In This Issue • Making Tax Digital - What you need to know • Protect your business with lasting power of attorney • Johno on tour • And much more
Paul Waite -CEO
On 13th August 1993, I for the first time travelled the short distance to my new workplace of Aspen House in Wembdon Road from Waite Towers, then at Rubis House. Being on my own was not something I had planned and ironically I had turned down an offer to fund me in my own practise only 8 months earlier. If you had told me that 25 years on Aspen Waite would be booming with representation across the country, I’m not sure I would have believed you. They were difficult times and I spent many an early morning walking around Kings Square fearing for the future and even whether there would be a future. At work I did what I had to do: I seemed to function on “Auto Pilot” during the day and too much alcohol during the evenings. It’s funny what the mind and body does when in survival mode. Although as Aspen Waite I was on my own, I was surrounded by the team in the Aspen Group. Richard Adams was especially supportive in those early days. I assimilated fairly quickly into Bridgwater business and formed some good alliances, notably Perkins Slade Insurance Brokers. In the early days I thought that effective working meant staying in my office (or a client’s) for as long as possible, so there was no initial sport. In the early days I thought that effective working meant staying in my office (or a client’s) for as long as possible, so there was no initial sport.
I remember missing playing hockey on Sundays. I had taken to hockey quite late on in life (30) but had become pretty good. I played cricket for a local Wanderers type team, where I enjoyed keeping wicket, although not good for my knees. I also played a reasonable amount of golf with various business contacts who kept faith in me. My biggest external client was Ford Civil Engineering and I drove to their Head Office near Ringwood regularly. They had invested in a Gosport based business, Nationwide Services, and this turned out to be a superstar client. (this is how I met Michelle) Through these clients I started to pick up some nice work in Hampshire and along the South Coast. I had an excellent bank manager in David Aldington (Barclays) and we started doing a lot of business together. My first year’s budget was a mere £45,000 but I managed to exceed £90,000 for the 14½ months to October 1994. It took 10 years to grow the turnover to over £500,000 but I had some nice clients, notably First Group and an exciting new start up in TJ Transport, which went on to be our best client
At the end of 1998 we moved from Aspen House to Rubis House and I liked the thought of owning two properties. I did not plan to start Aspen Waite but I certainly learned to adapt to the life of an entrepreneur quite quickly.
Aspen Waite operates as a meritocracy and this is borne out by our management team structure. Of our Senior Managers 6 have been with us for less than one year and another 3 have served less than 2 years. If anything, the quality of both our new clients and new staff continues to rise. My 25 years have taught me that business is all about people. Find great people, nurture them, communicate and invest in them (in all respects). This is also true of clients, suppliers and business associates. I have found myself, what I stand for and what my focus is. Aspen Waite brings quality business and tax advice and services to all businesses. This marks us out; our humanity and our ability to get the best out of and for people. We have been short-listed for Best Independent Firm in the Accountancy Awards for the third time in 4 years and I think this time we deserve to win. Next year our turnover will be too big to enter that category so we will be in the mid-tier category.
