The Business Exchange Swindon & Wiltshire October 2014 - Page 9
Hear It From The Experts…
“You can’t download an ice cream!”
Article by Richard Buzzoni
“No matter how much digital evolves, you
can’t download an ice cream. You’re always
going to need packaging”.
This comment was recently made by
the long-time owner of a print packaging
company, and echoes the sentiments of
many business owners in the printing
industry, who have had a tough time
weathering the sea of change from
traditional print days to the new digital era.
But, as all senior management in this
trade know, they must adapt in order
to continue to play a crucial role in the
The printing houses that will thrive are
the ones that change their mindset and
focus on offering solutions and services
rather than selling products. A marketing
manager doesn’t need a printed brochure.
He needs a solution to convey his message
to his potential customers.
This change in mindset, however, means
investing time and resource, so some
business owners have turned to raising
funds to accommodate the necessary
However, some directors that started
their printing businesses over 25 years ago,
do not want to go through this next phase
of changes and are taking the opportunity
to retire - either selling their business, or
encouraging management to take over,
Watersheds have gained a wealth of
experience working together with business
owners in the printing industry, ensuring the
successful sale of their business, which is
the ultimate reward for their many years of
Watersheds always welcome an initial
phone call with business owners to discuss
Individual case studies of our deals with
print businesses are available to view on our
website www.watersheds.ltd.uk/deals and
if you would prefer, we can send you copies
by email or in the post. Please call Caroline
Wilson on 01604 660 511 or email:
Advice for small businesses
Are there rules around giving mobiles to my staff?
Employers may provide many benefits to employees on top of
salary or wages. Some benefits can be tax-effective, because
employer and or employee may save tax by providing the benefit
rather than cash.
What is Salary Sacrifice and
why do people do it?
‘Salary Sacrifice’ is a mechanism where a formal
agreement is made jointly by an employer and
employee, to reduce an employee’s salary in return
for some other benefit.
The point of this arrangement is generally
to save National Insurance – and this saving
can then be divided between the employer
and the employee.
How to do it - Firstly, one needs to seek
professional advice from a Financial Advisor
- as any salary sacrifice must be carefully set
up in order to achieve its aims, and be safe
from any HMRC challenge that the sacrifice
How savings can be made by sacrificing
• Pension contributions - Example: an
employee can agree to sacrifice £100/
month of their gross salary in return for
the employer paying an extra amount into
the employee’s pension fund. The National
Insurance saved would typically be £25.80
(12% for the Employee and 13.8% for
the Employer). The sum saved is £25.80.
Added to the sacrificed £100, it can be
invested into the pension fund.
Comparison: if the employee made a
personal contribution into their pension
fund without the salary sacrifice, there
would be £25.80 less in the fund. So, there
is potentially a big advantage (25.8% of the
sacrificed amount) for many employees.
• Private health insurance (and other
taxable benefits in kind) Salary can be
sacrificed and the employer can pay the
premiums. National Insurance would still be
payable by the employer, but the Employee’s
National Insurance (at 12%) is saved.
• Childcare vouchers - An employer
offering childcare vouchers can agree a
salary sacrifice arrangement which saves an
employee income tax, as well as National
Insurance - so it’s possibly worth 32% (of
the value of the vouchers) to the employee;
and 13.8% to the employer.
Peter Bromiley ACA
Technical Director - AMS Accountancy Ltd.
WINNING TEAM NOMINATED
FOR AWARD AGAIN
Swindon-based Chartered Accountants Dennis &
Turnbull have been nominated as finalists to defend
the British Accountancy Award they won last year;
‘Independent Firm of the Year - South West’.
Normally if an employer provides an asset to an employee for
personal use, the employee must pay tax on 20 % of the asset's
value for a whole year.
However, a mobile phone is exempt from this tax.
This means that when an employer provides a mobile phone to an
employee, the employer can deduct the cost from taxable profits
and the employee doesn't have to pay tax on this benefit even for
However, you MUST ensure the contract is in the name of the
business and NOT the employee
Peter Bromiley ACA ,
AMS Accountancy Ltd., Swindon SN5 7XF
The winning team at last year’s award ceremony.
Carl Reader, director at Dennis & Turnbull,
has also been nominated as a finalist for
the ‘Practitioner of the Year’ award.
Attracting more than 500 leading
accountants from practices all over
the country, the awards showcase the
achievements of small local firms to
national and global players who have
demonstrated an excellence in their
profession over the course of the last
Dennis & Turnbull’s nominations
recognise the level with which this local
firm is working at, providing clients with
a class-leading personal service, adding
value, not numbers.
“We are delighted to be back at the
British Accountancy Awards for 2014 and
it would be great to retain the award we
won last year and maybe add a second as
well,” said Carl.
This year the awards ceremony is being
held at The Brewery in Central London on
THE BUSINESS EXCHANGE 2014