In 2005 the directors and management committee hid themselves away for a day to write a five-year plan for the business. During the meeting John Welsford communicated his desire to step down as MD on 30 June 2007 and we have planned for this ever since. For those of you who haven’t already heard this news, we are very pleased to announce that Jane Everingham will be taking over as MD.
Jane is delighted to be given the opportunity to step up to this role and is looking forward to the new era and challenges ahead. Having worked with John for many years and having shadowed him even more closely since this decision was made she is fully aware he will be a hard act to follow! Jane tells us she is ‘looking forward to leading our Mercia team, building on our success and ensuring we help all our clients face the challenges ahead of them in the ever changing professional market place’.
The good news is that you will still get to see both of them presenting courses. Without all his management responsibilities John can now
present even more courses (his diary is already filling up fast) and whilst Jane will need to spend more time on the business she has no intention
of giving up all her lecturing.
It is an exciting time for Mercia and the whole team is looking forward to supporting Jane in building the Mercia brand. John has expressed his feelings in the personal message below.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
A personal message from John Welsford
"25 years ago when I joined Mercia it was me, a desk, chair and telephone, and 4 clients. Somehow or other this has grown to over 3000 clients and nearly 70 staff.
A few years ago I decided that I would like to spend the last few years before I retire as a lecturer doing what I enjoy best. My colleagues very kindly agreed to this plan and Jane stepped forward to take on the role of MD. So from 1 July I step down as a director and relinquish all management responsibilities.
I look back on the years in charge and think how lucky I have been. I have had a job I enjoyed, providing services to clients who were great to work with and having a team of people at Mercia who were hardworking and fun. And along the way we achieved a modicum of success.
I have absolutely no doubt that Jane will continue the traditions of Mercia whilst introducing change that will take Mercia forward to even better things in the future.
The good news looking forward is that I will continue to see you all as I tour the country presenting Mercia courses. Many thanks to you all for your support over the years."
Specialist CPD Course Programmes
Our Specialist CPD Course programmes are organised twice yearly in the spring and autumn. The programmes are planned in response to what is happening in the professional environment.
The remaining courses in our spring programme focus on three areas: Please click on the above titles for course details or click here for further information on our Specialist Courses.
Incorporation Issues
In Budget 2007, the Chancellor announced sweeping changes to the business tax regime over the next three years. We have a number of products that will help you give appropriate advice to your clients. To place an order or to find out more, click on the various product titles below.
Client letter - running your business as a company
This letter is targeted at clients who have incorporated in the last few years. They may be wondering if the changes announced by Gordon Brown in the Budget mean that they are little better off running your business through a company than if they were running it in an unincorporated form. The letter explains the changes and confirms that tax savings continue to be available. The letter costs £34.95 (£30 for members) plus VAT for unlimited usage.
Incorporation Spreadsheet
The spreadsheet calculates the potential annual tax savings for any of your clients who are considering incorporation. It can also be used to reinforce to clients who have already incorporated that the tax savings from incorporation are still beneficial to them despite the proposed changes announced in Budget 2007. New this year is the calculation of the tax effects of incorporation for the current year and the next two years.
By using the spreadsheet you will be able to tailor calculations to the estimated profits, salary and dividend for a particular client. Husband and wife partnerships are catered for. The detailed output sheets are not password protected so you can insert extra calculations or override the formulae if you wish. The spreadsheet costs £50 (£45 for members) plus VAT.
The Incorporation Pack 2007 CD
Updated annually, this CD provides a pack of word documents and spreadsheets and gives your staff clear guidance when advising clients on incorporating a business. It includes the incorporation tax planner spreadsheet and the letter to existing clients who are already incorporated as detailed above.
The Pack costs £175 (£157.50 for members) plus VAT. Renewal on an annual basis costs £55 (£49.50 for members) plus VAT per annum.
Accountancy Firms’ Web Use Survery 2007 - Winner & Results
Thank you to everyone who participated in our web use survey and congratulations to Finnieston Berry & Co, a two partner firm in Birmingham who won the free website. We are busy collating the results and will publish them in next month’s newswire and on our website.
Monthly Marketing Tip
How can you use the information you have collected from your competitor research? Part two of our competitor research guide looks at how the information can be used as part of your business strategy. Click here to read more.
Audit and Accountancy Issues
Pension Scheme Audits - changes to reports and letters
In last month’s newswire we referred to the issue of Practice Note (PN) 15 - The Audit of Occupational Pension Schemes in the United Kingdom (Revised). While there are few changes from the draft version issued in August last year, we have issued an email alert to all of our Pension Schemes Specialist Assignment Manual (SAM) subscribers informing them of changes to the wording of certain engagement letters and audit reports. The main documents affected are the:
- statement about contributions for accounting periods beginning on or after 22 September 2005;
- audit opinion and engagement letter for non-statutory audits;
- statement of trustees’ responsibilities; and
- trustees’ summary of contributions.
Registered Social Landlords (RSL) - delayed SORP
April’s Bulletin from the National Housing Federation published a comment on the draft RSL SORP:
‘Publication of SORP 2007 is delayed due to clear differences of opinion within the sector regarding the issue of accounting for Shared Ownership and Mixed Development. The Working Party has resolved to carry out further consultation on these issues. The Working Party is currently discussing the basis for further consultation on revised proposals with the aim of issuing a new SORP by autumn 2007.’
The SORP had been expected to take effect for accounting periods beginning on or after 1 April 2007.
The next update to our RSL SAM will follow the resolution of these issues and the publication of the new SORP. We are also awaiting the issue of an updated version of Good Practice Note 7 by the Housing Corporation, which should provide clarification on the application of audit exemption to small RSLs.