The way we are going I would not back against us entering the Top 50 firms. I plan to make at least 3 acquisitions in the future in the South Wales, Leeds and Oxford areas so that will help. I would like to thank everyone that has worked for and with me (well nearly everyone!). Also, my family who have had to put up with weak Paul and strong Paul alike but always a driven man. All these nights away and times when it was hard to cope
Paul is a true force of nature, powering through all challenges with good humour and exceptional skills, who has enriched my life enormously though every interaction. Many congratulations on Aspen Waite’s 25th Anniversary. It is well deserved and I’m sure the next 25 years will prove to be on an ever-growing continuum. Dean Robinson
Paul and Aspen Waite genuinely wants all clients to succeed - if that means getting into the car for a long journey at a ridiculous hour then there is no second thought he just does it for the clients. From small clients to large clients the ethos is still the same. It is no surprise that Aspen Waite is celebrating 25 years in business and that the firm is going from strength to strength with Paul at the Helm and the tremendous staff he has recruited trained and given his knowledge and passion to the next 25 years will be even better for both staff and clients. Darren Talbot
I have known Paul now for about 23 years and been a partner for about 13, and watched as the Aspen Waite Group has expanded from the original accountancy partnership to become a much broader group and matrix of companies offering a range of services – or a complete business solution! Kevin Smith
There is no doubt in my mind that you never did anything other than that which you deeply believed to be the best for me and mine. Huge congratulations in what is a tremendous landmark, and proof of your unswerving belief in your principles. Terry Higgins, TJ Group
A recent report undertaken by cloud-accounting provider QuickBooks suggests a lot of business owners are still in the dark about the legislation, coming into effect April 2019. Under MTD for VAT, from 1 April 2019 VAT-registered businesses with a turnover above the current VAT registration threshold of £85,000 will be required to file their VAT returns online, using MTD compatible software. However, the report revealed that a substantial number of business owners were struggling to come to terms with MTD and what they need to do, including: • • • •
Some 76% of owners found understanding the legislation to be a challenge Other issues include sourcing compliance tools (70%), researching MTD (66%) and managing the additional workload (64%) being cited as major concerns. 42% of small businesses have approached their accountants for advice and support on their finances 80% said they rely on their accountants to prepare tax calculations and the necessary paperwork
It's highly likely that accountants will play a key role in helping businesses understand their obligations under MTD. As cloud-accounting software becomes more prevalent, taking care of the number-crunching, the role of the accountant will also change. For more information on MTD speak with your account manager or call us on 01278445 151 and we will be happy to help you in the transition.
Important Information Making Tax Digital
How will this affect you?
Timeline for MTD As you may be aware, the Making Tax Digital (MTD) regime by HMRC is set to start from 1st April 2019, however, any business can begin to benefit from cloud-based accounting before it comes into effect.
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From April 2019, all VAT registered businesses with turnover over above the VAT threshold
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For all other businesses the MTD regime is set to start from April 2020 - this will also include people with rental income.
What does this mean? Businesses will have to make quarterly digital submissions to HMRC from 1st April 2019 onwards using MTD compliant software. The current online VAT return will not meet the requirements! It will, therefore, be necessary for every VAT registered business to have third-party software that is compliant with MTD.
What are the options?
Benefits of Cloud Accounting
There are several ‘cloud-based’ software packages on the market and these are all likely to be MTD compliant. The main ones used at Aspen Waite are Sage, Xero and Kashflow.
• • •
We can provide advice on the solutions available for your business. Visit our website for our helpful flowchart to guide your decision.
• • •
Save you time, effort and money Accessible anywhere you have internet access Work on the go - raise invoices, pay suppliers and chase payments It’s secure, scalable, cost-effective More affordable for smaller businesses than traditional accounting systems No more spreadsheets or paper records!
How we can help We realise this is going to be an added expense for a lot of businesses, as you may well keep records on spreadsheets or paper. Unfortunately, every business will be required to use MTD compliant software once the regulations come into force. Aspen Waite will be working closely with our clients through the transition period, helping them realise the benefits and using MTD as an opportunity to improve their businesses, and will be in touch in due course. For those of you unable, or unwilling to use new software, we are offering additional services to suit your needs and can discuss these options with you.
For further information visit www.aspenwaite.co.uk/mtd
Talk to a Trusted Advisor 01278 445 151 advice@aspen-waite.co.uk
Making Tax Digital
Are you VAT Registered?
?
How will it aect you?
Yes
No
Watch this space
â˜ź
Explore Options
Warning Flag
If your turnover is below the VAT Registration Thereshold (ÂŁ85,000).
Below
Above
The full extent of HMRC’s plans are not yet fully known, so you are encouraged to seek professional advice.
Completely Self-Managed
Guided MTD
Complete MTD Solution
If your turnover is above the VAT Registration Thereshold (ÂŁ85,000).
Do you currently keep manual records? (i.e. on a spreadsheet or handwritten).
You will be exempt, unless you want to voluntarily opt-in to Making Tax Digital.
Making Tax Digital won’t aect you yet, but could in 2020.
Paper Records
Yes Your Options Are
No
Already There
Continue to use your own software, ensuring it will be MTD compliant.
