Client Spotlight: Demystifying Digital Marketing

In this article Patricia Gardiner MA BA (Hons) from Clever Marketing demystifies the world of digital marketing with an insightful overview and a simple 5 step plan to digital marketing success. Marketing has changed dramatically over the last 10 years and as budgets are cut through economic troughs digital marketing has emerged as the new leader in the marketing world. It is continuing to grow as marketers are now starting to understand what digital marketing and technology can really do for their business...

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Windows 8

Microsoft showed its first public demo of Windows 8 in June 2011, and it's not at all like the Windows operating systems you've come to know over the past 25 years. The next version of Microsoft's operating system (Windows 8 is just a codename) is a radical departure, designed around touch screens. If this revelation is making you worried about your existing MS software, here’s a few FAQs for you based on the early Windows 8 build that was demonstrated back in June 2011:

What Windows 8 features did Microsoft demonstrate?

Essentially, Microsoft showed how Windows 8 will work on both tablets and traditional PCs. The operating system's home screen is filled with big, touchable panels and from there you can tap and swipe your way to other touch-based applications. But underneath that touchy layer is plain old Windows, with a task bar, file manager, app icons, everything.

How does the touch interface work?

From the start menu, which shows basic information like time and unread e-mail counts, users swipe upwards to reveal the home screen and its tiles. Users can multitask between open apps by swiping across from the left bezel. And therein lies the best looking feature of Windows 8. When swiping in a new app, users can snap it in place next to the app that's currently running. This allows users to view two apps at the same time, something that no existing tablet operating system can do.

How will Windows 8 apps work?

Microsoft says it's created a new kind of app for Windows 8 using HTML5 and JavaScript, and they are a lot like the apps you'd expect to find on a tablet. A weather app shows the five-day forecast. A news reader displays stories and thumbnail images in big, rectangular panes. Microsoft also showed off Internet Explorer 10, which is optimized for touch. Presumably Microsoft will distribute these apps through its own store; there's a ‘Store’ tile in the version of Windows 8 that Microsoft demonstrated, but the company offered no details.

What about existing Windows apps, such as Office and Photoshop?

They will still work. Loading one of these apps will bring up a more familiar version of Windows. Classic Windows apps will use ‘fuzzy hit targeting’ to aid finger taps, but they won't be optimized for the touch screen like Windows 8's HTML5/JavaScript concoctions. Legacy apps can, however, run side by side with the new Windows 8 apps.

When's the Windows 8 release date?

Microsoft CEO Steve Ballmer has said that Windows 8 will launch in 2012, but the company hasn't been any more specific than that. Expect more details on Windows 8 in September, when Microsoft hold their BUILD conference for developers in the US...

For further information/advice on this topic please contact Ward Williams: www.wardwilliams.co.uk 

Higher Fees for Higher Education

Students who start on or after 1 September 2012 will subject to a new Student Finance Scheme. Universities and colleges will be able to charge up to £9,000 per year. If you include accommodation and general living costs that amount could rise to over £15,000 each year.

Loans are available for students to pay for living expenses and tuition fees, the later begins to be paid back after students have left their course and earn over £21,000.

With students looking at potential debt levels of over £45,000 after a 3 year course, some parents may feel uncomfortable with their children building up such large debts.

Are there tax efficient ways to fund my child through their course?

There are a number of ways that one can invest on behalf of their children.

Junior ISAs (JISAs)

Following the end of new Child Trust Funds (CTF), children under 18 who do not have a CTF will be eligible for a JISA.

Up to £3,600 per tax year can be invested in a JISA; children can hold one Cash ISA and one Stocks and Shares ISA and each can only be held with one provider. Once the child turns 18, funds will be accessible and the JISA will automatically become an ISA.

Bare Trusts

A Bare Trust, otherwise known as a ‘Simple Trust’, can be a very tax efficient method to invest for children.

The beneficiary will have an immediate and absolute right to the income and capital of the Scotland).

If the grandparents are the donors, the grandchild will be subject to income tax on any income received by the trust. Any income up to the grandchildren’s personal allowance of £8,105 will be tax free. However if the parents are the donors, if the gross income received from the bare trust investment exceeds £100 in a tax year, the whole income is taxed in full as the parents income.

If the parent is a higher rate tax payer, it may be sensible to invest in low-yielding or capital growth orientated investments.

If you would like more information please call Ward Williams Financial Services on 01932 830664 for an informal discussion, or to book an appointment with one of our highly qualified financial planners.

Insuring against the Taxman

HM Revenue and Customs (HMRC) enquiries can be expensive, disruptive, intrusive and time consuming.

There has been a significant increase in the number of enquiries raised, as HMRC have put extra resources into pursuing more tax.  As a result, businesses and individuals face an increased risk of an enquiry into their tax affairs.

If you are unfortunate enough to be chosen for enquiry by HMRC you may incur professional fees amounting to thousands of pounds. The average fee was £2,150 plus VAT for 2011. As your professional adviser, we may be required to be involved in lengthy meetings with inspectors or extensive correspondence in relation to your tax affairs.

Please note that the costs of tax enquiries are not included in our normal annual fees and clients who do not have separate cover will be charged the full amount of any such costs.

These fees often have no bearing on the amount of tax demanded and even if there is no additional tax to pay at the conclusion of the enquiry, you may still be liable for this unwelcome expense.

We provide a Tax Enquiry Insurance Service that is designed to pay all our professional fees incurred in dealing with these increasing numbers of HMRC enquiries and disputes.

