Do you need to keep your knowledge of Employment law and tax up to date? There are new developments in Employment law every few months, so that with each year that passes the volume and complexity of Employment legislation increases.



Designed specifically for business owners or managers and human resources professionals, we will cover the main new and emerging issues in our formal presentations followed by opportunities for questions and informal discussions.

We will cover the main new and emerging issues in our formal presentations followed by opportunities for questions and informal discussions. Susan Ball, John Taylor, Martin Osborne and Daren Laidlaw from our branches will be presenting at the event.

SEMINAR PROGRAMME

3.00 Registration and tea/coffee

3.30 Chairman’s introduction

3.40 2012 Update on Employment Case Law

4.00 Employment Tax update

4.20 Social media – managing the unmanageable

4.40 TUPE or not TUPE

5.00 Pensions update
5.20 Question panel

5.30 Drinks and canapes

The seminar qualifies for two hours CPD
RSVP here by Friday 20th April 2012

This entertaining and informative seminar was presented by Giles Mooney, a chartered accountant and chartered tax adviser who is also involved in UK tax training. Giles shared his perspectives on the budget, explaining the implications of the key points affecting private individuals and businesses.

“The seminar was a most enjoyable way to learn about the changes and opportunities brought about by the recent budget,” Andrew Bennett, Rothmans partner, said. “We were delighted to see even more people take advantage of this useful event, now in its thirteenth year. Giles’ sense of humour definitely helped to bring the topic alive.” 

This entertaining and informative seminar will be presented by Giles Mooney, who educates professionals throughout the country. Giles will be sharing his perspectives on the budget and explaining the implications for you and your organisation.

The seminar will be followed by a reception where there will be an opportunity to ask questions and seek clarification on the budget changes. 

If you would like to attend, please contact your nearest branch.

If you have any questions then please don't hesitate to contact your Rothmans team. 

“We are committed to supporting all new businesses and are delighted to be part of an initiative that encourages business activity during what is an exciting time for Southampton,” says Sue Sullivan, partner at the firm’s Oxford Street office.

“The planned regeneration of the city centre, where we have been based for 30 years, is going to attract a growing number of companies to the city. These awards, in recognising the increasing numbers of women starting their own companies, will help to showcase Southampton’s dynamic and thriving business environment.”

The Rothmans LLP New Business Award will be awarded to a business that is less than two years old.

Nominations for all 14 categories close on 5 March 2012 with the Grand Awards ceremony at the Grand Café, Southampton, on 22 May 2012.

For further details and to nominate click here

Robin Lloyd, who lives in Southsea with his young family, has more than 22 years’ practice experience. Previously with a top-six accountancy practice for over six years, he originally started his career with a large independent Hampshire firm.

Robin has acted for a wide range of clients and specialises in advisory services to the small and medium size market, particularly in the recruitment, manufacturing and technology sectors.

Well known in the professional marketplace, Robin says of his new role: 'I am delighted to have joined the Rothmans team in Chandlers Ford and the wider firm.

 “I greatly look forward to using the experience I have had in a larger practice to assist both the partners and staff, as well as help the SME client base that I know and grew up with!”

Launched on the 9th January women from Southampton can enter the awards under their new title The Venus Awards. You can nominate yourself, your female friends, business associates or colleagues into a selection of award categories at www.venusawards.co.uk

Rothmans is sponsoring the New Business Award and are looking forward to seeing the nominations come in from Southampton based businesses.

Says founder Tara Howard, “We are delighted to give Women in Business in Southampton and the SO postcode region the chance to be rewarded, as they deserve! With three of the categories aimed at women employed in businesses the award will give ALL working women in business a chance to be rewarded.”

Nominations close on 5th March, so now is the time to act!
 

Happy Christmas from Santa…yes you can!

Not only is the cost of the party deductible against the company’s profits, there is an exemption from tax and NICs on the benefit provided, as long as the party or function:
• is an annual event,
• is open to all of your employees (even if you are the only one); and
• costs no more than £150 (inclusive of VAT) per head.
If partners or spouses attend then they also have a £150 allowance.

