Designing Buildings - User contributions [en]

Capital allowances and super deductions

2021-05-04T15:24:30Z

Martinc: Created page with "As part of the government’s post – Covid recovery planning two new capital allowance reliefs are introduced effective from April 1st 2021. These reliefs which will run until ..."

As part of the government’s post – Covid recovery planning two new capital allowance reliefs are introduced effective from April 1st 2021. These reliefs which will run until March 31st 2023 are doubtless aimed to encourage spending on new plant and equipment for use in a business in any event, as well as to assist companies who need to undertake such expenditure as part of their own strategy to recover from the effects of the pandemic.

Please note that these provisions do not apply to individuals or partnerships.

Office furniture, computer equipment and items such as photocopiers, scanners and telephone equipment, secuirty systems and even carpeting all fall under the heading of plant and equipment

The two reliefs are:

A 130% super-deduction capital allowance qualifying plant and machinery and

A 50% first-year allowance (FYA) for special rate assets.

The 130% allowance is for assets that would normally qualify in the main pool for capital allowances with a writing down allowance (WDA) of 18%.

The 50% FYA is for assets that normally qualify in the special rate pool with a WDA of 6%. These are integral features such as air-conditioning, lifts and water heating systems.

Reorganising space to deal with the consequences of the pandemic may well mean a substantial outlay on capital items and these provsiions are designed to alleviate the financial costs associated therewith. The 130% allowance means that for every £100,000 of qualifying expenditure the deduction for copropration tax purposes is 30% higher than what is actually incurred. At a corporation tax rate of 19% (current at April 2021) this means an additional 5.7% tax saving on every £100,000 actually spent

Items which are considered to be general in nature i.e not long – lasting capital assets do not qualify for this treatment.

Unfortunately, cleaning items, hand sanitisers and PPE (disposable or reusable) typically fall under the general expenditure. Therefore, capital allowances would not usually be applicable to these items.

And finally If the assets are disposed of before April 1st 2023, a balancing charge will be due. This will allow HMRC to recover the tax relief given.

As the above provisions only apply to companies, for a a sole trader or partnership the Annual Investment Allowance (AIA) is more appropriate.

The AIA continues to be available alongside the new measures and remains at £1m until December 31st 2021 before dropping to just £200,000. The AIA covers leased and second-hand assets.

--[[User:Martinc|Martinc]] 16:24, 04 May 2021 (BST)

[[Category:Taxation]]

Insolvency Act 1986 - Use of Prohibited Names

2015-06-22T07:36:56Z

Martinc: Created page with " '''Insolvency Act 1986 – Use of Prohibited Names''' It is a common fact of life that companies fail and are wound up or liquidated leaving unpaid creditors in their wake. I..."

'''Insolvency Act 1986 – Use of Prohibited Names'''

It is a common fact of life that companies fail and are wound up or liquidated leaving unpaid creditors in their wake.

It is also true that new companies appear soon thereafter operated by the same individual(s) who presided over the failed company, but now free of the debts which brought the previous company down.

Such new companies are often referred to as “Phoenix” companies – rising from the ashes of what went before it.

However there is a little – known danger that exists for individuals who are associated with both companies and who make the mistake of giving their new company a name that is too similar to that of the failed company.

The consequences of doing so can result in an individual becoming personally liable for any debts of the new company in the event that that company fails to do so. Furthermore, imprisonment or fines may also be decided by the Court.

The relevant sections of '''The Insolvency Act 1986''' are as follows:

'''S 216'''

(1) This section applies to a person where a company ("the liquidated company") has gone into insolvent liquidation on or after the appointed day and he was a director or shadow director of the company at any time in the period of 12 months ending with the day before it went into liquidation.

(2) For the purposes of this section, a name is a prohibited name in relation to such a person if:-

(a) it is a name by which the liquidating company was known at any time in the period of 12 months, or

(b) it is a name which is so similar to a name falling within paragraph (a) as to suggest an association with that company.

(3) Except with leave of the court or in such circumstances as may be prescribed, a person to whom this section applies shall not at any time in the period of 5 years beginning with the day on which the liquidating company went into liquidation:-

(a) be a director of any other company that is known by a prohibited name, or

(b) in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of any such company, or

(c) in any way, whether directly or indirectly, be concerned or take part in the carrying on of a business carried on (otherwise than by a company) under a prohibited name.

(4) If a person acts in contravention of this section, he is liable to imprisonment or a fine or both.

(5) In subsection (3) "the court" means any court having jurisdiction to wind up companies; and on an application for leave under that subsection, the Secretary of State or the official receiver may appear and call the attention of the court to nay matters which seem to him to be relevant.

(6) References in this section, in relation to any time, to a name by which a company is known are to the name of the company at that time or to any name under which the company carries on business at that time.

(7) For the purposes of this section a company goes into insolvent liquidation if it goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up.

(8) In this section "company" includes a company which may be wound up under Part V of this Act.

'''Section 217'''

(1) A person is personally responsible for all the relevant debts of a company if at any time -

(a) in contravention of section 216, he is involved in the management of the company, or

(b) as a person who is involved in the management of the company, he acts or is willing to act on instructions given (without the leave of the court) by a person whom he knows at that time to be in contravention in relation to the company of section 216.

(2) Where a person is personally responsible under this section for the relevant debts of a company, he is jointly and severally liable in respect of those debts with the company and any other person who, whether under this section or otherwise, is so liable.

(3) For the purpose of this section the relevant debts of a company are-

(a) in relation to a person who is personally responsible under paragraph (a) of subsection (1), such debts and other liabilities of the company as are incurred at a time when that person was involved in the management of the company, and

(b) in relation to a person who is personally responsible under paragraph (b) of that subsection, such debts and other liabilities of the company as are incurred at a time when that person was acting or was willing to act on instructions given as mentioned in that paragraph.

(4) For the purposes of this section, a person is involved in the management of a company if he is a director of the company or if he is concerned, whether directly or indirectly, or takes part, in the management of the company.

(5) For the purposes of this section a person who, as a person involved in the management of a company, has at any time acted on instructions given (without the leave of the court) by a person whom he knew at that time to be in contravention in relation to the company of section 216 is presumed, unless the contrary is shown, to have been willing at any time thereafter to act on any instructions given by that person.

(6) In this section "company" includes a company which may be wound up under Part V.

In summary Sections 216 and 217 of The Insolvency Act 1986 prescribe that a director can be imprisoned, fined and made personally liable for debts if he breaches those Sections by wrongly reusing a prohibited name.

'''Case Law'''

'''Thorne v Silverleaf '''

A director of a successor phoenix company business will have personal liability for debts of the successor company if the insolvent predecessor company's name is improperly reused. Improper reuse of an insolvent company's name is a breach of Sections 216 and 217 of The Insolvency Act 1986 and serious implications arise - Imprisonment, fine and personal liability.

'''BRIEF CASE DESCRIPTION'''

Mr Thorne was a director of three companies over many years:

Mike Spence (Reading) Limited

Mike Spence (Motorsport) Limited

Mike Spence (Classic Cars) Limited

The first two of these three companies had previously gone into liquidation with Mr Thorne as a director. Mike Spence (Classic Cars) Limited was then formed and substantial monies procured from a Mr Silverleaf under an oral joint venture agreement. Mr Silverleaf became operationally involved in the affairs of the company.
*1986.
'''THE COURT HELD THAT'''

The name of the company was so similar to the previous two as to make it a prohibited name under Section 216 (2) of The Insolvency Act 1986

As Mr Thorne was a director of the first two companies in the 12 months preceeding their liquidation and went on within five years of their liquidation to be a director in a company with a prohibited name, he was liable to criminal sanctions under Section 216 (4).

Mr Thorne as a person involved in the management of a third company was jointly and severally liable for its liabilities incurred at the time of his involvement, along with the company and any other persons liable (Section 217).

Although the sections go further than is required to curb the 'Pheonix Syndrome' the Court has no discretion to withhold their application.

Mr Thorne's argument that Mr Silverleaf is aiding and abetting the crime should be precluded by public policy from profiting from his own wrong, was rejected for three reasons:-
**Public policy will not automatically intervene in every crime or wrong committed by a person.
**Mr Silverleaf had not profited as he was entitled to the debt in any event.
**In any event, Mr Silverleaf had not, in the view of the Court, aided and abetted as he had only participated in the management of the company to the extent that many institutional lenders would to monitor a loan.

This article was created by:--[[User:Martinc|Martinc]] 08:36, 22 June 2015 (BST)
*

[[Category:Case_law]]

Limited Liability Partnership LLP

2015-04-02T14:35:27Z

Martinc: Created page with " Limited Liability Partnership (“LLP”) The LLP is a relatively recently conceived business structure which combines elements of the traditional Partnership with those of Li..."

Limited Liability Partnership (“LLP”)

The LLP is a relatively recently conceived business structure which combines elements of the traditional Partnership with those of Limited Liability Companies.

They are governed by the Limited Liability Partnership Act 2000 and are a response to representations from the professions that, in an increasingly litigious World, the traditional unlimited personal liability implicit in a traditional Partnership should be replaced by a structure offering some limitation of liability when carrying out one’s normal business activities.

Thus the LLP was born.

Members of LLPs carry joint, but not several, liability for the actions of the LLP itself. Usually a LLP is governed according to a LLP Agreement which is similar to a company’s Memorandum and Articles but the key point is that, like in a Company a member cannot lose more than he has invested, unless fraud or some other form of wrongdoing is proven.

From a tax perspective LLPs are treated in the same way as traditional partnerships in that income is taxed in the year that it is apportioned to the members. Members are therefore effectively treated as self-employed in so far as tax is concerned.

LLPs are highly flexible entities and, depending upon the terms of any agreement drawn up to govern such an entity, facilitate the addition and removal of members in a way which does not apply so readily to the traditional partnership structure.

LLPs are most commonly found in the accountancy and legal professions but they are also increasingly used as vehicles for property investment and, in that context, are particularly useful where member investors may have very differing tax positions to consider; a situation which can be assisted by the simple tax transparency which LLPs provide.

Unlike traditional Partnerships, LLPs are obliged to file accounts and other documents at Companies House in much the same way that applies to Companies so, to that extent, elements of their affairs are visible on the public record.

