According to a survey conducted under a freedom of information request by the Labour Party, the number of elderly people having their home care services fully paid for by their local authority has fallen by 11% over the past two years, in spite of the ageing population.

The figures showed the average charge for an hour of home care increased by over 10% between 2009/10 and 2012/13, however there were wide variations across the country.  Some councils provide the care free whilst others charge up to £21.50 per hour.

And these variations are not limited to the hourly cost.  Although some councils cap the weekly costs people are required to pay for home care, this varies from around £90 to £900 a week.  Additionally almost half of the councils who reported having a cap on home care charges in 2009/10 have now removed it.

The increase in home care charges means the average annual cost for an older or disabled person who pays for 10 hours of home care a week has increased to £7,077 a year in 2012/13 – up more than £680 since 2009/10, according to the Labour Party.  Shadow care minister Liz Kendall called the increases “a stealth tax on the most vulnerable people in society”, citing not only the increase in hourly costs but also the reduction in the numbers receiving free care. 

Taken in isolation these figures are worrying, and probably not that surprising.  However, this is only part of the story.

Figures published by SAGA earlier this year suggested that inflation for retired and elderly people is higher than the more often quoted inflation rates of RPI and CPI.  Indeed, for the over 75’s it estimates that the increase in living costs for the 4 years to October 2011 was over 20%.  Add this to the above figures and it’s a very worrying position for anyone directly or indirectly looking at funding care costs.

Taking proper advice on funding care costs has never been more important.  Organisations like SAGA and The Society of Later Life Advisers (SOLLA) can provide useful guidance and literature.  Alternatively, for a free initial discussion with a specialist in financial planning for later life and retirement, please give me a call. 

Gareth Tregidon

Financial Planning Manager

1. Relief against income tax of 50% for investments of up to £100,000 per annum irrespective of the investor’s marginal tax rate.
2. Capital Gains Tax Free Disposals; and 
3. For investments made in the 2012/13 tax year only, an exemption from capital gains tax on gains arising on the disposal of an asset in the same tax year where the proceeds are reinvested under the SEIS. 

In certain circumstances, there is potential for a 50% taxpayer to receive £103 back from HMRC for every £100 they invest.  Even for a 40% tax payer it could potentially be £98 per £100. 

In order for a company to qualify it must have total assets of no more than £200,000 and fewer than 25 employees immediately before the investment. It must also satisfy a number of conditions which are aimed at ensuring it is a genuine start up.

If you would like to know how your company could attract investment in this way or if you are interesting in making investments, please contact Jeannette McLellan or Lee Bradley.

Jeannette McLellan – Tax Partner
Direct Line – 01792 410101
E-mail – jeannette@bevanbuckland.co.uk

Lee Bradley – Tax Manager
Direct Line – 01792 410119
E-mail – lee@bevanbuckland.co.uk

http://www.bevanbuckland.co.uk

Do you (or should I say “did you”?) get financial advice from your bank?

HSBC’s announcement yesterday that they are making 650 people redundant from their financial services division may have been missed by many.  This follows the 460 made redundant from the same division plus those from its NHFA independent arm in 2011. In this post Certified Financial Planner^CM and manager of Bevan & Buckland’s Financial Planning department, Gareth Tregidon, explains what this means and why it is an important development?

HSBC announced the closure of its tied advice division yesterday as part of a total 2,217 job losses.  The tied advice division provides advice to the majority of the bank’s customers through their branch network, including pensions, investments and insurance policies.  The bank is apparently retaining an independent advice offering, although this appears to cover only their Premier and Private banking operations. 

So why has HSBC taken this decision, and what are the implications?

Firstly it is important to note that anyone with an existing pension, investment or insurance does not need to worry about their policies.  HSBC will still be managing the money held in a pension or investment fund, and providing the insurance cover.

The bank has stated that the decision has been taken as it will no longer be able to afford to offer “mass-market financial advice” once the Retail Distribution Review (RDR) comes into effect on 1st January 2013.  We are planning more on the RDR and the impact this will have on the provision of financial advice in future posts, but what it means in this instance is that banks have been reviewing how much money they make from financial advice, what it will cost them to become compliant with the new rules, and whether they can make enough money from this in the future. 

