Gone fishing?

My in-box has been overflowing….sadly, it’s not with heartfelt New Year wishes, but with phishing emails.

There’s been the usual collection of fake missed deliveries “in time for Xmas”; offers to help me enlarge something I don’t have; and fake remittances with malware for attachments. 

As ever, if I don’t recognise who they’re from they just get deleted – if they’re for real, someone will ring me to chase them up.

I’ve also been preparing myself for the annual round of fake HMRC repayment letters where the spammer implies that you have overpaid tax and can click on a link to get it back. 

We’re pretty much there on this year’s personal tax returns so I’m waiting for this bunch of feeble attempts to con me to start flooding in.

Believe me, I have a chuckle at a good fake, one that has a good story to it.  The Nigerian astronaut stuck on the space station was one of the best 419 scam emails I’ve ever seen. 

I suppose they appeal to my sense of humour.  They still go in the bin but they do give us a laugh at Battleaxe HQ.

What I wasn’t expecting, and don’t appreciate, is getting letters from HMRC, which while not fakes are ‘fishing’ for all sorts of detailed information that is nothing to do with the client’s actual tax affairs. 

We’ve even been asked to provide personal bank statements for the wife of a client, who isn’t a shareholder or a director of the business!

Now, if they’ve got good reason to ask that’s fine.  But HMRC doesn’t actually have the right to demand anything they think they might like to see.

The taxpayer has every right to push back and demand to know why any item is relevant.  And believe me, we have been. 

When we do nine times out of 10 HMRC backs down – the latest was an admission that they’d “made a mistake in asking” – but far too many people just provide the information without thinking.

Our policy is to ensure that clients pay the right amount of tax (not too much and not too little) but with HM Treasury short on tax take I suspect we can expect more of these seemingly innocent phishing expeditions. 

Just remember: if you take the right advice you can then push back and put it in the bin.

Failing to read the small print could prove a costly mistake

It’s very easy to unwittingly agree to things you didn’t realise you were signing up for!

How many times have you been asked to “just sign here” to open an account with a supplier?

Well, one of our clients opened several trade accounts for his limited company only to find, when the business stumbled, that he’d effectively signed away his car and his house.

The innocuous looking standard terms and conditions on the back of the account opening form actually contained a stringent personal guarantee.  He’d signed so the law assumes he’d read the small print first.

I personally walked away from an agreement recently because it said “if you don’t use the sessions within 90 days they WILL be forfeit”. 

When I worked it out, it wasn’t possible to use the sessions within 90 days as my trainer was planning a break during Christmas and the gym potentially needs to close to do building work.

Despite verbal assurances that they have never enforced the clause, I wasn’t willing to sign up.

So, my trainer has lost the advantage of me paying up front – I’m still going to do sessions as the Battleaxe needs to keep fit to wield a rolling pin with full force!

Insurance policies are another classic of this. People shop around for the cheapest deal only to find that there is a reason for that – they’re not covered when they want to claim because of the various exclusions on the policy. 

For example, you are only really covered for theft if you have window locks of a certain type fitted.

Oh, and don’t forget, in this season of goodwill, to check your rights to return goods that you buy as presents or in the sales. There may be time limits for returns; you may only be able to get a credit note unless the good are faulty; there might only be a limited time to activate an additional warranty.

So, whether it is business or personal, read the small print - or it could cost you dear!

Why would anyone in their right mind become an employer?

In recent times, I’ve come to wonder more and more why anyone in their right mind would become an employer!

Think about it: all of us who employ people will soon be in the depths of auto-enrolment pensions.  Even if no employees take up the scheme, the employer has to jump through the hoops of setting up a scheme and communicating loads of very technical details to employees.  That’s after dealing with a stream of employee questions because the adverts have been on TV.

Many are facing the situation that their Stakeholder Pension provider won’t convert an existing scheme to auto-enrolment and, because they’ve only been required to join in later in the process, that other providers are closing their doors to new applicants.  And now time is ticking with the penalties for missing deadlines being harsh.

The push for employees to be paid a living wage, not just the minimum wage, is growing.  Many smaller employers are facing constant downward pressures on their prices so will have to face the prospect of cutting employee numbers if they have to pay employees they keep more.

The prospect of overtime hours costing more for reasons from living wages to the recent holiday pay ruling (albeit that is likely to be appealed), may mean that some employers decide against allowing overtime because the added costs exceed the additional profit that can be made.

Then add in the fact that apparently ever-greater rights for employees to ask for (or is that demand?) flexible working patterns can and does cause real headaches for scheduling/resourcing.

With pricing pressures on one side and the cost of employing people on the other there can come a time when a company is struggling to survive.  Then the hard decision of reducing head count often has to be made and, oh boy, the cost and risk of doing that is daunting.  A long-standing employee could be entitled to several months’ worth of pay when you combine redundancy and notice pay – all at a time when the business is trying to save money and may be short on cash.

