The Business Exchange Swindon & Wiltshire Edition 40: Dec/Jan 2018/19 | Page 33

BUSINESS ADVICE Business owners warned not to get caught out at Christmas The countdown to Christmas is well and truly on. Staff parties will be held, gifts exchanged and festive drinks gatherings will be hosted. Mandy Gibson But before business owners get too carried away with the season of good cheer, they should familiarise themselves with a few rules to ensure they stay on the right side of HMRC. Here’s some advice from Mandy Gibson, tax supervisor with Swindon-based accountancy and law firm Optimum Professional Services. If you’re planning a staff party, remember the tax-free limit for entertainment remains at £150 per employee. This amount includes VAT, whether or not it is reclaimed. Go over this limit, and benefit in kind or PAYE issues arise. It’s also important to note that the £150 allowance is for the whole year, not just the Christmas party, so do take into account any other spending of this kind that you’ve already incurred in the current tax year. If the limit is exceeded then the whole cost of the event could be subject to tax and NIC depending on circumstances. Remember to include any incidental costs in this amount; for example, if you are running a free bar or providing transport. You might be inviting spouses, clients and contacts too, but be aware that spending on non- staff attendees counts as entertainment and so is not tax deductible. And give some thought to any regulatory issues that may arise, regarding bribery and corruption policies that either you may hold or more importantly, your customers or suppliers may have. Not everybody can accept hospitality or gifts, even at Christmas. If you’re giving presents for staff, to avoid any issues the value must be under £50, not be food, drink, or tobacco and not be given as cash or an equivalent, such as cash vouchers. For contacts and clients, the value must be below £250 and also not in cash or cash vouchers. Again, consider any issues vis-a-vis bribery and corruption. If you receive gifts as an employee, from your employer, or a client or supplier, these must be ‘trivial’ in HMRC’s eyes otherwise they need to be declared – or returned! Hospitality in general counts as entertainment, and is not tax deductible. Any costs must also include incidentals. One example is taxi fares; late night taxis are an allowable cost for late night working but not in relation to hospitality. However, balance against this your responsibility as an employer to keep staff safe – you may well want to provide transport, even if you can’t write it off against tax. Finally, IR35 has a bearing on Christmas entertainment. IR35 is the government’s anti-tax avoidance legislation where HMRC is clamping down on what it calls “disguised employment”. If you’re a contractor and are invited to join in a staff Christmas party, does this raise a question mark in HMRC’s eyes as to whether yours is a business-to-business relationship or whether you are in actual fact an employee? If the latter, HMRC may well want to ask more significant questions! Think carefully before you accept the invitation, as it might be better to politely decline! The same can be an issue for those that are self employed but offered hospitality at Christmas, particularly if the offer is the same as that being offered by the client to their own employees. The team at Optimum Professional Services in Swindon can provide help and advice on all areas of tax and accountancy: business taxes, personal taxes, self-employed or a contractor where IR35 is an issue to you. To chat to the team email [email protected], phone [phone] or visit www.optps.co.uk New Year, new plans for professional development? Focus on CPD by Chris Dawes Training and keeping abreast of industry changes or new ways of working is important in any field. But in some sectors, training isn’t only desirable it’s a requirement, not just to show that mark of quality but in order to remain part of a professional body or association. We’re talking about CPD, or Continual Professional Development, and many professions expect those working in their field to participate in CPD accredited training to maintain and develop their knowledge and skills. At Open Dawes Training, we believe we are the only organisation in the Swindon area to offer CPD accredited public speaking and presentation training. So, as we move into 2019, now’s the time to put plans in place for: • Your own personal development, particularly if CPD is a requirement for your profession • Your staff development, if CPD is part of your employees’ personal development plans or can act as a benchmark for ongoing investments in staff or management training. And that training could be in public speaking, communication and presentation skills. Why choose a CPD accredited course? If you’re an employee, CPD keeps you up- to-date, helping you maintain a professional standard and affiliation to your professional body. It also helps you determine the course of your career, as well as give you credibility and confidence. Moreover, CPD accreditation may advance your career and achieve a higher salary. If you are an employer, CPD accredited training enhances the skills of your workforce, and demonstrates to you their individual levels of ability. Staff taking CPD training will be able to share best practice and maximise their potential. CPD is a useful benchmarking tool for annual appraisals and salary review. Why choose CPD in public speaking and presentation? CPD training credits do not have to be limited to sector-specific training. Where there is flexibility, employers and employees may choose more general training, such as our public speaking and presentation training. This is a chance for people at any level – from director to new recruit - to develop an important skill, which will help them in every area of their working and, indeed, personal life, whether they are required to give presentations, to speak in public, or to get their point of view across during meetings. Recently, we’ve worked with an insurance company, training staff who attend trade shows. Our input has given them the skills and confidence they need to be able to present in seminars at the shows, to speak confidently to delegates and to ensure they make the most of the investment they have made in the exhibition. And, of course, all the course participants have been able to gain CPD credits. Why did we decide to have our training CPD accredited? We know it gives our candidates and employers who send their staff on our courses the confidence that the training, coaching and mentoring services we provide have a recognised mark of quality, having been through the CPD Standards Office’s assessment process. We offer training in groups or one-to-one at our training centre, and we run inhouse courses and workshops at our clients’ work setting, for groups or one-to-one. CPD offers an opportunity for personal as well as professional development. At Open Dawes Training, we can help you or your organisation develop new or improved skills and confidence – it may even lead to new doors opening that you didn’t know existed! Something to consider when you are making plans for 2019. For more information about Open Dawes Training CPD accredited training, email [email protected], call 01793 238259 or visit: www.opendawestraining.co.uk THE BUSINESS EXCHANGE 2018 33