The Business Exchange Swindon & Wiltshire Edition 19: June/July 2015 | Page 9

FINANCE

AUTO-ENROLMENT IN 2015;
A Temperature Check Of The
Progress So Far
Terry Kellow, a consultant at Rowanmoor Group
PLC, a financial advisory based in Salisbury,
explains the ins and outs of auto-enrolment.
It is almost three years since pensions auto
enrolment came into effect.
To date, around 43,000 employers have
been required to comply with the automatic
enrolment regime and a further 45,000 are set
to comply with the new regulations in 2015.
These last few months alone we have
noticed a significant increase in enquiries
and this may be indicative of the volume to
come, especially when we look further ahead
to 2016 when an estimated further 45,000
employers will be staging every month.
Research carried out by NEST indicates
an anticipated move towards accountancy
practices being chosen to provide assistance
to these smaller employers with their auto
enrolment duties.
The anticipated volume will be positive for
business growth, and could offer opportunities
for accountancy firms to work in tandem with
financial advisers to provide this service. Just
3% of the UK’s employers have been affected
so far, the remaining 97% making up the
small and micro employers who will be staging
over the next few years. 83% of those yet
to stage have no existing pension scheme in
place.
Auto enrolment engenders a culture of
saving and engagement in future retirement
provision. It would not be incorrect to say that
it comes with its own challenges, but support
does exist and it is vital that employers are
aware of the requirements placed upon them.
Automatic enrolment presents three
fundamental challenges which can be loosely
summarised as being administrative, financial
and regulatory. Every employer in the UK will

need to adhere to a raft of regulation, self
certifying their compliance, providing scheme
information to employees, automatically
enrolling employees, making contributions
on their behalf and keeping accurate scheme
records.
Therefore it is essential for every employer
to review what capacity and experience exists
to adequately and compliantly undertake
these duties and source sound administrative
support to fully understand the intricacies of
the auto-enrolment process. Our message
remains clear; independent financial advice,
free from any bias, on how to plan ahead and
meet these challenges head on is essential
as we approach the second half of the auto
enrolment timetable.

Local recruitment company sold
Commercial law firm Thrings
and corporate finance
specialists Watersheds have
successfully completed the sale
of independent recruitment
agency Mainline Employment
to Personnel Group.
Mainline Employment is one of the leading
independent recruitment agencies in the
South West, employing more than 40
staff across two branches in Bristol and
Swindon.
The transaction was led by Watersheds’
Swindon-based partner Jessica Painter,
while senior corporate partner, John Davies,

and associate solicitor, Simon Hore, worked
with the firm’s commercial property,
commercial and employment teams to
provide strategic and legal advice to
Mainline Employment owner, Stella Weeks.
The completion of the transaction for
an undisclosed sum will enable Mainline
Employment to continue expanding its
service offering to regional clients while
securing an exciting future for its staff.
Stella who will continue as a consultant
in the business said: “This was a once-ina-lifetime opportunity. To have found a
buyer that believes in our family values was
extremely important, as well as one whose
corporate disciplines will allow the business
to continue to grow in the future”.

Hear it from the experts…
You can make savings every year with the
Flat Rate VAT Scheme

The Flat Rate VAT scheme (FRV) can be a tax break
for small VAT registered businesses. It can mean
significant savings. For example, an Engineer earning
£60,000 a year could typically save £1,500 p.a.
The Flat Rate VAT scheme works by applying a
(lower) percentage rate (classified by industry)
to your Gross Turnover to calculate your
quarterly VAT bill - as opposed to netting
off your Output (Sales) VAT and your Input
(Purchases) VAT.
Nothing changes outwardly as far as
running your business is concerned. You
would continue to apply the current rate of
20% VAT on your sales invoices, then, when
submitting your quarterly VAT bill, you would
apply your industry percentage rate to your
Gross Sales figure. In the first year of your
VAT registration, you will also receive an extra
reduction of 1% for joining the FRV scheme.
To join your annual turnover must be below
£150,000 (exc. VAT); and if your turnover
exceeds £230,000 (inc. VAT), you must leave
the scheme.
There are some situations where FRV is not

beneficial/available, for instance:
• Significant sales of goods overseas or
services to EU businesses
• Significant Exempt or Zero rated sales
• Your VATable business costs equate to more
than about 13% to 20% of your sales
income (depending on your Industry)
• You are on an Agency payroll or using an
Umbrella service
For details of rates by trade sector google
Flat Rate VAT sectors for the A-Z list of rates.
A word of caution: Select the correct rate
because HMRC can review your accounts
going back 4 years and if you have chosen an
incorrect FRV rate they will reclaim the VAT
owed plus interest.
Peter Bromiley ACA
AMS Accountancy Ltd, Swindon, SN5 7XF
01793 818400 www.ams-accountancy.co.uk

Ask AMS
Advice for small businesses

I sell digital products online. Are there rules around foreign
VAT?
Since January 2015, for sales to EU consumers made via your own
website requiring nil/minimal human intervention, you should
register for VAT in each EU country (% rates differ throughout) where
the customers are based. Alternatively you can join the UK VAT Mini
One Stop Shop (MOSS) which will register for you. Google ‘HMRC VAT
MOSS’ to find o