This article was created by--[[User:Martinc|Martinc]] 15:35, 2 April 2015 (BST)

[[Category:Other_legislation]]

Best endeavours v reasonable endeavours

2014-11-22T14:11:29Z

Martinc: Created page with " '''Best Endeavours Vs Reasonable Endeavours''' Many construction industry practitioners will have been confronted with a contract to sign which requires parties to undertake t..."

'''Best Endeavours Vs Reasonable Endeavours'''

Many construction industry practitioners will have been confronted with a contract to sign which requires parties to undertake to use “best” or “reasonable” endeavours in performing various obligations under the contract. This apparently minor difference in obligation, however, presents a real risk to a party to a contract who is unaware of the difference in legal interpretation between the two terms.

Evidently an obligation to use best endeavours implies a higher degree of commitment to perform a particular task when compared to reasonable endeavours but, as is often the case, it is only when a contract dispute arises and Court proceedings follow that the reality of the difference becomes apparent.

There are no clear definitions of these terms upon which reliance can be made but case law has held that best endeavours means'', inter alia''
*To leave no stone unturned
*To do what is reasonably to be expected in the circumstances
*Not to do anything that will jeopardise the commercial interests of the obligor

An immediate and obvious difficulty is that the word “reasonably” appears in a definition of “best” endeavours! Furthermore case law has also used similar language in defining reasonable endeavours.

Behind these definitions lies an expectation of what might be done to ensure that these obligations are met.

In the case of best endeavours it may well be the case that a party has to commit extra resources or spend additional funds in order to meet the obligation – even to the extent that it is commercially damaging to the party concerned.

Where the obligation is reasonable it is unlikely that this degree of obligation would be applied by the Courts.

And when it comes to testing these definitions in Court a subjective approach is adopted for best endeavours whilst it is an objective one for reasonable endeavours.

For the purposes of the layman, however, one can point to certain more simple facts:
*Reasonable endeavours will be less onerous than best endeavours so, as obligor, always argue for reasonable endeavours as a contractual obligation.
*If a contract sets out specific steps to be taken as part of a reasonable obligation, ensure that these steps are indeed carried out. This is regardless of commercial considerations.

Examples of relevant case law can be found at:

[http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWHC/Ch/2006/3166.html http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWHC/Ch/2006/3166.html]

[http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWHC/Comm/2007/292.html http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWHC/Comm/2007/292.html]

This article was created by: --[[User:Martinc|Martinc]] 14:11, 22 November 2014 (UTC)

[[Category:Other_legislation]]

Tax relief

2014-10-30T14:04:43Z

Martinc:

Tax Relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.

= '''Individuals''' =

Individuals are entitled to personal allowances which provide tax relief by reducing taxable income. They can also obtain tax relief if they are able to utilise other allowances which HM Revenue and Customs permit in certain circumstances.

== Personal Allowances ==

These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income.

For 2014/15 Personal Allowance:
*under 65 years of age £10,000
*65 - 74 £10,500
*75 and over £10,660

If an individual's income exceeds £100,000 the amount of the allowance reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual under 65 disappears completely.

Equally the higher allowances for older individuals are gradually reduced in much the same way as is the case for the basic personal allowance above £100,000. For 2014/15 the age related allowances begin to reduce at a rate of £1 for every £2 of earnings above £27,000 per annum.

Married Couples Allowance is available where one partner is at least 75 years of age in the financial year in question. Married Couples Allowance provides tax relief at 10%.

== Pension Contributions ==

Individuals may obtain tax relief by contributing to personal or occupational pensions schemes with a view to building up a fund to provide income in retirement. Contributions made in this way entitle the individual to tax relief at their marginal rate of tax. For a 40% taxpayer therefore, tax relief of £20,000 may be obtained against a contribution of £50,000. There are detailed rules and limits governing pension schemes and amounts that may be contributed, more details of which are available from [http://www.hmrc.gov.uk/incometax/relief-pension.htm HM Revenue and Customs].

== Gift Aid/Deeds of Covenant ==

Tax relief is available to support charitable giving. For a U.K. taxpayer the amount of the gift is deemed to be net of basic rate tax. In "grossing up" the value of the gift, relief is obtained at the taxpayers marginal rate. At the same time, the recipient of the gift can reclaim the basic rate of tax deducted at source.

== Enterprise Investment Schemes (EIS) ==

Tax relief is also available to individuals who are prepared to invest in new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of £5,000,000. Thus maximum tax relief of £1,500,000 is available if the investors have sufficient taxable income against which the EIS relief can be set. There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for a mnimum of three years otherwise the tax relief granted will be withdrawn.

= Companies =

Companies and non-incorporated businesses obtain tax relief by setting business running costs against income. They can also obtain relief by claiming capital allowances when they purchase assets for use in their businesses.

= Find out more =

=== Related articles on Designing Buildings Wiki ===
*Budget. 
*Capital allowances.
*Business case.
*Business plan
*Business rates.
*Cashflow.
*Cash flow forecast.
*Financial management tools. 
*Funding options.
*Housing Grants, Construction and Regeneration Act.
*PAYE.
*Research and development tax relief.
*Scheme for Construction Contracts.
*VAT
*VAT - Option to tax (or to elect to waive exemption from VAT).
*VAT - Protected Buildings.

[[Category:Other_legislation]]
[[Category:Taxation]]
[[Category:Cost_/_business_planning]]

Tax relief

2014-10-30T14:04:15Z

Martinc:

Tax Relief describes a situation in which an individual or company's liability to tax is reduced as a result of an entitlement to claim allowances or offset certain permitted expenditures against income.

= '''Individuals''' =

Individuals are entitled to personal allowances which provide tax relief by reducing taxable income. They can also obtain tax relief if they are able to utilise other allowances which HM Revenue and Customs permit in certain circumstances.

== Personal Allowances ==

These are set by HM Government and usually change each financial year to take account of changes in the cost of living. From time to time however these allowances may remain unchanged for a longer period of time. Depending upon the particular circumstances of each individual, the amount of the allowance is free from assessment to tax. The level of personal allowance depends upon age and also income.

For 2014/15 Personal Allowance:
*under 65 years of age £10,000
*65 - 74 £10,500
*75 and over £10,660

If an individual's income exceeds £100,000 the amount of the allowance reduces by £1 for every £2 income exceeds £100,000. Thus it can be seen that at an income level of £116,210 the allowance for an individual under 65 disappears completely.

Equally the higher allowances for older individuals are gradually reduced in much the same way as is the case for the basic personal allowance above £100,000. For 2014/15 the age related allowances begin to reduce at a rate of £1 for every £2 of earnings above £27,000 per annum.

Married Couples Allowance is available where one partner is at least 75 years of age in the financial year in question. Married Couples Allowance provides tax relief at 10%.

== Pension Contributions ==

Individuals may obtain tax relief by contributing to personal or occupational pensions schemes with a view to building up a fund to provide income in retirement. Contributions made in this way entitle the individual to tax relief at their marginal rate of tax. For a 40% taxpayer therefore, tax relief of £20,000 may be obtained against a contribution of £50,000. There are detailed rules and limits governing pension schemes and amounts that may be contributed, more details of which are available from [http://www.hmrc.gov.uk/incometax/relief-pension.htm HM Revenue and Customs].

== Gift Aid/Deeds of Covenant ==

Tax relief is available to support charitable giving. For a U.K. taxpayer the amount of the gift is deemed to be net of basic rate tax. In "grossing up" the value of the gift, relief is obtained at the taxpayers marginal rate. At the same time, the recipient of the gift can reclaim the basic rate of tax deducted at source.

== Enterprise Investment Schemes (EIS) ==

Tax relief is also available to individuals who are prepared to invest in new businesses. The EIS pemits relief of 30% on the investment into shares in approved companies upto a maximum of £5,000,000. Thus maximum tax relief of £1,50,000 is available if the investors have sufficient taxable income against which the EIS relief can be set. There is also a carry - back provision which permits the tax relief to be set against income tax liability arising in the tax year immediately prior to the year in which the share acquisition is effected. Shares must be held for a mnimum of three years otherwise the tax relief granted will be withdrawn.

= Companies =

Companies and non-incorporated businesses obtain tax relief by setting business running costs against income. They can also obtain relief by claiming capital allowances when they purchase assets for use in their businesses.

= Find out more =

=== Related articles on Designing Buildings Wiki ===
*Budget. 
*Capital allowances.
*Business case.
*Business plan
*Business rates.
*Cashflow.
*Cash flow forecast.
*Financial management tools. 
*Funding options.
*Housing Grants, Construction and Regeneration Act.
*PAYE.
*Research and development tax relief.
*Scheme for Construction Contracts.
*VAT
*VAT - Option to tax (or to elect to waive exemption from VAT).
*VAT - Protected Buildings.

[[Category:Other_legislation]]
[[Category:Taxation]]
[[Category:Cost_/_business_planning]]

Zero hours contracts

2014-07-29T19:12:13Z

Martinc: Created page with " '''ZERO HOUR CONTRACTS''' A Zero hour contract is essentially an employment contract which provides no guarantee as to the number of hours an employee may work. Other employme..."

'''ZERO HOUR CONTRACTS'''

A Zero hour contract is essentially an employment contract which provides no guarantee as to the number of hours an employee may work. Other employment rights are available but the key issue of how much an employee may get paid in any period is entirely dependent upon the employer to dictate.

 Such contracts can be good for both workers and employers who want flexibility in their working hours. But equally some employers have been exploiting the rules, preventing their workers from working elsewhere due to exclusivity clauses.

Vince Cable, Business Secretary, has announced plans (July 2014) to ban these clauses, giving individuals on zero hours contracts the choice to find other work, should they want to.

Cable said: “Zero hours contracts have a place in today’s labour market. They offer valuable flexible working opportunities for students, older people and other people looking to top up their income and find work that suits their personal circumstances.

But it has become clear that some unscrupulous employers abuse the flexibility that these contracts offer to the detriment of their workers. Today, we are legislating to clamp down on abuses to ensure people get a fair deal.

Last December, I launched a consultation into this issue. Following overwhelming evidence, we are now banning the use of exclusivity in zero hours contracts and committing to increase the availability of information on these contracts. We will also work with unions and businesses to develop a best practice code of conduct aimed at employers who wish to use zero hours contracts as part of their workforce.”

