Member Blog

If you have made the decision to join the Chamber to promote your business or to get involved in the network that works together to affect the business landscape, you will be part of a dynamic business network with forward thinking businesses.

Members are the ‘DNA’ of the Chamber and successful businesses members need an equally dynamic and forward thinking Chamber to help them grow even further. Working with our members, we have developed a range services that support you in being more successful in business, by offering a comprehensive range of systems, events and services to enable forward thinking businesses to have a platform from which they can really boost their local business profile and learn from other successful business leaders.

So how do our successful business members use the Chamber services? Well, below are some great tips on the kinds of services that our dynamic businesses use as Chamber Members:

1. Promote their business successes in our online media: You don’t have to leave your office to engage with the Chamber and our members. Being loud and proud about your achievements or your work in the community can have a huge impact on your brand profile and get your business recognised. We allow members to upload their good news stories on our website at www.norfolkchamber.co.uk. Popular articles will be considered for this magazine so make your content count;

Tip: When you use our online media, remember that we then promote that content via our social media channels to thousands of businesses, so it’s vital to make sure you have content that is engaging and will grab people’s attention.

1. Offer other Chamber members a discount on products and services: Being together as part of the network means your amongst likeminded business who may be your next customer. Why not upload a Chamber exclusive special offer to our website for other members to enjoy.

Tip: Use our media to promote a launch of a new service or product and then why not link your article to a special offer for members to maximising your exposure.

1. Learn from other successful businesses at our free training sessions: Our Chamber sessions are free and run by Norfolk’s very own top business professionals who will give tips and training in their field,. They are designed to give you a whole range of business topics to choose from that will really help you take those steps in growing and bettering your business.

Tip: If you have looked at the above tip and wondered “what kind of content shall I promote?” Then why not attend our Online Digital media range to get some tips on content for your articles and using online media to promote yourself effectively.

1. Stand out and share your knowledge with a blog: You no doubt are a professional in what you do or you may have had success in a certain area of business so why not share this knowledge to the business community and raise your personal and business profile. Our Knowledge section of our website enables you to upload your very own professional blog that will be sent out via social media for others to enjoy.
2. Get Involved and allocate time to attend Chamber events, Its time well spent: All too often I get told by members that they “don’t have time to attend events”. Attending events should be a fundamental part of your business development plan and enables you to interact with other business leaders who may be your next customer or may point you to someone who is. They may even just give you that key piece of advice that takes you and your business to the next level.

Tip: Don’t avoid policy orientated or political events. In fact if you can only attend a few then pick those. Our region’s most influential businesses are part of the Chamber because they want to help us influence policy and have their say. Influential people in these organisations attend these events so if you want to meet our Gold Patrons and the decision makers of big and small businesses then these are defiantly a must.

1. Sponsor an event, it’s a very cost effect way to really grab people’s attention: The Norfolk Chamber events are well known for their high quality, influential speakers and attracting media attention. Sponsoring an event gives you instant brand exposure to senior business leaders not just at the event but via social media/website and even in the media. All this for a lot less money than you think.

Tip: Lots of businesses spend thousands of pounds on adverts in magazines and publications without considering sponsoring an event. You may be surprised to find the cost can be cheaper to sponsor a Chamber event and have a greater impact.

1. Get to know us: You have paid for your membership, so let us help you use it. Don’t hesitate to get in touch with our membership team, who are on hand to help you with registering on the website, engaging with the services and give you advice on which events are available.

We want to know more about you so we can help you use our events and services to enable you maximise the benefits of your membership.

Please call 01603 625977 and press 1 for the membership team or e-mail membership@norfolkchamber.co.uk

Remember, getting involved is everything. Joining the Chamber is like joining a gym. If you don’t go and use it, you won’t get the benefits that you joined for in the first place.

The Food Information Regulations 2014– what do these mean for your business?

The Regulations, which come into force in December 2014, will require allergy information to be provided on non pre-packed foods including those sold in Catering & Licensed businesses such as pubs, hotels, restaurants, take-aways, staff canteens and cafés. In addition foods supplied at events will also be covered, e.g. wedding buffets. Under the rules, the 14 food allergens listed in the Regulation, including peanuts, milk, eggs and cereals containing gluten, will need to be specifically highlighted to customers.

