B&T update on working arrangements during the Corona Virus and HMRC guidance

We are sure that you've already received several messages like this but during uncertain times it is important to know that we’re not alone and in it together and so we wanted to let you know that we are thinking about you.

Working Arrangements;

The safety and well-being of our clients, staff and loved ones is on all our minds. Many of us are close to someone in the higher risk category. Although some of the team intend to remain based in the office, we have decided to shut the doors to outside visitors in line with the Government's current strategy. We are also extending our ability for the team at B&T to work remotely where possible so that we can continue to deliver what you need from us as effectively and efficiently as possible throughout these challenging times.

We will look to alter meetings (or change to online video / traditional calls) and move deadlines or non-essential work commitments to accommodate each other’s circumstances whilst we try to support you during a situation that none of us have previously experienced. We welcome your input and help in making this work together.

Government & HMRC Guidance:

Over the coming days and weeks, we will be following any advice from government as it becomes available and will communicate relevant changes with you where possible. 

Please note that HMRC have extended their payment helpline arrangements on 08000 159559 and have indicated that they will be more lenient on 'time to pay' and 'deferral' plans. They also have issued the following guidanc page which may be helpful to you: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses  outlining different support they are giving to small businesses at this time.

Call Us:

If you require access to the building or prefer to postpone appointments and working schedules that have not already been addressed, please call or email your usual contact here or use the main office number on 01623 659659 and bear with us whilst we manage the moving landscape.

Thank you for your continued support and understanding - stay safe and take care.

Jono, David and all the Team at B&T.

What are the implications of becoming an increasingly digital organisation?

A reality of the modern world is one of constant change.  At a technical level this means the frequent release of new digital services to users, without them noticing and a move away from long release cycles and big-bang implementation (and the associated drama). 

At an organisational level the differences are profound. Digitisation and automation shifts the demand for resource, away from operations and towards change delivery. This means that organisations need to commit their A-team, with all the right skills to design, develop and deploy the new services.

In an increasingly uncertain world, organisations need to adapt quickly. This requires strong leadership and support from all levels of an organisation.  Like the digital technology, organisational change is best delivered in short iterations, allowing engagement, commitment and support to grow over time.

Once organisations have adopted a mind-set of constant change there are three areas to consider: digital platforms (over products and services); new capabilities; and new ways of working.

In addition to embracing digital and delivering services through digital channels, there is a wider opportunity to start benefiting from the (positive) disruption that results from digital platforms (similar to those that we all use on a daily basis like Google, Amazon, Uber, AirB&B and LinkedIn). These platforms share a number of characteristics. 

They are digital businesses whose users identify with the channel (through which they receive the service) and not the organisation providing the service;

Ease of use means that the user experience is so intuitive that there is no training requirement, and as a result, being almost entirely self-service; and

Disintermediating by removing unnecessary duplication and waste – for example tasks, activities, people and sometimes entire organisations – from operations.

These characteristics can become guiding principles.  They also infer a different business model and so, achieving them requires a transition from ‘organisation’ into ‘digital platform,’ a seismic shift that demands careful thinking about purpose, strategy, culture and structure.

Becoming increasingly digital requires new skills and capabilities and different ways of working.  Many are common place (for example User Research, Service Design, Agile software and UX design).  However, these capabilities need to extend beyond technology and as they evolve they bring new challenges with them:

Extending beyond scrum teams by making agile work at scale and introducing new frameworks and new capabilities;

Securing resource in a hot digital skills market that is currently unable to keep up with demand; and

Engaging strategic partners, who you are confident that you can work with, to supplement in-house digital skills without long and uncertain procurement processes.

These are good problems to have, because they indicate that an organisation is bridging the gap between the pre and post digital world.  However, they emphasise the need for continuous improvement as ‘becoming digital’ throws up new and different challenges.