For more information please visit [http://www.hmrc.gov.uk/manuals/esmmanual/esm2090.htm http://www.hmrc.gov.uk/manuals/esmmanual/esm2090.htm]

This article was written by --[[User:Martinc|Martinc]] 20:12, 29 July 2014 (BST)

[[Category:Other_legislation]]

Business Interruption Insurance

2014-07-23T07:30:18Z

Martinc: Created page with " '''BUSINESS INTERRUPTION INSURANCE''' A typical “Commercial Combined” insurance policy taken out by a business will usually have a number of sections which provide cover f..."

'''BUSINESS INTERRUPTION INSURANCE'''

A typical “Commercial Combined” insurance policy taken out by a business will usually have a number of sections which provide cover for both “Material Damage” and “Liability” events.

Typically equipment will be insured against loss or damage and the company will be provided with Employers Liability and Public Liability covers, too.

Business Interruption cover is often provided as well. This covers the additional expenses incurred by a business following loss or damage. Cover is usually on an “All Risks” basis and can be extended to cover Loss of Income

Examples of events that may be covered are:
*Enforced closure of premises due to a notifiable infectious disease at the premises;
*Damage to property in the vicinity of the premises which hinders or prevents access to the premises;
*Damage at a supplier’s premises;
*Accidental failure of telecommunications at the premises lasting at least 24 hours;
*Accidental failure of public supplies of electricity, gas or water lasting at least 30 minutes;
*Damage to documents in transit.

Loss of income is a significant risk where an event has caused major disruption to a business so cover is available for a maximum indemnity period which insures an agreed and justifiable estimate of loss. If, for example, a business is unable to trade for three months due to a major event then Loss of Income cover reimburses the amount of income agreed as being lost during that three month period.

This article was written by: --[[User:Martinc|Martinc]] 08:30, 23 July 2014 (BST)

[[Category:Roles_/_services]]

Financial Reporting Standard for Small Entities FRSSE

2014-06-30T17:51:01Z

Martinc: Created page with " ''' ''' FRSSE This is an acronym for “Financial Reporting Standard for Small Entities” and is very important for all those people who run their own small companies. It per..."

''' '''

FRSSE

This is an acronym for “Financial Reporting Standard for Small Entities” and is very important for all those people who run their own small companies. It permits a much – reduced level of public disclosure for companies which are “small” and, in particular, allows such companies to dispense with a costly audit each year.

Not so long ago it was necessary for any company with a turnover of at least £1 million per annum to have an audit carried out each year. Such audits must be carried out by firms who are authorised to do so and, not surprisingly, are relatively expensive.

In recent years the reporting regime for small (and ”medium - sized”) companies has become considerably more favourable and this is a result of recognising two important facts:
*Many small companies cannot afford an annual audit, and
*A formal audit is really quite unnecessary when the only parties who have an interest in the result of the audit are the individuals themselves who run the company

To qualify as a small company and therefore fall within FRSSE a company must meet two of the three following criteria:
*Average number of employees is less than 50 in the year in question
*turnover is not more than £6.5 million
*the balance sheet total is not more than £3.26 million

In effect FRSSE means that company proprietors can deal with all accounting, reporting and taxation obligations if they have the skill to do so, without recourse to expensive external advisers.

This article was written by:--[[User:Martinc|Martinc]] 18:51, 30 June 2014 (BST)

[[Category:Taxation]]

Balance sheet

2014-06-30T12:12:59Z

Martinc: Created page with " '''BALANCE SHEET – A BRIEF SUMMARY''' The Balance Sheet of any business, whether it is a company, a partnership or a sole trader, is simply a statement, or list, of assets a..."

'''BALANCE SHEET – A BRIEF SUMMARY'''

The Balance Sheet of any business, whether it is a company, a partnership or a sole trader, is simply a statement, or list, of assets and liabilities as at a given date.

Typically assets will include such items as
*Cash in the bank
*Money owed to the business in the form of debtors
*Stock
*Tangible Assets such as computers, equipment and furniture

And liabilities will include such items as

*Net overdraft at the Bank
*Money owed to suppliers in the form of trade creditors
*Loans to the business
*Hire purchase contracts
*Money owed to HMRC in the form of VAT or other taxes.
*Share Capital and accumulated reserves (These are amounts invested or retained in the business by its owners)

And in addition to the obvious items above, accounting practice allows for many other categories to be accounted for – Prepayments, Accrued Income, Accruals etc.

And there are timing considerations to be taken into account when listing these items out. The Companies Acts require that liabilities are identified by reference to when they fall due to be paid, so that it can be seen if a business’s immediate payment obligations to creditors exceeds its short – term ability to find the cash to meet those obligations.

It is for this reason that Balance Sheets of entities who report to Companies House will show “Current Assets” and “Current Liabilities” and will also show whether Current Assets exceed Current Liabilities (good!) or whether the Current Liabilities exceed Current Assets (bad!).

In fact, the Companies Acts stipulate the broad formats in which accounts, including the Balance Sheet, must be presented. There are a variety of reporting options depending upon the nature and size of the business in question and guidance is available from [http://www.companieshouse.org.uk www.companieshouse.org.uk]

Not only is it good business practice to have this information readily available, but it is also information that lenders or statutory bodies will also be interested in as the balance sheet is effectively a record of a business’s life since birth. How much profit has been retained in the business over the years and how healthy it now looks? And because balance sheets are published once a year, usually to the same accounting date, it is possible to see a progression year by year in the Net Asset Value of a business.

Not all businesses are legally required to prepare a balance sheet. Unincorporated businesses that do not have to file accounts with Companies House do not need to do so. It is, nonetheless, good practice to ensure that a balance sheet is maintained and is up to date. Many businesses are wound up because they cannot pay their debts when they fall due – effectively the definition of “insolvent” – and this often arises because business owners have lost track of exactly what they do owe, particularly to HMRC in the form of VAT, PAYE or Corporation Tax.

In addition to the Balance Sheet itself, published accounts frequently contain “Notes to the Balance Sheet” which, to the experienced practitioner, is where much of the essential detail which lies behind the bare numbers can be found.

When considered together with the annual profit and loss account, the balance sheet should provide an accurate snap shot of a business’s well-being at a given point in time.

This article created by:--[[User:Martinc|Martinc]] 13:12, 30 June 2014 (BST)

[[Category:Taxation]]

Lease Negotiations - Tenants Checklist

2014-05-02T11:52:03Z

Martinc: Created page with " '''''LEASE NEGOTIATIONS – A TENANT’S CHECKLIST''''' Premises costs are usually second only to staff costs for a large number of commercial enterprises. For those who can ..."

'''''LEASE NEGOTIATIONS – A TENANT’S CHECKLIST'''''

Premises costs are usually second only to staff costs for a large number of commercial enterprises.

For those who can afford it, purchasing the freehold of office premises is highly desirable as it places control of one’s own premises requirements in the hands of the business owner.

However for many businesses renting office space is the only solution and this exposes the potential tenant to a range of potential pitfalls which need to be identified and mitigated as far as possible.

Renting space is an expensive matter; not only are there the operational costs – rent, business rates, insurance and service charges – but there are the upfront costs of acquisition e.g legal and professional fees, fitting out costs and stamp duty which also need to be considered.

And, at the end of the lease there are dilapidations to consider.

It will be of great value to the prospective tenant if the following items are clearly considered up to the moment that a lease is signed.
*'''State of the market'''

In your area is there good supply of the type of space that you wish to lease? What are general levels of market rent?
*'''What is your Lead Time?'''

Do you have to vacate existing space? Is there any particular time constraint on when you need to occupy new premises? The more time you have the better your bargaining position will be.
*'''Consider appointing professional advisers to assist in finding premises and negotiating best terms from the landlord.'''

Professional letting agents will charge a fee, usually calculated as a percentage of the annual rent, for locating suitable premises and helping to negotiate as favourable a deal as possible for the tenant. They will also assist in interpreting lease terms and, together with the solicitor acting in the matter, will assist in ensuring that the final lease is as favourable to their client as is possible.

For very small space requirements the appointment of lettings advisers may not be necessary. The landlord may be happy to offer a lease on standard terms prepared under a standard Law Society lease or licence to occupy and, in these circumstances a more informal approach may be appropriate.
*'''Appoint a Solicitor who has experience in property law.'''

*'''Ensure you understand the business rates liability for the premises'''

Business rates are a considerable expense to any business. You need to be sure of the liability and ensure that any rating appeal is in hand as these can result in substantial rates rebates. Appointing a rating adviser in this regard who will only be paid if a successful appeal is made is always advisable.

*'''Is the Building VAT elected?'''

Vitally important to be sure that you will not be charged VAT that you cannot recover. If a mistake is made here your effective rent increases at a stroke by 20%
*'''Be aware of any planning proposals that could have an impact on any premises you may consider to rent.'''

You need to be sure as far as possible that your enjoyment of the premises will not be affected by, for example, development proposals that could adversely impact your working conditions. A multi – storey development on an adjacent site could rob you of natural light for example

'''''The Lease terms'''''

The lease sets out the terms of the contractual relationship between landlord and tenant. Many of the key terms will have been agreed prior to the lease itself being drafted.

'''Rent''' – Is this as agreed?

'''Service Charges''' – Are these as understood? Is the landlord able to increase these without recourse to you, or have you been able to negotiate a cap on the rate at which these may be increased. Also is there a danger that you could be expected to pay for substantial refurbishment of the building soon after your occupancy commences? Have you seen how the landlord prepares service charge accounts?

'''Insurance''' – Arte you happy with the landlords insurance arrangements and basis of cover. Is there complete transparency between what you pay and what the landlord pays? Does the landlor receive any rebate from the insurers which is not passed back to the tenants?

'''Rent – Free period''' – Does your lease provide for a rent free period? If so does the lease correctly reflect the agreement?

'''Rent Deposit''' – is a security deposit needed? If so ensure that you are entitled to recover it in full once certain conditions e.g your business meets minimum profitability levels, are met.

'''Alterations to premises'''. – are you permitted to carry out a fit-out so that your premises are suitable for your business?

'''Landlord and Tenant responsibilities''' – Does the lease correctly reflect each party’s rights and responsibilities. Who is responsible for maintaining common parts and services?

