issues clients may have with keeping private financial details and separating cash reserves from business operations and risks. It then provides several tips for addressing these issues, including establishing a group structure with a holding company to hive off trade operations and pay dividends without tax leakage. The document also provides tips for cash extraction from companies, protecting personal assets, addressing directors' loan issues, and avoiding the professional close company surcharge.
The document provides information about starting a business from Business in Focus, a business support company. It discusses the basics of starting a business, including developing a business idea, considering legal structures as a sole trader, partnership or limited company, identifying customers and suppliers, choosing a location, and sources of financing such as grants, loans, equity, and own capital. Statistics are given on business growth in the UK and failure rates. The adviser, Julie Walters, provides tips on writing a business plan and addressing key aspects like the business concept, market needs, financial forecasts and legal compliance.
CCP Financial Consultants Limited is a BVI based, multidisciplinary financial solutions firm dedicated to providing premium financial solutions, company formation in BVI, and BVI offshore company services to clients around the world.
Just visit our link: https://ccpbvi.com/
The document discusses providing financial support to businesses dealing with Brexit uncertainty. It notes that UK banks are well-capitalized and want to lend to support viable firms. A campaign called "Let's Talk Business" aims to highlight financial support available and encourage businesses to discuss changing needs early with lenders. The finance industry is ready to help businesses through Brexit over coming months and longer term opportunities.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
2. #Finance4SUB
www.uk200group.co.uk
UK200Group members presenting:
Price Bailey LLP
Haslers
Anderson Barrowcliff LLP
3. #Finance4SUB
• A leading UK professional member association
• Established 1986
• Independent chartered accountants and lawyers
• Over 150 member locations throughout UK
• Over 500 partners
• Combined client base over 150000 businesses
• Annual quality review of a high standard
• Specialist technical expertise
• International reach
4. #Finance4SUB
Finance Tool for Small Business
Corporate Finance Structures relevant to small business start up and growth companies
5. Introduction
• Simon Blake
• Head of Corporate Finance and a Partner in Price Bailey
LLP
– London and East Anglian Chartered Accountants
– 75 years old, 300 staff including 23 partners
– Growing by acquisition and organic efforts
– Focussed on private owner management businesses
– Clients from start ups to mature family business and overseas
subsidiaries. A few AIM/Plus listed clients
#Finance4SUB www.pricebailey.co.uk 5
6. Simon Blake and UK200Group
• Chairman of the UK200Group Corporate Finance Panel
• Representing independent accountancy firms nationwide
• Specialist corporate financiers working on new business
funding, structures, M&A for owner managed private
businesses from Cardiff to Castleton, Leeds to London
and Maidstone to Manchester
#Finance4SUB www.pricebailey.co.uk 6
7. Setting up the Business
• You have the innovation
• You have decided to run with it
• You have raided the piggy bank/mortgaged your mothers
house
#Finance4SUB www.pricebailey.co.uk 7
8. What Structure?
• Sole Trader
• Partnership
• LLP
• Limited Company
• PLC
#Finance4SUB www.pricebailey.co.uk 8
9. It depends!
• What is the business going to do?
• UK Trading or International?
• Aiming for £10,000pa sales or £10m in the first 3 years?
• Funded entirely by you, multinational corporate, venture
capital….
#Finance4SUB www.pricebailey.co.uk 9
10. Fundamental differences
• Partnership and Sole Trader
– transparent to individuals
• for liability and taxation
– simple to administer
• Limited Company, LLP, PLC
– Separate legal entity
– Liability falls on the company
– Taxed corporately
– Requires more administration
– PLC requires £50k share capital. Does not mean listed.
#Finance4SUB www.pricebailey.co.uk 10
11. On shore or offshore
• Offshore companies are only appropriate where
– Much of the business trading is being offshore
– Most of the investment/funding is coming from overseas
– The founders are non UK resident/domiciled
– Acceptance of complicated accounting/tax/structure issues (Apple,
Facebook etc)
#Finance4SUB www.pricebailey.co.uk 11
12. Most common approach
• Limited companies are the most common entity used in
the 21st century
– Whether for a one man start up or an MBO of a non core division
being bought from a multinational
• Can be formed by one director with £1 share capital
• No limits on number of directors/shareholders
• Easy to adapt, but publicly accessible information
#Finance4SUB www.pricebailey.co.uk 12
13. Funding angles
• All funders recognise Limited companies as the easiest
vehicle to fund
• Banks will often require director/shareholder guarantees
which breaks the liability protection for bank borrowing
(but not other liabilities, e.g.. Contractual disputes)
• Different structures of shares can accommodate almost
any arrangement of equity funding solutions
• Easily convertible to PLC for listing requirements
#Finance4SUB www.pricebailey.co.uk 13
14. Pitfalls and planning
• Easy to set up, but what about when things are less
rosy?