MTD Platform
Source your own MTD compliant software or bookkeeper
Product Support
No support is oered
Electronic Records
Your responsibility
VAT Reporting
Your responsibility
MTD Platform
Aspen Waite will set you up with Xero or Sage and provide training
Product Support
Aspen Waite will support you alongside Xero and Sage, as required
Any additional support you might require may be billed hourly.
Electronic Records
Your responsibility
VAT Reporting
Your responsibility
This option is more cost-eective if you have the resources and skills.
MTD Platform
Aspen Waite take care of everything – you can continue as normal
Product Support
N/A
Electronic Records Aspen Waite maintain records for you VAT Reporting
Aspen Waite submit VAT returns for you
If you choose either Sage or Xero as your MTD platform, we may be able to oer you a discounted rate not available when going direct to the vendor. Please contact us for further information on 01278 445151.
We charge for the initial training and the software subscription.
We charge the cost of the software subscription, plus a fee to cover the bookkeeping and VAT returns. This may be more cost-eective if you aren’t particularly conďŹ dent with the software, or don’t have the time.
A Big Thank You To Emily Short of Fig & Fern Bakery for baking our delicious birthday celebration cake. Wholesome Baking in the Heart of the Quantock Hills Everything Emily bakes is fresh, using local, natural and wholesome ingredients. Emily's cakes are inspired by the seasons and surroundings in the heart of the beautiful Quantock Hills in Somerset. If your looking for a unique and delicious cake for any occasion you can get in touch by contacting Emily at Emily@figandfernbakery.co.uk or by visiting Instagram: @figandfern_bakery or figandfernbakery.co.uk
PROUD SPONSORS OF THE HEYBRIDGE SWIFTS Founded in 1880, three-time Essex Senior League champions and former Isthmian League Cup winners. Currently playing in the Bostick League North Division with the season just kicking off, The Swifts are currently sat in 4th position winning 2 out of the 3 games played so far. For more information about The Heybridge Swifts
@OfficialSwifts heybridgeswifts.co.uk
Much has happened over our 25 years. We look back at just some of the highlights: • Our first office opens at Aspen House, securing our first client on a fee of £800 • Projected £45,000 turnover, ultimately exceeding this by over 70% • Major breakthrough with a prestigious contract with First Group Plc • Our future-largest client approached us as a start-up, now turning over £40m • Moved in to Rubis House, our Grade II listed HQ, built 1710, in Somerset
• A year of ambition and lessons learned, we opened an office in Southwick and took over a practice in Wellington
Formed in 1993 as a firm of chartered accountants, we made the far-sighted decision to rebrand several years ago as a professional services company.
• Filed our first R&D Tax Credit Claim • Created our R&D team, changing our company forever
We have a natural advantage over many of our competitors, quickly adapting to changes in the market.
• Our founder cycled from John O’ Groats to Lands End in eight days, with a brief stop off in Portsmouth (1036 miles!)
We genuinely like to meet people and quickly become staunch supporters and friends of our clients. We have strong ideals, morals, impeccable service ethics - and an insatiable desire to win.
• Rebranded as a Professional Services Company in response to market demand
We are much more than advisors and accountants. We are Aspen Waite.
We achieved over £1m turnover within our first 10 years. For the first time, around 2010, we experienced relative stagnation. Since rebranding, we have experienced remarkable hockey stick scale growth, completely transforming our business.
• Created our own marketing team • National partnership with ActionCOACH • Launched our Partner’s scheme and Complete Business Growth Service • Launch of Aspen Waite Wales and Aspen Waite White divisions • Opened our London Office • Sponsorship of the Heybridge Swifts • Opened an office at the Cardiff Blues Stadium as a result of Welsh growth • Aspen Waite Group turnover is expected to surpass £6m • Launch of our R&D Innovations Centre
“We now have a clear plan and I am optimistic about the future. Paul delivered what he promised - Aspen Waite have always been there for me.” - Nigel England, SiteServ “I can honestly say that we wouldn’t be where we are now without the involvement and support we have had from Paul and his team.” - Paul Huggins, Sealwise
Aspen Waite is a national company with representatives across the UK. We passionately believe all businesses deserve to be well advised and are committed to building our brand as the advisors of choice.