The purpose of the Regulations is to reduce the incidence of allergen adverse reaction by consumers eating undeclared allergens.

Food Business Operators will be able to provide allergy information in the ways that best suit their individual business. Some businesses will have fixed menus, others menus that are changing frequently. The provision of information on a menu, a chalkboard or as part of a conversation with staff will secure compliance with the Regulations. However, in reality it is likely to be difficult to demonstrate effective compliance if a business relies only on verbal communication by staff.

Therefore, if your business sells non pre-packed foods you should begin to review your menus, train staff, engage with suppliers as to ingredients and review food preparation (in terms of cross-contamination) over the coming months, to ensure that they will be in a position to comply with the Regulation from 13th December 2014 onwards.

The regulations will be enforced by both Environmental Health & Trading Standards Staff from the local council

The key messages for Food Business Operators are;

• Make sure that the information that you have on your ingredients is up to date
• Keep up to date ingredients information for any ready-made foods that are bought in (for example, packaging, or website details from your suppliers)
• When preparing food, make sure you know what is in the ingredients you are using- for example cooking oils, dressings, toppings, sauces, garnishes- again this will need to be kept up to date
• Ensure you staff are aware of allergens, and what to do when any ingredient or menu changes are made
• Think about how allergenic ingredients are stored and labelled on your premises
• Be careful of cross contamination- boards, utensils, serving spoons, woks etc
• Thoroughly clean work surfaces and equipment, and wash hands before making food for someone with an allergy

The new allergen requirements will also apply to labels on pre-packed foods. Pre-packed foods containing any of the 14 allergenic ingredients must be labelled so that the allergenic ingredients are clearly referred to. Allergens must be emphasised in the ingredients list of a product using a different typeset (for example bold). The ‘allergy information boxes’ that customers in the UK are familiar with will not be permitted if they repeat the allergens in the ingredients list, but can be used to refer customers to the ingredients list.

Responsibility for the information on labels will rest with the operator under whose name the food is marketed or the importer into the EU (so for ‘own brand’ products, the responsibility will rest with the brand). However, even operators (including retailers) who do not affect the information at all, must not supply food which they know or presume has non-compliant labelling.

The regulators & the Food Standards Agency will be issuing guidance before December and indeed the FSA has updated its online Allergy training- this is open to all; the training can be found here https://food.gov.uk/policy-advice/allergyintol/#.UtcANdJdW8A This training is suitable for business owners & senior members of staff, who can then go on to train other staff

Businesses will be committing an offence if;

• The Food Safety Management System lacks Allergen Management Practices
• There is poor training/ knowledge/ understanding
• There is poor communication from the business to the consumer

In England and Wales, the primary mechanism for enforcement will be information & guidance followed by the issuing of improvement notices & sampling in accordance with councils’ Enforcement Policies; The primary objective is to achieve compliance in the most effective way. Interventions by the Enforcing Authorities will be in accordance with risk – think “reasonably practicable” & “due diligence” Appeals to improvement Notices will be to Tribunals (more guidance will be issued in due course). Enforcement officers will enquire about Allergen Management on routine inspections and advisory visits, but will also respond to incidents & complaints

In summary, before December Food Business Operators should;

• Understand Allergens & the link into your current Food Safety Management System/ HACCP
• Decide what system your business needs to comply
• Ensure staff are trained and aware
• Communicate with consumers

If you happen to be a natural introvert, the very thought of promoting yourself at work probably feels more like an unwelcome chore rather an opportunity to develop your career. Also, the Brits’ rather polite culture can make self-selling seem a bit crass.

However, there are moments in our working life when we really shouldn’t shy away from the spotlight – especially when everyone stands to benefit.

We all know someone who talks very loudly about their numerous accomplishments and, understandably, you may prefer to avoid becoming known as the office bragger. Yet, it’s very possible to get the attention you deserve without over-egging it. And there’s even a place for subtly.

At Pure we meet very talented professionals from Cambridgeshire, Essex Norfolk and Suffolk who feel daunted by this aspect of career progression. We don’t want you to risk being overlooked at work; read on to find out how you can self-promote without feeling too pushy!