You must include in this £150 per head allowance;
- the cost of the meal etc,
- accommodation, and
- transport to and from the party

i.e. all the costs.

This is an annual allowance, per person, to cover all staff events. If the company spends even £1 more than the £150 per head allowance then the whole amount will be taxable on you, though this could be avoided if you paid the excess yourself.

The company can also recover the VAT on the element relating to you as an employee, but not the element relating to your spouse.

P.S. Scrooge says…
The tax exemption does not apply to sole traders and business because they are not employees.
 

From Santa

Christmas Gifts to Staff
Trivial gifts such as a turkey, an ordinary bottle of wine or a box of chocolates can be given tax free to employees but not lavish ones.

Long Service Award
Non-cash awards of £50 for each year worked can be given tax free to anyone who has worked at the company for over 20 years, provided no award has been made in the previous 10 years.

Gifts to Customers or Suppliers
Tax relief is available on gifts costing £50 or less provided they include a conspicuous advertisement such as a logo and are not food, alcohol, tobacco or vouchers.

Gifts to Charity
Your company’s gift is tax deductible provided it is given without conditions or material benefit. The self-employed can claim higher rate tax relief on charitable gifts on their tax returns.

Charitable E-cards
Instead of the usual gifts or greeting cards for clients, staff and customers, why not buy a charitable gift and then design and send an e-card to let them know about it. It saves on postage and stationery and is tax deductible like any other charitable donation.

From Scrooge

Christmas Bonus for Staff
This will count as ordinary earnings and be subject to tax and NI as if it were additional salary. Vouchers will also be caught.

Client entertaining
Hospitality of any kind is never an allowable deduction and VAT cannot be recovered on it.
 

Andrew, who lives in Portsmouth, joined Rothmans in 2009 as a Senior Manager. He has worked in the profession for 25 years, initially with a local firm and then subsequently with a national accountancy firm where he undertook a number of different roles, including working as Acting Finance Director for a client.

During his time working in this role for a small company with a £2.5 million turnover, Andrew helped to turn the business around within one year from a £250k loss to a £100k profit.

“At Rothmans I work with business owners in the SME marketplace to help them make improvements to their business results,” Andrew says. “Having an insight into the pressures of the FD role has been extremely useful when advising clients, as I have experienced dealing with the problems they face and have succeeded in changing things for the better.”

One of Andrew’s clients is Portsmouth-based Astute Technical Recruitment Ltd, whose Managing Director, Terry Buckel, comments: “Andrew’s genuine interest and drive to help us succeed has made a huge difference to our organisation.
“He works in partnership with us rather than merely regarding us as a client, assuming the role of financial director for our company when negotiating commercial arrangements with banks and other institutions. The service he has provided has been excellent and he has been a pleasure to work with.”
 

“Giving business owners an impartial assessment of the issues that most concern them in the current business environment will help inform their decision-making processes going forward.”

Simon Smith, Area Commercial Director for HSBC in Solent says, “With significant uncertainty in the markets at the moment and an eagerly awaited solution to the eurozone, the timing of this event could not have been better.

“Dennis, as always, put things into perspective and delivered a very entertaining and informative presentation.”
 

This seminar will be presented by Dennis Turner Chief Economist for HSBC.

Dennis heads a team advising bankers on UK economic trends both within industry sectors and at regional and national level. He began his career as an economist with a trade union, later moving into Whitehall. Throughout his career Dennis has had regular contact with policy making bodies and he remains an influential advisor within UK government.

This breakfast seminar takes place on 12 October, if you would like to attend or for more information, please contact your nearest Rothmans office.

Departing directors, golden parachutes, dads on paternity leave, changes in employment law and pensions, tax saving strategies and new tax benefits – just some of the areas affected by recent and increasingly complex legislation that were selected as subjects for a room filled with delegates, ranging from owner-managed companies and HR professionals, to representatives from large corporate organisations.

“This was a great opportunity to give busy people important information in just three hours on the main new and emerging issues,” said Martin Osborne, a partner at Rothmans who presented at the event.

