KIRKLEES BUSINESS NEWS local Page 5local Page 4

A CHARTERED accountancy firm inKirklees has urged businessesundergoing a change of circumstance totell the taxman – or risk incurring“significant” penalties.Cleckheaton-based Clough & Companysaid that businesses making majorchanges, such as changing owners,legal entities or becoming incorporated,must re-register for VAT. HM Revenue &Customs must also be informed of thesechanges within 30 days, even if its VATnumber is staying the same.Partner Nigel Westman said: “Recently,there have been a number of caseswhere businesses have been taken overor changed legal entity, for example froma sole proprietor to a partnership, andfailed to re-register for VAT.“Even though they have held on to thesame VAT registration number and notmissed any payments, they have stillbeen hit with significant fines that canregularly reach tens of thousands ofpounds.“Previously in cases where HMRC isn’tout of pocket they would usually havetaken a pragmatic view, but now it seemsthey are applying a strict interpretationof the law and pursuing the fines.”Mr Westman said: “Some of these casesare now going to tribunal and althoughthe taxpayers may obtain some reprieve,it’s a very expensive andtime-consuming exercise and there is noguarantee the taxpayer will win.“For any businesses facing thisdilemma, it definitely makes sense toapproach HMRC first before they comelooking for you.”

Firm securesUK contractsA HEALTH and safety consultancy inHuddersfield is in peak condition aftersecuring a string of new contracts.

After six years of working informallywith Assura Group, Bradley-basedSM&MS has been appointed to formallyundertake health and safety risk assess-ments, fire safety risk assessments, disab-ility access audits and consultancyservices for Assura.

Assura, the UK’s leading investor,developer and manager of primary careproperty, will use SM&MS’ award-win-ning PropertyPlus online compliance sys-tem, which allows actions from thesurveys and assessments to be closeddown and allocated to internal resourcesor approved contractors using a uniquelink to the SM&MS ContractorPlus sys-tem.

The system will also allow trends, issuesand risk profiles to be analysed.

SM&MS account manager MatthewHatcher said: “Assura is a significant andimportant client to SM&MS and we areexcited at the prospect of meeting andexceeding their expectations.”

S e n i o r a s s e t m a n a g e r Ro g e rThompson, of Assura, said: “Assura is an

innovative company and partneringSM&MS seemed a logical choice withmuch synergy due to the technologicalthrust and drive of both companies.”

Apart from winning works fromAssura, 2013 has also seen SM&MS winnational contracts with Deloitte, KwikFit, Fletcher King and JLL and retainingworks with property giant CBRE.

Richard Edwards, director of client

services at SM&MS, said: “2013 hasstarted really well for SM&MS with uswinning some high profile ‘halo’ clients.

“I believe the recession has reallyopened up some doors for SM&MS, withbuying cycle times being reduced andclients looking at their current serviceofferings to ensure best value.

“When the market was more buoyant,our target market of the property man-agement sector would stay with suppliersif they were merely OK. This has now allchanged with all stakeholders in the buy-ing process demanding value for moneyand innovation.

“It is this innovation that has beenpivotal in our recent growth, with ouronline compliance systems allowing cli-ents to interrogate risk profiles anddemonstrate compliance and audit trailactivity.

“Our latest offering is a mobile applica-tion which allows our clients to undertakeaudits using handheld devices and iscurrently being implemented with PeelHoldings and Lambert Smith Hampton.

“These are exc i t ing t imes forSM&MS.”

n TARGET MARKET: RichardEdwards, of Bradley-based SM&MS

TAXTALKColin Barratt

Colin Barratt is tax partner at Wheawill and Sudworth chartered accountants, Huddersfield

n WEB WISE: Ascensor directors Andrew Firth(left) and Stuart Holdsworth are forcastingfurther success for the Birstall-based company

CASH bonuses, gift vouchers or foodhampers are popular ways of rewarding

employees – but all are chargeable toincome tax.

Cash and vouchers are also subject to nationalinsurance.

Minor benefits such as a turkey or an ordinarybottle of wine should not be charged to tax or NIC,although anything more extravagant will be.

