FINANCE IN BRIEF


Housing market dip Interest in East Midlands’ properties has dropped for the first time in six months, as uncertainty continues to affect the market, according to the latest survey by the Royal Institution of Chartered Surveyors (RICS). A decline in buyer demand was


reported for the first time since October 2015, with 27% of surveyors reporting a decline in new buyer enquiries throughout the East Midlands – a trend which is echoed across most parts of the UK. The reduced interest from buy-to-


let investors following the April deadline appears to be the main cause of this fall. As the market continues to be


hampered by uncertainty, sales are forecast to remain flat over the coming three months. RICS Chief Economist Simon Rubinsohn said: “Uncertainty is a word that features heavily in the feedback we are receiving from members responding to the survey and is contributing to the flatter trend in the latest data.”


Standards spell success BSI, the business standards company, has announced its results for the year ended 31 December 2015. Growth of 15% maintains BSI’s


consecutive 16-year track record of annual increases in underlying revenue. Howard Kerr, Chief Executive, said:


“Over the past few years BSI has developed into a truly integrated global enterprise, able to serve our clients across the world, while broadening our service into different business streams and sectors.” BSI has become the UK’s national


standards body. Its global reach now spans across 73 offices and a headcount increased by 18% to over 3,500 employees. BSI has expanded its client base by


four per cent to reach 80,000 across 182 countries worldwide.


Taking the stress out of


retirement Top ten accountancy and business advisory firm Mazars has been offering a helping hand to those thinking about retirement. It has held two workshops, led by its


offices in Nottingham and Leicester, to offer retirement-planning advice. The workshops were designed to


guide individuals through the new rules and make them aware of the best ways to manage their financial affairs, both in the run-up to retirement and afterwards. Gurmit Rai, Planning Manager,


Mazars Financial, said: “Following the major changes to pension rules that came into effect on 6 April 2015, the need for retirement guidance has never been greater. “The workshops were a great


success and engaged our attendees to give them thought-provoking options to assist them with the planning of a prosperous retirement.”


48 business network June 2016


Growing firms could be hit by HMRC probe


Growing businesses could be hit by Her Majesty’s Revenue and Customs’ apparent increasing focus on SMEs, according to a local tax expert. Research conducted by


accountancy firm UHY Hacker Young found that an additional £489m in corporation tax was raised by HMRC last year (2014/15). The money was collected


following probes into SMEs’ accounts – with them being viewed as ‘soft targets’ in the drive to reduce the corporation tax gap. The gap is the difference


Simon Browning, Tax Partner at UHY Hacker Young


between the revenues that should, in theory, be collected by HMRC, against what is actually collected. The SME share of the £3bn gap shrank from £2.1bn


in 2012/13 to £1.4bn in 2013/14, while that for large businesses remained at £1bn during the same period. Simon Browning, Tax Partner at the firm’s


Nottingham office, believes the figures illustrate HMRC’s increasing focus on SMEs. He said: “This research appears to show us that


HMRC is aggressively going after small businesses as ‘easy pickings’ in its bid to reclaim tax and it is


certainly possible that it will look to further accelerate investigations moving forward to further close the gap. “Nottingham has a really


thriving community of small and start-up businesses, which will become the city’s lifeblood in years to come, so it is essential that business owners have their tax affairs in order so that they are not negatively impacted. “The substantial closing of the


tax gap for SMEs is a clear demonstration of the pressure on SMEs to fill the shortfall. “Smaller businesses simply


don’t have the resources available


to big name companies, like Amazon and Starbucks, which are, allegedly, ‘getting away’ with paying disproportionately small amounts of corporation tax. “And dealing with HMRC enquiries can have a real


impact on the day-to-day running of a smaller business. “Not only could this mean a huge resource


required, but SMEs face large and unexpected tax bills which offer a real threat to plans for expansion, so it is essential that business owners have their affairs in order.”


Tax rules make saving easy


Millions of savers will see changes to the way their savings accounts are taxed thanks to the new Personal Savings Allowance (PSA). Leicester-based chartered


accountant Newby Castleman is encouraging savers to be aware of the changes and how to benefit from them. Previously, for every £100 of


interest earned, basic-rate taxpayers lost £20 in tax and higher-rate taxpayers lost £40 in tax. But with the new Personal


Savings Allowance introduced in April, every basic-rate taxpayer can earn up to £1,000 interest on savings each year before they have to pay income tax. Higher-rate taxpayers can earn up to £500. For example, a basic-rate taxpayer


investing the full ISA allowance of £15,240 would need to be earning interest at a rate of almost seven per cent before they would exceed the allowance, whereas a higher-rate taxpayer would need to earn over three per cent. Only once the Personal Savings


Allowance is exceeded will the previous 20% and 40% tax levels kick in. The new allowance will apply to


regular savers, easy access accounts, fixed-rate bonds and any other non-ISA savings accounts.


‘The new allowance will apply to regular savers, easy access accounts, fixed-rate bonds and any other non-ISA savings accounts’


Due to the recent changes, ISAs


will not have as much of an advantage as they did previously because interest on all accounts will be paid tax-free. However ISAs will still have a part


to play in long-term saving plans, particularly in cases where you exceed your Personal Savings Allowance. Therefore, it is still worth moving


cash in to the safety of an ISA, particularly considering the fact that legislation may affect this position moving forwards. In addition to the new Personal


Savings Allowance, savers can also benefit from a new dividend allowance, which means all dividends below £5,000 a year will be free of tax. Above £5,000, basic-rate


taxpayers will pay 7.5% and those in the higher-rate bracket will pay 32.5%. John Freeman, Consultant at


Newby Castleman, said: “The new tax rules will certainly make life easier for savers, however it is important people are aware of the choices available to them.”


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