“Employment law and tax may not be subjects that people want to spend a lot of time and energy on, but in the current economic climate, knowing how to make the most of tax benefits and ensuring that your business stays legally compliant is vital.”

Jacky Sparks from Portsmouth Communications, who attended the event, said, “This was an insightful seminar and I came away feeling I’d learned a great deal about the impact that current and future tax and employment law changes could have for my business.”

Thursday 26 May 2011 at 1000 Lakeside, North Harbour, Cosham, Hampshire from 3pm.

Do you need to keep your knowledge of Employment law and tax up to date? There are new developments in Employment law every few months, so that with each year that passes the volume and complexity of Employment legislation increases.



We will cover the main new and emerging issues in our formal presentations followed by opportunities for questions and informal discussions. Martin Osborne and Daren Laidlaw from our Segensworth and Portsmouth North branches will be presenting at the event.

If you would like to attend please contact your local Rothmans branch.

Rothmans can provide specialist support and a full range of services to schools and colleges considering conversion.

A brochure has been produced providing details of the financial requirements for conversion and accounting services offered.

Read more about our work with Academies. Download our brochure here ‘Academies Everyone Counts'.
 

Habib Brora, who lives near Eastleigh, joined Rothmans in 2000 as a trainee accountant after finishing his accounting degree at Portsmouth University. He was made a Director of the firm in 2009.

With expertise in all areas of tax accounting, Habib specialises in helping owner-managed small and medium-sized businesses, charities and personal clients make the most of their assets.

“I am extremely proud to have been made a partner at one of the finest accountancy practices in the South of England,” Habib says. “Rothmans take a proactive and personal approach to their services and I believe that my job is to help clients fulfill their personal ambitions as well as helping their business grow and prosper.

“I greatly enjoy building a relationship with clients so that they know they can pick up the telephone to ask me for practical advice to help them plan for the year ahead, as well as work with them at the end of their financial year.”

Richard Showan, partner at Rothmans, comments: “Since Habib joined us he has made a tremendous contribution to the continued success of the practice. This new promotion brings the total number of partners at Rothmans to 22 and is a testament to Rothmans’ commitment to delivering excellent service to our expanding client base.”

Andy Miller 1 hr 12 mins
Andrew Perriam 1 hr 22 mins
Terry Stocker 1 hr 44 mins
Brian Corlett 1 hr 48 mins

The Business South exhibition covers every aspect of business today, from the tried and trusted to the new and exciting. The exhibition provides the opportunity to:
 

• Stay informed of cutting edge business ideas
• Meet the widest selection of suppliers in the region
• Benchmark your competitors
• Develop and grow your network
• Learn from the experts on key business issues
• Meet fellow professionals
• Benefit from personal and professional development opportunities

Come along and visit the Rothmans stand, we are open from -
Wednesday 2 March 10am - 5pm
Thursday 3 March 10am - 4pm

Entrance to the exhibition is free, we look forward to meeting you.

Rothmans exhibited at the Business South exhibition at the Rose Bowl in Southampton in March where a competition was run to guess the number of Jelly Beans in a jar. The number of beans was correctly guessed by James Potter.

Congratulations James! He guessed 796 and the actual total was 797.

Rothmans has continued its support for the University of Portsmouth Centre for Enterprise’s PIPEline programme, which has just completed its second cycle for 2010. PIPEline is an intensive short programme established to support idea-stage entrepreneurs, encouraging participants first to look at their own skills and creativity, then gain guidance from experts to help move their ideas forward culminating in a final one-day Dragons’ Den style pitching event. Andy was one of the judging panel and has since started working with some of the finalists to help them with commercial and financial aspects of their business ideas.

Andy commented “The PIPEline programme was piloted earlier this year to encourage graduates in the Hampshire region to further their knowledge in order to help them start their own business.  Some of the business ideas that have come out of the programme have been fantastic and I am delighted we have been able to encourage these young entrepreneurs to get their ideas off of the ground.

As well as cash prizes from sponsors, participants were able to access support and specialist skills from a variety of business support specialists, including Rothmans. The final day of PIPEline was a great success with all of the pitches being of an exceptional quality.