Oh yes, and small employers can no longer reclaim the cost of Statutory Sick Pay.  You’ll have heard about the £2,000 employer’s NIC rebate and that’s great but the cost of one employee being on extended sick leave soon takes away that benefit.  After that sick pay is a real cost to the business and there’s nothing they can really do but pay it.

I could go on - and yes, I know it’s a potentially depressing list!

That said, for me I know (looking round my offices) that the trials and tribulations are outweighed by the reward of building a happy and productive team.  Running a small business means working with staff who can (and should) become an extended family and, if you get it right, then each member of your team will actively strive to grow a prosperous future for the whole business and everyone involved with it.

Why? It ain't necessarily so!

As a small business owner, I have been watching the coverage of the various party conferences to learn just what each party is going to do to help ease the lives of the millions, like me, after the election next year.

Coincidentally, I unearthed a Jimmy Somerville compilation CD. As I read down the play list, the titles of the songs were exactly the words coming out of my mouth as I listened to the politicians who were trying so hard to win my vote in 2015.

‘Why? It Ain’t Necessarily So!’  So many things unanswered and so many sweeping statements with no proper reason or explanation. What I heard left me ‘Disenchanted and Screaming’ at the TV because their view of ‘Tomorrow’ does nothing substantive to help people running businesses.  Quite the reverse in some cases!

Obviously that is contrived, but then messages I wanted to see coming out of the conferences were that:

• red tape and compliance costs were going to be cut;
• HMRC would be reviewed root and branch to work with businesses;
• the draconian and impractical employment laws would be relaxed for smaller businesses; that there would be more incentive for businesses to grow ­­- so many rules kick in when a business reaches a certain size;
• we would see a big rise in the VAT threshold keeping lots of tradesmen who deal mainly with domestic consumers out of the VAT threshold making it easier for them to make a living without having to raise their prices just because they need to charge VAT;
• enforceable and effective sanctions for persistent late payers.

Unlike those in jobs, there is no minimum wage for the self-employed and many really are living in Breadline Britain still, despite the economy showing signs of picking up.  Many can’t get credit because they are self-employed or, if they do, they pay a premium rate for it. During the recession, many have drained their savings and maxed out their credit cards to cover the consequences of late payment by customers or even bad debts so are paying interest at high rates, whilst their late paying customer is watching Sky TV on their brand new 3D TV.

Whoever wins the next election will be the one that has policies that help to stabilise the backbone of the British economy – the small business. To quote more from Jimmy – ‘Read My Lips’, ‘Make Me (Us) Feel Mighty Real’ and give small businessmen ‘Something To Live For!’

One month each year as unpaid as Government lackeys

Every day small businesses across the land are acting as unpaid administrators for HM Government and the burden is getting bigger and bigger.  Looking at the time that I have spent in the last 12 months:

• Pensions auto –enrolment – researching, talking to advisors, filling in forms, providing information - 3 days
• Real Time Information payroll – including additional time sending reports and liaising with HMRC re their misallocation of payments/failure to give credit for Maternity Pay - 2 days
• Pre-employment right to work checks for new employees - 1 hour
• Government generated surveys - 2 days 
• Money laundering checks on new clients and routine updates - 6 days
• Down time Health and Safety reviews/PAT testing etc - 1 day
• VAT returns - 4 days
• Other bits and pieces including keeping up to speed on changes - 3 days

Total: 22 days

Whilst these are only indicative, we are spending about a month a year on unproductive time caused either by HM Government requirements or its inefficiencies.  We are not a complicated business so I dread to think how much time some businesses are spending either in time or professional fees.

So many times Government initiatives are heralded as helping to simplify things, but its systems just aren’t able to cope with it.  On Real Time Information (RTI) alone, one part of Her Majesty’s Revenue and Customs (HMRC) acknowledged that it could see the maternity pay, but the debt collectors couldn’t.  I heard myself saying “take me to court and I’ll take great pleasure in telling the world about HMRC’s inadequacies”. Even the National Audit Office says that its systems are “not fit for purpose”.

In the run up to an election, I would call for every political party to look at proposals to reduce this burden to business.  Businesses are finding it tough enough in these rocky financial times and need to be left to getting on with earning money to pay their bills and their employees, not spending time acting as unpaid civil servants.

Why not celebrate our Yorkshire roots?!

By Amanda Vigar, Managing Partner, V&A Bell Brown LLP

Earlier this month, we celebrated Yorkshire Day (August 1) – a day when us Tykes joyously celebrate our roots! It’s a day when Yorks dialect and heritage is revelled in. Yorkshire people worry that it has become a media and marketing jamboree, perpetuating stereotypes of whippets, black puddings and flat caps. But I say, why not celebrate a day dedicated to God’s own country?