• Avoid 50:50 shareholding where possible, as this risks a
deadlock
• Always have a private shareholders agreement (not on
public record)
• Keep companies clean
– respect it’s individual entity status, and
– don’t confuse personal and business
#Finance4SUB www.pricebailey.co.uk 14
15. Shareholders / Investors Agreements
• For companies, a shareholders agreements provides a
framework and a fall back position in dispute
• Vital where mixture of shareholders working in the
business and pure investors
• Sets the parameters for
– Dealing with disputes
– Transfers of shares
– What happens when a shareholder wants to leave
– What happens when other shareholders want a shareholder to leave
– Who makes what decisions – management or shareholders
– How are shares valued for internal transfers of shares
#Finance4SUB www.pricebailey.co.uk 15
16. What do buyers want?
• When you come to sell your business, what structures
do buyers want?
• Buyers want clean assets and no liabilities
• Sellers want typically cash now and walk away!
• Taxation of shares v assets on exit
#Finance4SUB www.pricebailey.co.uk 16
17. LLPs
• Limited Liability Partnerships
• A company for legal purposes, a partnership for tax
purposes
• Common for “special purpose vehicles” e.g. single asset
businesses
• Heavily used by professional partnerships, albeit trend
perhaps beginning to head towards Ltd and PLC for
them as well now
#Finance4SUB www.pricebailey.co.uk 17
18. Key contacts
Simon Blake Partner
Head of Corporate Finance
0207 065 2660
Simon.blake@pricebailey.com
Price Bailey is a trading name of Price Bailey LLP, a limited liability partnership registered in England and Wales,
number OC307551. Registered by the Institute of Chartered Accountants in England and Wales to carry out company
audit work. Authorised and regulated by the Financial Services Authority for corporate finance business. Financial
services work is undertaken by Price Bailey Private Client LLP, an appointed representative of PB Financial Planning
Ltd, which is authorised
and regulated by the Financial Services Authority.
20. VAT – the basics and some
money saving tips
Debra Dougal
VAT Partner, Haslers
Chairman of UK200Group Tax Panel
#Finance4SUB
21. • Award-winning, Top 60 firm of chartered accountants,
dedicated to meeting the needs of the SME sector for
60 years.
• 13 Partners, 100 staff
• Based in Loughton, Essex
• We act for a wide range of clients, including owner-
managed and family businesses
#Finance4SUB
22. • VAT Partner
• 26 years’ VAT experience
• HMRC and practice
• Broad technical and practical VAT experience
• Pragmatic approach to problem solving
• Present on various VAT topics for trade groups, professionals and clients
• Chairman of the UK200 Group Tax Panel
#Finance4SUB
23. VAT is a simple tax (Anon 1972)
• Transaction tax not an income tax
• Goods and services
• Taxable person
• In the course or furtherance of business
• Where the supply takes place
#Finance4SUB
24. VAT Registration
• Compulsory if exceed threshold
£77,000 from 1.4.12
• Voluntary if under threshold
• Intending if not yet commenced
• Deregistration threshold £75,000 from 1.4.12
#Finance4SUB
25. Categories of supplies
VAT on sales VAT on
associated purchases
TAXABLE
Standard 20% claimable
Reduced 5% claimable
Zero 0% claimable
EXEMPT 0% not claimable
O/S 0% claimable
#Finance4SUB
26. Zero-rated supplies
• Food but not catering
(or pasties!)
• Books and newspapers
• Residential new build
• Exports of goods
#Finance4SUB
27. Zero-rated supplies cont/d…
• Children's clothing and footwear
• Residential caravans and houseboats
• Goods and aids for the handicapped
• Certain goods and services to charities
• Qualifying ships and aircraft
#Finance4SUB
28. Exempt supplies
• Land and existing buildings
• Insurance services
• Betting and gaming
• Financial services
• Education if business
• Health
• Burial and cremation
• Trade Unions
#Finance4SUB
29. Outside the scope supplies
• Supplies of services taxed where the customer belongs
• B2B
• Exceptions for
Land
Admissions to events
Passenger transport
Hire of transport
Restaurant & catering
#Finance4SUB
30. Money saving tips
• Timing sales and purchases
• Applications for payment
• Cash Accounting
• Flat rate scheme for small businesses
• Special partial exemption methods
• Bad debt relief
#Finance4SUB
31. VAT Period
END R
START E
SALES
T
U
R
N
PURCHASES
D
U
E
#Finance4SUB
32. Applications for payment
• Don’t create tax point for sale so VAT not due
• Widely used in construction sector
• Continuous supplies of services
• Pro forma invoicing
• Beware of tax points
#Finance4SUB
33. Cash Accounting
• Restricted to businesses with turnover under £1.35m –
tolerance to £1.6m
• Account for both sales and purchase VAT on cash basis
• Ideal if you offer credit terms but pay your suppliers
promptly
• Not a good idea if you receive and take up longer
credit terms
#Finance4SUB
34. Flat Rate Scheme for Small Businesses
• Restricted to businesses with turnover under £150,000 –
tolerance to £230,000
• Marketed by HMRC as a simplification scheme
• Can have real financial benefit if
Low VATable expenditure
Associated businesses
Expenditure is on capital items £2000+
• Need to look at specific flat rates for your sector
• Beware rules on including exempt income
#Finance4SUB
35. Special Partial Exemption methods
• If make both taxable and exempt supplies
• Standard method may be less beneficial
• Must be fair and reasonable
• De minimis limit £7500 and less than 50%
#Finance4SUB
36. Bad Debt Relief
• Not on cash accounting
• Debtors over 6 months
• Reclaim VAT owed to you
• Beware of the flip side if you owe your creditors
for more than 6 months
#Finance4SUB
37. VAT – the basics and some
money saving tips
Debra Dougal
VAT Partner
Debra.dougal@haslers.com
Direct dial 020 8418 3426
#Finance4SUB
39. A MEDLEY OF PAYROLL ISSUES
PRESENTED BY
MHAIRI CHARLTON
#Finance4SUB
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
40. MEDLEY constituents
Payroll compliance
Minimise the damage of an Employer Compliance Review [ECR]
Changes to the operation of payroll
Real time information – RTI
Tax efficient remuneration
How to give your employees a pay rise without increasing staff costs
#Finance4SUB
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
41. Payroll compliance
PAYE and NIC collected by employer’s accounts for about
50% of the total tax paid in the UK
HMRC carries out around 30,000 payroll inspections each
year and with an annual average tax of £300m
HMRC carries out very few truly random reviews and most
are triggered by an event or reason
The employer is generally the person who pays
#Finance4SUB
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
42. Payroll - common errors
Not operating the correct tax codes/implementing changes
Expenses reimbursed e.g.