As a firm we have experience of a vast number of businesses, in every stage of development and in a wide range of sectors. This is just one of the ways we use that experience to help businesses grow and develop. 

Charities and businesses from across the region attended the Awards.  Heart-warming films of the exceptional work being undertaken in the region by the fifteen finalists were shown to the 300 guests who included The High Sherriff of Hampshire, The Mayor and Mayoress of Winchester and Mr Steve Brine MP.

Rothmans sponsored the winner of the Trustee Board of the Year which was awarded this year to Winchester Churches Nightshelter.  The Nightshelter is a charity which offers direct access accommodation with outreach support.  They are an essential lifeline where basic needs of shelter, food and hygiene can be met but they also offer vital help in easing loneliness, providing a secure support network to address problems, and a start to being included in society again.

The other winners on the night were:

·                Charity of the Year – Cherry Tree Nursery

·                Chief Executive of the Year – Sarah Brocklebank from The Phyllis Tuckwell Hospice

·                Volunteer of the Year – Amani Amari from Haslars Visitors Group

·                Fundraising Team of the Year – Oakhaven Hospice

The above shows that not having a will can mean that your estate can end up with distant relatives that you would not expect to benefit. In addition, intestacy causes significant problems for those you leave behind. It is therefore as important as ever to make a will.

Please contact us if you require advice on estate planning and inheritance tax mitigation.

The three shortlisted charities in this category are:

• Brainstrust
• Community First, New Forest
• Winchester Churches Nightshelter

The award will be presented by Rothmans at the glittering Gala Dinner and Awards ceremony on Thursday 30 September in front of 300 guests at The Winchester Guildhall.  Debbie Thrower, the popular TV presenter, will introduce the finalists and announce the winners of the five categories, which also include: Charity of the Year, Chief Executive of the Year, Fundraising Team of the Year, and Volunteer of the Year.

Rothmans works with a range of national and local charities and not-for-profit organisations, and understands the pressures charities and their trustees face in today’s environment. Click here for more information or contact one of Rothmans’ offices.

For more information on the awards, visit the Wessex Charity Awards website.

Rothmans will be entering a number of teams and encouraging clients, business partners and friends to enter as well. The format will be teams of four; Stableford full handicap (max men 24, ladies 28) with best 3 scores from 4 to count. There will be team and individual prizes.

More details are available here.

KIDS Charity enables disabled kids and their families to enjoy their lives and its vision is a world in which all disabled children and young people realise their aspirations and their right to an inclusive community which supports them and their families.

Naomi House provides care to families living in communities across the seven counties of Berkshire, Dorset, Hampshire, Isle of Wight, Surrey, West Sussex and Wiltshire.

The presentation was followed by drinks and networking for the audience of Rothmans clients and contacts.

A copy of Tim Good’s presentation can be found here.

Looking at the global picture, Mr Berrisford-Smith said that future growth would be driven by the Far Eastern economies and, drawing a parallel with the football World Cup, he said that if results were judged on economic performance, China would defeat India in the final. On its economic performance, the UK would go out in the Round of 16.

Reviewing the implications of the Budget and trends in key economic indicators, he expected the recovery to continue, albeit in a somewhat lacklustre fashion. A double-dip recession was not inevitable, but much would depend on events elsewhere, especially the fall-out from the sovereign debt crisis in the Eurozone.

For the next five years, he expected growth of the economy to average around the 2% mark, compared with the more robust 2.5-3% that we had become used to before the recession. This was inevitable given that consumers would naturally be unwilling to take on debt in the way that they used to, and that the public sector would be contributing very little to growth. To make matters worse, there was little evidence that exporters had been able to take advantage of the lower pound to boost overseas sales.

While official interest rates would soon have to rise, the Bank of England was still hoping to delay the first move until early next year. But with the annual rate of inflation still above 3%, it was possible that they would have to act sooner. Whatever the timing of the first increase, interest rates were likely to remain at historically low levels of under 4% for several years to come.

For businesses he warned that credit would not be as plentiful or as cheap as it had been in the years prior to 2007. With subdued growth at home, he urged them to focus on exports to the Far East and other developing economies. Describing the Eurozone as the “Twilight Zone”, he suggested that British companies’ should seek to make inroads into faster-growing markets further afield.