Aspen Waite helps ambitious companies achieve their goals with quality advice and support, whatever the challenge. •
We are real people, providing real advice and delivering real results
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We support our clients in every aspect of their business
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We have developed a leading, UK-wide network to support clients with every service imaginable
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We educate clients on how to be more effective, profitable and innovative with our expert knowledge
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We continually reinvent ourselves to remain ahead of the advisory market
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We help people see what success might look like, and unlock their potential
We are passionate about business, innovation and market disruption. It is immensely rewarding to see our clients thrive, knowing the part we play. •
We genuinely care about all businesses
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We make a huge difference to clients across the UK
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We pride ourselves on our clients’ success
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We want to create a better world for business owners
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We will always stand with clients when they need it most
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We go above and beyond to advise, educate and innovate
“We were sceptical, but after a positive meeting signed up. Best decision we’ve made. Aspen Waite does the hard work and we get the benefit!” Paul Tobin, AMG Industries
Always be yourself, be consistent, be prepared, be committed, back yourself and never give up.
We’d love to learn more about your business and ambitions.
“I have always been passionate about business and people. When I formed Aspen Waite in 1993, I had no idea where the journey would take me. 25 years later, the fire burns inside me as brightly as it ever did. I will now make the right decisions for us to disrupt the market for many years to come.”
Client Guest Feature
By Jolyon Hennings - Box Bear Limited XR or Extended reality is a universal term quickly being adopted to cover the world of Augmented and Virtual reality. The issue is when we talk about XR we are talking about many different technologies, in a fast growing market were some are yet to find there voice. The purpose of this article is to try and provide a cheat sheet a quick start guide into the world of XR and how it can impact your business and marketing plans. So lets start with a brief overview of the technologies. AR or Augmented reality is perhaps the most well known. These are most usually delivered via a smart phone or tablet. You will know them best as Snapchat filters, Blippar or Pokémon GO. They use your phones built in hardware and camera to alter the image on your smart device. This can be by recognising patterns seen by the camera and using this “trigger” to overlay information onto the screen or use the phones internal hardware to cleverly orientate masks and filters onto the image. It is used well on printed media, increasing its impact by adding 3D images and overlays. Or bringing to life buildings or real world features such as museums with links and media pertinent to your exact location. They do however have limitations caused by the same hardware that makes them so good. At the end of the day it’s a small phone with limited processing power. At the other end of the scale we have VR- Virtual reality. VR is delivered using high end consumer products, like HTC ViVe and Oculus linked to powerful graphics computers. They offer truly immersive experiences and when coupled with controllers or other enterprise hardware can offer users the freedom to explore these created realities in stunning immersive detail , even picking up and interacting with items in the virtual world. This lends them to applications where immersion is key. For example trade shows and training programs, you can imaging a first aid course where instead of you awkwardly giving CPR to a dummy surrounded by colleagues you are instead transported to a pavement with an elderly gentleman collapsed before you with onlookers looking of someone who can help. This can be applied to oil rigs or fire training where rooms can be constructed that enhance the immersion even further. However it does have its short comings, one of which is that it is really a single user experience. It is difficult to have groups in VR, also the equipment is expensive and if you want to be able to interact with the environment a permanent installation would be required. So we now have the two extremes AR and VR, this leaves a large space in the middle and it is here in MR or mixed reality that is where the future lies. Mixed reality first came onto the scene with google glasses, and indeed they are still around as an enterprise solution, and it is here where the clue is. MR is a business solution. It is yet to find its place within consumer technology. The ultimate MR is delivered by Microsoft’s Hololens. These are a set of glasses set into a headband that is in its self a laptop PC. It actively maps in 3D the surroundings and then perfectly places 3D objects into those surroundings by projecting them onto the glasses. In reality this allows one of more users to view and interact with these objects in real time. Or it allows for information to be placed in real time into the environment people are looking at. This allows for a level of collaboration not found in VR but brings the realism not found in AR. Currently MR is an enterprise solution allowing sales forces to demonstrate products with out the need of samples or for teams to collaborate on designs without the need to prototype, or for engineers to see diagrams and instructions in real time as they work, keeping there hands free. The XR space is an exciting place to work, but its is applications within business that truly inspire. For more information about Box Bear and how VR, AR and animation can help you connect with your customers, visit www.boxbear.co.uk or email jolyon@boxbear.co.uk.