1. Start with your confidence

You think that you’re great at your job. You may also suspect very strongly that if you left, your employer would find it difficult to replace you. Turn such beliefs into certainties: write down your key accomplishments and how they’ve helped the company. This can help build a strong foundation for greater self-assurance. People will notice without you uttering a word – confident body language does all the talking for you.

2. Bid farewell to fear

“The only thing we have to fear, is fear itself.” So proclaimed former US President Franklin D. Roosevelt,. Take his words as inspiration. Look at what you’re afraid of when it comes to talking about achievements or putting forward ideas. Is it rejection? Are you scared of looking foolish? Acknowledge your doubts, but simply put them to one side and do it anyway. The chances are that you’ll discover you had nothing to worry about and that your ideas have made a valuable contribution

3. Impress others

Finding your voice isn’t just about communication. Passion is infectious and people want to work with colleagues who value what they do. Be open with colleagues about why you enjoy your job. Turn problems into obstacles that can be overcome by adopting a positive approach. Deliver consistently great work and offer to support others with advice. This way you’ll raise your profile while building solid relationships across the company.

4. Go beyond your comfort zone

If you want to be noticed for your achievements, you need to take steps to create them in the first place. By seeing things from different perspectives and exploring outside you’re usual routine you get to develop your skills and discover new abilities. You might even catch the eye of a senior colleague who needs someone like you to help create new opportunities for the business.

5. Be smart

Aimless bragging is not the way forward. It’s annoying for others and it can smack of over-compensating for lack of real skill. If you want to voice your opinion or highlight a recent success, choose your moment wisely. For instance, reminding your line manager of the big, new deal you’ve just reeled in at a team meeting probably won’t go down well if colleagues have been struggling and the mood is strained. It’s simple: think before you speak – timing is everything!

6. Show integrity

If you have a fantastic idea, make sure you have the knowledge and background research to back up why you think it would work. You need to be ready to answer questions without fudging it. A little preparation to construct your business case – whether it’s for a meeting or a one-to-one – will help keep you focused and confident.

Finding your voice without treading on toes may take effort, but it’s the sensible alternative to becoming the human version of a flashing neon sign. Let your talents glow and persuade, rather than dazzle and daze. It’s time to get out there and show them what you’re made of!

Business leaders from across the region attended the first ever Best Employer, Eastern Region (BEER) Festival at Ickworth Park near Bury St Edmunds November 15th 2013. The event was organised by Pure Resourcing Solutions (Pure) specialist recruitment agency and eras ltd providers of psychometric testing and people development solutions.

Chief executives and managing directors were among delegates Norfolk attended the unique event, to find out more about how employee engagement can benefit their business and staff, and to share knowledge with their peers.

Footage of the presentations are now live on the website www.best-employers.co.uk or on YouTube link below…

For more information on the BEER please visit the website or call Lynn Walters on 01223 209888

Most family lawyers report an increase in the volume of enquiries after the festive period and in the first few weeks of January. Counsellors and GPs will also see an increase number of patients seeking support during the anguish of a relationship break down. After the Christmas period when most people have spent a longer time than normal with their families, cracks can begin to show in their relationships. Indeed, some may take the view a new year requires a new start.

Family lawyers frequently report that though January heralds an increase in enquires, it is not the only time of year when relationships struggle. Another spike in the number of enquiries is usually in September just after the school holidays when the pressure of entertaining the children and the cost can take its toll.

It is important to bear in mind that divorce and separation can be progressed in a dignified manner without costing the earth if a sensible approach can be adopted. Here is my top 10 guidance steps that may help if you are faced with this new year dilemma:

1. Make sure you have tried all options available to you to see whether you can make the relationship work. Have you looked at couples therapy or taken other professional guidance to see whether or not changes can be made to make the relationship work or to help you (both) manage the transition.
2. If your partner has told you the relationship is over burying your head in the sand and denying it is happening will almost certainly not help you or your partner. A great number of my new clients say they were terrified about the prospect of taking legal advice but the majority all say that after an initial consultation they feel much better, just for being armed with helpful and clear information reducing their fears and concerns of the unknown.
3. Think carefully about the benefits of having the help of a professional lawyer as compared to a DIY approach. Many people who attempt to deal with matters themselves come unstuck later down the line and it can prove more expensive to try to rectify these errors. Even if you decide to use the DIY approach you can still use a solicitor to provide background information and advice to ensure that the “wheels do not fall off”.
4. Be careful if you think you have agreed something verbally with your ex partner and then seek to rely on it. Agreements do0 need to be a formalised in writing – preferably with a court order.
5. Don’t be fearful of uncontrolled legal fees. You can seek to agreed them at the outset.. Make sure you are given a clear breakdown on how fees are charged and calculated so you understand what these are and be comfortable with them before you confirm your instructions to a lawyer.
6. Try to be pragmatic and reasonable if you can, and try to settle the matter rather than litigating which is timely and expensive. Arguing over matters of principle is rarely productive and will be stressful, time consuming and, probably, expensive.
7. Don’t think withholding details or information is the best way to proceed.as Almost invariably a lack of honesty and transparency with your lawyer will lead to an increase in your costs and can detrimentally impact upon your case.
8. Attempting to hide money is never a good idea and all lawyers will advise against this. Good forensic accountants and clever lawyers will always find hidden money. If you have done it, it will lead to severe court penalties, and a court order can be set aside (discharged) if the money is located after an agreement or court order has been obtained.
9. Make sure that you only settle the financial aspects of your divorce when you are happy with the quality and extent of the information that has been provided as once an agreement has been made in relation to finances it is difficult to alter and change.
10. Children- No matter how the divorce or separation has come about always try to keep your mind focussed on your children. It’s not their fault, and unless your divorce is managed carefully they are the ones who will probably suffer long into their adult lives. Consider creating a pack (often known as a parenting plan) with your ex, setting out “rules” and principles as to how you will co-parent. You should do this even as the divorce process starts, as it’s never too early to start working on this.

In conclusion, go and meet your lawyer and decide whether you are happy with him or her and that you feel comfortable with the advice they give you. Divorce is one of the most personal aspects of law you can ever be involved in and you need to be comfortable with your legal representative.

If you would like more information in respect of the contents of this article please contact Ginny Colman LLP on 01603 756431

The Health and Safety Executive (HSE) is urging businesses to focus on their legal responsibility to ensure lives are not put at risk and make the safety of workers their top priority for 2014.

The HSE advocates sensible Risk Management, and appreciates that life is not risk free, but local employers are urged to review their Health and Safety Management

The HSE has launched a fresh appeal as new figures show that 16 people lost their lives while at work across the East of England in 2012/13 and 1,923 suffered a major injury. This compares to 19 deaths and 2,116 major injuries the previous year. A step in the right direction, but there is still a long way to go

The latest provisional figures show that the number of deaths across Great Britain has fallen in the last year, with 148 people killed at work, compared to 171 deaths during 2011/12. More than 20,600 workers also suffered a major injury in 2012/13, representing a 10.8 per cent drop on the previous year. Five in every million workers were killed while at work between April 2012 and March 2013.

High-risk industries still include construction which had 39 deaths last year, agriculture with 29 deaths, manufacturing with 20 deaths and waste and recycling with 10 deaths – making up over two-thirds of all workplace deaths in Great Britain during 2012/13.

Annette Hall, HSE Regional Director for the East of England said:

“The families of those workers in the East of England who lost their lives last year had to face Christmas without them and hundreds of other workers have had their lives changed forever by a major injury.

“Whilst the number of workplace deaths and major injuries has decreased nationally, these statistics highlight why we still need good health and safety in workplaces. I therefore urge employers to spend their time tackling the real dangers that workers face and stop worrying about trivial matters or pointless paperwork.

“It’s important to remember that while we still have one of the lowest rates of workplace deaths in Europe, one death is still one too many. I would urge businesses to focus on helping to cut the number of deaths further in 2014.” Information on tackling health and safety dangers in workplaces is available on HSE’s website at www.hse.gov.uk.