Looking specifically at prospects for South-East England, he remarked on the significant positive difference between this region and the rest of the UK. He said, “The South-East will continue to power the UK economy, and possibly more so than in the past, partly because it is export-oriented and has a large concentration of value-adding businesses in sectors such as pharmaceuticals, defence, electronics, software and financial services. It also has a relatively low dependence on the public sector.”

Despite the austere background, Mr Berrisford-Smith ended his presentation on a note of optimism about conditions in the UK, pointing out that compared with much of the period from the 1960s to the 1980s, the country was not suffering from the rampant inflation or endemic industrial unrest that had blighted those years.

The event ended with questions, coffee and networking.

Click here to download the Rothmans' June 2010 Budget Report.

If you have questions about any aspect of the Budget, or have an accounting issue you would like to discuss, please contact your Rothmans team.

Click here to download the Rothmans' 2010 Budget Report.

2005 RATING REVALUATION – IT’S NOT TOO LATE

The deadline for appealing against your 2005 Rateable Value is 31st March 2010. If a reduction is achieved following an appeal, the refund can be backdated to the 1st April 2005 with full reimbursement of the overpaid rates.

2010 RATING REVALUATION – LOOKING FORWARD

The VOA has published the draft 2010 figures which become live on the 1st April 2010 and we anticipate that Rateable Values in general will increase by 15%.

Appeals against your new 2010 Rateable Value can be lodged after the 1st April 2010 and, if successful, RV reductions will run until March 2015.

WE CAN HELP

We have established a panel of surveyors who specialise in rating valuation appeals.

The surveyors on the panel will:

1. Advise you without charge whether an appeal is recommended

2. Conduct the appeal formalities on your behalf on a “no win, no fee” basis

3. The success fee charged to Rothmans clients will be on a discounted fee scale

THE NEXT STEP

If you consider that this may be relevant for your business please contact one of your team at Rothmans who can make the appropriate referral on your behalf.

Good credit management is always crucial to the profitability of your business, but during an economic downturn it can become a matter of life or death.

With traditional sources of credit tightening, businesses are currently forced to manage their cash as effectively as possible. But if customers delay or default on payments the flow of cash becomes tighter and the very survival of the business is threatened.

Currently three fifths of UK businesses are experiencing cash-flow problems due to late payments and defaults.

How effective is your credit management?

Many problems of late payment and bad debt can be avoided by making sound arrangements at the beginning of a trading relationship. How many of the following can you answer 'Yes' to?

• Do you run credit checks on new customers?
• Do you use credit application forms to gather key information on customers including where appropriate trade or banking references?
• Do you offer the minimum period of credit you reasonably can?
• Do you check that your terms are clearly understood by your customers?
• Do you insist on a written contract where appropriate?
• Do you include an 'all monies' retention of title clause in your contracts?
• Do you include your payment terms on all quotes, order confirmations, invoices, and statements?
• Do you have good relationships with your customers' accounts department and know who to speak to if a problem arises?
• Do you know when your customers' monthly cheque payments runs are and time your statements accordingly?
• Do you encourage customers to pay electronically?
• Do you offer discounts for early or up front payment?
• Do you stay in regular contact with your customers and keep your ears open for signs that they might be running into difficulties?

When is a sale not a sale?

Answer: When it hasn't been paid for! A sale is not complete until the cash is in the bank. Here are some suggestions for good credit management:

• Make sure everyone in your business knows your credit policy and who the key decisions makers are
• Consider subscribing to a service that enables you to monitor the credit worthiness of all your customers on a monthly basis
• Raise separate invoices for each dispatch and send them immediately by first class mail or email
• Be one step ahead of potentially difficult customers by finding an excuse to contact them before payment is due
• Establish clear procedures for dealing with disputed invoices and give them top priority
• Conduct an aged debt analysis at least once a week and apply debt recovery procedures immediately according to the size and age of the debt

Contact us if you require assistance in this area.

