finance 25


Changes to business rates labelled a ’waste of time’


Rating experts at property consultancy Vail Williams have slammed government proposals that claim to address the failings of the current business rates system as a “waste of time”.


Commenting on the recent Department for Communities and Local Government’s consultation 'Checking and Challenging your Rateable Value', Vail Williams associate Richard Jones said: “The proposed changes put forward by the Valuation Office Agency (VOA) to publish anonymous summary rental evidence might placate some ratepayers at the initial ‘enquiry’ stage, and therefore help remove a very small percentage of proposed appeals. Overall, however, they will not help the majority of ratepayers who feel aggrieved that their rating assessments are incorrect.


“Vail Williams has made a clear recommendation to government on the most important change that we believe should be made: the VOA should provide the appropriate valuation evidence at an early stage during the discussion period. Doing so will enable the ratepayer to better determine whether to proceed further with an appeal.”


Jones added: “The Government’s plans to allow the VOA to validate appeals after they are submitted are a thorough waste of time. The VOA’s time would be better spent engaging with ratepayers to help reach the correct level of rating assessment. This will also reduce the number of appeals referred to the Valuation Tribunal.”


The DCLG consultation closed on March 3, and feedback is currently being reviewed by government.


Solent LEP launches £2.46m fund for Isle of Wight businesses


Businesses in the marine, maritime and advanced manufacturing sectors on the Isle of Wight are being urged to apply for grants from a new £2.46 million fund set up by the Solent Local Enterprise Partnership (LEP) in collaboration with the Isle of Wight council.


The Isle of Wight expansion fund, which is also open to firms specialising in composites engineering, is designed to help companies expand, start up new activities or diversify with the aim of creating or safeguarding jobs.


The fund was launched at an event that had to be relocated to a larger venue, the Quay Arts Centre in Newport, due to the scale of local interest.


Councillor Ian Stephens, leader of the Isle of Wight Council, said: “These sectors are of vital importance to the future of the Isle of Wight economy and this fund will drive growth, investment and job creation.


“The council has been working very closely with the Solent LEP in applying for the funding and is now keen to get on with delivering the scheme for local businesses.“


Gary Jeffries, chairman of the Solent LEP, said: “There are huge economic opportunities for the Island, especially in the areas of composites, marine, maritime and advanced manufacturing. These are areas where the Island has a long history of expertise.“


HMRC workshop for high-tech firms


Small and medium-sized high- tech companies are being invited to free workshops around the country on support available for business growth, research and development (R&D) tax credits and innovation.


The workshops, organised by HM Revenue and Customs (HMRC) and the Department for Business,


Innovation and Skills (BIS), will focus on the range of tax incentives, grants and other support provided by the Government.


The Solent region workshop takes place in Portsmouth on June 4 at Langstone Technology Park.


Details: www.business-events.org.uk


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – APRIL 2014 Are you prepared for the


auto-enrolment rush? As we brace ourselves for the first significant wave of SMEs having to comply with the new pension requirements, it appears businesses are now starting to realise the reality of auto-enrolment and the impact it will have on their resources and finances


Many of the businesses that have to comply this year are unlikely to have the wealth or expertise available to the larger employer, and even they seem to have struggled to meet the Pensions Regulator’s strict compliance regime.


With varying timescales now being discussed, it appears that a period of preparation beginning six months before the “staging date“ (the date that the new duties come in to force) should be considered a minimum.


There are more and more auto- enrolment solutions coming to the market, whether they involve using middleware, an IFA or a specialist provider, and choosing the preferred method of maintaining compliance will be vital in a business’ preparation and ongoing processes.


In addition to the compliance solution, all businesses will need to have a pension provider and this is likely to become more difficult over the next few years. The feedback from the pension industry is that the larger players are already discussing closing their doors due to sheer volume of demand, and there may be only a few providers left by the time we reach 2017.


Fewer pension providers for the smaller businesses will bring more restrictions with investment choices and scheme management charges. Every SME will need to find a provider that will accept their entire workforce, no matter the level of contributions. Pension providers are unlikely to reduce their profit margins by taking on smaller schemes. With that in mind, the recommendation must be to plan well in advance for this significant change in pension legislation.


James Alesbury, HWB associate director, said: “We have been staying abreast of developments on auto-enrolment from the


www.businessmag.co.uk


beginning and there does seem to be a real sense of urgency over the past couple of months.


“It is important to note, this is not something that will go away.“


One of the main concerns for businesses is the additional cost of auto-enrolment – not only the administration costs but the mandatory employer contributions. The larger employers have seen a far lower than predicted number of opt- outs which may not be replicated as we enter the SME market but the expectation should still be that this could be a significant cost.


Alesbury added: “We have been researching the various auto-enrolment solutions to ensure we can introduce our clients to providers who have different options to meet all requirements. These include an affordable solution that does not compromise the compliance, thus protecting businesses from the risk of hefty penalties.“


Details: James Alesbury 023-8046-1200


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