Welcome to BPU's 2017 Winter Newsletter

BPU 2017 Highlights

Cardiff 10K 

Twelve staff at BPU completed the Cardiff 10K in September - Congratulations to everyone who trained hard and took part. We continued to fund raise and finally hit our target of £1000 raising a total of £1,193 for Kidney Wales Foundation. We chose this charity for the amazing help and support friends and colleagues had recently received from the charity. We were also delighted to receive the Cardiff 10K Team Challenge Trophy. Well done team BPU and here is to the 2018 Cardiff 10K - lets start training!

BPU Advises Long-standing Client on Successful
Sale of Business 

An established firm of Cardiff based solicitors has been acquired during its 30th year in business. 

Tristan Agland, a senior solicitor at the firm, completed the management buyout from the firm's founder Stuart Hutton and partner Clare Strowbridge, who will remain as consultants in the business.
Stuart Hutton and Clare Strowbridge were advised on the sale by Huw Palin of BPU Chartered Accountants. BPU have acted for Hutton's since it was established in 1986.

Huw Palin, Managing Director of BPU said: “I am extremely pleased to have assisted Stuart and Clare in the sale of their practice and am confident that the Hutton's brand and the quality legal advice that it stands for will continue to flourish under Tristan's management.  BPU have advised on a number of similar deals this year which reflects the current flourishing corporate finance market in South Wales."

Tristan is now Managing Director of the newly created Hutton’s Law Limited.The practice will continue to trade as Hutton’s Solicitors from its existing offices in St Andrew's Crescent, Cardiff. The firm has ambitious growth plans including the opening of a new office at LLandow in Cowbridge plus an expansion of the firm's business services section which already provides a wide range of services including commercial property, company/commercial, construction law and dispute resolution.

Tristan Agland said: "We have built a strong reputation and brand in the South Wales market place Having spent the last 10 years of my legal career at Hutton’s I am now looking forward to leading the firm as it faces the challenges of a "post brexit" commercial environment in Wales. Hutton’s has a team of client focused lawyers who are passionate about what they do and I have nothing but confidence in the firm’s ability to grow and expand its current market presence." 

Tristan Agland Managing Director (L) of Hutton's Law Limited
with Huw Palin Director BPU.

BPU's Dawn Bevan in Top 100 Business Woman

BPU's Senior Manager Dawn Bevan made the Top 100 Business Woman published in November 2018.

Due to the success and contribution women in business are making to the economy Pinkspiration launched the Top 100 Business Women in Wales in partnership with I am WOMAN. After receiving hundreds of nominations from all over the country the Top 100 Business Women were announced and BPU were so proud to see their Senior Manager Dawn Bevan on the list.

Dawn has been a practising Chartered Certified Accountant for 30 years working predominantly with SME's, professional practices and Third Sector companies. Dawn's work involves general business advice as well as traditional auditing, accounts and taxation work.

Dawn said: "I was delighted to be listed in the Top 100 Business Woman in Wales List. During my 30 year career it is pleasing to now see a more equal playing field for men and women in business. Here is to the next 30 years!"

New For 2018 

HMRC recently unveiled plans to replace the £100 late filing penalty for late or missing self assessment tax returns with a new points-based, 'driving licence-style' system. See full article later.

Meanwhile, as the dust began to settle on Chancellor Philip Hammond's Autumn Budget, he announced that his first Spring Statement will be delivered on Tuesday 13 March 2018. Our full budget report is still available for reference on our website if you need a reminder of any of changes :https://www.bpuaccountants.co.uk/news-and-events/bpu-news/autumn-budget-report-2017

Additionally, a recent government survey on Making Tax Digital (MTD) has revealed that seven in ten respondents are 'unaware' of the new digital tax initiative, with a further 40% reporting that they need additional guidance to begin preparing for the introduction of MTD in April 2019. Our informative factsheet is available for help with this see below.

We would like to send everyone our best wishes for a happy and prosperous New Year. 


MAKING TAX DIGITAL: Read our factsheet here for the latest update
BPU are looking for GRADUATES.

Government Proposes Replacing Self Assessment Penalties
with new Points-based System

The £100 penalty regime for filing a late tax return could be scrapped and replaced with a new 'driving licence-style' points system, HMRC has revealed.

Under the current system, taxpayers who fail to submit their tax return by the 31 January deadline are liable to an instant £100 fine, with further penalties applying for prolonged delays.

Under new plans being considered by the tax authority, taxpayers who miss the self assessment filing deadline could receive points instead of an immediate fine. Only those taxpayers accruing too many points would then be penalised. Individuals would also see points wiped from their record after a set period of time.

It is thought that around 840,000 taxpayers missed the filing deadline in the last tax year.

The new 'holistic' approach is intended to focus on taxpayers who persistently break the rules rather than those who make genuine errors of judgement.