An increasing number of businesses are introducing measures to reduce their impact on the environment. They are driven in part by pressure from customers, shareholders, employees, and local communities concerned about the state of the planet we are passing onto the next generation, and in part by the need to comply with a raft of environmental legislation. But there are also sound business reasons for adopting green measures. Businesses can benefit from significant cost savings, greater efficiency, and possible reduced insurance premiums by introducing improved environmental practices. In some sectors at least having green credentials can provide a competitive edge and strengthen your position in the marketplace.

Developing an environmental policy

When developing an environmental policy for your business:

1. Make sure you are up-to-date and in full compliance with any relevant environmental regulations on air pollution, hazardous substances, waste disposal, water management, packaging, land use, etc.
2. Look for synergy between stakeholders concerns and regulatory requirements on the one hand and your business goals, organisational capability, and potential financial benefits on the other.
3. Pay particular attention to the evolving policies of existing and potential customers. For example, public sector agencies are now required to procure only products and services that meet certain green standards.
4. Keep a close eye on your competitors' strategies in this area.

Financial assistance

There is Government help available for small businesses to invest in green technologies. For example, businesses can now receive interest-free loans worth up to £200,000 to buy new energy-efficient equipment, such as lighting, boilers and insulation.

It is estimated that there is £1.2 billion in funds available from various sources to help businesses with projects such as introducing recycling schemes, switching to green packaging, purchasing hybrid vehicles, installing solar panels, and many more.

Entries will soon be open for what have been described as the ‘Charity Oscars’. The Wessex Charity Awards (WCA) are one of the region’s most prestigious events, where individuals and charities are honoured for their achievements and dedication, and for 2010 Rothmans is pleased to be sponsoring the Trustee Board of the Year category.

“It’s great to have Rothmans on board this year as it works with and advises a considerable number of charities,” comments Jenny Warner of PAS Charity Recruitment, lead organiser of the Wessex Charity Awards “No one is better placed to understand the vital role trustees play in a charitable organisation and Rothmans will make a valuable contribution to our awards.”

“Rothmans acts as auditors and accountants for a wide range of charitable and not-for-profit organisations and many of the partners also act as charity trustees," explains Rothmans partner Andrew Perriam. “So we are delighted to be able to take part in such a worthwhile event that recognises the valuable and at times difficult work of Trustee Boards.”

Rothmans has a thorough knowledge of compliance requirements for the Charities Act and SORP and its range of services includes tax consultancy, auditing, preparation of budgets and forecasting, analysing risks and opportunities, strategy planning and development, and investment procedures and policies.

For further information on the awards go to www.wessexcharityawards.co.uk or contact Jenny Warner on 01962 813300.

In addition for those earning over £100,000 the basic personal allowance is being withdrawn, with the affect that those earning between £100,000 and £112,950 can be taxed at up to 60%. The top rate on dividend income has also been increased to 42.5% from 32.5%.

Now is the time to start planning for those high earners whose top slice of income will be affected. What can be done to delay or avoid the effect of these changes? Here are some ideas that are worth consideration dependent upon individual circumstances:

• Businesses could bring forward the date of a bonus payment to directors or employees from 2010/11 to 2009/10.
• Companies could bring forward dividend payments to its shareholders from 2010/11 to 2009/10.
• A change of year end for sole traders or partnerships could be beneficial, particularly if its year end does not currently coincide with the 5 April.
• If any taxable share options are held, these could be exercised before 6 April 2010.
• For sole traders and partnerships, incorporation could be beneficial.
• For owner managed companies, profits could be retained, rather than paid out in salaries or dividends. It is possible that the 50% rate may be reversed after a period of time.
• Payments into pensions as an alternative to taking salary or dividends from companies should be considered.
• Where married couples are in business together, it may be possible to share partnership profits or dividends more tax effectively.

Under all circumstances, careful planning will be required. If you are an individual or business owner that may be affected, contact us for advice as early as possible.

From time to time circumstances may arise when an individual either no longer wishes to make decisions concerning their affairs (including their property) or their personal welfare.

In these situations the individual (the donor) can complete a Lasting Power of Attorney (LPA) whereby he or she chooses someone (the attorney) who is empowered to make decisions for the donor. The donor must have the mental capacity to complete the LPA.

