Two Promotions at Hawsons Doncaster office

Two Promotions at Hawsons Doncaster office

The Partners of Hawsons are pleased to announce two new promotions at the firm’s Doncaster office. Effective from 1 April 2021 Dan Wood is promoted to Partner and James Snipe to Audit Manager.

 

Dan Wood

Dan Wood

Dan trained and qualified as a Chartered Accountant with Hawsons at their Sheffield office, joining in 2012 before joining the Doncaster office as a Manager in 2018. During his time at Hawsons he has gained a range of experience providing audit, accountancy and taxation services, including Solicitors Regulation Authority audits. Dan is able to advise corporate entities, sole traders and partnerships on a wide range of business and taxation matters.

 

 

James Snipe

James Snipe

James qualified as a Chartered Certified Accountant in 2018, joining Hawsons in 2016 having previously worked in the profession at a regional level with two Chartered Practices. During his career James has gained a range of experience providing audit, accountancy and taxation services. He has worked with a wide variety of corporate clients, charitable entities, sole traders and partnerships, and is used to offering day-to-day assistance in addition to discussing wider strategic issues.

Doncaster promotions

Martin Wilmott Managing Partner at Hawsons Doncaster office said: Dan and James thoroughly deserve their promotion to Partner and Audit Manager respectively. I would like to thank Dan and James on behalf of Hawsons for all their hard work and dedication during their time here and we look forward to working with them in their new positions. These promotions will enable Hawsons to strengthen our service offering to a continuingly growing client base in the Doncaster area.

Free initial meeting

Martin Wilmott

Partner, Doncaster

01302 367 262

[email protected]

Paul Wormald

Partner, Doncaster

01302 367 262

[email protected]

The Local Discretionary Grants Fund

The Local Discretionary Grants Fund

The Local Discretionary Grants Fund

The Department for Business, Energy & Industrial Strategy has set up a discretionary fund to accommodate small businesses outside the requirements for the business grant funds scheme.

 

Who is this scheme aimed for?

This scheme is aimed at small businesses with ongoing fixed property-related costs. Alok Sharma, the Business Secretary, and Simon Clarke, the Minister for Regional Growth and Local Government spoke to local authorities in England to set out the scheme in which £617 million would be made available. Alok Sharma and Simon Clarke asked the local authorities to prioritise businesses in shared spaces. For example, market traders, small charity properties that would meet the criteria for Small Business Rates Relief. Plus, bed and breakfasts that pay council tax instead of business rates.

 

Which businesses are eligible for this scheme?

To be eligible for this scheme your business must qualify as a small business (or micro business). These requirements are as follows:

  • Under 50 employees
  • Turnover of no more than £10.2 million
  • Balance sheet total not more than £5.1 million

You must also show that your business has seen a significant decrease in income due to Coronavirus lockdown measures.

This grant funding has been set-up for businesses that are not eligible for any other support schemes. Therefore, businesses that have received cash from any central government COVID-related scheme are ineligible for funding from the Discretionary Grants Fund. These schemes include but not limited to:

  • Self-Employment Income Support Scheme
  • Small Business Grant Fund
  • Retail, Hospitality and Leisure Grant
  • The Fisheries Response Fund
  • Domestic Seafood Supply Scheme (DSSS).
  • The Zoos Support Fund
  • The Dairy Hardship Fund

There will be three levels of grant payments. The top-level being £25,000, the second level will be £10,000. On the third level, local authorities will have the discretion to make payments of any amount of under £10,000. Local councils will need to adapt this approach to local circumstances. Local Authorities have been given discretionary guidance for the Grant Funding schemes which can be found here.

 

How do I apply for the grant?

This fund is going to be allocated to your local authority. Your local authority will open some sort of application process. This is because potential beneficiaries will likely not be known by local authorities. They will then decide on their own discretion criteria which businesses will be eligible for this grant. Therefore, an application process will be required.

If you think that your business is eligible for this grant, please visit your local authorities’ website regularly for details of the availability of grants, the criteria for the grants, and the process for making applications.

It is important to note that the grants are taxable.

 

How can we help?

At Hawsons we have a dedicated team of accountants at our offices in Sheffield, Doncaster, and Northampton. We have over 165 years of expertise in accounting and provide services for businesses over 12 sectors.

 

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Martin Wilmott

Partner, Doncaster

01302 367 262

[email protected]

Hawsons makes history after 165 years in business

Hawsons Chartered Accountants is 165 years old

Hawsons Chartered Accountants was founded in the city of Sheffield in 1854 – more than 25 years before the creation of the Institute of Chartered Accountants in England and Wales – by Alfred Allott and John Hewett.

