Growth Matters newsletter - Autumn 2017

Autumn 2017 Latest news and updates from the Roffe Swayne teamWelcome to our new look newsletterIt has almost been a year since I took over the role of Managing Partner and it has been a busy year for Jeremy Gardnerour whole team. This reflects the fact that our clients have also been busy, despite the challenges in our Managing Partnerpolitical landscape. 01483 416232This is also a good opportunity to introduce three new team members - Anu Tayal, Corporate Finance [email protected] has joined the team and has a wealth of knowledge on transactions, and has written an articlebelow on raising finance which I hope you will find interesting. Chris Boulet has joined as a partner in @RoffeSwayneour private client tax team. You can read more in our ‘spotlight on’ article on page 4. Jane Alsop has alsojoined the tax team with particular expertise around tax investigations, she brings with her over 30 yearsexperience working for HMRC and is on hand should HMRC come knocking. Jane also keeps everyone upto date on the Government’s Making Tax Digital project.Finally, we recently undertook a client survey to make sure our services remains relevant and valuable.We are proud that our customer satisfaction score was 8.6 out of 10 with 60% of our clients rating us as9 or 10 out of 10 (see infographic on the back page).Funding viewpointRaising finance: a crowded marketplace?by Anu TayalA business through its lifecycle HNWIs looking for the next early stage Google investment and customers. The flipside isis likely to consider raising or Brewdog to invest in. These all provide that it is a very public fall from grace whenequity finance as part of its businesses with a wealth of routes to raise things are less successful and with a very vocalfunding strategy for growth, capital. shareholder base.either internally driven or foracquisitions and mergers. Whilst the options are now numerous, it is There are also a number of seed capital/early important that businesses consider which investment vehicles that have been set upHistorically, the options were more limited route fits with its overall strategic plan. Each recently to invest in growing businesses. A lotfor smaller businesses, to those with access type of investment provider comes with its of these are focused on the technology sector,to a pre-existing network of high net worth own advantages and disadvantages. Some of given its particular potential growth profile,individuals (HNWIs) or through a relatively these are ‘softer’ such as personality fit, how but a number do look at traditional businesses.small number of venture capital/private equity much oversight they require and what other These are potentially attractive to those thatinstitutions, who typically had a fairly narrow benefits they bring as part of their investment will need to carry out a series of fundraisings toinvestment criteria. (i.e. access to more customers or markets). realise its potential, as these investors are more able to ‘follow their money’.Today’s market is very different. With the Of particular note, crowdfunding is anrevolution in technology (e.g. crowdfunding), increasingly interesting source of new capital Whichever route you consider, think about thegovernment policy, EIS/SEIS incentives, which is attractive to many high growth long-term game plan for the business as thatfunding schemes and grants, the emergence companies. As part of the process, it raises the will often be a key driver in deciding the bestof seed capital/early stage funds (similar to profile of the business both to its customers route forward. If in doubt, seek advice as athose in the US) and a growing population of as well as attracting investment. Furthermore, wrong turn is often difficult to reverse out of. any successes can go ‘viral’ and build the founders reputations as astute business people, potentially attracting additional coverage, Roffe Swayne Growth Matters Autumn 2017 | 1Growth MattersAutumn 2017.indd 1 03/11/2017 10:24:21

The SME ToolkitCould you benefit from outsourcing?asks Scott HarrowerIf you’re a small business owner Maintaining control 3. Full servicewith limited resources, youmight be handling the accounts Technology has streamlined the process. For The accountant acts as a de facto financeyourself. But is this the best use of many businesses, even if they’ve adopted a department, handling data inputting, runningyour time and skill set? We look fully outsourced model – with their accounting transactions, bank reconciliations, complianceat outsourcing solutions that will partners running a fully outsourced finance and reporting as well as higher-value strategickeep the costs down. function for them – control can still be advice and consultancy when required. It maintained. carries a cost but in the long term removes theAsk any founder why they started their need to hire in-house finance staff, and allowsbusiness and the reason that comes up most I find it much more valuable