CHAMBER NEWS


SPONSORED BY: NEWTONS ACCOUNTANTS LIMITED


Is incorporation still worthwhile?


By Chris Newton FCCA and Chartered Tax Adviser


The changes in tax relating to dividends from April 2016 will undoubtedly have an impact on the majority of small businesses. A husband and wife taking a small salary and dividends to use up their basic rate allowance will see their personal tax bill increase by approximately £4,000 per annum. There has been considerable


discussion over whether limited companies are still worthwhile for small businesses and the facts to be considered remain the same, albeit recognising the additional tax liabilities when making comparisons to other business structures. Limited companies still


provide a useful vehicle in controlling an individual’s income. The company pays corporation tax on its profits but there is no personal tax implications until the profits are drawn. This means business owners have a greater control on their income, and can plan more effectively for tax liabilities. While the tax benefit on


dividends has been reduced, it is still present. There are also a number of tax reliefs that companies can claim which are not available to sole traders, such as R&D Tax Relief. Finally, there remains the


benefit of limited liability. Many business owners prefer to trade in the knowledge that their personal assets are not at risk of repossession should the company fall into liquidation. There are a number of events that can affect a business for the worse, many of which are out of the control of the directors, so this barrier of protection is very comforting for business owners. While the tax incentives of


incorporation have been reduced, it is still my opinion that incorporation remains a useful option for businesses. That said, the business’ specific circumstances should be considered carefully as incorporation is not suitable for all businesses.


For further information or advice, please contact Chris Newton on 0115 9609955 or at chris@newtax.co.uk


16 business network February 2016


Considering the risks of the ‘Internet of Things’


An information seminar aimed at helping East Midlands businesses to address the cyber security threats associated with the ‘Internet of Things’ (IoT) was held in Leicester late last month. The IoT is an evolving network of electrical objects


which are connected by – and can be controlled remotely via – the internet. Experts predict that more than 50 billion devices will


be connected by the IoT by 2020, as it expands into places such as manufacturing floors, energy grids, healthcare facilities and transportation networks.


‘As technology changes, the way we do business changes’


However, while convenient and offering significant benefits, the interconnection of devices, particularly those not originally intended to be connected to the web, can leave the door open to the cyber-criminal. The Chamber worked with the regional branches of


the UK Cyber Security Forum and the Institute of Information Security Professionals (IISP) to organise the event to make local businesses aware of the advantages and risks arising from the IoT. Taking place at De Montfort University, Leicester,


between 6pm and 8.30pm on 28 January, the event featured a series of presentations which examined the advantages the IoT could bring to business, the security issues and explained how to overcome them. Guest speakers included Colin Robbins, Managing


Consultant at Qonex, Matt Aldridge, Solutions Architect at Webroot, and Mike Gillespie, Managing Director at Advent IM. The event provided a platform for those with an


interest in cyber security to come together to network with peers in similar roles, explore issues of common


Interconnecting devices could become commonplace


concern, keep up-to-date with developments in the field and draw on the knowledge of industry experts. Andy Watterson, the Chamber’s Business Crime Manager, said: “As technology changes, the way we do business changes, and the Internet of Things can offer a host of new opportunities. “However, along with these opportunities comes new


vulnerabilities and businesses of all sizes need to take steps to make themselves aware of the risks and how they can protect themselves. “This was the latest in a series of seminars across the


region aimed at equipping businesses with the information and knowledge they need to protect themselves online. “The Chamber will continue to work closely with the


police and information security professionals to push this agenda forward.”


Region’s economy slows down


The pace of economic growth in the East Midlands stalled again in the last three months of 2015. According to the Chamber’s


Quarterly Economic Survey (QES) for Q4 2015, the pace of business growth fell between October and December, following a strong start to the year. Publication of the results came


a week after Chancellor of the Exchequer George Osborne warned that Britain faces a “cocktail of threats” this year thanks to a combination of a slowing global economy, falling oil prices and a possible interest rate rise here in the UK. Chamber Chief Executive Scott


Knowles said: “The Chancellor was right to warn against ‘creeping complacency’. While there is still growth in the economy, it is becoming increasingly service sector led, which bodes poorly for the longer-term ambition to create an


Economic growth has stalled again


economy which is both balanced and sustainable.” The Chamber tracks business


performance across a range of key economic indicators – including sales and orders, staffing levels, price expectations, investment intentions and business confidence – to produce a quarterly ‘State of the Economy Index’. After levelling out in the first two quarters of the year, at 386


and 383 respectively, it dropped back to 276 in Q3 and fell further to 248 – its lowest point in two- and-a-half years – in Q4, after respondents reported falls in sales, orders and confidence. Scott said: “As 2015 progressed


the strong growth rates experienced at the start of year started to drop off, with some indicators in the important manufacturing and engineering sectors seeing a decline for the first time in over two years. “This should serve as a warning


about some of the potential uncertainties on the horizon. “The Government’s ambition to


deliver growth that is balanced and sustainable is being significantly undermined by a deterioration in the health of our production sectors. “More must be done to support


these businesses that fuel the Midlands Engine and, in turn, the UK economy.”


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52