Hawsons remains one of the longest-standing independent firms of chartered accountants in the UK. One of the main reasons why clients choose Hawsons is not just because of our experience and expertise in accountancy but the high-quality advice and service our team delivers.

Our mission is to provide our clients with service of the highest quality and value in a professional, friendly, and responsive manner, to assist them to develop their business, to develop the maximum potential of our people and thereby be the leading independent practice in the area.

Our unrivalled history demonstrates that through many periods of change, we have evolved as a business to ensure we continue to remain relevant to our clients, providing them with the quality and breadth of service they need.  Clients understand that irrespective of how small they are when they become a client or how large they will grow, Hawsons will always be there for them.

Our belief in long-term client relationships is why we offer all prospective clients a free initial meeting so we can really get to know you and your business and you can get to know us.

Chris Hill, Senior Partner at Hawsons, said on the firm’s development: “We’re proud of our extensive history and the success we’ve achieved since we were founded in Sheffield 165 years ago. To have reached such an age and still be going strong is a great feat. Despite our company’s growth and expansion into other areas across the UK, we’ve stayed true to our philosophy that no matter what size or sector, every business we work with will always receive the same high standard of advice and service from our team.”

If you are looking for an expert accountant book your free initial meeting with us here.

If you would like to find out more about us visit our website here.

 

Free initial meeting

SRA Accounts Rules 2019

SRA Accounts Rules 2019

SRA Accounts Rules 2019

The SRA has just published a statement relating to residual balances that cannot be repaid under rule 2.5. of the new 2019 SRA Accounts Rules which become effective for all firms from 25 November.

The statement can be accessed from the SRA website https://www.sra.org.uk/solicitors/standards-regulations/withdraw-client-money/

The publication is a ‘mandatory statement’ which must be complied with by all SRA authorised firms and their staff. Essentially it allows firms to deal with individual client matter balances, up to £500, in the same way that they have been able to do under Rule 20.2 of the 2011 rules.

The statement written in a very reader friendly way and there are probably a few points worth highlighting:

  • residual balances only exist if the firm has failed to comply with rule 2.5 (‘old’ rule 14.3) and cannot now return the monies;
  • by that token residual balances should be relatively rare;
  • firms must not deduct out of pocket expenses incurred trying to trace the owner of the funds;
  • there is no specific requirement to choose a charity that provides an indemnity, although if that is the case the firm remains liable should the client reappear and request their money;
  • appropriate records are to be kept and you should be able to evidence the efforts you have made to return residual balances to the client as has been the case in previous versions of the rules.
  • Reporting Accountants are likely to need to review the records detailing any payments to charity as part of their work;
  • While not detailing the statement does make reference to the issues for the firm to consider when deciding what will be reasonable steps to try and trace the client and repay the funds, as well as a few suggestions on ways to trace the client: social media, Companies House or Probate Registry searches; DWP letter forwarding service, internet searches.

It is fair to say that this has not been an area where firms have excelled and is an area where we often identify breaches. Most would benefit from looking carefully at their existing polices to deal with file closure procedures and repaying funds promptly in order to avoid residual balances arising. Regular review of exception reports of files with no movement should be part of the accounting routines.

If you want any further guidance on this matter please contact any of the following:

Martin Wilmott – Doncaster Office [email protected]

Simon Bladen – Sheffield Office – [email protected]

David Owens – Northampton Office – [email protected]

Free initial meeting

Simon Bladen Partner

Simon Bladen

Partner, Sheffield

0114 266 7141

[email protected]

Martin Wilmott

Partner, Doncaster

01302 367 262

[email protected]

David Owens

David Owens

Partner, Northampton

01604 645 600

[email protected]

IFRS 16 leases rules have changed 1 January 2019

IFRS 16 leases rules have changed 1 January 2019

Leasing is very common and is often used as a financing solution to access buildings and equipment without suffering large up-front cash outflows. Most of a company’s operating leases to date tended not to be shown on the balance sheet. Going forward the introduction of IFRS 16 requires both the asset and the liability to now be reflected on the balance sheet. 

The majority of companies reporting under IFRS (typically larger companies or subsidiaries of large groups) will be affected. Whilst there can be a delay for those reporting under FRS102 or the reduced disclosure for SMEs in FRS101.

The new standard will affect nearly all frequently used financial ratios and performance metrics for example, gearing, current ratio, asset turnover, interest cover, earnings before interest, tax, depreciation and amortization (EBITDA), earnings before interest and taxes (EBIT), operating profit, net income, earnings per share (EPS), return on capital employed (ROCE), return on equity, (ROE), and operating cash flows. This means that the changes could affect loan covenants, credit ratings and lower borrowing costs without appropriate discussions with banks, other lenders and suppliers.