'''Right to sublet or assign the lease''' – In the event that your plans or requirements change how easy is it to sublet space or assign the lease to a new incoming tenant? Leases or often for a period of time during which circumstances change and for this reason it is reassuring to know that the landlord is receptive to the possibility of releasing you from your contractual obligations in return for a new occupier entering into a new lease.

'''Use of premises''' – does the lease allow you to do what you wish to do in the hours of the week that you wish? Are there any restrictions on evening or weekend access to the premises?

'''Security '''– does the landlord have security arrangements which are fit for your purposes?

'''Dilapidations''' – What are your obligations at the end of the lease? Will you be expected to reinstate the premises to the state in which they were when your occupancy commenced. If so can you cap the dilapidations at the outset?

'''Termination of lease''' – Are you happy with the landlord’s rights to terminate under the circumstances set out in the lease?

More general considerations would include such matters as knowing the other occupiers in the building to ensure that their activities may not impinge adversely on yours. Getting to know the managing agents, if appointed, is also desirable as is participating in any tenant meetings to discuss matters of common interest.

The above list is by no means exhaustive but it is important that any prospective tenant does as much as is possible to inform themselves on these matters. The best party to protect your own interests is you..

This article was written by --[[User:Martinc|Martinc]] 12:52, 2 May 2014 (BST)

[[Category:Cost_/_business_planning]]

Company loans to directors

2014-04-25T17:44:53Z

Martinc: Created page with " '''COMPANY LOANS TO DIRECTORS''' With effect from 6th April 2014 the amount that a director can borrow from his company has doubled from £5,000 to £10,000. Such a..."

'''COMPANY LOANS TO DIRECTORS'''

With effect from 6th April 2014 the amount that a director can borrow from his company has doubled from £5,000 to £10,000. Such a loan may be borrowed interest free or at a low rate without a tax or National Insurance charge being incurred.

This is a particularly useful source of cheap finance. The term cannot officially be indefinite although as long as the amount borrowed is under £10,000 a tax charge should not arise irrespective of whether the loan is paid off or not. Many companies have such loans showing on their balance sheets for many years, without tax or National Insurance liabilities arising.

If the company writes off the loan, however, then the amount written off becomes a benefit in kind and is subject to tax and National Insurance.

It should also be borne in mind that if the amount of the loan, including accrued interest if applicable, exceeds £10,000 then the entire loan becomes subject to tax and National Insurance by the borrower – not just the balance above £10,000.

Loans to spouses or children are aggregated to test whether the £10,000 limit is exceeded. There are also additional potential tax charges where the director borrowing the money is also a company shareholder.

This article was created by --[[User:Martinc|Martinc]] 18:44, 25 April 2014 (BST)

[[Category:Taxation]]

Statutory sick pay

2014-04-11T11:20:59Z

Martinc: Created page with " STATUTORY SICK PAY – ABOLITION OF THE PERCENTAGE THRESHHOLD SCHEME The Percentage Threshold Scheme (PTS), which allowed employers to reclaim Statutory Sick Pay (SSP) in cert..."

STATUTORY SICK PAY – ABOLITION OF THE PERCENTAGE THRESHHOLD SCHEME

The Percentage Threshold Scheme (PTS), which allowed employers to reclaim Statutory Sick Pay (SSP) in certain circumstances, is abolished from 6th April 2014. Under PTS employers could reclaim SSP where the SSP paid was more than 13% of the Class 1 National Insurance Contributions due for the month. As of 6th April 2014, it is no longer possible for employers to recover SSP from the government. Employers will, however, continue to be able to recover unclaimed SSP for previous years for a limited period and so should seek advice from an accountant if they believe this applies. The reason for this change is that it was believed that the PTS gave employers an incentive not to encourage long term sick employees to return to the workplace. The government has announced that the current PTS funding will be put towards the new Health & Work Service instead. This scheme is due to start in 2015 and is intended to help employees and employers put together plans to facilitate a return to work for employees who have been incapacitated for four weeks.

This article was written by --[[User:Martinc|Martinc]] 12:20, 11 April 2014 (BST)

[[Category:Taxation]]

The Community Infrastructure Levy (Amendment) Regulations 2014

2014-03-02T10:10:01Z

Martinc: Created page with " '''The Community Infrastructure Levy (Amendment) Regulations 2014''' With effect from 24 February 2014 the Community Infrastructure Levy (Amendment) Regulations 2014 provide '..."

'''The Community Infrastructure Levy (Amendment) Regulations 2014'''

With effect from 24 February 2014 the Community Infrastructure Levy (Amendment) Regulations 2014 provide ''inter alia'' for self-builders to be exempt from paying a levy which until now was placed on most new buildings over a certain size.

The previous charge added considerable cost in some cases to the expense of building a home. For example someone building their own 4-bedroom house that is 150 square metres in size could be liable to pay £15,000 in [https://www.gov.uk/government/policies/giving-communities-more-power-in-planning-local-development/supporting-pages/community-infrastructure-levy community infrastructure levy] if a council was charging £100 per square metre for residential development in that area.

The axing of the levy for people building their own home is part of the government’s determination to boost housing supply and help aspiring self-builders get their home off the ground.

The relief from the community infrastructure levy will cover homes that are owner-occupied and built or commissioned by individuals, families or groups of individuals for their own use.

Extensions and family annexes over a certain size will now be exempt from the levy and the government also intends to consult on removing Section 106 tariff charges from self-build properties too. In addition from April there will no longer be a Council Tax surcharge on family annexes.

Exempting self-builders from the levy is the latest in a range of measures to boost the number of people building their own home. They include:
*making is easier to get a self-build mortgage, the government has been speaking to lenders and 26 of them are now offering self-build loans; gross self-build lending is predicted to increase by almost half between 2012 and 2015 to £1 billion a year
*freeing up more surplus public sector land for self-builders with the [http://www.homesandcommunities.co.uk/ Homes and Communities Agency] to bring forward a range of sites for custom build homes
*introducing a £30 million Custom Build Homes Fund which makes available repayable finance for larger multi-unit projects and grant funding for community self-builders who can now apply for a share of £65 million from the [https://www.homesandcommunities.co.uk/ourwork/affordable-homes-guarantees-programme Affordable Homes Guarantees Programme]
*planning guidance that makes clear councils should help self-builders and establish demand in their area; this includes compiling a local register of people wanting to build a home so they have priority when new brownfield sites become available

[https://www.gov.uk/government/news/levy-cuts-to-help-hard-working-people-build-their-own-home https://www.gov.uk/government/news/levy-cuts-to-help-hard-working-people-build-their-own-home]

This article was created by--[[User:Martinc|Martinc]] 10:10, 2 March 2014 (UTC)

[[Category:Planning_permission]]

Mixed partnerships

2014-02-20T12:35:41Z

Martinc: Created page with " '''Mixed Partnerships and HMRC''' Many professionals working in the design and construction sectors have established themselves as a Limited Liability Partnership (..."

'''Mixed Partnerships and HMRC'''

 

Many professionals working in the design and construction sectors have established themselves as a Limited Liability Partnership (“LLP”) and some of these may well be “Mixed Partnerships”.

By this I mean that the members of a LLP are both corporate and individual members.

It is, of course, perfectly permissible for a company to be a member of a LLP and there are a variety of reasons why it may be considered appropriate or necessary for such an arrangement to be put in place. For example a corporate member could be the provider of much – needed capital to a LLP, or it could be a provider of very specific services to the LLP which could, in turn, be of benefit to the LLP’s own clients.

HMRC however, view the existence of Mixed Partnerships rather differently and believe that there is a significant loss to the Exchequer through the use of such arrangements to avoid or, at the very least defer, the payment of tax and national insurance contributions.

So, with effect from April 2014 new legislation is being implemented which will have significant financial repercussions for any LLPs which have corporate members. In particular the new rules will target those corporate members who are controlled by or associated with individual members and which are allocated profit shares that are deemed to be “excessive” by HMRC.

To understand this more fully a brief example is provided as follows:

'''Example A'''

''The” UKBuilding LLP” makes a profit of £200,000 to 31st March 2013 and has three members:''

''Tom, John, and “ABC limited” ''

''The profits are allocated equally to Tom and John (£100K each) and none to ABC Limited.''

''In this scenario Tom and John will both pay around £34,200 in tax and National Insurance (based upon 2013 tax year parameters, and assuming the single person’s tax free allowance)''

'''Example B'''

''The” UKBuilding LLP” makes a profit of £200,000 to 31st March 2013 and has three members:''

''Tom, John, and “ABC limited” ''

''£80K of the profits are allocated equally to Tom and John (£40K each) and £120K to ABC Limited.''

''In this scenario Tom and John will both pay around £9,000 in tax and National Insurance (based upon 2013 tax year parameters, and assuming the single person’s tax free allowance), and ABC Limited will pay £24,000 in corporation tax, assuming no deductible expenses within ABC Limited.''

''So the total tax take is £68,400 in Example A but only £42,000 in Example B''

 

This simple analysis does not explain the whole story as further tax would be payable on income taken from ABC Limited either in the form of salary or dividends but in the event that no such income is taken or is deferred to a much later date, it is clear that there is a cash – flow detriment, at the very least, to the Exchequer. And, at worst, there is a clear loss to the Exchequer in the event that when income is taken from ABC Limited it is taken by a standard rate taxpayer in lieu of the higher rate of tax being paid by John or Tom.

So HMRC are introducing revisions in the Finance Bill 2014 which will re-allocate “excess” profits allocated to a non-individual member where the following conditions are met:
*A non-individual has a share of the firm’s profit.
*The non-individual’s share is excessive
*An individual partner has the power to enjoy the non-individual’s share or there are deferred profit arrangements in place, and
*It is reasonable to suppose that the whole or part of the non-individual’s share is attributable to that power or arrangements.

These proposals will affect all mixed partnerships regardless of their rationale. Those that have a sound commercial basis for their structure will be affected just as those which exist for tax – saving purposes alone.

It is likely that many LLPs will opt to incorporate, but for those LLPs for whom this in neither desirable nor a viable option the matter of profit allocation with effect from April 2014 will become fraught with adverse consequences if these new rules are triggered.

