Sherie Griffiths

July 31, 2009

Compulsory Retirement At 65 Could be Scrapped

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From Branston Adams Chartered & Certified Accountants’ July newsletter

http://www.branstonadams.co.uk

While most people in the UK retire by the age of 65, 1.3 million continue working  beyond that point. The Government has announced that it has brought forward its review of the default retirement age from 2011 to 2010, as a result of changing demographic and economic circumstances.

Many see the announcement as an indication that the default retirement age of 65 will be scrapped.

The Confederation of British Industry (CBI) has described the decision as ‘disappointing’, arguing that 81% of employers already accept employee requests to continue working
beyond the age of 65, and that having a default allows both staff and businesses to plan ahead.

Katja Hall, Director of HR Policy at the CBI, said, ‘Some people can happily work in their existing job beyond the age of 65, but this is not possible for all occupations, and companies with smaller numbers of staff have particular problems adapting jobs to the needs of older workers’.

However, the Trades Union Congress (TUC) has welcomed the news. TUC General Secretary Brendan Barber commented, ‘It cannot be right that an employer can sack someone simply for being too old. A key challenge as we live and stay active longer is developing the right kind of jobs, support and training for older workers’.

July 30, 2009

July 28, 2009

“A Case Study”

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More from Issue 9 of “Minimising Trading Risks Abroad”, from Ray Stannard of International Trade Financial Solutions

http://www.inttradefinsolns.co.uk

 

Tomorrow, “Foreign Exchange Options?”.  Today, a Case Study.

 

No names, etc., but here’s an overview of an issue that I was recently asked for help.  A relatively new business, started up by a young woman who was born and brought up

in China, but had been in the UK for the past 12 years or so, was looking to expand and reduce overheads by importing directly from China as opposed to using a UK distributor.  Her main issues were that she would have the direct relationship with the manufacturer, how best to structure the deal from a cashflow point of view and foreign exchange

issues. 

The first was perhaps less of an issue, given her ethnicity.  Nevertheless, the need to undertake fact finding trips and to keep in regular contact is essential.  On the other 2 points, I explained the different options available [partly referring to the 'Risk Ladder' - which I talked about last month] and illustrated to her the effect on cashflow.  Typically, many Far East suppliers need funds ‘up front’ to allow them to manufacture.  Correct contract structuring at this point in the process can often avoid any physical cash prepayment, which is important. 

Buying in US Dollars and selling in Sterling meant that she had to keep an eye on her expected profit margin from the whole deal, so we discussed how she could do this whilst retaining

some flexibility to allow for delays in shipment, etc.  All in all, over the course of a couple of weeks [not intensive], she was able to decide how best to structure

this particular opportunity to the benefit of both her business and that of the seller.

If this sounds like something your business, or someone you know could benefit from, let me know.

July 27, 2009

“Glossary of International Trade Terms – the “B’s”"

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From Issue 9 of “Minimising Trading Risks Abroad” – the monthly newsletter published by Ray Stannard of International Trade Financial Solutions

Http://www.inttradefinsolns.co.uk

 

Tomorrow, “A Case Study”.  Today, Part 2 of the glossary of terms – the “B’s”.

 

That’s B’s as in the letter B, not anything else, although the 2 terms that I’m covering here are right B’s!.  Before anyone starts worrying, I’ve no intention of filling out the next 26 issues with 1 letter per month, partly because we’ll all lose the will to live and I’ll get stuck on some of the more exotic letters later on.  It just seems that the early part of the alphabet has more terms.  However, the letter B will be rewarded with more next month……..

OK, then, the 2 worst B’s.

Bill of Exchange

One of the most confusing documents until you understand it, then it’s easy – honest! Often referred to as B/E, BEx, BoE and some other variants.  Here, I’ll call them

B/E. There’s the legal definition and a more colloquial one, both of which do explain.