You don’t have to be too long in the tooth these days to remember a time when everyone knew everyone else. Relatively recently geographical loyalty was almost ingrained into the national psyche. TV series like ‘Last of the Summer Wine’ celebrated Yorkshire pride and plucky regional spirit. Back then, anywhere outside Holmfirth where the rag tag characters lived, was seen as a bit foreign; everyone existed in a microcosm. Everyone knew everyone else and everyone else’s business. Or that’s the way it seemed.

Skipton was recently lauded as the finest place in Britain to live because of a combination of low crime rates, top-class schools and great transport links. It also, like Holmfirth on a smaller scale, has a thriving high street that is not dominated by national chains and identikit facades. But there’s no denying that places like this have changed from years ago.

There’s a refreshing change in that newcomers to an area can feel accepted within months rather than a lifetime.  There are however many good things to lament about the death of belonging. The absence of a sense of community may lead to alienation among the younger generations, in particular. The lack of jobs and the non-existence of a ‘job for life’ facts can lead to problems in formerly close knit communities.

One of the ways of increasing the feeling of belonging is to try and put the people back into business. This can be achieved with a more customer focused approach with the aim of building up long-term working relationships.

In my own accountancy practice, we like to put the people back into business. In practice, this means that we work with numerous people in all sorts of trades and occupations; we have built strong relationships based on trust with our clients; clients know they can meet with the same person every time and are not simply assigned to whoever is available; and we value each and every client, no matter how big or small.

On balance, these days we probably have a better deal. Today, we can celebrate our Yorkshire roots, without feeling trapped by them. We can enjoy our heritage without feeling defined by it. We can celebrate all that is best in our county while welcoming neighbours and those who are attracted to settle here. We haven’t got everything quite right, but we are certainly on the right tracks.

West Yorkshire Business Jury delivers unanimous verdict in favour of new flexible working rules

The West Yorkshire Business Jury , which is run by Holmfirth firm of accountants and business planners, V&A Bell Brown, has delivered a unanimous verdict in favour of new flexible working rules. 

The jury, which is made up of business owners and directors from the West Yorkshire area, returned a 7-0 vote in favour of the recent announcement that allows all employees to request flexible working hours from their employers.  

Business Battle-axe Amanda Vigar, managing partner at V&A Bell Brown, who delivered the ruling, believes that flexible working arrangements can help with staff morale and motivation. 

She said: “I have allowed staff to have flexible working arrangements for some time now, and it has worked very well. As long as flexible working doesn’t have an impact on the bottom line, then it could be good for business. 

“It may well be difficult for smaller businesses to accept flexible working arrangements but larger small and medium sized companies are more likely to be able to afford to be flexible with staff. There are numerous benefits to flexible working including increased staff morale and well-being and numerous studies have shown that this can impact positively on the bottom line by decreasing levels of stress and increasing levels of motivation.”

Mark Sanderson, director at QED Finance, agreed with Amanda as he feels that the new rules will help firms recruit loyal workers and retain their best performers.

He said: “Extending the right to request flexible working will help to create a cultural shift towards more modern, 21st century workplaces where working flexibly is the norm. Firms that embrace flexible working are more likely to attract and retain the best talent and reap the benefits of a more motivated workforce.”

Charles Brook, of Brook Business Recovery, agreed with the new rules in principal, but believes that it may prove to be more difficult for smaller firms to implement. 

“From an employer’s perspective, it’s good to have staff who feel they can legitimately approach their employer. However, because of the close relationships small employers have with their employees, they may feel unduly pressured to agree with these arrangements, whereas larger employers will have less emotional pressure to agree with requests.”

Mike Funnell, of Power Tool Services, also believes that it is a good idea, but some professions may not be able to grant employees such flexibility.

He said: “Obviously, it is very good news and will help with staff morale and productivity. Although employers would love to grant flexible working hours, it depends on the process and nature of work. Then again, the employee knew what hours they would be expected to work when they agreed to do the job.” 

David Richter, of Coral Homes UK, feels that the new flexible working rules will be beneficial to staff, as long as it doesn’t conflict with efficiency.

David said: “In general, I have no issues with the revised flexible working rules as long as it doesn’t conflict with efficiency. Businesses have worked hard during the economic downturn to progress, which has been achieved through increased efficiency in difficult conditions, so what you can’t have is people undermining this and only wishing to work flexible hours to suit themselves.” 

Morgan Wilson, of Juice Learning, believes that flexible working hours are fundamental for organisations, but only if the employee is willing to show their employer the same level of support.

He said: “I am absolutely for the new flexible working rules, which can be a massive help for employees, especially those with families, so long as it isn’t taken for granted. Employees should be prepared to give the same back to their employers when patterns of work increase, for example.”

Max Earnshaw, of Earnshaw Kay, rounded up the verdict by agreeing with Morgan, as he feels that it is a good idea, especially in small and medium sized businesses. 

He said: “As a matter of course and wherever it is possible, we operate flexible working arrangements for our staff. I think in a small and medium business environment it is general practise, as long as it is viable and doesn’t impact on business.”