This article was written by:--[[User:Martinc|Martinc]] 12:35, 20 February 2014 (UTC)

[[Category:Taxation]]

User:Martinc

2013-09-20T16:32:39Z

Martinc:

'''MARTIN CANTOR'''

I first became acquainted with the construction industry in 1985 when I became one of the shareholders in Trench Farrow and Partners, one of the first dedicated construction project management consultancies. I stayed with the firm until it was sold in 2006 to White Young Green PLC.

During that 20 year period we project managed some of the largest commercial development projects in London and, as Company Secretary, I gained valuable understanding of procurement processes and the ways and means of the construction industry.

I also acquired the skills necessary to run and develop owner – managed businesses.

Those skills have been applied to a wide variety of other businesses over the years and I now run my own business – Cantor Atkin – in partnership with Danielle Atkin. We have a thriving client base, many of whom like our method of service delivery which is a professional, personal, 7 days a week service all offered at very competitive fee levels.

We can run an entire finance function from a remote location. Or we can provide specific services tailored to a client’s particular requirements.

Many of our client relationships are very long – standing which is a testament to the relationships we develop and the quality of service provided.

WE have a broad range of skills and experience to offer. If you would like to know more please email me at [mailto:martin@cantoratkin.co.uk martin@cantoratkin.co.uk] or visit [http://www.cantoratkin.co.uk www.cantoratkin.co.uk]

Water technology list

2013-08-14T09:59:49Z

Martinc: Created page with " '''WATER TECHNOLOGY LIST''' The aim of the Water Technology List is to encourage businesses to save money by investing in technology and products that reduce water use and imp..."

'''WATER TECHNOLOGY LIST'''

The aim of the Water Technology List is to encourage businesses to save money by investing in technology and products that reduce water use and improve water quality. This is achieved by permitting businesses to claim Enhanced Capital Allowances (“ECA”) when purchasing any equipment so listed

[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/209854/pb13960-wtl-criteria-list-2013.pdf https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/209854/pb13960-wtl-criteria-list-2013.pdf]

Written by --[[User:Martinc|Martinc]] 10:59, 14 August 2013 (BST)

[[Category:Taxation]]

ECA Water Scheme

2013-08-13T09:31:52Z

Martinc:

'''The ECA water scheme'''

“ECA” stands for “Enhanced Capital Allowances” and this scheme encourages businesses to invest in technologies that save water and improve water quality. It does so by permitting businesses to claim 100 per cent first-year allowances tax on investments in certain technologies and products.

This enables businesses to reduce their tax bills accordingly.

Only new plant and machinery are eligible for an ECA and the plant and machinery must also be listed on the Water Technology List (“WTL”) which is maintained for capital allowance qualification purposes. The WTL is maintained by AEA Technologies on behalf of DEFRA

The scheme offers benefits to both supplier and buyer. The supplier can obtain a promotional advantage by seeing its product(s) in the WTL and is able to offer products that come with a tax – incentive effectively guaranteed. And for the buyer the tax advantage is augmented by the knowledge that this is a product which has met the criteria necessary for inclusion in the WTI.

'''Technologies covered by the ECA water scheme'''

ECAs are available on products and technologies that meet the specified criteria within the ECA scheme and are included on the WTL at the time of purchase.

The following technology areas are included on the WTL:
*cleaning-in-place equipment - monitoring and control equipment, and spray devices
*efficient showers - aerated showerheads, auto shut-off showers, flow regulators, low-flow showerheads and thermostatic controlled showers
*efficient taps - automatic shut-off taps, electronic taps, low-flow screw-down or lever taps and spray taps
*efficient toilets - low-flush toilets, retrofit WC flushing devices and urinal controls
*efficient washing machines - efficient commercial and industrial washing machines
*flow controllers - control and flow-limiting devices
*leakage detection equipment - data loggers, pressure-reducing valve controllers, and remote meter-reading and leak-warning devices
*meters and monitoring equipment - flow meters and water management software
*rainwater harvesting equipment - monitoring and control equipment, rainwater filtration equipment and rainwater storage vessels
*small-scale slurry and sludge dewatering equipment - belt press, centrifuge and filter press equipment
*vehicle-wash water reclaim units - partial or full reclaim systems
*water efficient industrial cleaning equipment - scrubber/driers (walk-behind and ride-on machines) and steam cleaners
*water management equipment for mechanical seals - seal water recycling units, internal flow regulators, and monitoring and control units
*water reuse systems - see the section below on ECAs for water reuse systems

To be eligible for the ECA, the product must be on the WTL at the time you buy it, you cannot claim an ECA on a product that is added to the WTL after you purchased it.

New products are added to the WTL on the first day of every month. The criteria for the WTL may be reviewed annually and can include the introduction of new technologies.

'''ECAs for water reuse systems'''

Water reuse 'systems' are processed differently to 'products' on the WTL.

Water reuse technology on the WTL has two sub-technologies:
*efficient membrane filtration equipment
*waste water recovery and reuse.

Due to their bespoke nature, these technologies are both eligible for ECAs via a certification scheme for each individually installed system, rather than the standard product list used for other technologies on the WTL.

Water reuse involves reusing suitably treated wastewater from one process for a different purpose. Water reuse technology reduces the demand on drinkable sources of freshwater and reduces the volume of wastewater discharged to sewer. Water reuse can be an economical way to reduce your costs.

The business sectors that can benefit most from using water reuse systems include the following industries:
*food and drink
*printing
*chemicals
*construction
*electronics
*metal finishing

'''How to apply for a water reuse system to be eligible for ECAs'''

It is the responsibility of the business installing the water reuse system to apply to have it certified as eligible for an ECA, not the business which manufactures or supplies it. If the application is approved, DEFRA will award the business a 'Certificate of Environmental Benefit'. This certificate verifies that the design of that water reuse system meets the water-efficient criteria.

If you are installing a water reuse system, you should ask your manufacturer or supplier to ensure that the design meets the eligibility criteria, as you must provide supporting evidence for this to DEFRA

Any investments in these technologies will only qualify for ECAs if a certificate has been issued for the equipment. A certificate can be revoked in certain circumstances, for example, if the recovery and reuse system is certified at design stage and the design of the system changes during development or the development ceases. year allowance claimed.

<a href="[http://www.hmrc.gov.uk/capital-allowances/fya/water.htm http://www.hmrc.gov.uk/capital-allowances/fya/water.htm]">[http://www.hmrc.gov.uk/capital-allowances/fya/water.htm http://www.hmrc.gov.uk/capital-allowances/fya/water.htm]</a>

This article was written by--[[User:Martinc|Martinc]] 10:31, 13 August 2013 (BST)

[[Category:Taxation]]

ECA Water Scheme

2013-08-13T09:31:22Z

Martinc: Created page with " The ECA water scheme “ECA” stands for “Enhanced Capital Allowances” and this scheme encourages businesses to inv..."

The ECA water scheme

“ECA” stands for “Enhanced Capital Allowances” and this scheme encourages businesses to invest in technologies that save water and improve water quality. It does so by permitting businesses to claim 100 per cent first-year allowances tax on investments in certain technologies and products.

This enables businesses to reduce their tax bills accordingly.

Only new plant and machinery are eligible for an ECA and the plant and machinery must also be listed on the Water Technology List (“WTL”) which is maintained for capital allowance qualification purposes. The WTL is maintained by AEA Technologies on behalf of DEFRA

The scheme offers benefits to both supplier and buyer. The supplier can obtain a promotional advantage by seeing its product(s) in the WTL and is able to offer products that come with a tax – incentive effectively guaranteed. And for the buyer the tax advantage is augmented by the knowledge that this is a product which has met the criteria necessary for inclusion in the WTI.

Technologies covered by the ECA water scheme

ECAs are available on products and technologies that meet the specified criteria within the ECA scheme and are included on the WTL at the time of purchase.

The following technology areas are included on the WTL:
<ul>
<li>
cleaning-in-place equipment - monitoring and control equipment, and spray devices</li>
<li>
efficient showers - aerated showerheads, auto shut-off showers, flow regulators, low-flow showerheads and thermostatic controlled showers</li>
<li>
efficient taps - automatic shut-off taps, electronic taps, low-flow screw-down or lever taps and spray taps</li>
<li>
efficient toilets - low-flush toilets, retrofit WC flushing devices and urinal controls</li>
<li>
efficient washing machines - efficient commercial and industrial washing machines</li>
<li>
flow controllers - control and flow-limiting devices</li>
<li>
leakage detection equipment - data loggers, pressure-reducing valve controllers, and remote meter-reading and leak-warning devices</li>
<li>
meters and monitoring equipment - flow meters and water management software</li>
<li>
rainwater harvesting equipment - monitoring and control equipment, rainwater filtration equipment and rainwater storage vessels</li>
<li>
small-scale slurry and sludge dewatering equipment - belt press, centrifuge and filter press equipment</li>
<li>
vehicle-wash water reclaim units - partial or full reclaim systems</li>
<li>
water efficient industrial cleaning equipment - scrubber/driers (walk-behind and ride-on machines) and steam cleaners</li>
<li>
water management equipment for mechanical seals - seal water recycling units, internal flow regulators, and monitoring and control units</li>
<li>
water reuse systems - see the section below on ECAs for water reuse systems</li>
</ul>

To be eligible for the ECA, the product must be on the WTL at the time you buy it, you cannot claim an ECA on a product that is added to the WTL after you purchased it.

New products are added to the WTL on the first day of every month. The criteria for the WTL may be reviewed annually and can include the introduction of new technologies.

ECAs for water reuse systems

Water reuse 'systems' are processed differently to 'products' on the WTL.

Water reuse technology on the WTL has two sub-technologies:
<ul>
<li>
efficient membrane filtration equipment</li>
<li>
waste water recovery and reuse.</li>
</ul>

Due to their bespoke nature, these technologies are both eligible for ECAs via a certification scheme for each individually installed system, rather than the standard product list used for other technologies on the WTL.

Water reuse involves reusing suitably treated wastewater from one process for a different purpose. Water reuse technology reduces the demand on drinkable sources of freshwater and reduces the volume of wastewater discharged to sewer. Water reuse can be an economical way to reduce your costs.