About the author Jolyon brings over 20 years of experience in pharmaceutical and consumer marketing, filming, interactive program design, and mobile application development. Alongside the Box Bear team and their clients, he develops creative communication and educational tools to facilitate the end customers understanding, and developing a connection to their chosen brand.
Shortlisted for the British Accountancy Awards Best South West Independent Firm We’re pleased to announce we’ve been shortlisted again for the awards, so fingers crossed 2018 is the year!
Our Shiny New Office at the Cardiff Blues We’re also delighted to have established our base at the Cardiff Blues stadium, complete with great looking signage provided by Elite Signs UK, a recently acquired R&D Tax Credit client who we have helped secure funds for. The office provides a base for our Welsh team, as well as being a great location to entertain clients with hospitality! European Challenge Cup Final We were incredibly proud that the final was contested by two Aspen Waite Clients - Cardiff Blues and Gloucester Rugby
We have recently appointed four new employees to support the expansion of the business amid growing need for services across the South West and Wales. Appointed in May 2018 Joanne Beynon-Hewitt joined the firm as an Account Manager following over 20 years’ experience in the accountancy sector. Joanne’s role will focus on client liaison and supporting business development along with account management and R & D services. Living in Swansea, Joanne will be working across all sites. Julie Kingham also recently joined the business as a corporate tax officer taking on R&D claims, high-level tax planning and accountancy. Prior to this role, Julie had experience of being a tax manager in the North West, however, she had taken a break to spend 8 years within hospitality. Nick Stovold joins us as our Chief Financial Officer with specific responsibility for Wellington, Devon, Dorset and Cornwall. Morag Anderson joins us as effectively PA to Cora (PA to Paul).
Special thanks to Amante Witherick of the Alight Balloon Company for ensuring our party looked great. The function room, decked out in our corporate colours of purple and silver to celebrate our 25 years, guests were delighted with the balloons, decorations and novelty items. Services include: Chair Cover Hire, Wedding Balloons, Table Linen and Helium Hire, Balloon Printing, Starlight Backdrops and much more. Amante is well-known in the local area and further afield; and she has done a fantastic job of making our evening look great. Huge thanks from all the team!� If you’re looking for a touch of class to your next corporate event or wedding, you can get in touch by contacting Amante at info@alightballoon.co.uk or visiting www.alightballoon.co.uk or find it on Facebook.
By Julie Kingham There is a misconception that Lasting Powers of Attorney (LPA) can only be used for personal use. This is certainly not the case, as Aspen Waite’s Julie Kingham discusses how appropriate use of an LPA can play a major part in succession planning. If you run a business, then you have likely invested a huge amount of time, money and effort to run it. But what if you were to unexpectedly lose mental or physical capacity, and be unable to make the key decisions, and take the necessary actions to continue running your business as it should?
Lack of Capacity: Not just a Gradual Process It’s not something we like to think about, but if you were to have a serious accident or become otherwise unwell mentally or physically, you may not be able to make certain decisions. Or, if you’re taking a well-deserved cruise around the world, you might not be contactable to make these decisions in the first place! If this happens, unless you have appointed an attorney to deal with your business finances, there could be significant risk to your business.
What could go wrong? Imagine if you suddenly ceased to exist in your business. What would happen? It would probably continue to run itself, at least for a time. If you’re one of the millions of owner-led SMEs in the UK, hands-on, the face of the company, and essential to running the day-to-day aspects of your business, your absence could cause a huge problem. For example: • • • •
Staff wages may not be paid on time, particularly if you run the payments yourself Suppliers, loans and other commitments may not be paid, causing financial and reputational risk Loss of contracts, key customers and reputational damage if you aren’t able to make the necessary decisions If you’re a personal guarantor and your business faced liquidation, your personal assets may be at risk
How can an LPA help? By appointing someone who will be able to make essential business decisions on your behalf, a financial LPA gives your business the chance to prepare for the unexpected. As with a personal IPA, this person should be someone you trust and understands how you operate your business. The IPA can make many decisions on your behalf - without delay, solicitors or other issues including: • • • • •
Accessing your business bank accounts; Opening and closing bank accounts; Dealing with business property; Investing your assets; Dealing with tax affairs.