In order for an LPA to be used it must first be registered with the Office of the Public Guardian (OPG). However it is permissible, and very common, for the LPA to be taken out but not registered until the donor wishes it to be registered or until the donor lacks the necessary mental capacity to make the decisions referred to above.

There are two different types of LPA:

· a Personal Welfare LPA; and

· a Property and Affairs LPA

A Personal Welfare LPA

This allows the Attorney to make decisions on the donor’s behalf concerning their personal welfare. This will include whether to give or refuse consent to medical treatment on the donor’s behalf and deciding where the donor is to live.

A Property and Affairs LPA

This allows the Attorney to make decisions on the donor’s behalf about his or her property and affairs, including paying the donor’s bills, collecting their benefits or other income, or selling their house, subject to any restrictions and conditions.

In addition to the donor and the Attorney (see above) there are three other important individuals, all of whom must be named in the LPA. These individuals act as important safeguards to protect the interests of the donor.

• The named person: This is a person chosen by the donor and stated on the LPA who must be notified when an application is to be made to register the LPA. The named person can object to the application.
• The certificate provider: This person must certify that the donor understands the LPA and has not been put under any pressure to make the LPA.
• A witness: The witness confirms that they witnessed the donor or Attorney signing and dating the LPA.

Our advice

Mental incapacity is not uncommon especially as age creeps in. Also, whilst an individual may still have mental capacity, they may lose the will or desire to make decisions simply because of their age. At times such as these the LPA can be of great assistance to the individual and can safeguard their interests.

Expert advice should, of course, always be taken when drafting and preparing the LPA. Please contact us if you require more details.

With savings rates having dropped to an all-time low, many individuals are actively looking for a better way of using their savings. For those savers who also have borrowings, there are two options to consider:

1. Do you wish to use your savings to pay off your borrowings; or

2. Continue to separate your savings and borrowings by taking out an offset mortgage.

Like many good ideas, the offset mortgage is simple to understand and is relatively straight-forward in its operation. Any monies you hold on linked current or deposit accounts are automatically offset against the amount you owe on your mortgage, thereby reducing the net debt with a consequent reduction in the interest you pay.

The reason that offset mortgages are particularly attractive in today’s climate is that the saving on the interest payable is greater than the amount that could be earned on a savings account and, in addition, is free of tax. Also of course you retain access to savings, which in these uncertain times can provide a degree of flexibility.

The tax effects assuming an offset mortgage interest rate of 4.5% are as follows. If you are a basic-rate taxpayer you would have to find a savings account that paid 5.6% gross to match a net rate of 4.5%. If you are a higher-rate taxpayer the figure climbs to 7.5%. In today’s marketplace such returns are extremely difficult to find, unless there is a high level of risk involved.

The offsetting is carried out automatically by the lender on a daily basis rather than monthly or annually as with a typical savings account, which normally results in a better return.

Our advice

If you do have savings and also have a mortgage, consider changing to an offset mortgage, but speak to us if you require further advice or assistance. You should also remember that should interest rates rise on savings then offset mortgages may become less attractive.

It is not only members of parliament that face difficulties in making expense claims. Many employees regularly make expense claims for costs incurred in their employment and it is important to be aware of current tax regulations.

There are a number of “tax deductible” expenses you might be able to claim. These include the cost of professional fees or subscriptions, business travel and subsistence, tools and specialist clothing. Most claims can be backdated for up to 6 years.

You can find out more about the types of expenses that you can get relief for in the H M Revenue & Customs guide “Tax allowances and reliefs – employees or directors”.

You can only get tax relief for allowable expenses. Expenses are allowable if they are for the cost of:

· travelling you had to do whilst doing your job;

· other expenses you had to pay whilst doing your job - and which related only to doing your job.

You cannot claim tax relief from HMRC if your employer has already reimbursed you for the expense.

You would normally claim relief on your self assessment tax return or on a claim form P87, which is available from HMRC.