The business sectors that can benefit most from using water reuse systems include the following industries:
<ul>
<li>
food and drink</li>
<li>
printing</li>
<li>
chemicals</li>
<li>
construction</li>
<li>
electronics</li>
<li>
metal finishing</li>
</ul>

How to apply for a water reuse system to be eligible for ECAs

It is the responsibility of the business installing the water reuse system to apply to have it certified as eligible for an ECA, not the business which manufactures or supplies it. If the application is approved, DEFRA will award the business a 'Certificate of Environmental Benefit'. This certificate verifies that the design of that water reuse system meets the water-efficient criteria.

If you are installing a water reuse system, you should ask your manufacturer or supplier to ensure that the design meets the eligibility criteria, as you must provide supporting evidence for this to DEFRA

Any investments in these technologies will only qualify for ECAs if a certificate has been issued for the equipment. A certificate can be revoked in certain circumstances, for example, if the recovery and reuse system is certified at design stage and the design of the system changes during development or the development ceases. year allowance claimed.

<a href="http://www.hmrc.gov.uk/capital-allowances/fya/water.htm">http://www.hmrc.gov.uk/capital-allowances/fya/water.htm</a>

This article was written by _





 
 


[[Category:Taxation]]

Insurance

2013-07-25T12:46:11Z

Martinc: Created page with " '''INSURANCE FOR DESIGN AND CONSTRUCTION PROFESSIONALS''' This is a brief summary of issues to consider by, and policies available for, individuals and firms engaging in desig..."

'''INSURANCE FOR DESIGN AND CONSTRUCTION PROFESSIONALS'''

This is a brief summary of issues to consider by, and policies available for, individuals and firms engaging in design and/or construction activity. It is not intended to be all – encompassing as it is too large a topic to be covered in a single article. And advice from experienced insurance professionals is always recommended.

'''''Employers and Public Liability Insurance'''''

All firms who employ staff are legally required to hold Employers Liability Insurance. Public Liability and Employers Liability are usually offered in a single policy which may also cover office contents and buildings insurance requirements.

'''''Office Combined/Contents/Buildings Insurance'''''

Business owners will want to ensure that their assets are insured against damage or theft. In addition these policies will usually have sections offering cover against Business Interruption or Consequential Loss as well as fraud.

Business Interruption Insurance is particularly important as it covers the loss of profit which may be caused by an interruption to commercial activity occasioned by flood or fire. Loss of rent receivable from a tenant can also be insured in this way. So in addition to the usual insurance of assets, these policies also insure, in certain circumstances, the loss of income and this is particularly important in a commercial context. Salaries and other overheads continue regardless so ensuring that these can continue to be paid is a sensible approach to adopt.

'''''Legal Expenses Insurance'''''

This is a relatively inexpensive form of insurance which can either be insured via a specific policy or as a section of a combined policy. In an increasingly litigious world it is becoming common to insure against the cost of defending legal action. Such are the levels of legal costs, with no certainty of recovery in many cases, that this type of insurance is seen as an inexpensive way to avoid quickly incurring substantial legal fees.

'''''Professional Indemnity'''''

For all providers of professional services, PI insurance is considered an “essential”. Indeed many clients will not enter into a contractual relationship with a supplier unless the supplier can demonstrate that they hold PI insurance to a minimum level.

PI insurance is there to cover proven negligence on the part of the service provider. The consequences of such negligence on substantial construction projects can be enormously expensive to correct and this type of insurance should, if arranged at the commensurate level, provide:

Certainty that the service provider will not be bankrupted by a successful claim and

Recompense to the client for the cost of remediating the consequences of the negligence in question.

Most PI policies will offer additional sections of cover, e.g. financial fraud but their principal purpose is to cover the risk of negligence in providing professional services.

These policies are relatively expensive although the nature of services being offered will be the main factor in determining the level of premium. For example Surveyors offering commercial property valuation services or Architects offering design services to commercial developers will pay premiums that are high when compared to providers of, for example, rating services.

A further point to consider here is the level of excess that the policy holder is prepared to bear him (her) self. This is particularly important as most sums paid out by insurers under PI claims are to meet legal expenses incurred without a case actually coming to Court. So in practice this form of insurance pays legal costs, not damages, and for this reason a willingness by a policyholder to meet, say, the first £10,000 of a potential claim should result in a lower overall premium as the insurer will have more confidence that they will not be called upon to pay out themselves.

'''''Directors and Officers Insurance'''''

This type of insurance protects Company Directors and Officers from a claim by shareholders or creditors of a company in the event that a claim is made in respect of their alleged wrongdoing. All Company Officers owe a fiduciary duty to their company and, in addition the concept of “Wrongful Trading” is particularly hazardous if a company goes into administration or is liquidated.

Directorships are often held on a “non – Executive” basis and such positions can be particularly dangerous in the sense that a “non – exec” will not be involved in the day to day running of a business but will have exactly the same legal burdens as those directors who are running the business on a full – time basis.

'''''Terrorism Insurance'''''

This type of insurance can be obtained on a “stand – alone” basis or as an addition to a conventional buildings or commercial combined policy. Simply stated it covers material damage caused by an act of terrorism. It is therefore particularly relevant for projects or buildings located in areas which may be considered to be high – risk terrorist targets e.g The City of London.

'''''Contractors All Risks Insurance'''''

A Policy that covers all risks associated normally with a construction project. Issued commonly under the joint names of a contractor and a principal client.

It is sometimes referred to as 'Contract Works Insurance'.

'''Cover usually protects against the cost of unforeseen loss or damage to building works, machinery movement, advanced business interruption and public liability, installation and constructional plant during the construction period but can be extended to included the maintenance period too.'''

In addition cover can be included for tools, plant owned by the policy holder or plant hired in.

The width of cover under this type of policy can be extended to include a range of additional covers e.g public liability, business interruption, machinery movement and equipment erection

'''''Performance bond'''''

A Performance Bond is commonly used in the construction industry as a means of insuring a client against the risk of a contractor failing to fulfil contractual obligations to a client. The most common concern is of a contractor becoming insolvent before completing a contract.

Where this occurs the bond provides guaranteed compensation up to the amount of the performance bond. Bonds can be issued either by an insurance company or bank

The cost of such a bond is usually borne by the contractor.

Whether or not such a bond is required will depend, in the main, on the perceived financial strength of the party bidding to win a contract.

'''''Collateral Warranty'''''

A Collateral Warranty is a legally binding agreement which is ancillary to a separate contractual agreement between two parties and which imposes an extended duty of care and a broader liability on those parties.

Such a Warranty effectively provides for a duty of care to be extended by a contracting party to a third party that is not party to the original contract.

A good example would be where an architect of a new office development owes a duty of care to an occupier of the development in so far as any subsequent defects, which may arise, are concerned. Privity of Contract rules would prevent any liability arising between architect and occupier without the existence of a collateral warranty enabling the developer to create a contractual obligation between architect and occupier.

'''''Legal Indemnity Insurance'''''

This type of insurance exists to provide recompense in the event that the policy holder incurs capital loss or expense in dealing with a range of possible legal issues which are inadvertently encountered. Examples could be to deal with unforeseen rights of way issues over land that has been purchased, or costs incurred in complying with certain planning requirements. Please see our separate article on this topic.

It is for each individual or party to decide upon insurance policies that are appropriate for their circumstances. It is very expensive to over – insure; it could be very expensive to under – insure in the event that a claim is made. For these reasons expert guidance is advisable

This article was created by:--[[User:Martinc|Martinc]] 13:46, 25 July 2013 (BST)

24 July 2013

[http://www.3diltd.co.uk/ http://www.3diltd.co.uk/]

[[Category:Cost_/_business_planning]]

Flood insurance

2013-07-10T16:05:13Z

Martinc: Created page with " '''FLOOD INSURANCE''' The twin factors of climate change and development on flood plains have become increasingly problematical for home owners and property insurers. Increase..."

'''FLOOD INSURANCE'''

The twin factors of climate change and development on flood plains have become increasingly problematical for home owners and property insurers. Increased rainfall generally and more and more exceptional weather incidents have resulted in the insurance industry facing rising flood – related insurance claims. Summer 2012 was the wettest for a century and in June alone flood claims were running at circa £17 million per day.

All of this means that properties in flood – prone areas are increasingly expensive to insure. Some are completely uninsurable.

In response to the increasing risk of flood damage to vulnerable properties there has been in place since 2000 between Government and the insurance industry, represented by the Association of British Insurers whereby insurers would continue to offer insurance cover on vulnerable properties in return for guaranteed levels of public spending on flood defences.

However this agreement ends in 2013 and has now been superceded by a new agreement to take effect in 2015 under which all homeowners – not just those affected by flooding – will pay £10,50 per annum to help cover the cost of flood damage, thereby reducing insurance costs of those directly affected. In fact homeowners have, for some time, been paying this amount, but the arrangement is now being formalised.

Insurers will continue to offer renewal terms on vulnerable properties although the premiums will still be high when compared to low – risk properties. The premium differential for equivalent properties in high and low risk areas can be as much as four times.

If a property is in a high flood risk area there is no guarantee that insurance will either be available or available at reasonable cost and the new agreement does not change these facts. Information on flood risk is available via the Environment Agency.

[http://www.environment-agency.gov.uk/homeandleisure/floods/ http://www.environment-agency.gov.uk/homeandleisure/floods/]

This page was created by:--[[User:Martinc|Martinc]] 17:05, 10 July 2013 (BST)

[[Category:Other_legislation]]

Smith & Dennis v Jafton Properties

2013-07-02T11:53:00Z

Martinc:

This case has far- reaching implications for commercial tenants of former residential buildings seeking to enfranchise their leasehold interests. The decision in the case of Smith & Dennis v Jafton Properties Limited follows that of the Supreme Court in Day v Hosebay.

That case held that a building used solely for commercial purposes was not a "dwelling" and the tenant, therefore, had no rights of enfranchisement.

In Smith & Dennis v Jafton Properties Limited the Court considered the definition of a "flat" under the Leasehold Reform Housing and Urban Development Act 1993 and ruled that even if premises are considered to be a flat, the use to which a flat is put must be considered as well in determining whether or not enfranchisement rights exist. In this case the Judge ruled that as the flats were solely used for commercial purposes, the tenants did not have the right to buy the freehold.

The judgement means that, in addition to considering whether premises are a "flat" under then act, actual current use and nature of occupation are also relevant in considering enfranchisement rights.