The arrangements can be tailored to suit your requirements – so we suggest you seek proper legal advice to ensure that any agreements are drafted correctly to your wishes.
Anything else I should know? The Financial LPA can be used as soon as it is registered, and it can also be revoked should you retire or sell your business – as long as you still have the capacity to revoke it. An LBA can be structured in various ways, giving you control and reassurance, as suits you.
What are the risks if I don't appoint an LPA?
If you do not make plans for an LPA and you do lose capacity, then a deputy will be appointed by the Court of Protection. This could take several months with additional cost involved. During this time of uncertainty, your business will continue to run, but possibly without a trusted person looking after financial and other important decisions.
Want to find out more about how an LPA could help your business? It’s important to consider if your business would be in safe hands if you (or another key person) were unable to act. By considering an LPA now as part of future-planning, you can help protect the business you’ve built. Speak to Julie Kingham, one of Aspen Waite’s tax experts, specialising in Inheritance Tax, and planning for the future. The process to apply for an LPA is simple and affordable – and could one day make a real difference to your business and your family.
By Liz Atyeo - Payroll Manager
With the GDPR now being actively enforced, it is important to understand how the GDPR affects you and your data We have highlighted areas that you may need to be aware of.
Under the GDPR, Personal Data is defined as ‘any information relating to an identified or identifiable natural person’. This includes things like name, email, date of birth and so on. However, technology and how we use it has changed drastically since the original Data Protection Act in 1998. There are now other pieces of data that could identify a person, including, but not limited to: IP addresses, location data, cookies and even the devices we use. The GDPR sets out to standardise and protect how this information is treated, giving control and transparency to the individual.
Under the GDPR, Sensitive Data is defined as any data consisting of radical or ethnic origin, political opinions, religious or philosophical beliefs, or trade union membership, genetic data, biometric data, data concerning health or data concerning a natural person’s sex life or sexual orientation. If you hold or process any of this data, you should treat it with even greater care.
One area at risk is a new starter form. These can contain information that will not be needed as part of a Payroll service - for example - if an employee has had a prior criminal record or has a disability. Consider removing sensitive data before sending any required information.
There are circumstances where there would be a legitimate reason to process sensitive data. For the purposes of your payroll, this includes: • Fit/Sick notes • MATB1 – Maternity • SC3 - Paternity • ShPP/SPL Forms
• • • • • •
Full Name Student Loan Details Date of Birth Working Pattern Address Payment/Deduction Details • Gender • Limited Pension Details
• National Insurance Number • Email address • Limited Absence Details • Employment Status • Prior Employment Details • Start/Leave Dates • Tax Code
By Johno Harris Blimey, it’s hard to recall when I last worked this hard. Must be due for a pay increase! My romantic idea of casually winding my way “Up North”, taking in a few pubs and scenic routes along the way, did not quite turn out that way, as I underestimated the times and distances. However, I am pleased to report that the tour was incredible in terms of meeting new people, making new friends and informing new clients and introducers on the power of R&D Tax Credits. I officially started in Hull, but to get there I passed through Derbyshire and spend ½ a day at an incredible Oriental Woodland Mushroom Farm. The entire farm is a massive mushroom-growing laboratory – from manufacturing the sub-strata that the mushrooms grow on, through control of the growing environment, to the reuse of waste materials to power the bio-mass boilers. I am really looking forward to working on the R&D claims with this company. The next 3 days were spent in Hull under the wonderful hospitality of Pam Featherstone, an ActionCOACH with a great variety of clients. These range from Animal Waste by-product suppliers (gone are the days when animal waste products were used only for pet-food!); to Shipping Company owners looking to manufacture brand-new, state-of-the-art cargo ships; software programmers; and almost everything in-between. Once again, this has not only generated an opportunity for us to help clients gain access to new information on finance, but has also created further opportunities to make introductions to our Associates and existing clients. Pam also invited me to attend her annual BBQ where we enthusiastically ate, drank and made merry until the early hours on what was a glorious day. My Northern odyssey continued. Over the Moors and down to Leicestershire for a day, across to Cambridge the next day, then Buckinghamshire, and finally home - 9 days of seriously productive fun and hard work. Processing new leads and analysing the questions people keep asking has led to some innovation of our own with the help and support of our team. It’s great to experience personally just how an expanding business must innovate to keep ahead of the curve. We are developing some great client packs which will cover everything to do with what is essentially a very difficult concept to explain, and this should help us meet exceed our clients’ expectations. Johno’s Top Tip: I can highly recommend staying in a Wetherspoons Hotel, not only are they situated directly above the pub, but the rooms are large, well-insulated and modern; and just like the pubs, they have everything one would need for a comfortable stay. In addition to the tour generating direct impact through relationship development, many of those people who would have liked to have met with me in person but could not, have been in touch and we have never been busier. The teamwork within the R&D team has been phenomenal, with all of us communicating and stepping in to cover each other. Similar to many of the teams getting through to the final stages in the World Cup, we’re improving as the challenge increases. As always, the destination is forever on the horizon, the journey is never what we expect, but it’s one hell of a ride and we’re loving it!