In addition to establishing and developing new capabilities, those embracing digital need to consider the implications for employee engagement, their ways of working and ultimately their culture.  It is pointless establishing Agile teams who are empowered to deliver if policies, performance management and career development pathways all act counter to their day to day ways of working.  This requires a focus on:

Engaging the workforce, the organisational culture needs to reflect the reality of the digital world, this is essential for recruitment and retention;

Taking new approaches to workforce development, this becomes increasingly important in bridging digital skills (and generational) gaps; and

Living the new behaviours, the tone for the new culture is set by the senior leaders, addressing capability (and credibility) gaps needs to start with the senior team.

It is essential that the chasm between ‘digital’ and ‘everything else’ gets smaller.  The key to success is going further than building good digital products and services, by starting to become a digital organisation.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

The help on hand from your accountant

Your accountant can help you in a number of different ways, argues Jono Wilson of accountancy firm Barnett & Turner. Here, he lists five of the most important contributions they can make.

What exactly is your accountant there for? Providing a sounding board for your business plans? Offering you peace of mind? I think it’s both those things and a number of others besides. Here are just some of the reasons you need that trusted professional adviser on call:

1.  We give you time back

Time is a precious commodity for anyone running a business. Not to mention important for quality of life outside work too. By taking care of compliance issues, or taking responsibility for day-to-day processing, your accountant can free up valuable space for you to focus on things that really matter. We can also claw back some extra time by looking at your current ways of working and giving you tips on how to be more efficient.

2.  We remove those nagging worries

Have you filed your return by a particular date? Did you complete that HMRC form correctly? Your own strengths might lie elsewhere, in your creative flair or specialist skills. Leaving the day-to-day accountancy and administrative burden to people you know are experts in that field is very reassuring.

3.  We can provide useful insights

Very often, as a business owner, you’re going on a one-off journey. That means you’re dealing with everything for the first time. That first attempt at fundraising for instance, or a tricky commercial negotiation. Or perhaps you’re considering your plans for an ultimate exit from the business. We have seen these scenarios before and have helped other clients through them, which means we can offer practical advice and an impartial perspective.

4.  We can help make you more money

When we work on your accounts or conduct an audit, we gain an understanding of your business. This tells us what you’re doing well and what’s working less efficiently. If there’s an overspend, for example, we’ll be able to spot it for you. All in all, we play an important part in getting your finances into shape.

5.  We can become your trusted advisers and more

If your accountant is delivering on all of these points, they will soon become established as your trusted adviser, a position that will strengthen with time. And if you can share a drink with that adviser once in a while, it certainly doesn’t do any harm!

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Your dream build needn’t be a financial nightmare

There are probably relatively few of us brave enough to construct a home from scratch. After all, it takes a real sense of vision, commitment and dedication. Perhaps a slightly larger group of us might consider converting an existing building. In either scenario, however, costs are always an issue and can easily spiral.

It’s worth knowing that you may well be able to recover the VAT you’ve been charged on certain building materials and services. HMRC’s DIY Builders and Convertors VAT Refund Schemecovers new builds and non-residential conversions, where the property has been empty for a decade or more. Even if you intend to use the home for family holidays, it may be included in the scheme under certain conditions.

Things to remember

·     You must obviously get planning permission for the work before commencing.

·     Your contractors must apply the correct VAT rate to their services, as incorrectly charged VAT will be excluded from your refund claim. (Many services supplied in connection to a new build or conversion will qualify for 0% or 5% VAT.)

·     You’ll be recovering VAT charged on work done to the fabric of the property, certain works within the grounds and on particular building materials. These might include fitted kitchen furniture, wooden flooring and solid fuel cookers.

·     You won’t be able to claim for professional fees, the hiring of machinery or fitted furniture, such as carpets and some electrical appliances. 

How to apply

You must submit applications to HMRC no later than three months after the completion date. There’s a fair bit of paperwork involved, as you need to answer questions and include schedules for each VAT rate charged. 