The website includes much free information which can be downloaded, and adapted to suit individual businessess. We particularly like the templates and would urge business owners and Health and Safety Managers / trainers to make full use of this resource

Many buy-to-let investors are attracted by the idea of investing in residential flats, but beware…

On the face of it, the lease may not prohibit subletting, and the owner is therefore free to enter into a short term letting, usually on Assured Shorthold Tenancy terms. However, the lease may contain a covenant that says that the flat can only be used as a private dwelling for the tenant and his family.

The recent case of Burchell v Raj Properties Ltd looked at this issue. The tenant of the flat wanted to sublet it for investment purposes and argued that it was still being used as a private dwelling “for” the tenant, (ie he was taking the benefit of the rent) even though it was not being occupied “by” the tenant.

The landlord successfully argued that the tenant was at liberty to sublet to members of his family but not to anyone else, as the flat could only be used as a private dwelling for the tenant and his family.

Anyone looking to invest in residential flats should look closely at the wording of the lease to ensure that there are no restrictions on who can occupy the flat. Subsequent discussions with the landlord to vary such restrictions could prove costly and substantially reduce the anticipated return on the investment.

A decision by the Court of Appeal in relation to the cost consequences of a refusal to mediate has reinforced the value the Court places on parties engaging in some form of Alternative Dispute Resolution (‘ADR’) to resolve matters before they come to Court.

The recent case centred on a claim by a commercial landlord against a former tenant for dilapidations. The original claim was for a total of approximately £1.9million. Various offers were made throughout the case and the Claimant ultimately accepted one of the Defendant’s offers the day before trial. That offer had been made a significant time earlier in the proceedings.

Under the normal rules the Defendant should have been able to recover their legal costs from the Claimant from 21 days after they made their offer, but the Claimant argued that they had offered to mediate on two occasions and the Defendant had ignored these requests. They therefore argued the rules should not apply. The Court hearing the initial matter agreed with the Claimant and did not order them to pay the Defendant’s costs in the normal way.

The Defendant appealed to the Court of Appeal stating that they had not refused to mediate, they had not responded because they did not believe that mediation would have any chance of success. The Court of Appeal rejected this argument and stated that silence in the face of a request for mediation was the same as a refusal. They went on to state that the Defendant should have stated their reasons for not wanting to mediate at the time – but that even if they had done this, those reasons would have needed to be reasonable, which in this case they did not consider them to be. They therefore affirmed the original Court’s decision to refuse the Defendant their costs, although they stopped short of ordering the Defendant to pay the Claimant’s costs (as the Claimant had requested at the appeal).

This case further highlights the importance of ensuring that attempts are made to resolve disputes using alternative methods, and the importance the Court will place on a party failing to engage in such a process where the other party has offered to do so. Consequently, anyone involved in a dispute should make sure that they understand the consequences of an offer to participate in ADR/Mediation, and it is likely that requests to do so will continue to rise.

Clients often use me as a barometer of the local economy, asking about the general mood of local businesses and whether any particular sectors are generally faring better or worse. Whilst conditions are still challenging, particularly in certain sectors, I have enjoyed passing on a generally more positive message over the last 6-9 months.

I am encouraged that the more positive trend that I am seeing locally is mirrored by recent positive economic statistics and national news stories.

But what does all this mean for local family businesses?

Since UK family businesses account for over 30% of the UK’s GDP and employ over 9m people, family businesses have a big part to play in the recovery of the UK economy.

Family businesses are generally lower geared and more long-term focused than their non-family counterparts. They should therefore be well placed to invest for future growth and to take advantage of any upturn in the economy.

Current conditions for investment are encouraging. Interest rates look set to stay low for the foreseeable future. There are also good tax incentives for businesses to invest, with 100% relief available on the first £250,000 of qualifying items in both 2013 and 2014. The Research & Development tax credits & the new Patent Box rules are also beneficial for those companies investing in developing eligible new products. Relief on R & D expenditure can be as much as 225%.

With a backdrop of continued cuts in government spending and with consumer spending levelling out at more sustainable levels than we had prior to the “credit crunch”, commentators seem to agree that UK growth is likely to be at a relatively slow pace for the foreseeable future. In order to accelerate that growth, businesses therefore need to look at markets beyond the UK. Whilst many local family businesses do export their products and services, I believe there is a great deal of untapped potential.