t itl e
Issue 3
Guest Feature
In every business there will be superstars and unfortunately, under performers. The key is to help the superstars in your business by managing out the under performers. One ‘out’ can often result in five other people stepping up. In contrast, leaving the one ‘in’, can result in five other people being dragged down. What do you choose? You can’t ignore the under performers, but you still need to know what you are doing when moving someone ‘out’. Build your confidence and knowledge and stay safe is our message! In 2013 Tribunal Fees were introduced. Legal firms and HR Consultancies suffered dramatic decreases in revenue as a result of employees choosing to walk away rather than have to pay money up front to register their claims. This was good news of course for Employers who, for the first time in years, could breathe a little easier. But now it’s all change again as in 2017 Tribunal Fees were abolished. So, will we see a return to the days of endless litigation and soaring legal costs as a result? Yes, is the short answer! Claims received at employment tribunal are now at the highest they’ve been since 2013. •
For single Employment Tribunal claims in the last quarter of 2017 (October to December) compared with the same quarter the previous year, claims received have increased by 90% and caseload outstanding has increased by 66%.
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Of the applications received to 31 December 2017, 93% (4,453 applications) related to cases brought in England and Wales. The remaining 7% (347 applications) were from Scotland.
But are you at risk? Losing a Tribunal can be a costly exercise. For example, the Employment Tribunal Statistics for 2016/2017 cite the compensatory awards for a successful sex discrimination claim as: • • •
Maximum Award Median Award Average Award
£127,230 £8,381 £19,152
If a business knows its practices put it at risk, but carries on regardless, then hopefully these figures put into context the size of the risk that they are taking, particularly if you add £15-40K legal fees on top, depending on the complexity of the case. And you can double the compensation perhaps if your employee has a disability or claims race discrimination too! But whilst some businesses know what risks they are taking, all too often we find that managers are simply not aware of the risks that they are taking due to insufficient grasp of employment law. Not surprising really when employment law is so complex, but what can be done to minimise the risk? We can’t cover it all here but let’s focus on minimising risk when dismissing staff with less than two years’ service..
Do’s •
Be aware that whilst these short service staff cannot claim unfair dismissal, which requires two years’ service, they might still be able to claim wrongful dismissal.
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Be aware that, if an employee thinks that their dismissal is linked to a protected characteristic, as set out in the Equality Act 2010, they might also be able to claim discrimination (age, disability, sex, race, pregnancy and maternity, religion etc).
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Try to follow best practice guidelines even though, strictly speaking, you don’t have to have a meeting with them to inform them of their dismissal.
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Be clear on your reasons for dismissal and have your own internal paper evidence – just in case they decide to make a legal claim against you.
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Listen out for any grievances they might raise during their dismissal. They might not use the word ‘grievance’ but your managers should be clear on what is and is not a grievance. Any grievance raised should be investigated following the required procedure. A template grievance policy if you need one is available from www.docswizard.co.uk
Dont's
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Think that taking the easy option to dismiss by just texting them will reflect well on you amongst your other staff. People have long memories when it comes to how you treat your staff.