HSBC are the second major bank to pull out of providing branch-based financial advice, following Barclays’ lead earlier this year.  With the major changes being introduced from next year, is this move really a surprise?  Well, to most of us who have been around this industry for a while, the answer has to be “No”.  However I have to admit to having mixed feelings on the subject.

Firstly, anything that reduces public access to financial advice is, in my view, a bad thing and the banks have provided advice for many years to people who otherwise wouldn’t have received it.  Whilst some areas of advice back then were poor (mortgage endowments spring to mind), we also had more people with life assurance, and a greater number putting money away for retirement, than we do now.  Much of this was due to the availability of advice from the banks and people like “the man from the Pru”!

This is not a reflection on all bank advisers.  I spent several years working for what was then Midland Bank (initially as a tied adviser and latterly as an IFA), and then as an IFA for a firm that was subsequently bought by Barclays.  During this time I worked with many individuals that I would trust implicitly.  The banks in general have provided advice to a far greater percentage of the population, and to different segments within it, than can be covered by most IFAs.

However, with an increased pressure on sales targets financial advice from many banks has appeared, in general terms, to get worse over recent years.  Several of the main banks having been fined by the regulator over poor quality advice: Barclays received fines of £1.1m & £7.7m (plus a £60m+ provision to repay affected clients), HSBC £10.5m, RBS/NatWest £2.8m all in 2011, and Santander £1.5m in 2012. 

This latter point is particularly relevant when considering what’s ahead in 2013, and how this will affect anyone who receives financial advice.  The indications are that a significant number of advisers either have or will be leaving the industry, and the increasing regulation and requirements on firms in the future will push up costs.  Many firms that are currently independent will become what the FSA have termed “Restricted”, although in reality this will not mean a change to the advice their clients receive. 

The landscape for financial advice will be changing significantly in the next few months, however more on that to follow in the near future!

Gareth Tregidon

Financial Planning Manager

Certified Financial Planner^CM

Accredited Later Life Adviser

April newsletter: Tax efficient charitable donations/New employment law regulations

As the debate about tax avoidance, tax relief and charitable donations rumbles on, there are still various tax vehicles in place to ensure charities receive donations in the most beneficial way. This includes gift-aid, payroll giving, and now through a new inheritance tax relief that offers reduced rates if leaving 10 per cent of an estate to charity. We also look at the potential changes afoot which could cap the amount of tax relief on charitable donations.

» read full article

Britain currently ranks 83 out of 142 countries for the regulatory burden it places on businesses, according to a 2011/12 report from the World Economic Forum. As the Government aims to reduce amount of red tape trapping businesses, we look at new employment law changes which were brought in at the beginning of the month affecting unfair dismissal claims and the reporting of injuries.

» read full article

Energy companies came under the spotlight this month as Nick Clegg announced they were to agree to inform their customers about the most suitable tariffs available; saving businesses and households money on their energy bills. Another energy saving move by the Government known as the ‘Green Deal’ is also due to come into force this Autumn, allowing commercial and domestic buildings to take advantage of energy efficient installations at no initial cost.

» read full article

24 new enterprise zones around the UK were launched this month, in a Government plan to encourage businesses into specific areas in need of regeneration and growth. It is hoped that the new businesses will revive and rebalance both the local and national economy, create jobs, and speed up UK economic growth. We explore the various benefits on offer to businesses moving into an enterprise zone, including tax breaks and simplified planning permission.

» read full article
]]> http://blog.bevanbuckland.co.uk/2012/04/26/bevan-buckland-april-newsletter/feed/ 0 bevanbuckland Bevan & Buckland tears bullet http://blog.bevanbuckland.co.uk/2012/04/20/proposed-vat-cost-sharing-exemption/ http://blog.bevanbuckland.co.uk/2012/04/20/proposed-vat-cost-sharing-exemption/#comments Fri, 20 Apr 2012 09:36:33 +0000 Bevan & Buckland Chartered Accountants http://blog.bevanbuckland.co.uk/?p=587 ]]> BEVAN & BUCKLAND ARE PLEASED TO WELCOME A FIRST BLOG POST BY
Centurion VAT Specialists Ltd

Proposed VAT Cost Sharing Exemption – Consultation on Draft Proposal Released
It seems a long time in coming since it was announced in the Autumn Statement 2011,  but Centurion now have sight of the Draft Proposals for the introduction of this new VAT exemption for qualifying recharges, between a shared service centre and its members, to benefit from a VAT exemption treatment rather than a taxable VAT treatment. Comments about “my horse could have had a foal in same time” from me are being ignored by the rest of the Centurion team!