Some other tax-free alternatives worth consider-ing are as follows:

For those having an annual function, such as aday at the races or Christmas party, which is opento the staff generally (not just certain staff ordepartments), there will be no taxable benefit orNIC where the expenditure is less than £150 perhead.

The figure includes the total cost of the function,including VAT and any transport or accommoda-tion provided by the employer, divided by thenumber of people attending.

If each member of staff takes a guest, the £150limit will apply to each individual attending, notjust to the employee.

If the cost per head exceeds £150, the wholeamount will become taxable, not just the excess, sobe careful if you are being particularly generous.Also remember that if there is more than onefunction in the tax year the £150 per head limitapplies to the total cost of all functions.

In that case, only functions which total less thanthe £150 per head will escape tax and NIC.

Where an employer gives cash to employees inlieu of a party, then the cash will be subject toPAYE and NIC.

Low or interest free loans made to employees aretax free if the amount borrowed does not exceed£5,000 at any time in the tax year.

The loan can be used for any purpose and the

exemption will still apply. From 6 April 2014, thethreshold will be doubled to £10,000.

There are other tax consequences of such loanswhere they are made to a shareholder who owns(with certain close relatives) more than 5% of theshares in the company.

The provision of a car parking space for anemployee at or near their place of work is not ataxable benefit.

This can include reimbursing the employee’s costof paying for a car parking space or buying aparking season ticket on their behalf. This exemp-tion is attractive given the cost of town centreparking.

Expenses incurred in the provision of healthscreening and /or medical check-ups by employersfor their workers are also tax/NIC exempt,although a benefit will arise if these are provided tothe worker’s family.

No taxable benefit will arise where an employerprovides one mobile telephone to an employee fortheir private use (mobile phones include smart-phones but not iPads or tablets).

The tax exemption covers the cost of any linerental and private calls paid by the employer.

However, the exemption will not apply where thecontract for the mobile phone is between the phonecompany and the employee.

In this case any costs paid by the employer forthe employee’s private use will also be subject topayroll NIC.

From April 6, 2013, where employers maketaxable payments to their employees they arerequired under the Real Time Initiative to senddetails to HMRC every time they pay an employee,at the time they pay them and to send thisinformation electronically as part of their payrollprocess.

A KIRKLEES-based ITspecialist has reported rapidgrowth.Digital agency Ascensor Ltd,with headquarters in Birstalland offices in London, hasposted a 70% rise in annualturnover while first quarterresults put it on track for asimilar performance this year.Ascensor, now in its sixth yearof trading, has increased staffnumbers from two to 20. It hasappointed six new staff duringthe past 12 months and hasplans for further recruitment.The company designs,develops and marketswebsites and providese-commerce services such assearch engine optimisation toensure its clients’ websitesget the right customers.The company has built more

than 200 websites for clientsincluding Omni Capital,National Flexible, theBradley-based Forget Me NotChildren’s Hospice andHuddersfield law firm EatonSmith Solicitors.Ascensor managing directorAndy Firth said: “We are reallyexcited about how quickly wehave grown and look set tocontinue at the same pace.“We now have over 300 clientson our books the length andbreadth of the UK. We havegone from working withrelatively small organisationsto building digital platformsfor multi nationals.”Ascensor is set for furtherexpansion having created anew strategic marketing planand re-branded andrelaunched its own website.

Thinking… outside the booksIt’s timeyou got morefrom your accountantadded value services include…

Tailored programme to maximise profitability

Tailored tax efficient solutions

Regular updates & support to help your business

FREE use of our facilities for your meeting

Support all day, every day

Call Freephone: 08000 32 32 03and quote KBN /1211 to give us the chance to help youachieve your goals, or contact us through our website at:-

www.walker-sutcliffe.co.uk

Want to be your own boss?

Look no further!

07845 564812www.gogogaggia.co.uk

BEEN MADEREDUNDANT?

We worK closely with Gaggia and together we offer abusiness opportunity for a Go-Go Gaggia smart car inyour area. The car will come fitted out with everything youneed to start, and we will guide you in your new businessventure. The perfect opportunity to create your mobilecoffee shop, turning heads, getting people talking and allwith the support of the biggest coffee brand in the world.