If you are an employer handling many expense claims for the reimbursement of expenditure incurred by your employees in doing their job, you may want to consider applying for a “dispensation”. This, if granted by HMRC, avoids the necessity of reporting expenses and benefits on forms P11D and P9D. There are various requirements but once granted lasts indefinitely.

Our advice

Please contact us regarding any specific claims you wish to make regarding expenses if you are unsure whether or not they will be allowable expenses.

Also, if you are an employer, contact us if you want us to apply for a dispensation on your behalf.

For the second successive year, Rothmans entered a team into the Southern Chartered Accountants Student Society 5-a-side football tournament.

The team was made up of Natasha Wooton, Dan Langston, Andy Lee, Mark Milner and Alan Cooper from Chandler’s Ford office, Dom Currie from Havant, and Richard Pike from the Segensworth office. There was a large turn out of Rothmans colleagues, friends and families to support the team, which made good progress through the tournament.

‘It was a great day out for the team and all of our supporters,’ said Alan Cooper, captain of the Rothmans side. ‘We had a good run. However we were finally defeated in the quarter finals. Next year is our year!’

Alex Newman, Client Manager from Rothman’s Portsmouth North office, ran the cancer charity 5K Race for Life at Southsea this summer. Alex, who raised over £200 for the charity, including donations and sponsorship from her team at Rothmans, said she had always wanted to take part in this event, but had been prevented before because of studying for her ACCA accounting exams. It was the death of her grandmother from cancer that spurred Alex on to train and participate, coupled with a desire to help those who have to face cancer now and in the future.

‘It was an amazing atmosphere and very emotional. Everyone had pictures and messages of family members and friends who have been taken from us through cancer pinned on their backs. I ran the race in 40 minutes and I’ll definitely be doing it again next year!’

Habib Brora from Rothmans Eastleigh has been appointed director with effect from 1^st October 2009.

Habib commenced employment with Rothmans in 2000 at the Eastleigh office, qualifying as a Chartered Certified Accountant in 2004. After qualifying Habib gained an in-depth knowledge of tax which helps him give clients the best all round advice. Habib has built up a portfolio of personal, business, charity and trust clients.

Habib decided to enter the accounting profession after a family member received relatively poor advice from their accountant. It was then Habib decided he wanted to make a difference, providing good quality advice to business owners.

Habib concentrates on the owner, helping them make the most out of their wealth and assets – Habib comments ‘We pride ourselves in giving the all-round advice the “ordinary” business owners need and deserve – I enjoy dealing with people and solving their problems’.

The 2006 Companies Act is still being introduced in stages.

In October 2009 provisions come into effect increasing privacy for Directors by allowing the use of a service address on public file at Companies House.

Key Points

1.  Directors who wish to put a service address on the Companies House file will need to submit the notification to Companies House when the change ‘goes live’ in October 2009.

2.  A service address must be an actual physical address at which the Director may be contacted (not a PO Box or DX exchange number).

3.  Directors may use the company’s registered office address as their service address.

4.  Companies will be required to hold records of Directors residential addresses on a secure register.

5.  Residential addresses will only be disclosed by Companies House in limited circumstances to certain authorities and credit reference agencies.

6.  In extreme circumstances existing addresses may be removed from existing records and disclosure to credit reference agencies can be avoided but this is more involved and only available to certain categories of directors.

7.  From October 2009 Company Secretaries will only be required to provide a service address.

8.  From October 2008 shareholder information filed at Companies House for private companies, need not include addresses.


We can help

For further information or advice on how these changes apply to you, please contact one of our team. If you would like assistance with implementing the change please let us know.

We are always available to advise on company law issues so if you have any queries, please do not hesitate to contact us.

Based at the Portsmouth office, Adam has built an impressive portfolio of clients, many of whom are in the property and construction sectors.

Joining Rothmans directly from college, Adam started at the Portsmouth office in 1999, qualifying as a certified chartered accountant in 2005. Accountancy was actually his second choice of career, after narrowly failing to pass the entrance to become a pilot, but one he relishes. "I entered the profession thinking it was all about numbers, but quickly realised accountancy is about dealing with people and solving problems. I couldn’t have chosen a better life."