January Newsletter 2020
Published: 29/01/2020 By VariousThe Turnaround, Restructuring & Insolvency (TRI) Awards
Our insolvency team attend the TRI awards last month as we had been nominated Team of the Year. Sadly we didn't win however we were highly commended which is a great achievement.
The end of Entrepreneurs’ Relief? Time to act now?
Entrepreneurs’ Relief (“ER”) saved business owners £2.4bn in 2018.
Prior to the General Election the Labour Party had indicated that, if elected, they would end ER. The Conservative Party indicated that the relief was under review. The Association of Accounting Technicians has been lobbying for the abolition of the relief for many months whilst the Institute for Fiscal Studies said that the “unfair” relief does little to promote business investment.
In the clearest sign yet that the relief may be abolished or amended in the Budget on 11th March 2020, the Times reported on Friday 17th January 2020, that the P.M, Boris Johnson, spoke to a group of women entrepreneurs in his Uxbridge constituency and stated “I have to tell you that the Treasury is fulminating against it because there are some people who are staggeringly rich who are using that relief to make themselves even more staggeringly rich” .
IR 35 Changes to off-payroll working for clients
Off-payroll working rules change from 6th April 2020. Off-payroll working rules can apply if a worker provides their services through an intermediary. In most cases the intermediary will be the workers own personal service company. From 6th April 2020 all public sector clients and private sector companies that meet certain criteria (being two or more of the following conditions: turnover more than £10.2M; Balance sheet total more than £5.1M; more than 50 employees) are required to decide the status of a worker, advise the worker of their status, and keep detailed records of the employment status determination.
In practice what this means is that many individual workers who operated through personal service companies will now be employed under PAYE. It is likely in many cases those workers will require a solvent liquidation (MVL), or in some cases an insolvent liquidation (CVL) following their change in status.
For expert advice on IR35 changes, the Members Voluntary Liquidation (MVL) process required for Entrepreneurs’ Relief, distributions in specie or any other queries on the process please contact one of our team who are ready to assist you:
· Martin Armstrong — Senior Partner — 07836 200 551
· James Patchett — Partner — 07712 530 720
· Andrew Bailey — Partner — 07464 675 571
· Lynn Gibson — Licensed Insolvency Practitioner — 01932 336149
· Lindsey Moore — Manager — 07464 675 596
· Ryan Russell — Manager — 07464 675 572
· Phil Cake — Manager — 01932 336149
· Caroline Smith —Manager — 020 8661 7878
· Katie Kellaway —Manager — 020 8661 7878
The day we wore our casual clothes
We love to give staff the chance to get involved with our efforts to raise money for charity therefore we decided to host the 1st tba mufti day. Staff had the choice to pay to wear their non work clothes for the day with all proceeds going to the Down’s Syndrome Association (DSA).
The DSA is not far from our offices here in Sutton and is the only national charity which supports people with Down’s Syndrome.
We are pleased to confirm the staff raised a total of £210 for the DSA.