Companies and organisations that lease ‘big-ticket’ assets will be most affected by these rule changes. These assets could comprise property, airplanes, printing machines and technology for example. Whilst there may be an exemption for low value assets (typically $5,000 or less when new), many assets like photocopiers and cars have a value greater than this and will be brought into the regime.

These new standards mean that it could be difficult and costly to comply with the new lease rules, especially if companies do not have an in-house lease information system.

Tax impact

The current approach by HMRC is to continue the status quo of allowing the net operating lease cost as a deduction for tax purposes. In addition, HMRC has no desire to tax transitional adjustments for the new basis.  As IFRS 16 is worldwide, other countries may adopt a differing stance.

The introduction of IFRS 16 is likely to cause initial accounting adjustments which may be positive or negative depending on the previous treatment adopted. In the case of M&A activity and acquisitions/disposals the projected trading results and tax exposure will need to be forecast and reconciled.

Impact on industries

Nearly every industry uses leasing to gain access to assets but the terms and structure of the agreements are completely different for each industry. Various studies have been conducted on global lease capitalisation to determine the impact of new lease standards. The results show that most of the bigger industries have a median increase in debt of 22% of all companies. The industry worse affected by this is the retail industry with a 98% median debt increase, followed by airlines with 47% and professional services with 42%.

How we can help

We have Large Business experience and have helped a number of companies with the implementation and modelling of IFRS16. Through HLB our global network we can obtain guidance on a country by country basis.   If your company would like guidance, Hawsons are well placed to help you.  If you would like assistance on this, book your first free initial meeting with us here or telephone your local Hawsons office. 

If you would like to see more about our large companies services click here.

 

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Stephen Charles

Stephen Charles

Tax Partner, Sheffield

0114 266 7141

[email protected]

Martin Wilmott

Partner, Doncaster

01302 367 262

[email protected]

David Cairns

David Cairns

Tax Partner, Northampton

01604 645 600

[email protected]

Changes to business risk reviews for large Businesses

Changes to business risk reviews for large Businesses

Hawsons have worked with many Large Businesses and International groups over the years so that they can introduce the appropriate systems and procedures and achieve “low Risk status” with HMRC. Part of this process has been to liaise between the Businesses and HMRC to resolve areas of uncertainty, immaterial or isolated errors. When handled correctly, the Business Risk status can be unaffected.

For several years now Large Businesses have been subject to increased scrutiny from HMRC as they have larger tax liabilities. To formalise this process the Senior Accounting Officer regime was introduced that required large businesses to have enhanced reporting, to confirm that their accounting systems could identify, report and pay the correct amount of tax at the right time. Following a review of each business HMRC assigned them a low risk status or non low risk. The benefit of low risk status is that HMRC tended to rely on the company to report and pay tax correctly and did not need constant monitoring. Non low risk businesses in comparison, tended to have more involvement from HMRC in the form of enquiries and interventions.

What is the purpose of this update?

From 1 October 2019 HMRC will be updating the Business Risk Review Process to an enhanced version named BRR+. The rating system will change from binary low or non-low risk ratings to using 4 new ratings – low, moderate, moderate-high, and high.

HMRC have decided to make the review process more visible and consistent. This will be by enabling customers to understand why their business risk assessment has arrived at the particular outcome. The Business can then take the appropriate steps if they want to change to a low risk rating.

A lot has changed in legislation and business since the BRR process was first announced. Therefore, HMRC want to be clearer and more consistent about the BRR process. They have produced clearer guidelines and have developed a different approach for a deeper understanding of customers and sectors. Such as understanding and working collaboratively with each customers business and differentiating between behavioural, inherent, and structural risks.

The new BRR+ process will include:

  • Replacing the rating system from binary low or non-low risk ratings to using 4 ratings – low, moderate, moderate-high, and high.
  • The introduction of customer behaviour assessments across three areas. These include Systems and Delivery, Internal Governance and Approach to Tax Compliance which determine risk ratings.
  • Determining what is low risk for the three behaviours.
  • In each tax regime they will reach a risk rating and share them with customers.
  • Providing detailed guidance on a new BBR template to record risk ratings.

HMRC’s guidance on the new BRR+ process can be found here click here.

How we can help?

Hawsons have been working with several Large Businesses to highlight and work with the new rules, including how to deal with HMRC on immaterial and isolated errors that all businesses can make but which does not affect the Business Risk status. We can guide you through the process to understand and achieve low risk status. If you would like assistance on this, book your free initial meeting here or telephone your local Hawsons office.

If you would like to see more about our large companies services click here.

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Stephen Charles

Stephen Charles

Tax Partner, Sheffield

0114 266 7141

[email protected]

Martin Wilmott

Partner, Doncaster

01302 367 262

[email protected]

David Cairns

David Cairns

Tax Partner, Northampton

01604 645 600

[email protected]