Created by:--[[User%3AMartinc|Martinc]] 12:40, 2 July 2013 (BST)

[[Category:Case_law]]

Smith & Dennis v Jafton Properties

2013-07-02T11:52:17Z

Martinc:

This case has far- reaching implications for commercial tenants of former residential buildings seeking to enfranchise their leasehold interests. The decision in the case of Smith & Dennis v Jafton Properties Limited follows that of the Supreme Court in Day v Hosebay.

That case held that a building used solely for commercial purposes was not a "dwelling" and the tenant, therefore, had no rights of enfranchisement.

In Smith & Dennis v Jafton Properties Limited the Court considered the definition of a "flat" under the Leasehold Reform Housing and Urban Development Act 1993 and ruled that even if premises are considered to be a flat, the use to which a flat is put must be considered as well in determining whether or not enfranchisement rights exist. In this case the Judge ruled that as the flats were solely used for commercial purposes, the tenants did not have the right to buy the freehold.

The judgement means that, in addition to considering whether premises are a "flat" under then act, actual current use and nature of occupation are also relevant in considering enfranchisement rights.

[http://www.bailii.org/ew/cases/EWCA/Civ/2011/1251.html http://www.bailii.org/ew/cases/EWCA/Civ/2011/1251.html]

Created by:--[[User%3AMartinc|Martinc]] 12:40, 2 July 2013 (BST)

[[Category:Case_law]]

Smith & Dennis v Jafton Properties

2013-07-02T11:40:12Z

Martinc: Created page with " This case has far- reaching implications for commercial tenants of former residential buildings seeking to enfranchise their leasehold interests. The decision in the case of Sm..."

This case has far- reaching implications for commercial tenants of former residential buildings seeking to enfranchise their leasehold interests. The decision in the case of Smith & Dennis v Jafton Properties Limited follows that of the Supreme Court in Day v Hosebay.

That case held that a building used solely for commercial purposes was not a "dwelling" and the tenant, therefore, had no rights of enfranchisement.

In Smith & Dennis v Jafton Properties Limited the Court considered the definition of a "flat" under the Leasehold Reform Housing and Urban Development Act 1993 and ruled that even if premises are considered to be a flat, the use to which a flat is put must be considered as well in determining whether or not enfranchisement rights exist. In this case the Judge ruled that as the flats were solely used for commercial purposes, the tenants did not have the right to buy the freehold.

The judgement means that, in addition to considering whether premises are a "flat" under then act, actual current use and nature of occupation are also relevant in considering enfranchisement rights.

Created by:--[[User:Martinc|Martinc]] 12:40, 2 July 2013 (BST)

[[Category:Case_law]]

CIS contractors and CIS sub-contractors

2013-06-19T16:59:34Z

Martinc:

'''CIS Contractors and CIS Sub – Contractors'''

For the purposes of the Construction Industry Scheme the terms contractors and sub – contractors have very specific meanings. These are terms that are widely used within the building industry but for the purposes of the CIS it is important that the specific meanings are clearly understood as they have direct relevance to the manner in which payments between parties may be made, and the associated tax treatment of those payments.

So for the purposes of this article I shall refer to CIS Contractors and CIS Sub – Contractors.

'''CIS Contractors'''

Under the CIS there are two groups of contractors

'''Mainstream Contractors'''

These include:
*Any businesses that include construction operations and pay others for work carried out.
*Any property developers or speculative builders erecting and altering buildings in order to make a profit.
*Gang – leaders organising construction labour. (although gang – leaders may also be a CIS Sub – Contractor)
*Foreign businesses carrying out construction work in the U.K.

'''Deemed Contractors'''

The CIS also identifies entities that are deemed to be contractors. These may be public bodies or other concerns who carry out or commission construction activities. Such entities are deemed to be contractors in the following circumstances:

Their average annual expenditure on construction operations in the period of three years ending on the last accounting date exceeds £1 million.

If they have not been trading for the whole of the last three years they will be deemed to be contractors if their total expenditure on construction activities for that part of the three year period during which they have traded exceeds £3 million.

Any concern that is deemed to be a contractor because one of the above conditions is met will continue to be treated as such until construction expenditure reduces to less than £1 million for three successive years.

'''CIS Sub – Contractors'''

This term describes a person or body that has agreed to carry out construction operations for a contractor. This may involve the CIS Sub – contractor
*Carrying out the operations themselves, or
*Having the work done by other CIS Sub – Contractors

Such CIS Sub – Contractors may be companies, self – employed persons, public bodies, foreign businesses or gang – leaders. Persons may be employed by agencies to undertake construction work in which case the agency, howsoever constituted, shall be treated as a CIS Sub – Contractor.

This page was created by:--[[User:Martinc|Martinc]] 17:59, 19 June 2013 (BST)

[[Category:Taxation]]

CIS contractors and CIS sub-contractors

2013-06-19T16:53:04Z

Martinc:

User:Martinc

2013-06-18T12:13:52Z

Martinc: Created page with " '''MARTIN CANTOR''' I first became acquainted with the construction industry in 1985 when I became one of the shareholders in Trench Farrow and Partners, one of the first dedi..."

CIS contractors and CIS sub-contractors

2013-06-18T11:58:08Z

Martinc: Created page with " '''CIS Contractors and CIS Sub – Contractors''' For the purposes of the Construction Industry Scheme the terms contractors and sub – contractors have very specific meaning..."

Ir35

2012-06-17T09:03:00Z

Martinc: Created page with "IR 35 (or “Intermediaries Legislation”) was introduced by HMRC in 2000. The reason for the introduction of IR35 was HMRC’s belief that the Exchequer was losing substantial..."

IR 35 (or “Intermediaries Legislation”) was introduced by HMRC in 2000.

The reason for the introduction of IR35 was HMRC’s belief that the Exchequer was losing substantial amounts of tax and national insurance due to the use, by individuals, of service companies or self-employed status in circumstances where, in reality, they were employees who should thus be subject to full Pay As You Earn (“PAYE”) rules.

And this is because the tax and national insurance collected by HMRC via PAYE is greater than it would be from self-employed individuals or from those who route their income through service companies.

In particular HMRC were concerned about these practices in the IT and Construction industries where the use of consultants is widespread.

IR35 sets out the general rules which individuals must apply to their own circumstances. There are a variety of tests which should be applied in considering whether or not PAYE applies and it should be emphasised that these are matters which are of relevance to both side of a contract to perform services.

This is because there are potentially costly consequences for both parties in the event that IR 35 is not applied correctly.

For the party paying for the services there is the possibility that HMRC will deem amounts paid to be net of tax and National insurance and thereby “gross up” these amounts and demand the difference from the paying party.

And for the party providing the services there could also be additional tax to pay as expenses incurred in providing those services would be severely limited and, of course, the likelihood would be that the employing party would seek to seek to recover from the service provider any additional tax it had to pay to HMRC .

So it is important to ensure that these rules are understood and observed.

IR35 does not threaten those who have set up their own businesses and who are genuinely self-employed. It targets those which would otherwise be classed as “employees” when carrying out a particular contract. It applies on a “contract by contract” basis so it is not the case that if a self-employed person has only one client, IR35 automatically applies. What matters are the terms and conditions which apply to each individual contract so it is perfectly possible for an individual to have several contracts running concurrently, one of which falls within IR35 and to which PAYE rules apply.

Care is therefore essential in drafting contract terms in order to ensure that a contract does not inadvertently become subject to PAYE as a consequence of failing to take full account of IR 35.

[[Category:Taxation]]

Construction VAT

2012-06-07T17:56:26Z

Martinc:

Value Added Tax is a tax added to the cost of certain goods and services. It is only accountable where the party raising an invoice is VAT registered. It is necessary to register if “VAT- able turnover” exceeds a minimum threshold in any 12 month period.

When VAT is added to a sales invoice it is “output tax” in the hands of the party raising the invoice. To the recipient of the invoice the same tax is “input tax”.

Supplies of certain goods may be “Exempt” or “Zero – rated”. In both of these categories VAT is not added to the value of the supply but there is differing treatment with regard to input tax incurred with regard to making that supply.

In the design and construction sectors most supplies are “standard – rated” and therefore VAT is added to the value of such supplies at the prevailing rate of VAT. But certain types of work can sometimes be charged at a reduced rate of 5 per cent, or at the zero rate.

From the perspective of a party wishing to undertake development of any sort it is vital that, in calculating the budget for the job, VAT is correctly accounted for. Are prices quoted inclusive or exclusive? Are you, the client, able to recover VAT or not? Is the work in question exempt from VAT or Zero - rated?

And if you run a VAT-registered construction business it's important to charge the right VAT rate. You can normally only charge the reduced or the zero rate if certain conditions are met. So if you think either rate applies you should check the details to make sure.

The conditions can relate to different aspects of the work, including:

*The type of building worked on.
*The type of work you do and the equipment you instal.
*When you do the work.
*Who you do the work for.

{| border="0" cellpadding="0"
|-
! colspan="3" |
Zero-rating and reduced-rating work on ordinary domestic dwellings

|-
!
'''Type of work'''

!
'''VAT rate'''

! 
|-
|
Construction of a new house or flat

|
zero

| 
|-
|
Converting a building into a house or flat

|
reduced rate

| 
|-
|
Renovating or altering an empty house or flat

|
reduced rate

| 
|-
|
Supplying and installing certain mobility aids for elderly people

|
reduced rate

| 
|-
|
Supplying and installing certain energy saving materials and equipment

|
reduced rate

| 
|-
|
Supplying and installing certain heating systems and security goods when funded by a grant

|
reduced rate

| 
|-
|
Connecting or reconnecting to the mains gas supply - first time connections and grant-funded connections or reconnections

|
Can sometimes be zero or reduced rate

| 
|-
|
Supplying or installing goods for a disabled person in their home

|
zero

| 
|-
|
Making alterations to suit a disabled person

|
zero

| 
|-
|
Converting a residential building into a different residential use - for example combining two cottages into a single house

|
reduced rate

| 
|}

Ref HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm#1 Work on ordinary homes that may be reduced-rated or zero-rated].

Any construction work on an ordinary house or flat that isn't listed in the table above is always standard-rated at the current standard rate. This would include, for example:

*Building an extension, annex or granny annex.
*Converting a loft.
*Doing repairs or renovations.