The draft proposals are open for consultation until the 18^th May and Centurion are happy to consolidate any comments from interested parties on the plans for implementation of this VAT exemption or if you’d like to discuss the proposals as the details of its working are becoming clearer (or less opaque!).

What is clear is that the intention is that exemption will only to apply to recharges for services from a shared services consortium that meets the criteria set out in the proposals. We are pleased to report that as a result of feedback from the consultation process there has been a widening of the definitions being applied which should allow more bodies particularly in the charity sector to benefit should a shared service consortium approach look like a valuable tool to have in the cost management tool kit.

The key issues to look at include:

• HMRC’s definition of an “independent group of persons” for the Cost Sharing Group (CSG)
• All CSG members must carry on exempt or non business activities
• HMRC’s definition of “ directly necessary” supplies to members that qualify for the VAT exemption treatment
• Direct re imbursement of costs condition to be applied by the CSG to its members
• Distortion of competition condition that the CSG could be open to from commercial operators

It’s clear that these arrangements will not be the “silver bullet” that sectors such as charities, housing associations, universities across Wales might have initially hoped that it would be, but there is still enough of flexibility in the proposals to make this a serious option to consider where critical mass can be achieved to deliver volume savings: Areas such as maintenance services across the housing association sector perhaps? – and the cost sharing group doesn’t have to restrict itself to groups of entities from the same sector; local authorities could join with charities or with housing associations for a commonly incurred service cost as well.

The proposals can equally apply to the business sector, of course, but those businesses would have to have significant levels of exempt business activity to meet the qualifying conditions but in other European States businesses in the health and insurance markets do take advantage of the relief that the legislation brings to the burden of VAT on their costs so perhaps businesses in the property, exempt training sector, welfare, betting and gaming sectors should at least be aware of the potential this change could yield.

Any responses to this draft proposal will need to be back in with Policy Division in HMRC by the 18^th May.

Centurion will be including the topic for our VAT Forum for FD’S in the Welsh Housing Association Sector, to be held on 15 May 2012 at ESIS Nantgarw, and at our Annual Forums for Welsh Universities and Further Education Colleges held in June.

If you’ve not had sight of the Draft Proposal from HMRC as it currently stands please call Liz Maher on 01633 415390, or send your comments to liz.maher@centurionvat.com for inclusion in our response to the proposal by the 17^th May 2012.

Personal Twitter: @Vatbat            Company Twitter:@centuriononvat

(C) Centurion VAT Specialists Ltd 2012

Bevan & Buckland Free Sage Client Workshops

Revised Schedule and Agenda. (Wednesday May 9^th at the Village Hotel Swansea)

Schedule

Session 1. 9:30am
Making operational tasks easier
Session 1 will start at 9:30am and run until 11am
Coffee and biscuits will be served from 9am.

Session 2. 11:30am
Extracting Management Information from your Sage 50 Accounts
Session 2 will run from 11:30am until 1pm.
Coffee and biscuits will be available between the sessions.

As nearly everyone attending wanted to take part in both workshops we have moved the two sessions together to make better use of everyone’s time.  
If you only want to attend the ‘Extracting Management Information’ session then simply arrive at 11 – 11:30am and sit in on the second workshop.

Free Parking and Free Wi-Fi available

Agenda

Session 1: Making operational tasks easier

Overview:
This session is designed to help existing users of the Sage accounting software range understand how to use the features and functionality of the program that they may not be aware of. This session focuses on how to make the tasks that Sage accounts users do day-to-day easier.

Audience:
Sage 50 Accounts users, but some content will be relevant to Sage Instant users too. 