You must also supply a range of original documents. As well as the original VAT invoices, you may need to send evidence the property had been empty for ten years prior to your conversion work. HMRC will also expect a copy of the planning permission, a full set of building plans and the completion certificate.

It’s advisable to get the support of your accountant from start to finish to ensure that the claim is accurate and complete.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Management accounts – some frequently asked questions

Why do I need management accounts?

If you’re planning on expanding your business, making capital expenditure or cutting back on costs, management accounts become very important to give you insights for your decision-making.

Can’t I get this information from my annual accounts?

By the time you come to review annual accounts, you might find that costs have spiralled or that issues have arisen which it’s now too late to resolve. By producing regular management accounts, you can get a real-time snapshot of how your business is performing.

How often should they be produced?

Management accounts are usually prepared monthly or quarterly, which can really help with capital expenditure planning, profit extraction and taking advantage of capital allowances.

How can it work in practice?

Imagine a fast-growing and dynamic business which is struggling to keep control of costs and profit margins. Current processes are inadequate for the expanding company and the amount of profit made on each contract is unclear. With the help of Xero cloud accounting and management accounts, this business could identify cost-saving measures, including the renegotiation of hire contracts and insurance. They could also quickly spot non-profitable business, allowing them to pick and choose more lucrative contracts.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

A straightforward guide to effective team management

Outsourcing Manager at accountancy firm Barnett & Turner, Natalie Goodall, has been learning quickly some of the best ways of achieving success and motivating a team. Here, she shares ten of her top tips.

1.     SHOW THAT YOU’RE HUMAN

It’s important to be a real person, as it creates a more comfortable environment. People feel less intimidated when you show your human side.

2.     DELEGATE EFFECTIVELY

You can’t do everything yourself, but when you delegate, it’s essential to take into account people’s background, skills and knowledge. No one wants to feel out of the depth, but equally, you can’t pigeonhole team members either. They need to have the chance to learn something new.

3.     GIVE FEEDBACK

While you’ll probably hold formal appraisals at regular intervals, informal feedback is vital too – both positive and negative. Even if people have performed tasks correctly, it’s always important to offer constructive suggestions on the way in which they could have been done better. Equally, it’s essential to acknowledge success.

4.     COMMUNICATE

People aren’t mind readers. If you don’t keep them informed, how can you expect them to do what they need to do? In small businesses, you can often impart information face to face, but in larger companies, you’ll need a chain for communication and perhaps regular team update meetings.

5.     SET AN EXAMPLE

You’re a role model for your team, so if you arrive late to work or lose your temper in the office, don’t be surprised if other people think this behaviour is acceptable. You have to set the standards. People won’t take notice if you say one thing and do another.

6.     BE CONSISTENT

Everyone is a human being and has feelings. Don’t treat people differently based on, say, their level of seniority or how much you personally like them. 

7.     GET TO KNOW YOUR TEAM

It’s important to know people at a personal level and build a rapport. Take an interest in the team around you. Ask how their weekend was and how they’re feeling. They’ll appreciate the personal touch.

8.     ENCOURAGE QUESTIONS

People need to know that you have time for them. Remember, if they don’t feel confident to ask, they’ll probably just guess and may make mistakes.

9.     BE ASSERTIVE

If you can’t make decisions, it’s hard for people in your team to respect your leadership. You need to demonstrate that you can be confident and decisive where appropriate.

10.  KEEP YOUR KNOWLEDGE UP TO DATE

You need to be technically up to speed in your own specialism, as this provides you with credibility. It also allows you to support team members with any issues that arise as part of their work.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

The making of a memorable corporate event

Jono Wilson of Barnett & Turner in Nottinghamshire shares five great suggestions for organising the ideal corporate workshop or event.

I’ve been involved in presenting at a number of (internal and external) events but have learnt over time that you need to be methodical in your planning for everything to work. Here are a few of my top tips:

Make sure you have a clear objective

What is the purpose of your event? It clearly needs to be something of relevance to your target audience and have value for your company too. 