----

= See also =

*HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm Building and construction work and VAT].
*HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm#2 Work on buildings other than ordinary homes that may be reduced-rated or zero-rated].
*HMRC: [http://www.hmrc.gov.uk/vat/sectors/builders/construction.htm#1 Work on ordinary homes that may be reduced-rated or zero-rated].

 

 

[[Category:Contracts_/_payment]]
[[Category:Taxation]]
[[Category:Cost_/_business_planning]]

Construction VAT

2012-06-06T18:26:59Z

Martinc: Created page with "Value Added Tax is a tax added to the cost of certain goods and services. It is only accountable where the party raising an invoice is VAT registered. It is necessary to register..."

Value Added Tax is a tax added to the cost of certain goods and services. It is only accountable where the party raising an invoice is VAT registered. It is necessary to register if “VAT- able turnover” exceeds a minimum threshold in any 12 month period.

When VAT is added to a sales invoice it is “output tax” in the hands of the party raising the invoice. To the recipient of the invoice the same tax is “input tax”

Supplies of certain goods may be “Exempt” or “Zero – rated”. In both of these categories VAT is not added to the value of the supply but there is differing treatment with regard to input tax incurred with regard to making that supply.

In the design and construction sectors most supplies are “standard – rated” and therefore VAT is added to the value of such supplies at the prevailing rate of VAT. But certain types of work can sometimes be charged at a reduced rate of 5 per cent, or at the zero rate.

If you run a VAT-registered construction business it's important to charge the right VAT rate. You can normally only charge the reduced or the zero rate if certain conditions are met. So if you think either rate applies you should check the details to make sure.

The conditions can relate to different aspects of the work, including:

*the type of building worked on
*the type of work you do and the equipment you install
*when you do the work
*who you do the work for

{| border="0" cellpadding="0"
|-
! colspan="3" |
Zero-rating and reduced-rating work on ordinary domestic dwellings

|-
!
'''Type of work'''

!
'''VAT rate'''

! 
|-
|
Construction of a new house or flat

|
zero

| 
|-
|
Converting a building into a house or flat

|
reduced rate

| 
|-
|
Renovating or altering an empty house or flat

|
reduced rate

| 
|-
|
Supplying and installing certain mobility aids for elderly people

|
reduced rate

| 
|-
|
Supplying and installing certain energy saving materials and equipment

|
reduced rate

| 
|-
|
Supplying and installing certain heating systems and security goods when funded by a grant

|
reduced rate

| 
|-
|
Connecting or reconnecting to the mains gas supply - first time connections and grant-funded connections or reconnections

|
Can sometimes be zero or reduced rate

| 
|-
|
Supplying or installing goods for a disabled person in their home

|
zero

| 
|-
|
Making alterations to suit a disabled person

|
zero

| 
|-
|
Converting a residential building into a different residential use - for example combining two cottages into a single house

|
reduced rate

| 
|}

Any construction work on an ordinary house or flat that isn't listed in the table above is always standard-rated at the current standard rate. This would include, for example:

*building an extension, annex or granny annex
*converting a loft
*doing repairs or renovations

[[Category:Taxation]]

Bribery Act 2010

2012-06-05T21:29:48Z

Martinc:

The Bribery Act 2010 contains two general offences covering the offering, promising or giving of a bribe (active bribery) and the requesting, agreeing to receive or accepting of a bribe (passive bribery) at sections 1 and 2 respectively.

It also sets out two further offences which specifically address commercial bribery.

Section 6 of the Act creates an offence relating to bribery of a foreign public official in order to obtain or retain business or an advantage in the conduct of business.

Section 7 creates a new form of corporate liability for failing to prevent bribery on behalf of a commercial organisation.

 The objective of the Act is not to bring the full force of the criminal law to bear upon well run commercial organisations that experience an isolated incident of bribery on their behalf. So in order to achieve an appropriate balance, section 7 provides a full defence. This is in recognition of the fact that no bribery prevention regime will be capable of preventing bribery at all times. However, the defence is also included in order to encourage commercial organisations to put procedures in place to prevent bribery by persons associated with them.

Organisations should develop and implement procedures which set out how they intend to ensure that the provisions of the Act are not breached by their staff. Directors should issue a clear statement of policy to all staff and should provide for the necessary training to make sure that all staff are fully aware of the law in this regard. All organisations should make clear the consequences which would arise in the event that the law in this regard is broken.

A template policy and procedures[[File:Bribery_Act.pdf|Bribery_Act.pdf]] document is attached.

[[Category:Other_legislation]]

Bribery Act 2010

2012-06-05T21:14:02Z

Martinc:

The Bribery Act 2010 contains two general offences covering the offering, promising or giving of a bribe (active bribery) and the requesting, agreeing to receive or accepting of a bribe (passive bribery) at sections 1 and 2 respectively.

It also sets out two further offences which specifically address commercial bribery.

Section 6 of the Act creates an offence relating to bribery of a foreign public official in order to obtain or retain business or an advantage in the conduct of business.

Section 7 creates a new form of corporate liability for failing to prevent bribery on behalf of a commercial organisation.

 The objective of the Act is not to bring the full force of the criminal law to bear upon well run commercial organisations that experience an isolated incident of bribery on their behalf. So in order to achieve an appropriate balance, section 7 provides a full defence. This is in recognition of the fact that no bribery prevention regime will be capable of preventing bribery at all times. However, the defence is also included in order to encourage commercial organisations to put procedures in place to prevent bribery by persons associated with them.

Organisations should develop and implement procedures which set out how they intend to ensure that the provisions of the Act are not breached by their staff. Directors should issue a clear statement of policy to all staff and should provide for the necessary training to make sure that all staff are fully aware of the law in this regard. All organisations should make clear the consequences which would arise in the event that the law in this regard is broken.

A template policy and procedures document is attached.[[Bribery_act.pdf|Bribery_act.pdf]]

[[Category:Other_legislation]]

Bribery Act 2010

2012-06-05T21:05:45Z

Martinc:

The Bribery Act 2010 contains two general offences covering the offering, promising or giving of a bribe (active bribery) and the requesting, agreeing to receive or accepting of a bribe (passive bribery) at sections 1 and 2 respectively.

It also sets out two further offences which specifically address commercial bribery.

Section 6 of the Act creates an offence relating to bribery of a foreign public official in order to obtain or retain business or an advantage in the conduct of business.

Section 7 creates a new form of corporate liability for failing to prevent bribery on behalf of a commercial organisation.

 The objective of the Act is not to bring the full force of the criminal law to bear upon well run commercial organisations that experience an isolated incident of bribery on their behalf. So in order to achieve an appropriate balance, section 7 provides a full defence. This is in recognition of the fact that no bribery prevention regime will be capable of preventing bribery at all times. However, the defence is also included in order to encourage commercial organisations to put procedures in place to prevent bribery by persons associated with them.

Organisations should develop and implement procedures which set out how they intend to ensure that the provisions of the Act are not breached by their staff. Directors should issue a clear statement of policy to all staff and should provide for the necessary training to make sure that all staff are fully aware of the law in this regard. All organisations should make clear the consequences which would arise in the event that the law in this regard is broken.

A template policy and procedures document is attached.

[[Category:Other_legislation]]

File:Bribery Act.pdf

2012-06-05T21:04:21Z

Martinc:

Bribery Act 2010

2012-06-05T19:59:20Z

Martinc: Created page with "The Bribery Act 2010 contains two general offences covering the offering, promising or giving of a bribe (active bribery) and the requesting, agreeing to receive or accepting of ..."

The Bribery Act 2010 contains two general offences covering the offering, promising or giving of a bribe (active bribery) and the requesting, agreeing to receive or accepting of a bribe (passive bribery) at sections 1 and 2 respectively.

It also sets out two further offences which specifically address commercial bribery.

Section 6 of the Act creates an offence relating to bribery of a foreign public official in order to obtain or retain business or an advantage in the conduct of business.

Section 7 creates a new form of corporate liability for failing to prevent bribery on behalf of a commercial organisation.

 The objective of the Act is not to bring the full force of the criminal law to bear upon well run commercial organisations that experience an isolated incident of bribery on their behalf. So in order to achieve an appropriate balance, section 7 provides a full defence. This is in recognition of the fact that no bribery prevention regime will be capable of preventing bribery at all times. However, the defence is also included in order to encourage commercial organisations to put procedures in place to prevent bribery by persons associated with them.

Organisations should develop and implement procedures which set out how they intend to ensure that the provisions of the Act are not breached by their staff. Directors should issue a clear statement of policy to all staff and should provide for the necessary training to make sure that all staff are fully aware of the law in this regard. All organisations should make clear the consequences which would arise in the event that the law in this regard is broken.

A template policy and procedures document is attached.

[[Category:Other_legislation]]

Construction industry scheme CIS

2012-04-17T13:25:51Z

Martinc:

The Construction Industry Scheme (CIS) sets out a series of rules for how contractors should make payments to sub-contractors.

The scheme was introduced in order to try and prevent the loss of revenue to the Exchequer arising from payments between contractors not being properly accounted for for tax purposes. For all contractors and sub - contractors who fall within scope, the obligation to account properly for tax and to apply deductions from payments made is clear and severe penalties automatically arise if the provisions of the scheme are not followed rigorously.

The definition of 'contractor' for the purposes of the scheme includes not just organisation traditionally considered to be contractors, but any organisation that spends more than an average of £1 million a year on construction operations over a three year period (for example local authorities).

Qualifying contractors are required to register under the Construction Industry Scheme with HM Revenue & Customs (HMRC) and to inform them of changes to their business.

Sub-contractors are also required to register with HMRC and to inform them of changes to their business.

Contractors then have certain obligations, including;

*Checking with HMRC that sub-contractors are registered under the Construction Industry Scheme (this can be done on the HMRC website).
*Paying sub-contractors in accordance with procedures laid down by HMRC once the sub-contractor has been verified. These include procedures for making deductions and for issuing payment and deduction statements.
*Submitting monthly Construction Industry Scheme returns to HMRC giving details of payments made to sub-contractors under the scheme.

----

= See also =

*HMRC: [http://www.hmrc.gov.uk/cis/index.htm Construction Industry Scheme]
*CIS Scheme assistance: [http://www.cantoratkin.co.uk http://www.cantoratkin.co.uk]

[[Category:Construction_management]]
[[Category:Procurement]]
[[Category:Other_legislation]]