Mercia Technical Manuals Updates
Remember you can keep up to date with the latest versions of our technical manuals on our website. Please click here for a quick link. This month we’ve issued an updated Limited Liability Partnerships SAM and next month will see updates to both the Charities and FSA (Personal Investment Firms) SAMs issued.
We are making increasing use of email alerts to keep our subscribers up to date with the latest news affecting their manuals. If the main contact details change for any of your technical manuals please let us know so that you don’t miss out.
Stop press! - Scottish charitable companies
In our March newswire we included a briefing covering the forthcoming changes to charity audit and accounting thresholds, including those that will apply to Scottish charities. We now understand that the changes referred to in respect of the effective date for the introduction of the higher audit thresholds do not apply to Scottish charitable limited companies for the same period as for England and Wales (accounting periods commencing on or after 27 February 2007). At this stage, the specific effective date has not been announced.
If you have any Scottish charitable limited companies and would like to know more please contact David Gallagher at david.gallagher@mercia-group.co.uk or Belinda Auchimowicz at belinda.auchimowicz@mercia-group.co.uk or call them on 0116 258 1200. We’ll have more on this in next month’s newswire.
Tax Issues
Offshore Accounts
HMRC has announced arrangements enabling investors with offshore accounts to disclose to HMRC any income and gains not previously included in their tax returns. Details of the arrangements are available here or by calling 0845 302 1401.
The various professional institutes have also drawn up guidance for their members. This can be viewed here.
To help you keep your clients informed we have prepared a client letter. Please click here for details.
If your firm would like help preparing a report or help with any investigation issue, please click here.
Beneficial loans
For 2007/08, the official rate of interest for calculating the cash equivalent of beneficial loans rose from 5% to 6.25%. Please click here for further information.
Inheritance Tax
HMRC have published a technical note setting out their approach to Discounted Gift Schemes and their interaction with the IHT legislation. Please click here for further information.
Statutory clearance applications involving transactions in securities - changes arising from the Income Tax Act 2007
The provisions for making clearance applications involving transactions in securities (currently under S707 Income & Corporation Taxes Act 1988) were replaced by S701 Income Tax Act 2007 from 6 April 2007 for income tax purposes only. The existing clearance provisions at S707 ICTA 1988 remain for corporation tax purposes only. Please click here for further information.
Declaring cash on coming to or leaving the UK
On 23 April 2007, HMRC announced new rules applying to people coming to or leaving the UK. From 15 June 2007 that date, people travelling to or from a country outside the European Union (EU) will need to declare any sums of cash of €10,000 or more (or the equivalent in another currency) to HMRC. There is no requirement to declare cash if travel is to or from another EU country.
This change is part of the EU’s efforts to prevent money laundering and HMRC have issued a leaflet explaining the new rules. The declaration must be made on forms which will be available at ports and airports.
‘Cash’ covers currency notes and coins, bankers’ drafts and cheques of any kind, including travellers’ cheques. Penalties can be charged for failing to declare the money or providing incomplete or incorrect information and, in addition, HMRC can seize cash of £1,000 or more if they have reasonable grounds to suspect it is the proceeds of, or is intended for use in, unlawful conduct. There is a right of appeal against seizure and any seized cash cannot be kept for more than 48 hours without a court order.
To read HMRC’s leaflet, please click here.
Tax Investigation and VAT developments
If you would like to read about recent tax investigation and VAT developments, please click here for this month’s news round-up.
If you would like help with VAT problems or HMRC enquiries, look no further. Mercia has teamed up with IVC - VAT and tax investigation specialists - to offer preferential rates to Mercia clients for these specialist services. Please click here for more information.
Office Gossip and Idle Chat!
Another sabbatical is on the horizon! You may recall that John Welsford spent three months in France to improve his French, Liz Coates went to live in North Carolina to improve her golf and Jane Everingham toured Australia. Rather than spend his time in foreign climes, David Gallagher has decided to spend half of his sabbatical cycling around Britain.
As a volunteer at his local branch of Samaritans, David plans to visit those branches that lie on or near the coast. That’s 76 branches and approximately 3,000 miles! David has also been working on a website intended to boost awareness of his journey. This site can now be viewed here. Please pass details of this site and tour on to anyone you think might be interested.
If you would like to support David, either through sponsoring him a donation to Samaritans or by joining him for a spin on Sunday 15 July, there are 3 options; 72 miles, 37 miles and 5 miles. Please click here for details. John Welsford and John Sharkey have already put dates in their diaries to join David on part of his journey.
David would like to pass on his thanks in advance for any support you provide and donations you give and we would like to wish David every success in his venture.
The answer to this month’s sports trivia question is 1923.
You have received this email as a subscriber to the Mercia Group Ltd Newswire. To unsubscribe please send an email with UNSUBSCRIBE written in the Subject to unsubscribe@mercia-group.co.uk If you would like us to send a copy to a friend or colleague, forward their details to subscribe@mercia-group.co.uk
Nigel Cass
Mercia Group Ltd
Best House, Grange Business Park, Enderby Road, Whetstone, Leicester LE8 6EP.
Tel: 0116 2581200 Fax: 0116 2581250.
Email: nigel.cass@mercia-group.co.uk Website: www.mercia-group.co.uk
Mercia Group Limited is a company registered in England and Wales with company number 1464141.
Registered Office: Paulton House, 8 Shepherdess Walk, London N1 7LB
This email and any attachments may be confidential and the subject of legal professional privilege. Any disclosure, use, storage or copying of this email without the consent of the sender is strictly prohibited. Please notify administrator@mercia-group.co.uk immediately if you are not the intended recipient and then delete the email permanently. Unless you are the intended recipient or his/her representative you are not authorised to, and must not, read, copy, distribute, use or retain this message or any part of it.