You also need to know exactly what you’re aiming to get out of the workshop. Are you informing existing customers about changes in your market place or is it an opportunity to convert prospects? How much of a sales element about a specific product or service is appropriate?

Whoever your audience is, remember that it’s not often that all of the people you invite will ultimately attend, so you may have to reach out to a much wider group initially depending on the subject.

Get all the key staff involved from the start

Good communication is essential. You’ll almost certainly need to draw on the support of colleagues and people with particular expertise, so get them involved from the beginning. Brainstorm everything that will need doing and create an action plan with a clear sense of priorities, responsibilities and deadlines. Getting this kind of buy-in at an early stage will be important.

Focus on timing

You’ll need to decide the best time to hold the event. Breakfast meetings often work well, as people can stop off before work and it’s not too disruptive to their day. You might feel that something after office hours – perhaps accompanied by a glass of wine – is more appropriate. 

Whatever you choose, the timing of the invitations is just as important. I recommend sending out your first emails four weeks before the event and then following up with a couple of weeks to go. If you contact people too early, they can easily put it to the back of their minds. But equally, it’s fatal to leave it too late.  Make sure you have a clear deadline for RSVPs.

Keep things on track

Hold regular meetings in the run-up to the event, so that you can monitor progress and take action to boost attendance if necessary. It’s also a chance to plan for the practical arrangements on the day, as everything needs to run smoothly if you’re to give a good impression of your business.

Be prepared on the day

There will always be potential glitches – that microphone that doesn’t work or the last-minute catering hiccup. It’s no problem, provided you’re on the case and prepared. If you’ve followed all the ‘to-do’ instructions on your action plan, the chances are that you’ll have contingency plans in place for most things. 

Remember that the event needs to be engaging, so discourage speakers from ‘Death by PowerPoint’ and make the session interactive, with the use of visuals and the opportunity for questions and answers. You may even want to introduce some kind of ice-breaker at the start. Make sure you ask for people’s feedback and – most important of all – follow up with a thank you for attending.

Good luck!

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

If your business is going under, make sure you don’t go the same way.

When a company is technically insolvent, it can be all-too-easy to end up on the wrong side of the law writes Jono Wilson of accountancy firm Barnett & Turner.

If you’re a company director and your business has run into financial difficulties, it’s important to take professional advice at the earliest possible stage. If you end up trading wrongfully or fraudulently, the chances are you will come to the attention of The Insolvency Service – the executive agency of the Department for Business, Energy and Industrial Strategy, which will tackle directors who have breached their duties and responsibilities under the Company Acts. Critically, it doesn’t matter whether that breach has been intentional or unintentional.

The Insolvency Service has the legal power to investigate when they receive reports of misconduct, fraud or scams. They will also act, however, over the conduct and actions of company directors when businesses have entered into administration or liquidation.

What should you watch out for?

An Insolvency Practitioner will submit a report to the Insolvency Service basedon the conduct of directors in the run-up to the company’s demise. If you’ve failed to keep proper books, for example, not paid taxes that are owed or continued to trade to the detriment of creditors, you may end up with restrictions imposed on you or a disqualification. 

When disqualified (which can be for a period of up to 15 years), you will be listed on a Companies House database and cannot be a director of a UK company or a foreign company operating in the UK. You are also barred from getting involved in the formation, management or marketing of a company. People who contravene these restrictions can be fined or even imprisoned for up to two years.

What should you be doing?

Good practice means that you keep accurate books and records at all times and if you suspect your business may be insolvent (see the following website for guidance: https://www.gov.uk/government/publications/options-when-a-company-is-insolvent/options-when-a-company-is-insolvent) only trade or incur additional liabilities if you realistically believe the business can return to solvency once again. You’ll need to document your decisions and take legal advice, as well as consult an insolvency practitioner.

