Buy-to-let: should you use a limited company? Donna McCreadie is a buy-to-let taxation specialist at Perrys Chartered Accountants. Here she discusses the pros and cons of using a limited company to hold rental properties. Following the announcement to restrict tax relief on finance costs on buy-to-let properties, many individuals are
The government has confirmed the fifth carbon budget for 2028 to 2032, agreeing to reduce emissions to an average of 57 per cent of 1990 levels. It has accepted the recommendation to limit emissions during the period to the equivalent of 1.725 billion tonnes of carbon dioxide made by
The plans centre around eight major strategic development sites, with the centrepiece a new £200m light rail link between Luton Airport Parkway rail station and the airport. The link will be funded from London Luton Airport Limited’s (LLAL) capital programme. LAL has appointed Arup to design and procure the scheme,
HSE supports calls for an MOT style Landlord’s Gas Safety Record Published: 10 June, 2016 The Health & Safety Executive (HSE) is supporting the Association of Gas Safety Managers (AGSM) campaign to move to an MOT style of annual gas safety check for landlords, and is beginning a consultation process
RCM, the complete through wall solutions provider for the UK construction industry has announced that they have formed a new charity partnership with the Douglas Macmillan Hospice. The DougieMac hospice looks after adult patients with a palliative or end of life diagnosis. The hospice serves people across North Staffordshire and
An extensive refurbishment project is currently taking place at the Saint-Gobain Weber HQ which is located in Flitwick, Bedfordshire. As part of this refurbishment and used extensively throughout the building is weberfloor. Saint-Gobain designs, manufactures and distributes materials and solutions vital to ensuring the wellbeing of all, whether that’s for
TIMco, one of the UK’s largest independent suppliers of screws, fasteners and fixings, has released its new summer catalogue with 10% more new product lines, taking their offering to over 6,000 products for the first time. The increased number of products offered comes as a direct response to customer demand
An agreement has been reached between the Lighting Industry Association (LIA) and the Lighting Association Ireland (LAI). This agreement comes as the two lighting associations have been in discussions and come to the conclusion that they share a similar outlook and philosophy in regards to their members and the future
If you are running a landscaping business an integral part of adding the finishing touches to your work will often be the installation of outdoor lighting and power outlets. It is great to see a garden lit up or a water feature as a focal point but you will want
Howarth Timber & Building Supplies will be hosting their award winning Trade Day Bonanza again this year with a variety of deals and competitions. Also, new for this third year of the Bonanza is the ‘golden ticket’ giveaway which has a prize worth £15,000. The Trade Day Bonanza will be
Buy-to-let: should you use a limited company? Donna McCreadie is a buy-to-let taxation specialist at Perrys Chartered Accountants. Here she discusses the pros and cons of using a limited company to hold rental properties. Following the announcement to restrict tax relief on finance costs on buy-to-let properties, many individuals are now considering using a limited company to hold investment properties, but is this more tax/cost efficient overall? Unfortunately, there’s no simple answer to this question, as the best ownership structure for you will depend on a number of factors, such as your annual income and requirements, as well as your longer term intentions for the properties. The proposal to restrict tax relief on finance costs to 20% will result in a hike in tax liabilities for many investors, and this could be avoided or mitigated by transferring the properties into a limited company. Limited company profits are subject to corporation tax at only 20%, reducing to 17% over the next few years, meaning that higher rate taxpayers might benefit from holding long term investment properties in a company structure. If the intention is never to sell the properties, but to pass them on to future generations, a company structure may also be more flexible in terms of Inheritance Tax and Stamp Duty Land Tax planning, so this may sway your decision towards company ownership. However, consideration should also be given to whether you will retain the rental profits within the company, perhaps for further investment, or if you intend to spend some or all of the profits. An individual can receive dividends of up to £5,000 in the current tax year, without incurring any further income tax liability. However, dividends in excess of this amount will be subject to income tax at a rate of 7.5%/32.5%/38.1%, depending on your other income – which is in addition to the corporation tax already paid on the rental profits. Another factor in your decision on ownership of the properties would be your intention for use of the equity within the rental portfolio. Drawing equity from a personally owned portfolio wouldn’t give rise to an income tax liability, should you want to use the funds personally on your main residence or to gift to children, for example. Whereas drawing equity from a portfolio within a limited company, would be treated as dividend income, with the additional tax liabilities thereon. There is also more admin to consider when operating a company structure, which could give rise to an increase in your professional fees, so you should factor this into any costs/benefit analysis being carried out. The first step for those considering a change in ownership would be to quantify the additional tax that may be due as a result of the proposals to restrict tax relief on finance costs. In doing so, you should also bear in mind the changes that are being phased in over a number of years, and that the basic rate tax band is set to rise to £50,000 in the same period. The next step would be to do some homework on the finance options available to a limited company, as the rates of interest may be significantly higher on refinancing the properties, and the additional finance costs could well be more than the potential increase in tax liabilities as a result of the changes. It should also be remembered that moving properties into a company can give rise to a capital gains tax liability, being a disposal at current market value, which might outweigh any savings to be had from company ownership. In some cases, Incorporation Relief may allow the gains made on the properties to be rolled over into the base cost of shares issued in the company on transfer. However, for many property investors there is insufficient activity within the rental ‘business’ to qualify for Incorporation Relief, and if there are significant gains within the portfolio, it would be best to seek non-statutory clearance from HMRC as to whether Incorporation Relief would apply. For existing property investors, it would be beneficial to carry out a review of your portfolio to quantify the following: • Any increase to tax liabilities from 2016/17 as a result of the loss of the wear and tear allowance • Any increase to tax liabilities from 2017/18 as a result of the restriction of tax relief on finance costs • Potential capital gains tax liabilities on moving properties into a limited company • Stamp Duty Land Tax implications on changing the current ownership For those considering their first buy-to-let purchase, it is important not to rush into company ownership without running through the options, to see which is the best ownership structure for you. Source link