 

The legal one first.  B/E have their own piece of Legislation, The Bills of Exchange Act, 1882.  In it, a B/E is defined as ‘An unconditional order, in writing, addressed by one person to another, signed by the person giving it requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a certain sum of money to, or to the order

of, a specified person or to bearer’.  There, clear as mud.  Perhaps an easier way to explain is to think of a cheque.  If you think of a cheque as a form of ‘IOU’ in as much as if you owe me money, you will write out a cheque in my favour.  The B/E, however, is a ‘You Owe Me’, i.e. in the above scenario, I would write out the B/E and sign it, before giving it to you.  In turn, you would sign to acknowledge the debt due, and then pay according to the terms – straightaway [pay on demand] or later [at a fixed or determined future date].  B/E are not common in UK trade these days [except for some specific sectors] but are common in International Trade – especially for those who deal with Letters of Credit or Collections – both of which will be explained when we get to the relevant letter.  Therefore, if you do deal with these, it’s important to understand what a B/E is and, more importantly, what you can do with it, since, especially under Letters of Credit, they can be used to raise funds.

Bill of Lading

Not to be confused with B/E above.  Bills of Lading are often referred to as BL or BLading.  BL here to save space.  A BL is a document of title to the goods to which it refers.  It is issued to cover sea shipments and is usually issued by the shipping company.  It also acts as a receipt for goods received for carriage and providesevidence of the terms of the underlying contract between the shipper and transport company.  Being a document of title, the buyer [or more usually their agent] needs to present an original BL at the destination to obtain the goods.  BL are often issued in sets of 3 original – any one can be used to collect goods – plus any number of non negotiable copies.  It is important that, as a buyer, you know how many original BL are to be issued and that you can account for them all.  They are usually referred to in documentation,as, for example, 3/3BL + 2NNC, meaning 3 original Bills of Lading

[any of which can be used to obtain the goods] and 2 Non Negotiable Copies.

That’s more than enough for this month.  Both are important, though, and if you are involved in International Trade, it is well worth taking the time to understand their functions and some of the drawbacks and advantages of using them.  For Bills of Exchange, they can have a beneficial effect on cashflow in some circumstances, so find out more before you sign any contracts.

 

July 2, 2009

“Business Matters Summer 2009 – Should you top up your National Insurance Contributions?”

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From: Branston Adams, Chartered Certified Accountants, Suite 2, Victoria House, South Street, Farnham, Surrey. GU9 7QU

Tel: +44 (0) 1252 728 598 Fax: +44 (0) 1252 728 652

Email: paul@taxaccountancy.com

www.branstonadams.co.uk

 

“To download this newsletter in full, go to http://www.branstonadams.co.uk/newsletters.htm.”

The amount of state pension you will receive upon retirement is based on the number of full tax years during which you have paid national insurance contributions (NICs). These years are called qualifying years. If you will reach state retirement age (currently 65 for men and 60 for women) before 6 April 2010, or are already over that age, you need up to 44 qualifying years (for men) and 39 for women in order to achieve a full state pension. This can be difficult to achieve if you have spent some years in full-time study or caring for children.  In such cases, you may wish to top up your NIC record for some of the missing years to improve the amount of state pension you will receive upon retirement. However, before you make this decision you need to check how many qualifying years you have already accumulated. You can do this by ringing the NI enquiries line on 0845 915 5996.  If you are due

to reach state retirement age after 5 April 2010 you will only require 30 qualifying years to receive the full state pension, so a top-up may not be necessary.

If your 65th birthday (60th for women) falls between 6 April 2008 and 5 April 2015, you have a unique opportunity to top up your NIC record for any six tax years since 1975 where you are missing contributions. You may do this by paying voluntary Class 3 NICs at £12.05 per week. The National Insurance office is responsible for notifying taxpayers when they have not paid enough NICs in a tax year to make it a qualifying year.  However, for the years 1996/97 to 2001/02 the office failed to do this.  Consequently, many people received letters informing

them that their NICs for past years had fallen short.  Despite this, taxpayers who reached retirement age before 24 October 2004 can still top up their NICs for the years between 1996/97 and 2001/02 by 6 April 2010.  Furthermore, contributions may be paid at the rates that applied in those years.