• How to get different views of your data in the program
• Customising screens so they show the information you need
• Customising data entry screens so they suit your business
• Dealing with customer refunds and refunds from your suppliers
• Create price lists for individuals and groups of customers
• How to use recurring orders and invoices
• Hints and tips for a successful bank reconciliation  

Session2: Extracting Management Information from your Sage 50 Accounts

How to extract the management Information you need from Sage 50 Accounts in a format that you would find useful.

Overview:
This session is designed to help existing users of the Sage accounting software range understand how to get the greatest benefit from management information based on the data they key into Sage Accounts.

Audience:
Sage 50 Accounts users, but some content will be relevant to Sage Instant users too. 

• Exploring the reports already contained within Sage
• Making reports easier to find and run
• Editing existing reports
• Creating your own reports
• Exporting data into Microsoft Excel
• Exporting data into Microsoft Word
• View Sage data in Microsoft Excel  

If you require any more information or have any questions please email events@bevanbuckland.co.uk

There are a few spaces left, if you would like to reserve a place either click here or email events@bevanbuckland.co.uk

These workshops are free and anyone is welcome to attend.

Wednesday May 9^th at the Village Hotel Swansea

The afternoon session will run from 2:30pm until about 4pm and is titled “Extracting information from your Sage 50 Accounts”.

Extracting Management Information from your Sage 50 Accounts

How to extract the management Information you need from Sage 50 Accounts in a format that you would find useful.

Overview:
This session is designed to help existing users of the Sage accounting software range understand how to get the greatest benefit from management information based on the data they key into Sage Accounts.

Audience:
Sage 50 Accounts users, but some content will be relevant to Sage Instant users too. 

• Exploring the reports already contained within Sage
• Making reports easier to find and run
• Editing existing reports
• Creating your own reports
• Exporting data into Microsoft Excel
• Exporting data into Microsoft Word
• View Sage data in Microsoft Excel  

Venue
The Village Hotel Swansea

Date
Wednesday May 9^th – 2:30pm – 4:00pm

To reserve a place either click here or email mail@bevanbuckland.co.uk

These workshops are free and anyone is welcome to attend.

The morning session will run from 9:30am until about 11am and is titled “Making operational tasks easier”.

Making operational tasks easier

Useful hints and tips for users of Sage 50 Accounts.

Overview:
This session is designed to help existing users of the Sage accounting software range understand how to use the features and functionality of the program that they may not be aware of. This session focuses on how to make the tasks that Sage accounts users do day-to-day easier.

Audience:
Sage 50 Accounts users, but some content will be relevant to Sage Instant users too. 

• How to get different views of your data in the program
• Customising screens so they show the information you need
• Customising data entry screens so they suit your business
• Dealing with customer refunds and refunds from your suppliers
• Create price lists for individuals and groups of customers
• How to use recurring orders and invoices
• Hints and tips for a successful bank reconciliation  

Venue
The Village Hotel Swansea

Date
Wednesday May 9^th – 9:30am – 11:30am

To reserve a place either click here or email mail@bevanbuckland.co.uk

These workshops are free to attend and anyone is welcome.

There have been several reports looking at the issues that have arisen within the charity and these highlighted concerns with the following areas:

- Governance arrangements in relation to Awema Management Board (ABOMA) and management;

- Financial controls and processes;

- An absence of key policies and procedures; and an organisational structure that does not adequately support the operations of Awema

These problems at Awema have highlighted an important part of the role of being a charity trustee and the responsibilities involved.

Over the past year we have provided training to a number of charity boards on what good governance means both in principle and in practice. 

It is vital, particularly for new trustees but also for people who have been trustees for many years as the Charity Commission guidance is always being updated.

For guidance on the Hallmarks of an Effective Charity follow this link: http://www.charity-commission.gov.uk/Publications/cc10.aspx#c

If you are a charity trustee and concerned that you do not fully understand your responsibilities we would be happy to deliver training on what is expected of you.

We offer free training to Charities so if you are interested please contact Harri Lloyd Davies on (01792) 410104 or email harri@bevanbuckland.co.uk

Full details of our courses can be found at: http://www.bevanbuckland.co.uk/sites/www.bevanbuckland.co.uk/files/documents/BB%20Charity%20training%20programme%202011%20%282%29.pdf