The traditional core export markets of the US and EU look to have relatively low growth opportunities in the near future and so businesses would do well to explore opportunities in some of the fast growth so called ’emerging markets’.

UKTI provides valuable support and advice to UK exporters, including organising trade missions, conducting market research, providing support for trade shows and providing local contacts. I have had some really positive feedback from clients using these services. Sensibly, the government seems to be committed to providing more support, offering new export lending guarantee schemes and insurance products where traditional bank lending may be inadequate.

However, I think the government needs to do more to encourage SME’s in particular to explore international opportunities. Communication about existing support services could be improved and access to export credit guarantees could be expanded. It would also be great to see the government taking up the CBI’s recent recommendation to offer a targeted tax credit to underpin exploratory export activity by SME’s. This could perhaps work in a similar manner to the R&D tax credit scheme.

At Lovewell Blake we have seen an encouraging increase in demand from clients for advice about setting up operations in new countries, or simply trading with them. I really hope that we see this trend continue, with some local family businesses leading the charge!

The Lovewell Blake Family Business Club holds informal events throughout the year, for more information call Steven Scarlett on 01603 663300.

Did you notice it? That DeLorean flying past the window? No? Neither did we. Yesterday was the 21st October 2013, it is just two years until we will have reached the date by which the iconic 1980’s film, Back to the Future travelled to. Of course, it was only a flim, but it was predicting a very different future from that which we lived in at the time of its release. OK, we haven’t quite achieved the flying DeLorean, (or indeed any car that can fly routinely), but it is quite interesting to see what Marty McFly and his trusted friend, Doc Brown got right. They predicted, for example, video conferencing – video conferencing is the norm today with not just businesses, but individuals routinely using video conferencing, (such as Skype or Facetime), partly because of our ability to ensure a secure data transfer when communicating over the Internet.

A LOT OF RACK SPACE

Unfortunately, for the foreseeable future we will still need roads. The Doc famousely said about 2015, “Where we’re going, we don’t need roads!”. But they weren’t all wrong. In Back to the Future II, Marty is seen showing some kids in a diner how games were played in the 1980’s. They think he’s mad because the games weren’t wireless and required you to use your hands! The Xbox Kinect dealt with the no hands element and it is now usual to play games wirelessly. Of course, this wouldn’t be possible without some clever data management and a lot of rack space in colocation facilities, but the prediction that we would be playing games wirelessly and hands free was pretty accurate after all.

DEDICATED SERVER HOSTING

What about 3D movies? In the 1980s 3D movies were not really new. In fact, they had been around almost since TV had been invented, but 3D televisions are something quite different. It was only a few years ago when the first 3D televisions were made available for consumers to buy … and they were very expensive indeed! Of course, the advent of Cloud storage and TV on demand has changed they way in which we watch TV with many of us watching online or using one of the many catch-up services. This is largely possible because of dedicated server hosting of the catch-up services that means that many people can stream of watch at the same time.

What about widescreen TV? In the 1980s remote controlled TVs were a novalty, now widescreen TVs are sold in every TV and department store. Wall mounted TVs such as the one hanging on the wall of the future in the film are now commonplace. In fact, so much so that the idea of the traditional TV stand with rack space for the VHS, (or even Betamax), recorder, the stereo and latterly the DVD player has all but gone. Wall mounted TVs with sound bars and integrated WiFi are the norm today.

SEAMLESS DATA MIGRATION

Another prediction in Back to the Future was that of handheld tablet computers. Was the late Steve Jobs watching this movie too closely?! It is, believe it or not, only three years since the launch of the original iPad, (April 2010), but consider how it has changed the world today. Apple, Samsung and many others now produce hand held tablet computers and the operating systems that have been developed mean that data migration between the various platforms is almost seamless.

Hoverboards haven’t quite made the headlines yet – certainly not one in which you can have a dramatic chase with your arch enemy, Griff Tannen and his gang, but some things do. Take, for example, the ‘hovercam’, we recently had aerial photographs taken of our data centre using a ‘hovercam’ rather than a traditional light aircaft or helicopter.