To find out how you could ownyour very own Go Go Gaggiafranchise call 07845 564812 oremail info@gogogaggia.co.uk

Always longed for that coffee shop, but scared of thehigh overheads? Or simply fancy a change of career?

Independent financialplanning services for

companies and individualsEastwood & PartnersEastwood & Partners

(Financial Services) Ltd(Financial Services) LtdPennine House, Lowfields Close, Lowfields

Business Park, Elland HX5 9DA01422 377737

www.eastwoodfinancial.co.ukAuthorised and Regulated by the Financial Services Authority

Court of ProtectionCharitiesFinancial AdvisersInternationalIndividuals

*As at 28 February 2013. Member firm of the London Stock Exchange. Member of NYSE Liffe. Authorised and regulated by the Financial Conduct Authority. Investec Wealth & Investment Limited is registered in England. Registered No. 2122340.Registered Office: 2 Gresham Street, London EC2V 7QP.Offices at: Bath Belfast Birmingham Bournemouth Cheltenham Edinburgh Exeter Glasgow Guildford Leeds Liverpool London Manchester Reigate Sheffield

Standing firm for 150 yearsThings move fast in the world of financial services. We’ve been around since 1878, so we’ve seen alltypes of market conditions and know what it takes to move with the times. And, of course, our commitmentto providing out of the ordinary service is resolute.

At Investec Wealth & Investment we have the knowledge and expertise to help make your financial goalsa reality. UK-wide, our specialist teams manage over £22 billion* on behalf of our clients, seeking the bestand most tax-efficient returns on their capital. While our office right here in Leeds means we are well placedto oversee your investments, pensions or other financial matters. Transferring your investments across tous to manage for you is also hassle free.

Please bear in mind that the value of investments and the income derived from them can go downas well as up and that you may not get back the amount that you have put in.

Great relationships start with a conversation, so why not give Simon Kaye a call on 0113 245 4488or email simon.kaye@investecwin.co.uk

investecwin.co.uk

KIRKLEES BUSINESS NEWS local Page 5local Page 4

A CHARTERED accountancy firm inKirklees has urged businessesundergoing a change of circumstance totell the taxman – or risk incurring“significant” penalties.Cleckheaton-based Clough & Companysaid that businesses making majorchanges, such as changing owners,legal entities or becoming incorporated,must re-register for VAT. HM Revenue &Customs must also be informed of thesechanges within 30 days, even if its VATnumber is staying the same.Partner Nigel Westman said: “Recently,there have been a number of caseswhere businesses have been taken overor changed legal entity, for example froma sole proprietor to a partnership, andfailed to re-register for VAT.“Even though they have held on to thesame VAT registration number and notmissed any payments, they have stillbeen hit with significant fines that canregularly reach tens of thousands ofpounds.“Previously in cases where HMRC isn’tout of pocket they would usually havetaken a pragmatic view, but now it seemsthey are applying a strict interpretationof the law and pursuing the fines.”Mr Westman said: “Some of these casesare now going to tribunal and althoughthe taxpayers may obtain some reprieve,it’s a very expensive andtime-consuming exercise and there is noguarantee the taxpayer will win.“For any businesses facing thisdilemma, it definitely makes sense toapproach HMRC first before they comelooking for you.”

Firm securesUK contractsA HEALTH and safety consultancy inHuddersfield is in peak condition aftersecuring a string of new contracts.

After six years of working informallywith Assura Group, Bradley-basedSM&MS has been appointed to formallyundertake health and safety risk assess-ments, fire safety risk assessments, disab-ility access audits and consultancyservices for Assura.

Assura, the UK’s leading investor,developer and manager of primary careproperty, will use SM&MS’ award-win-ning PropertyPlus online compliance sys-tem, which allows actions from thesurveys and assessments to be closeddown and allocated to internal resourcesor approved contractors using a uniquelink to the SM&MS ContractorPlus sys-tem.

The system will also allow trends, issuesand risk profiles to be analysed.