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Forget to confirm their dismissal in writing providing clarity about any notice or other monies due to them, when those will be paid and their actual date of termination. It is astonishing how many employees are unclear exactly when their last day of employment was. Template dismissal letters are also available from www.docswizard.co.uk
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Dismiss new starters because of errors made due to a lack of induction or lack of guidance. This is a costly way to operate. Instead, take some time to review your starter pack, induction process and documents such as your code of conduct.
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Forget to make sure that your disciplinary and dismissal policy in your employment handbook states that the procedure is NON-CONTRACTUAL, meaning they cannot claim breach of contract if you dismiss without following the procedure.
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Forget that contractual notice entitlement and outstanding accrued holiday MUST be paid unless you are dismissing for gross misconduct.
There is often some confusion when it comes to dismissing short service staff. To help clarify what you can and cannot do and what some of the pitfalls are here, from www.docswizard.co.uk is a list of top tips. Make sure you are getting it right as there’s no sense in throwing good money into a legal or employee compensation fund when you could better use the money elsewhere!
And Finally… Don’t ‘recruit for diversity, but then dismiss for difference’. Check your reasons for dismissal. Consider how inclusive your environment is if you are dismissing someone with short service simply because others say they are not ‘fitting in’. Employing staff is challenging and at times, financially risky, but it doesn’t have to be as difficult as some people make it out to be. You just need good procedures in place and ensure your managers know how to manage using those procedures! And the upside of tackling those difficult individuals? You give the rest of your team including your Superstars the most massive boost. They really will thank you for managing out the under performers and energy sappers. Time for a rethink in your business?
Long-term supporters of Somerset Vikings To find out more ď‚™@SomersetVikings Formed in 2003 by current Chairman Chris Richards and then commercial manager Darren Horne, the Vikings were predominantly made up of Royal Marines Rugby League players based in Taunton and Exeter. The early team were bolstered with local rugby union players keen to try the thirteen man code and who have never looked back. Today a dedicated committee drive a rapidly expanding and ambitious club offering open age Rugby League in Somerset. The recent move to Weston-super-Mare is part of Vikings long term plan to expand Rugby League in to the union heartland. Playing in the West of England league Vikings come up against teams from Bath, Swindon, Gloucester, Cheltenham and Cinderford.
ď‚š@SomersetVikings
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Important Tax Dates for your Diary Whether you're self-employed or PAYE, make sure your affairs are in order in good time to avoid a fine.
Self Assessed:
31/01/2018 – deadline for first payment on account for the 2017/18 tax year 05/04/2018 – deadline for claiming tax overpaid for the 2013/14 tax year under self-assessment 06/04/2018 – first day of the new tax year 2018/19 06/04/2018 – time to gather detailed documents for your 2017/18 tax return and if you’re self-employed or have income from property in the year ending on April 5th 2016 31/05/2018 – last date to give employees a P60 for 2017/18 31/07/2018 – deadline for second payment on account for the tax year ending on April 5th 2018 05/10/2018 – deadline to register with HMRC if you became self-employed or started receiving income from property. 31/10/2018 (midnight) – deadline for paper self-assessment returns for the 2018/19 tax year 30/12/2018 – deadline for online submission of selfassessment tax returns for the year ending on April 5th 2017 for HMRC to collect tax through PAYE tax codes where they owe less than £3,000 31/01/2019 (midnight) – deadline for online self-assessment tax returns for the 2017/18 tax year 31/01/2019 (midnight) – deadline for paying tax bill for the tax year ending on April 5th 2017/18 05/04/2019 – end of tax year 2018/19
PAYE: 05/04/2018 – 2017/18 tax year ends 05/04/2018 – deadline to claim PAYE tax refund for the 2013/14 tax year 06/04/2018 – first day of the new tax year 2018/19 31/05/2018 – copies of 2017/18 P60 documents issued to employees 06/07/2018 – copies of 2017/18 P11D documents issued to employees 06/04/2019 – end of tax year 2018/19
If you'd like professional advice on your personal tax affairs, or to ensure your business remains compliant, speak to Aspen Waite today.
As pen Wai t e - Key St a f f Di recto ry
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