The most common mistake we see directors making is to carry on paying dividends (usually to themselves) long after any distributable reserves have been exhausted and when creditor arrears have built up. If the company were ever to fail this could lead to those dividends having to be handed back to a liquidator at the worst possible time when the directors’ have lost their main source of income and often face personal guarantee liabilities as well. Also director/shareholder overdrawn loan accounts often operate in conjunction with declaring dividends. Rather than receiving a monthly salary typically directors will draw sums in “lieu of salary” and at the year end a dividend is declared and posted to the directors’ loan accounts bringing the balance down to nil. This works fine until the company becomes insolvent and dividends can no longer be declared leaving the loan account on the balance sheet which has to be repaid. So in effect the directors have foregone salary, worked for nothing and owe the company a substantial debt exactly at the same time as their principal source of income has or is in danger of drying up. An invidious position. If there are doubts about your clients’ ability to continue as a going concern the following simple steps taken in time could significantly improve their position in the event of an insolvency:

• Obtain shareholder approval for any loans to directors above £10,000 to make them lawful.
• Ensure your clients do not continue to unwittingly build up loan accounts based on previous advice received given when the company was solvent.
• Consider advising directors to switch from dividends to salary. Directors are entitled to reasonable remuneration just like any other employee. Minute the reasons for doing this.
• Ensure that directors have written contracts of employment. In the event of any insolvency of the company if the directors are employees then statutory pay in lieu of notice, redundancy, arrears of wages/holiday pay claims currently up to £450 per week will usually be paid by the Redundancy Payment Service. For a director who has been paid at or above this level for at least twelve weeks prior to the insolvency and has say over ten years service (even if most of this was paid below the national insurance level) this claim could be worth over £10,000!

See our briefing sheet on this subject at https://mw-w.com/unlawful-dividends-briefing-sheet. If you are concerned that your clients have received unlawful dividends that might have to be returned, think your client should move on to being paid by salary or have any other business rescue and insolvency related query please give me a call.

There has been a great deal of publicity over the last year or so regarding so called “aggressive tax avoidance” schemes involving high profile individuals and businesses. The General Anti-Abuse Rule (GAAR) that came into force on 17 July 2013 is one part of the Government’s approach to managing the risk of tax avoidance and has made many of the previously available “avoidance” schemes obsolete.

In my experience, the vast majority of family businesses have not historically participated in these more aggressive forms of tax planning and are therefore largely unaffected by GAAR. It is however important for family businesses to adopt a sound and commercial tax planning strategy to help the business remain competitive. Sound tax planning can also enable a cost effective succession route, helping to secure the longevity of the family business.

Like any business, family businesses should regularly review their structure to ensure it meets the commercial requirements of the business as well as being tax efficient. With large company corporation tax rates reducing, National Insurance rate increases and the introduction of a new top tax rate band in recent years, the tax consequences of choosing to operate as a sole trader, partnership, LLP, limited company or group of companies can be more significant than ever. Furthermore, how the profits are shared and the structure of family pay and profit extraction from companies between salaries, benefits, dividends and pension entitlements etc has an even larger impact on the overall tax cost. A tax efficient structure should benefit both the business and the family.

Pension planning can be an important aspect of succession planning, enabling incumbent generations to retire without an excessive on-going burden on the business. Pension performance and contributions require regular review, particularly with rules regarding contribution and fund limits having changed several times in recent years.

Succession plans should be subject to regular review as family’s plans and priorities will change over time, as will relevant tax legislation. With appropriate planning, Entrepreneurs Relief may be available to secure an effective 10% tax rate on payment to retiring family members for their shares. More flexibility regarding the amount, structure and timing of such payment may be available in a family business situation than would be the case in a traditional management buy-out scenario. This can help to reduce the financial impact and risk to the business.

Business Property Relief can be an extremely valuable relief for Inheritance Tax purposes when passing on business assets to the next generation. There are potential pitfalls and the position can change dramatically on a sale of the business and so needs to be kept under review.

Family businesses should not be shy about sensible tax planning – it is simply part of good governance, helping to secure the long term success of the business for the benefit of everyone connected to it.

The Lovewell Blake Family Business Club holds informal events throughout the year, for more information call Steven Scarlett on 01603 663300.