Don’t take deposits for orders you can’t fulfil and avoid incurring credit or issuing cheques that you can’t honour. Avoid preferring certain creditors, as it can’t be to the detriment of the main body of creditors, to whom you owe a duty.

It’s a complex area and other rules and restrictions apply, so the key thing is to start consulting your professional advisers as soon as you suspect your business may become insolvent at some point in future.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Agile approaches to a changing world

Agile working is much more than methodology, argues Jono Wilson of Barnett & Turner. It’s a whole different way of thinking about how work is done and managed, how teams deliver and how we behave.

We’re all conscious that the world is changing dramatically. Technology moves on at an accelerated pace and the expectations of our customers are raised. Of course, it’s never possible to predict the future – and we can’t prepare ourselves for every eventuality – but by changing our mindset we can equip ourselves to manage change. 

Embracing change helps us prepare for, and respond positively to, disruption.

A key element to the approach is building cross-functional teams on projects, so you can add real value to the organisation by breaking down silos and making sure that all the expertise needed to deliver are working together in one team. Maybe we should embed a digital or data expert alongside our tax advisors or corporate finance contacts? Bringing together a range of perspectives result in new ideas that help us deliver differently, we use data to manage in ways we haven’t thought of before and, perhaps most importantly, we collectively develop a better understanding of our customers and markets.  The exchange of knowledge, experience and insight produces highly effective results.

We’re going through the process here at B&T as part of building our Firm of the Future.

We brought people together from across the business and identified key areas that we wanted to address, breaking everything down into small, manageable and actionable tasks.

While our priorities were obviously specific to our firm, you could think in general terms about areas in your own business, such as billing processes, customer relationships or technology. What are the issues that are most important to you and the changes that you anticipate could deliver real value?

You approach the tasks in a structured way with regular, delivery deadlines, often within teams. It relies, of course, on participants being ready to jump in and embrace the process. It’s also important to have buy-in from senior people within the organisation and strong leadership in place. We have been really impressed with the amount of progress that we are able to make using the new tools, techniques and ways of working. 

My advice is to start small and perhaps choose one area of your business to look at.  It may not be the issue causing you the biggest headache (or be the one that is most difficult to address) but it will demonstrate the approach and secure some buy-in.  Try to maximise the use of data as well, to help you make the right decisions.

Although different organisations will benefit in varying ways, embracing the change is a philosophy that can be adopted by both commercial companies and public bodies and by small and large businesses alike. A whole new way of working may not always be easy at the start, but in a world of fast-paced change, the approach is essential for longer term survival and success.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk

Seeing things from a new perspective

Accountancy firms that are part of the HCWA network offer a unique range of perspectives and employ people from a variety of different backgrounds. JONATHAN BROWN explains how he came to join Barnett & Turner in Nottinghamshire and why he thinks his move has been so positive.

Working in an independent accountancy business has been quite a new experience for me. That’s because originally I trained in the public sector. 

Of course, there were plenty of personal motivations for the move – not least the fact that I was undertaking a lengthy commute into Sheffield each day as a trainee management accountant. Ultimately though, I feel the culture here suits me much better.

We’re a tight-knit team and there’s a family feel to the business, which is important to me. Inevitably, when I joined the public sector after graduating from university in Accountancy and Finance, I found things to be pretty hierarchical. It can be a political environment with a number of restrictions, so getting things done can be quite a long-winded process.

Here, although things are on a smaller scale, there seems to be much more variety. Dealing with clients in the private sector, you don’t feel as if you’re doing the same job more than once. You’re always on your toes, there’s lots of responsibility and you feel valued, by both our clients and within the team.

From a client perspective, you get the best of all possible worlds. Our team may come from a variety of backgrounds and have insights into the way that different organisations work. At the same time, we’re given a sense of ownership and a really varied range of tasks. That makes us truly committed, responsive and ready for whatever challenge gets thrown at us next!

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk