Your own company may well have been targeted by organisations that have clambered aboard this particular bandwagon and have adopted a scatter gun marketing approach which promises significant benefits at modest cost without taking the time needed to understand the fundamentals of the business concerned.

If we pause for a moment, it is instructive to reflect that R&D tax credits have actually been with us since 2000. Indeed Margaret was probably involved in submitting some of the earliest claims for these valuable credits. To borrow another analogy from the world of couture, they are a wardrobe staple rather than simply this season’s must have item.

To qualify for R&D tax credits, a company must incur expenditure on a project that represents “an advance in science or technology.”  Whilst this advance must be in the global state of knowledge and not just in that of the company concerned; it can extend well beyond the traditional image of “white coats and test tubes.” To attract the tax credits the spend needs to demonstrate a reasonable amount of innovation and/ or creativity. It is not even necessary for a project to succeed. A large proportion of the engineering, processing and manufacturing sectors are potentially engaged in qualifying activity. Indeed we at Reeves have identified many companies whose activities involve “making or processing” that can qualify.

If then, R&D tax credits represent a hardy perennial of the UK tax scene; it is fair to say that not all of the present excitement is mere froth.  An already generous set of arrangements have recently been tweaked to make them yet more appealing.

If your company qualifies as a Small or Medium Sized Entity (SME) – the definition of which is broad enough to encompass some quite large businesses, then with effect from 1 April 2012 the available tax deduction has been increased to 225% of the actual spend!

A special tax deduction may be of limited use to a loss making company, so an SME in this position can surrender its R&D tax credits for a direct cash injection from the government.  The rules surrounding this aspect of the scheme have also recently been liberalised, and indeed, from 1 April 2013, such surrenders may be made by companies too large to qualify as an SME.

We at Reeves have been supporting our clients with their R&D tax credit claims since the very beginning; we should be delighted to discuss with you, on a no obligation basis, any potential claim that you believe you might have.

The aim was to find out whether advisers are acting professionally and giving good advice when it comes to the all-important initial telephone contact between client and adviser.

The criteria that the shopper was judging on was the speed of response, telephone manner, relevant qualifications, payment method, guidance given, knowledge and email/web presence. Only the Reeves adviser had achieved Chartered status and two of the representatives from competing firms did not have any relevant qualifications at all.

The overall verdict was that Reeves financial advisers were the best compared to the other companies they rang. “The shopper found the adviser to be very professional and helpful”.

The mystery shopper from the magazine Financial Adviser selected 3 local IFAs plus an insurance company call centre and sought advice related to pensions. Various aspects of the call are then rated to a total of 35, with Reeves scoring 31, and came out on top.

Paul Howson (pictured) says, “I was delighted to be recognised for my customer service. At Reeves we strive to provide clients with a first class, efficient, caring and continuing professional service.”

Expires 31 May 2012 for non supported customers.

Instant Accounts End of Life V15 or 50 Accounts End of Life V2009
Instant accounts V15 or Sage 50 Accounts V2009 EOL customers can get 12 for 10 on Sagecover Extra or 20% off when they upgrade to latest version.

Expires 30th June 2012 for non supported customers.

50 Accounts 2010 & 2011
50 Accounts customers on versions 2012 and 2011 are entitled to 20% off upgrades or 12 for 10 on Sagecover Extra.

Sage Accounts 2012 update 5 has been released
New layouts for statements, invoices, quotes and orders giving a more professional appearance with out pre-printed stationery. 

As a Sage Platinum Accredited Business Partner we can help you get the best for your business from all of Sage 50 and/or Sage ACT! software. 

Please contact Candice Hanson for more information:
Email: Candice.hanson@reeves.co
DD: 01634 899810
Mobile 07515 062104

Phil, who will be running in Westgate-on-Sea on Thursday 19 July, commented: “I’m very honoured to have been selected for this opportunity and have had a great response from friends, family and clients. To be honest, the whole experience has still not dawned on me yet. I don’t think it will hit me until you start to see pictures of the Torch going round the country”. 

Clive Stevens, Managing Partner at Reeves, commented: “I was delighted that Phil was chosen. He deserves this chance in recognition of all his community and charitable efforts, especially in raising money for Demelza when he was one of the Reeves skydivers”. 

Phil was nominated through Lloyds TSB, Presenting Partner of the London 2012 Olympic Torch Relay. Lloyds TSB added: “We are delighted that Phil Reynolds from Reeves has been confirmed as a Lloyds TSB Olympic Torchbearer. We are proud to be bringing the excitement of the Olympic Torch Relay to the heart of Kent and we are looking forward to seeing each and every one of our Torchbearers representing the work they do in their local community on the Relay this summer”. 

The 70 day Olympic Torch Relay will start at Land’s End, Cornwall on the morning of 19 May 2012. On leaving Land’s End, the Olympic Flame will travel an estimated 8,000 miles around the UK giving thousands of communities and individuals their moment to shine as the Olympic Flame comes to a place near them. The Olympic Flame will arrive at the Olympic Stadium on 27 July 2012 for the lighting of the cauldron at the Opening Ceremony, signifying the official start of the London 2012 Olympic Games.

Fortunately, the UK has a number of significant non-tax advantages from the perspective of international business.  These include an open and politically stable society, the benefits of common law jurisdiction, and a well educated workforce that supports an enviable reputation in scientific discovery and technological innovation.  There is also the English language.  

If a man cannot live by tax reliefs alone, they are nonetheless important. The recent UK Budget was billed as “unashamedly” in favour of business.  It contained a number of measures of interest to potential inward investors. 

The main rate of Corporation Tax (CT) has now fallen to 24%; it is scheduled to contract to 23% from 1 April 2013 and to 22% from 1 April 2014 – indeed the UK now has the lowest CT rate in the G20. 

If we turn to consider tax reliefs, the already generous system of R&D Tax Credits (a 225% super-deduction for Small and Medium Sized Enterprises) will be further enhanced by allowing larger companies to obtain a repayable “above the line” credit from 1 April 2013.  The theme of encouragement to innovation is further underlined by the introduction, again from 1 April 2013, of the Patent Box regime.  This will allow corporate income and gains generated from patents to be subject to a special CT rate of 10%.  In addition a number of new tax reliefs are due to be introduced next year to attract certain creative industries to establish in the UK, namely video game design, animation and high-end television production. 

Finally, the 50% rate of personal income tax for those earning in excess of £150,000 is to be reduced to 45% from 6 April 2013. 

These enhancements build on what was already a strong base.  In almost all circumstances, UK companies can receive inbound dividends on a tax free basis, whilst the UK does not impose withholding tax on outbound dividends.  Furthermore, the UK has the world’s most extensive network of Tax Treaties. 

Having convinced you that the UK is the place to be, why should you come to the South East in particular? The South East offers all the advantages set out above and some very special ones all its own.  In addition to an excellent climate it has in abundance all of the support structures needed for business success, from a vibrant technological base to effective and keenly priced professional services.  Of these, the tax advice available is especially good! 

For further information, please contact Margaret Connolly.

When we ask business owners, “What keeps you awake at night?” a common response will mention the need to incentivise, encourage and thereby retain key staff writes Margaret Connolly, Head of Taxation at Reeves. Staff reward schemes, such as bonus payments, are often retrospective being based upon past performance, and can be expensive if they are to have any real impact.  What business owners want is a means of encouraging long-term commitment from key staff in order to develop and grow the business over a number of years, and ideally in a cost effective way that is structured to take advantage of any tax incentives available. 

Of all the tax advantaged employee share schemes available to companies, the Enterprise Management Incentive (EMI) scheme is the most generous. 

The scheme allows smaller trading companies – those with fewer than 250 employees and total assets of no more than £30M – to grant share options to key employees and as such perhaps offer them the opportunity to participate in the proceeds of a future sale. 

In his recent Budget, the Chancellor announced a number of improvements to the EMI scheme.  First the total value of options that can be granted to an individual will increase from £120,000 to £250,000, and secondly he has attempted to address the question of Entrepreneurs’ Relief (ER). 

The main rate of Capital Gains Tax (CGT) is 28%.  At present most EMI shares will qualify for this tax treatment.  When compared to income tax rates of 40% and 50% (the latter to fall to 45% from 6 April 2013), this is attractive, but ER and the 10% effective rate of CGT that it brings in train is the tax equivalent of the Holy Grail. 

In practice there are two things that prevent the majority of EMI shares qualifying for ER.  To access ER a shareholder must own at least 5% of the company and must have done so for at least 12 months. 

Let’s assume that there are five key employees to be incentivised, if each must have 5%, then a quarter of the company must be given away.  This is often too much for the typical family business.  This threshold is to be abolished and in principle any number of EMI shares will qualify for ER. 

However, nothing has been announced in respect of the 12 month holding period.  In our experience most EMI schemes allow exercise of the options only on a sale of the company.  Accordingly, the shares themselves will only be owned fleetingly and certainly not for 12 months. 

Under the old Taper Relief regime, the holding “clock” began ticking from the date that the options were granted and the ownership period was 24 months.  This would seem to be a suitable compromise. 

Reeves have been in the forefront of representations to HMRC aimed at reintroducing this position.  A return to this former practice would significantly increase the flexibility of the scheme, and there is still time to achieve this before the Finance Bill is enacted in July. 

The best scheme is better yet, but there is still work to do. 

For further information, please contact Margaret Connolly. 

The firm has over 300 staff and partners in offices at Gatwick, London, Canterbury and Chatham Maritime.

The glittering awards ceremony, with Rory Bremner as guest presenter, took place on Thursday 22nd March 2012 at the Copthorne Effingham Park Hotel and saw the Gatwick business community come together.

The awards state that the winners are those businesses or people who have shown innovation and inspiration in their work, and have demonstrated a real commitment to this fast-developing sub-region.

This is not the first time that Reeves have gained recognition at these awards. Reeves were one of three Finalists for the “Commitment in Developing People Award” in the Gatwick Diamond Business Awards in 2010.

Paul Roe, Partner at Reeves and based in the Gatwick office, commented on accepting the award; “I’m delighted to have received this recognition. The skills and aspirations of our staff are the very core of our business and service offering. The fact that the finalists are all known for excellence in this field, makes this feel even better.”

“Our quality of work with clients depends on our whole team, which is why we regard our staff to be our greatest asset. We work hard as a company to help our staff achieve their aspirations. This in turn has a direct impact on the great service we can offer to our clients. I’m delighted our commitment to developing staff has been recognised”.