now to go into the business to move through the gears offrequently is a desire to do something they’re a client meeting and say: “OK here are the growth smoothly and quickly.passionate about. Whether that’s welcoming numbers, here’s the accounts; now let’s talkpeople into their restaurant, designing a about how to grow your business. Should Key takeawaysgame-changing app or creating a new product, we be building, expanding? How are your 1. Understand your businessthe best part of running a business is making revenues looking? Are your margins correct?money doing something you love. And how can we get there from here?” Ask yourself what your business needs. Do you need advice to grow? Do you need to freeThe flipside of this, of course, is that running a Three models of outsourcing up management time? Do you need to keepbusiness also involves a level of administration 1. Piecemeal the head-count costs down in the accountingthat can distract from the core business. This is department? Do you need to improve theparticularly the case when it comes to finances, This type of arrangement would see the quality of your financial information? Oncewhere keeping the accounts of a growing accountant carry out discreet chunks of work you’ve answered these questions, you can setcompany in order can quickly turn into a on an ad-hoc basis – for instance, year-end about finding the right outsourcing model.Sisyphean task. accounts and corporation tax filing. Most of the client’s accounting would be done by an in- 2. Stay flexibleThis evolution in working practice has also house bookkeeper or financial controller, withbeen facilitated by new regulations and – specialist services outsourced. It’s a cheaper The ability to ‘adjust the volume’ of yourperhaps most importantly – technology. I work option in gross terms but more expensive per accounting outsourcing model is a crucial toolwith clients to identify their business needs, unit. in controlling costs. With cloud-based appsthen designs an outsourced accounting model and platforms, accountants can easily add andthat works best for them. 2. Hybrid remove modules and services as needed.The cloud has revolutionised how The client retains control over some services, The business may be looking for externalwe work. Now we can do almost while others are fully outsourced on a rolling investment so it might turn the volume upeverything over the internet. basis. For example, payroll is entirely hived to get more help from its accountants and off to the accountant, who assumes full to involve advisers; or it may lose an internal responsibility for making payments, updating resource and need some help in the interim employee details, handling auto-enrolment to get some financial control. Turning [the and so on. This is the middle way in terms of volume] up and down is much easier thanks to cost. the cloud and can be very cost-effective.Making Tax Digital (MTD) update From NatWest Content Liveby Jane Alsop Companies are still not really mentioned. I imagineThe Treasury have announced MTD for income tax will become this means that they willthat MTD is to be deferred. mandatory from April 2020, or follow along with otherLooking at what they have said, possibly later. At present this seems businesses, with MTD forthe key points seem to be: to be only for businesses above the corporation tax kicking in VAT threshold, so MTD may remain from April 2020 or later. The VAT obligationsMTD will become mandatory for VAT from April will still be there from April 2019, of course.2019 (as before), but only for businesses above voluntary for smaller businessesthe VAT threshold. This seems to be because it’s indefinitely - but as with VAT, I would Overall the delay is great news, allowing morenot much of a change for most businesses, who expect a broadening of the scope time for software to be developed, tested andhave to do online quarterly VAT returns anyway. relatively soon after 2020. rolled out to businesses, and for taxpayers and agents to adapt to the new processes that will be required.2 | Roffe Swayne Growth Matters Autumn 2017Growth MattersAutumn 2017.indd 2 03/11/2017 10:24:23

Event The speakersClient Briefing: Linda Warner Mark Taylor Tax Partner, Technical InnovationTax update: pre-budget predictions Roffe Swayne Manager, ICAEWTop tips for dealing with cybersecurity GDPR DetailsPreparing for the forthcoming The data protection laws are changing on 25thGeneral Data Protection May 2018. Businesses must comply with these 8 November, 5pm, for 5:30pm toRegulations (GDPR) changes or face hefty fines. Mark will give a 7pm when drinks and canapés will brief overview of GDPR, plus some steps you be servedPlease join us for an informal briefing session need to take to remain compliant with how youwith Mark Taylor from the Institute of Chartered manage the personal data you hold and how to Held at Roffe Swayne officesAccountants in England and Wales (ICAEW). record and manage consent. To book your placeCyber