We are often asked by clients if they should be subscribing for fee protection cover. Unfortunately, in most cases it is an answer we cannot give. What we can say is that many enquiries are made at random and that the cost of cover is relatively small, as such we consider it well worth our clients joining up to the scheme to benefit from the peace of mind it offers.

The policy period is 1 April to 31 March, however mid-year applications are also welcome.

For further information on Tax Enquiry Insurance and a quote pertinent to your business please contact us: www.wardwilliams.co.uk

SMEs attracted to discounted loan scheme

Early indications suggest the Government’s National Loan Guarantee Scheme – designed to lower the cost of borrowing – is working well. 

The Government’s £20bn National Loan Guarantee Scheme (NLGS), launched in March this year with the intention of lowering the cost of business loans to SMEs, is delivering promising early signs, according to Barclays. 

While banks have been heavily criticised for not lending enough – despite insisting businesses do not want to borrow, even with low rates – early signs suggest the scheme is making an impact, providing access to cheaper finance, and in some cases, cashback to stimulate growth in the economy. 

How the scheme works

Barclays, Santander, RBS, Bank of Scotland, Lombard, NatWest and Lloyds TSB have signed up to the scheme, while Aldermore has agreed to join in principle. 

The cost of a loan under the scheme should be reduced by the equivalent of a 1% discount on the participating bank’s standard rate of interest.

The amount of money that can be borrowed (both the minimum and maximum amounts) will vary on a bank-by-bank basis. Credit cards and overdraft facilities are excluded from the scheme. 

The loan criteria

There are a number of criteria that SMEs must meet in order to qualify for a loan, including a turnover of less than £50m, the majority of business operations located in the UK, and restrictions on the total amount of state aid received.  Businesses will need to check that the finance they want fits in the scheme’s criteria, especially since restrictions can apply to businesses already enjoying state aid.’ 

The normal lending criteria that banks usually stipulate will also apply. SMEs will need to demonstrate the basic core financials, such as viability, the ability to service the loan and capital, good management information, credible management and supplier reliability. Ward Williams would be able to help you present this information in a professional manner.

In addition loans from Barclays under the NLGS are unique in that Barclays is the only bank offering the 1% benefit as upfront cashback for all lending.

For further information/advice on this topic area please contact Ward Williams: www.wardwilliams.co.uk

Strategies for delaying income to 2013/14

From 6 April 2013 the additional rate of income tax will fall from 50% to 45% (42.5% to 37.5% for dividend income).  It will therefore be advantageous for higher earners to delay the receipt of income until after this date, effectively saving 5% on any income successfully deferred.

The additional rates apply to income in excess of £150,000.  Additional rate taxpayers are not entitled to a personal allowance as, at this level of income, it has been tapered away to nil.

The following strategies could be used to reduce an individual's income, ideally to an amount of less than £150,000 in 2012/13, to ensure income is not taxed at the additional rates unnecessarily.

Owner-manager of a limited company

The most effective strategy will be to:

·         delay the vote and payment of dividends until after 5 April 2013,

·         cover any cash flow difficulties via a short-term loan from the company, and

·         repay the loan using the delayed dividends

From a cash flow point of view, delaying dividend payments may also mean that the individual's Self Assessment payments on account can be reduced for 2012/13 and, as a consequence of the lower level of income in 2012/13, the payments on account will automatically be lower in 2013/14.

Self-employed or in partnership

Strategies for delaying income for those who are self-employed or in partnership are less obvious and will depend on the specific circumstances, but some ideas include:

·         maximise pension contributions in order to increase the basic rate and higher rate tax bands

·         make donations to charity under gift aid

·         ensure any trading losses are utilised in the periods of assessment which fall to be taxed in the 2012/13 tax years, rather than carrying forward losses to 2013/14

·          accelerate capital expenditure which will qualify for the annual investment allowance

Employees

Assuming income-producing assets have been transferred to a spouse/civil partner where appropriate; there is usually little an employee can do to influence his remuneration package unless he is also the owner of the business.

Unless the employee can persuade the employer to incorporate benefits free from income tax and national insurance into his remuneration package, the most likely option is to increase his basic rate and higher rate tax bands by making pension contributions (via additional voluntary contributions (AVCs)) or donations to charity under gift aid.

However, for employees who are able influence their remuneration packages, it may be possible to:

·         move a contractual bonus payment date from 31 March 2013 to 6 April 2013

·          include more benefits free from income tax and national insurance by way of a salary sacrifice

There are potential traps with some of the above ideas, for example, the potential for HMRC to reclassify dividends as employment income, and with pension contributions you must also take care to avoid an annual allowance charge. You should therefore seek advice before any action is taken.

For further information/advice on this topic please contact us: http://www.wardwilliams.co.uk/

HMRC launches new taskforces

HM Revenue & Customs (HMRC) has launched six new taskforces in an effort to recover more than £23m from ‘tax dodgers’.

The taskforces will target traders who do not pay the correct amount of tax in:

·         Indoor and outdoor markets in the London area

·         Property rentals in London, East Anglia, Yorkshire and the North East

·         Restaurants in the Midlands

·         Taxi firms operating in Yorkshire and the East Midlands

HMRC has set up a series of specialist taskforce teams to undertake activity in specific high risk trade sectors and locations in the UK.  The teams will visit traders in order to examine their records and carry out other necessary investigations. 

HMRC is on target to collect more than £50m as a result of the taskforce teams launched in 2011/12.  Twelve taskforces were launched in 2011/12, with thirty to follow in 2012/13.

Taskforces are a result of the Government’s spending review investment to tackle tax evasion, avoidance and fraud.

For further information/advice on this topic please contact Ward Williams: http://www.wardwilliams.co.uk/