SM&MS account manager MatthewHatcher said: “Assura is a significant andimportant client to SM&MS and we areexcited at the prospect of meeting andexceeding their expectations.”

S e n i o r a s s e t m a n a g e r Ro g e rThompson, of Assura, said: “Assura is an

innovative company and partneringSM&MS seemed a logical choice withmuch synergy due to the technologicalthrust and drive of both companies.”

Apart from winning works fromAssura, 2013 has also seen SM&MS winnational contracts with Deloitte, KwikFit, Fletcher King and JLL and retainingworks with property giant CBRE.

Richard Edwards, director of client

services at SM&MS, said: “2013 hasstarted really well for SM&MS with uswinning some high profile ‘halo’ clients.

“I believe the recession has reallyopened up some doors for SM&MS, withbuying cycle times being reduced andclients looking at their current serviceofferings to ensure best value.

“When the market was more buoyant,our target market of the property man-agement sector would stay with suppliersif they were merely OK. This has now allchanged with all stakeholders in the buy-ing process demanding value for moneyand innovation.

“It is this innovation that has beenpivotal in our recent growth, with ouronline compliance systems allowing cli-ents to interrogate risk profiles anddemonstrate compliance and audit trailactivity.

“Our latest offering is a mobile applica-tion which allows our clients to undertakeaudits using handheld devices and iscurrently being implemented with PeelHoldings and Lambert Smith Hampton.

“These are exc i t ing t imes forSM&MS.”

n TARGET MARKET: RichardEdwards, of Bradley-based SM&MS

TAXTALKColin Barratt

Colin Barratt is tax partner at Wheawill and Sudworth chartered accountants, Huddersfield

n WEB WISE: Ascensor directors Andrew Firth(left) and Stuart Holdsworth are forcastingfurther success for the Birstall-based company

CASH bonuses, gift vouchers or foodhampers are popular ways of rewarding

employees – but all are chargeable toincome tax.

Cash and vouchers are also subject to nationalinsurance.

Minor benefits such as a turkey or an ordinarybottle of wine should not be charged to tax or NIC,although anything more extravagant will be.

Some other tax-free alternatives worth consider-ing are as follows:

For those having an annual function, such as aday at the races or Christmas party, which is opento the staff generally (not just certain staff ordepartments), there will be no taxable benefit orNIC where the expenditure is less than £150 perhead.

The figure includes the total cost of the function,including VAT and any transport or accommoda-tion provided by the employer, divided by thenumber of people attending.

If each member of staff takes a guest, the £150limit will apply to each individual attending, notjust to the employee.

If the cost per head exceeds £150, the wholeamount will become taxable, not just the excess, sobe careful if you are being particularly generous.Also remember that if there is more than onefunction in the tax year the £150 per head limitapplies to the total cost of all functions.

In that case, only functions which total less thanthe £150 per head will escape tax and NIC.

Where an employer gives cash to employees inlieu of a party, then the cash will be subject toPAYE and NIC.

Low or interest free loans made to employees aretax free if the amount borrowed does not exceed£5,000 at any time in the tax year.

The loan can be used for any purpose and the

exemption will still apply. From 6 April 2014, thethreshold will be doubled to £10,000.

There are other tax consequences of such loanswhere they are made to a shareholder who owns(with certain close relatives) more than 5% of theshares in the company.

The provision of a car parking space for anemployee at or near their place of work is not ataxable benefit.

This can include reimbursing the employee’s costof paying for a car parking space or buying aparking season ticket on their behalf. This exemp-tion is attractive given the cost of town centreparking.

Expenses incurred in the provision of healthscreening and /or medical check-ups by employersfor their workers are also tax/NIC exempt,although a benefit will arise if these are provided tothe worker’s family.

No taxable benefit will arise where an employerprovides one mobile telephone to an employee fortheir private use (mobile phones include smart-phones but not iPads or tablets).

The tax exemption covers the cost of any linerental and private calls paid by the employer.

However, the exemption will not apply where thecontract for the mobile phone is between the phonecompany and the employee.

In this case any costs paid by the employer forthe employee’s private use will also be subject topayroll NIC.