The proposals are included in the Treasury's Red Book, which states: 'The government will reform the penalty system for late or missing tax returns, adopting a new points-based approach. It will also consult on whether to simplify and harmonise penalties and interest due on late payments and repayments'.

HMRC intends to consult on the plans, and must seek approval from Parliament. If approved, the new points-based system could undergo a phased introduction for different taxes.

However, some experts have warned that the abolition of the £100 late filing penalty could have 'unintended consequences'.

The Association of Taxation Technicians (ATT) warned that a new points system could generate anomalies, and has urged the government to ensure that the consultation details exactly how the new system would work, in order to avoid such anomalies.

We can help to ensure that your tax returns are filed accurately and on time - please contact us for further assistance.

Graduates Required

BPU are looking for ambitious new graduates for our Chartered Accountancy Training Programme. We would be very grateful if our clients could spread the word or recommend any suitable candidates that may be interested in joining our training programme.

New Year - New BPU Baby !
Congratulations to our Sophie Ong who gave birth to a beautiful baby girl on New Years Day. Ruby Sophia Ong arrived safely on 1st January weighing 8lb 11oz and both mother and baby are home doing well. We can't wait to meet baby Ruby.


Tax Advice - Martin Knight BPU Head Of Tax
Protecting Wealth and Assets of a Limited Company
In the current economic climate  in which there are a number of uncertainties surrounding Brexit negotiations, it is an opportune time to consider protecting the accumulated wealth and assets of  a Limited Company or group of companies.  This can be achieved through the undertaking of a share reorganisation.  Reorganisations can have many benefits: for example protecting existing businesses when embarking on new ventures; protecting assets; to cater for the orderly separation of businesses etc.
A reorganisation is a general term used for adjusting the share capital of a company, typically to introduce a 'parent' or 'holding' company.  In this scenario, the share capital of a company would be sold  to a new company.  In return, the new company will issue shares to the original shareholders.  The resulting structure is a parent company with a trading subsidiary with owners that mirror the original shareholding of the trading company.
Once a group structure has been established, it is possible to transfer assets including cash from the trading company to the newly established parent company, tax free.  In the case of a subsequent business failure, uninsured claim etc of the trading subsidiary, the assets held within the parent company will usually be protected from any creditor claims.
The expectation of a  tax liability often dissuades business owners/managers from undertaking a reorganisation  but it is possible for the commercial advantages to be realised  without triggering a tax bill of any sort.  With careful planning and setting out the commercial rationale for a reorganisation to be undertaken, HM Revenue & Customs (HMRC) will provide tax clearances, before you formally begin a reorganisation to effectively confirm that no tax liability will arise. Such an approach provides clients with comfort before undertaking the reorganisation.
There are a number of commercial, non-tax, matters to consider too, such as the impact a reorganisation may have upon a trading company's credit rating or ability to raise finance and these should always be considered prior to a reorganisation taking place. However, in the majority of cases with careful planning and thought these can be overcome to deliver a successful outcome for all.
At BPU we have advised upon a number of reorganisations ranging from the simple scenario mentioned above to more complex situations. 

The New Land Transaction Tax (LTT)

The Welsh government has also recently exercised its devolutionary powers: in its Draft Budget, which was published in October, the Welsh government outlined the proposed rates for a new LTT which will replace SDLT in Wales from 1 April 2018.

From this time, those seeking to buy residential property worth up to £180,000 in Wales will pay no tax on the purchase. In a written statement published on 11 December, the Finance Secretary for Wales, Mark Drakeford, announced that individuals purchasing property worth between £180,000 and £250,000 will pay a proposed 3.5% in LTT, and those purchasing a home worth between £250,000 and £400,000 will pay 5%.   

The starting threshold for LTT was originally set at £150,000, however this has subsequently been increased to £180,000 in order to 'help everyone in Wales seeking to purchase a home.  

Devolution of Welsh Income tax

From April 2019, the National Assembly for Wales will have the power to vary the rates of income tax payable by Welsh taxpayers.

The National Assembly for Wales are yet to determine what the three Welsh rates of income tax will be. We will continue to monitor this and provide further updates in due course.

If you would like any further advice regarding any of these topics please contact:

Martin Knight, Head of Tax at BPU Chartered Accountants
Email martink@bpuaccountants.co.uk
Tel: 029 2073 4100  


31 January
Deadline for submitting your 2016/17 self assessment return (£100 automatic penalty if your return is late) and the balance of your 2016/17 liability together with the first payment on account for 2017/18 are also due.
Capital gains tax payment for 2016/17.
Balancing payment - 2016/17 income tax, Classes 2 and 4 NICs.

Quote of the month

'Businesses trading between the UK and Europe have done their best to focus on the potential impact of Brexit on their operations, rather than on the day-to-day political noise.'

Dr Adam Marshall, Director General of the British Chambers of Commerce, commenting on the business group's call for the commencement of transition and trade talks in the Brexit negotiations. 

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