Travel & subsistence
Mobile telephone
Mileage records
Home telephone
Staff entertaining
#Finance4SUB
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
43. How to avoid an ECR
Operate tax codes as soon as received
Pay PAYE & NIC by the due date – late payment carries
financial penalties as well as increased Revenue interest
Develop procedures for dealing with expenses
no receipt no reimbursement
details of why the expense was incurred
Apply for a dispensation
#Finance4SUB
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
45. WHY
Current PAYE system was introduced in 1944 – the job
market of 1944 is much different than that of today
Technology has vastly improved – the introduction of NPS
(National Insurance and PAYE Computer System) in 2010 enables RTI
Reduce costs for both HMRC & the Employer (?)
Avoid overpayment & underpayment of PAYE
Prevent Tax Credit Errors & fraud
#Finance4SUB
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
46. WHAT
Employers will report to HMRC all payments as part of
their normal payroll activity –
Monthly or weekly depending on payment period for employees
Gross pay
PAYE & NIC deducted
Employees bank details & net payment made
No more P45s for joiners & leavers
Employers will need to provide a leaving statement
No more P35
Employers will need to provide employees with details currently provided on the
P60
P11Ds will remain (for the time being)
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
47. HOW
Initially
Internet through the Government Gateway using HMRC Basic PAYE tools
which will be developed to enable RTI
Electronic Data Interchange (EDI) using commercial software (will be
available at least until 2014)
Ultimately it is intended that the majority of RTI will be
submitted via Bacs
#Finance4SUB
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
48. WHEN
April 2012:
Test system with a small number of PAYE schemes (large, medium and small employees)
April 2013 to October 2013:
Employers will begin to use the RTI service
October 2013:
All employers will be using RTI
#Finance4SUB
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
49. Tax efficient remuneration
Current position
Remuneration package & outgoings
Annual
£
Salary 25,000
Outgoings £
Childcare 100 per w eek 4,600
Pension 100 per month 1,200
Car parking for work 7 per w eek 322
Mobile phone 15 per month 180
Spends on average 2 days out of the office - site based
#Finance4SUB
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
50. Tax efficient remuneration
Employee's net disposable income after outgoings
£ £
Salary 25,000
Less: Income tax 3,379
Employees NIC 2,088
(5,467)
Take home pay 19,533
Less: Outgoings
Childcare 4,600
Pension 1,200
Car parking for work 322
Mobile phone 180
(6,302)
Disposable income 13,231
#Finance4SUB
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
53. Tax efficient remuneration
Employee's net disposable income after outgoings
£ £
Cash salary 19,238
Less: Income tax 2,226
Employees NIC 1,397
(3,623)
Take home pay 15,615
Add: Subsistence payments 480
Less: Balance of Childcare (2,070)
Revised disposable income 14,025
Original disposable income 13,231
Increase in Employee's disposable income £794
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk
54. Tax efficient remuneration
Cost to Employer
£
Cost
Salary 19,238
Employer's NIC 1,621
20,859
Add: Cost of benefits
Childcare vouchers 2,530
1
Employer pension contribution 1,500
Car parking 322
Mobile phone 180
Subsistence payments 480
Administration 126
25,997
Less: Corporation Tax relief 20% (5,199)
Revised cost to employer 20,798
Original cost to employer 21,933
Decrease in cost to Employer £1,135
1
Employee w ill have made the contribution to the pension net of basic rate tax. The employer makes a gross contribution.
Anderson Barrowcliff LLP, Waterloo House, Teesdale South, Thornaby Place, Thornaby TS17 6SA t: 01642 660 300 www.anderson-barrowcliff.co.uk