From April 6, 2013, where employers maketaxable payments to their employees they arerequired under the Real Time Initiative to senddetails to HMRC every time they pay an employee,at the time they pay them and to send thisinformation electronically as part of their payrollprocess.

A KIRKLEES-based ITspecialist has reported rapidgrowth.Digital agency Ascensor Ltd,with headquarters in Birstalland offices in London, hasposted a 70% rise in annualturnover while first quarterresults put it on track for asimilar performance this year.Ascensor, now in its sixth yearof trading, has increased staffnumbers from two to 20. It hasappointed six new staff duringthe past 12 months and hasplans for further recruitment.The company designs,develops and marketswebsites and providese-commerce services such assearch engine optimisation toensure its clients’ websitesget the right customers.The company has built more

than 200 websites for clientsincluding Omni Capital,National Flexible, theBradley-based Forget Me NotChildren’s Hospice andHuddersfield law firm EatonSmith Solicitors.Ascensor managing directorAndy Firth said: “We are reallyexcited about how quickly wehave grown and look set tocontinue at the same pace.“We now have over 300 clientson our books the length andbreadth of the UK. We havegone from working withrelatively small organisationsto building digital platformsfor multi nationals.”Ascensor is set for furtherexpansion having created anew strategic marketing planand re-branded andrelaunched its own website.

Thinking… outside the booksIt’s timeyou got morefrom your accountantadded value services include…

Tailored programme to maximise profitability

Tailored tax efficient solutions

Regular updates & support to help your business

FREE use of our facilities for your meeting

Support all day, every day

Call Freephone: 08000 32 32 03and quote KBN /1211 to give us the chance to help youachieve your goals, or contact us through our website at:-

www.walker-sutcliffe.co.uk

Want to be your own boss?

Look no further!

07845 564812www.gogogaggia.co.uk

BEEN MADEREDUNDANT?

We worK closely with Gaggia and together we offer abusiness opportunity for a Go-Go Gaggia smart car inyour area. The car will come fitted out with everything youneed to start, and we will guide you in your new businessventure. The perfect opportunity to create your mobilecoffee shop, turning heads, getting people talking and allwith the support of the biggest coffee brand in the world.

To find out how you could ownyour very own Go Go Gaggiafranchise call 07845 564812 oremail info@gogogaggia.co.uk

Always longed for that coffee shop, but scared of thehigh overheads? Or simply fancy a change of career?

Independent financialplanning services for

companies and individualsEastwood & PartnersEastwood & Partners

(Financial Services) Ltd(Financial Services) LtdPennine House, Lowfields Close, Lowfields

Business Park, Elland HX5 9DA01422 377737

www.eastwoodfinancial.co.ukAuthorised and Regulated by the Financial Services Authority

Court of ProtectionCharitiesFinancial AdvisersInternationalIndividuals

*As at 28 February 2013. Member firm of the London Stock Exchange. Member of NYSE Liffe. Authorised and regulated by the Financial Conduct Authority. Investec Wealth & Investment Limited is registered in England. Registered No. 2122340.Registered Office: 2 Gresham Street, London EC2V 7QP.Offices at: Bath Belfast Birmingham Bournemouth Cheltenham Edinburgh Exeter Glasgow Guildford Leeds Liverpool London Manchester Reigate Sheffield

Standing firm for 150 yearsThings move fast in the world of financial services. We’ve been around since 1878, so we’ve seen alltypes of market conditions and know what it takes to move with the times. And, of course, our commitmentto providing out of the ordinary service is resolute.

At Investec Wealth & Investment we have the knowledge and expertise to help make your financial goalsa reality. UK-wide, our specialist teams manage over £22 billion* on behalf of our clients, seeking the bestand most tax-efficient returns on their capital. While our office right here in Leeds means we are well placedto oversee your investments, pensions or other financial matters. Transferring your investments across tous to manage for you is also hassle free.

Please bear in mind that the value of investments and the income derived from them can go downas well as up and that you may not get back the amount that you have put in.

Great relationships start with a conversation, so why not give Simon Kaye a call on 0113 245 4488or email simon.kaye@investecwin.co.uk

investecwin.co.uk