Crime Tax updateGet practical tips on how to protect your Our Head of Tax, Linda Warner, will also be email [email protected] and your client data from cyber giving her view and advice on recent taxcriminals. changes and any budget implications for business and individuals.Helping us to stay in touch Please could we ask your help in complying with this law.As mentioned above, the General Data We must also have evidence that we haveProtection Regulations (GDPR) are becoming asked you. We would be grateful if you could If you are unsure, or want to do this via thelaw next May 2018. This means that we must complete our online form: phone, call either:ask your consent to send you marketingmaterials, as well as other client data. www.roffeswayne.com/gdprform Sharon Hammond or Virginia Cook on 01483 416232.Tales from the BoardroomClearer thinking by Jeremy GardnerOne of the many privileges of my Clearer thinking We mapped outjob is to sit alongside some of the key things thethe region’s most dynamic and Sounded like a great idea, but things are never project would giveentrepreneurial business owners so straightforward of course. It would mean to the business,at the Boardroom table in my making an initial payment for the intellectual and the top thingscapacity as their Finance Director. property, there would be more research and we would need to development work needed, the need to hire a make it a success.We all like having choices in life. team to develop and market the product and We prioritised both lists and did the same forBut sometimes choices come the matter of royalties which would be payable the other initiatives that were running so thatwith dilemmas. on any future sales. we could compare. It’s amazing how often the answer becomes obvious when applying someAnd this was the case in a client board And this came on top of other initiatives that structure and logic to the problem at hand.meeting I recently attended at a fast growing the company was already pursuing, the needtechnology company. One of the directors to find ways of funding those things too and So what did they decide?wanted to talk about an opportunity to resource constraints which are so common forintroduce a brand new product based on some growing businesses. In this case, the answer was a “no go” for thisintellectual property the company had helped new project; well, not yet at least. Undertakingto develop. The solution? a new product development programme at this stage presented a very real risk to some of the They needed some structure to make the most other initiatives already underway. But this is of the valuable board meeting time available. very much a case of “maybe not for now” as the plan can now easily be revisited once the decks This is where we come in, as we see this sort of are clearer in the future. story with many businesses we deal with. And because we are not involved in the business every day, we can take a slightly more objective view on things. Roffe Swayne Growth Matters Autumn 2017 | 3Growth MattersAutumn 2017.indd 3 03/11/2017 10:24:24

Spotlight on...our new Tax PartnerMeet Chris Boulet who has Following this, Chris then started his own tax We are delighted that Chris has ‘come home’rejoined our tax team. consultancy practice looking after private with all of the knowledge he has gained so far High Net Worth clients and partnerships as in his career.Chris originally joined the firm’s tax department well as advising on international and domesticback in 1989 as a tax trainee. And now he corporate tax structuring issues. If you have any burning tax questions, Chris iscomes full circle and joins our tax team family, on hand to help you navigate your tax issue.somewhat older (sorry Chris!) and much wiser! Chris advises a broad spectrum of clients from large multi-national companies to SMEs, as well If you would like to chat with Chris about a taxAfter qualifying with Roffe Swayne he moved as individuals and families on tax. issue, he can be contacted on our main numberon to Smith & Williamson and began to 01483 416232 or by email:specialise in private client tax matters. Much of his work has an international [email protected] dimension, as he advises many internationallyHe then moved in-house into international based families on their tax position and haspartnership tax roles with Linklaters, Bird & Bird expertise in responding to complex enquiresand Coller Capital. into clients’ affairs by HMRC and related tax investigations. Meet the contributors Jeremy Gardner Scott Harrower Managing Partner Partner [email protected] [email protected] Linda Warner Anu Tayal Tax Partner Corporate Finance Director [email protected] [email protected] Jane Alsop Tax Investigations Chris Boulet Adviser Tax Partner [email protected] [email protected] Swayne, Ashcombe Court, Woolsack Way, Godalming, Surrey GU7 1LQ. Tel: 01483 416232. Email: [email protected] | Roffe Swayne Growth Matters Autumn 2017Growth MattersAutumn 2017.indd 4 03/11/2017 10:24:27