The deadline for paying NICs for missing years is generally six years from the end of the relevant tax year. So if you missed paying contributions in 2003/04 you have until 5 April 2010 to top up that year.  Paying missing NICs for a recent tax year will also allow you to qualify for incapacity benefit or maternity allowance. You may want to provide cover for these allowances even if you already have 30 qualifying years.  Please note, if you reach state pension age on or after 6 April 2010 your entitlement to bereavement allowances will still depend on 44 years (men) or 39 years (women) of contributions. If you qualify for Home Responsibilities Protection, this will help to protect your entitlement to the state pension, and could reduce the number of qualifying years required.

We can help you to decide whether to top up your NICs, and to plan for a more comfortable retirement – please contact us for details.

Tomorrow:  “The Rise and Fall of Furnished Holiday Lettings – New penalty system for incorrect tax”

 

 

July 1, 2009

Business Matters Summer 2009 – Retaining Existing Business

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From: Branston Adams 

Chartered Certified Accountants & Savvy Panellists

Suite 2, Victoria House, South Street, Farnham, Surrey. GU9 7QU

Tel: +44 (0) 1252 728 598 Fax: +44 (0) 1252 728 652

Email: paul@taxaccountancy.com

http://www.branstonadams.co.uk

 

Tomorrow: “Should You Increase Your National Insurance Contributions?”

 

You can download the newsletter in full by visiting

http://www.branstonadams.co.uk/newsletters.htm

 

Introduction

 

Maintaining your existing customer-base is invariably less costly than generating new business. Consider the following low-risk strategies.

 

Responding to current trends

 

Researching current trends in the market and observing how your customers and competitors are responding will allow you to adjust your products or services accordingly, and to compile

a clear and consistent marketing message which demonstrates how you can meet the changing needs of customers.

 

Increasing cross-selling and upselling

 

Cross-selling and upselling to existing customers are cost-effective ways of increasing revenue. Make sure your customers are aware of the other products and services

you can provide and offer them incentives to increase the volume and range of their existing orders.

 

Rewarding loyalty

 

Offering a loyalty scheme for long-standing and valued customers can show your appreciation and help to secure future business. Consider including loyalty vouchers to encourage your customers to try your other products or services; these can be a preferable alternative to cutting prices and will not devalue your business.

 

Keeping in regular contact

 

It is important to keep the lines of communication open. You might send a regular newsletter to your top customers, offering useful information and advice while

promoting your services. Contact customers by telephone to discuss how you can help them further, and if appropriate offer to arrange a meeting.

 

Generating new leads

 

As well as working to maintain existing customers, businesses must also continue to target prospects. By instigating some low-cost marketing strategies, you could even turn the situation to your advantage by gaining market share from your competitors.

 

Encouraging referrals and recommendations

 

Setting up a cross-referral system with your suppliers, an other businesses that complement yours, is an effective way of generating mutually beneficial leads. You can

also use incentives to encourage existing customers to recommend your business.

 

Networking

 

Attending conferences, networking events, trade shows or lunches can generate significant new business opportunities. You can improve your success rate by researching the details

of the events beforehand and selecting those which are most likely to generate useful contacts.

 

Your business website

 

A well-designed and up-to-date company website provides both prospects and customers with 24-hour access to your products and services, and can be an

effective and low-cost way of generating sales. Make it easy for visitors to find information and place orders, and include your website address on all correspondence.

 

Electronic marketing

 

Sending a monthly email update containing news, information and useful tips is another cost-effective way of keeping in regular contact with both customers and prospects, and

reminding them of how you can be of assistance.

 

Marketing your business in a downturn

 

During times of economic difficulty, the marketing budget is often one of the first casualties.  However, in a recession it is more important than ever to promote awareness of your

business, protect your existing customer base and to be well-positioned when the economy picks up.  In an economic downturn, it is essential to find ways of securing new and repeat business.  With careful planning you could even improve your business’s prospects in the long-term.

 

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