The government has confirmed the fifth carbon budget for 2028 to 2032, agreeing to reduce emissions to an average of 57 per cent of 1990 levels. It has accepted the recommendation to limit emissions during the period to the equivalent of 1.725 billion tonnes of carbon dioxide made by the Committee on Climate Change in a report published in November. The committee said reaching the target will require power generation to reach an average carbon intensity of less than 100g CO2/kWh in 2030. It said the limit will put the UK on course to meet the target of reducing emissions by 80 per cent on 1990 levels by 2050. The fourth carbon for 2023 to 2027 has previously been set at 1.95 billion tonnes of carbon dioxide equivalent. So far the UK has already reduced emissions by more 30 per cent on 1990 levels. Energy secretary Amber Rudd said: “Setting long term targets to reduce our emissions is a fundamental part of building a secure, affordable and clean energy infrastructure system that our families and businesses can rely on and that is fit for the 21st century. “The UK remains committed to playing its part in tackling climate change to ensure out long-term economic security and prosperity.” Here is how others have reacted: Lord Deben, chairman, Committee on Climate Change “I warmly welcome the government’s acceptance of the [committees’s] advice on the fifth carbon budget. Amidst many competing demands it is to their credit that they continue to prioritise efforts to tackle climate change in the UK and internationally. The government’s commitment to reduce UK emissions by 57% by 2030 will open up opportunities for UK businesses both at home and abroad. It also demonstrates the continued broad political consensus to tackle the serious risks posed by climate change.” James Court, head of policy and external affairs, Renewable Energy Association “The fundamentals of energy have not changed post-referendum, we still need new generation that is cost effective, low carbon and secure. “This would be the worst time for the government to row back or U-turn on existing commitments, which would be toxic to inward investors. So this is a positive first step, but will need to be backed up by a robust energy plan by the end of the year.” Hugh McNeal, chief executive, RenewableUK “This government is global leader in tackling climate change. Today’s announcement is especially welcome given the uncertainty caused by last week’s referendum. “It’s a clear signal that the UK will continue to show bold leadership on carbon reduction. This will allow investment to continue to flow into renewable energy projects throughout the UK”. Richard Black, director, Energy and Climate Intelligence Unit “The biggest energy issue facing the government now is lack of investor confidence. All investors want to see a smooth, predictable playing field in front of them, but over the last year they’ve been thrown one curve ball after another – and that’s making energy more expensive. “Against the backdrop of the £1.7 trillion national debt, a likely Brexit penalty on fuel costs and the fact that many of our power stations are past their sell-by date, reducing the cost of building new kit is obviously a pragmatic thing for the government to do.” “Accepting the Committee on Climate Change’s recommendations for the Fifth Carbon Budget will go some way to restoring investor confidence and so controlling costs. It won’t be enough on its own, but it’s a first step.” Jonathan Selwyn, chairman, Solar Trade Association “The Solar Trade Association very much welcomes the strong support expressed for solar by the Committee on Climate Change and by [Andrea Leadsom] in her evidence to [Energy and Climate Change Committee] yesterday. “However, in our meeting this week with [the minister] we urged her department to take specific actions to address the significant slow-down in the industry following the recent changes to the solar support framework. We believe that a number of relatively minor changes could help stimulate the market. “As an industry we are on the path to a subsidy-free future, we hope by the early 2020s. To achieve this, we need a flourishing UK industry and a government that allows us to compete on a level playing field with other renewables as well as nuclear and gas.” Luke Warren, chief executive, Carbon Capture and Storage Association “This is an important step towards building the long-term confidence in climate and energy policy that will enable the necessary investment in transformative low-carbon infrastructures like carbon capture and storage.” David Reed, head of Npower Business Solutions “We welcome the publication of the fifth Carbon Budget Order as it provides some clarity on government’s continued commitment to meeting the UK’s climate change targets. “It is vital that businesses receive all the support they need from government and industry to ensure the implications of today’s decision are made clear and enable them to make the necessary changes to their operations as we work towards a greener UK.” Claire Jakobsson, head of energy and environment policy, EEF “With the unprecedented level of uncertainty created by last week’s referendum result, it is essential that the government looks to provide stability and continuity where it is able to. Confirming the fifth budget at this level provides a positive signal that whatever the UK’s future relationship with the EU is to be, the scale of our emissions reduction ambitions and the direction of travel will remain unchanged. “Government must now work closely with industry to develop the detail that will underpin this target, ensuring a framework that helps our most energy intensive industries decarbonise competitively, but also drawing on the strengths of UK manufacturing to ensure the UK economy feels the full economic benefit of our decarbonisation drive.” Tom Burke, chairman, E3G “This decision demonstrates that despite Brexit the UK will continue to be a world leader in tackling climate change. But it will mean that the Government will have to double down on a new
The plans centre around eight major strategic development sites, with the centrepiece a new £200m light rail link between Luton Airport Parkway rail station and the airport. The link will be funded from London Luton Airport Limited’s (LLAL) capital programme. LAL has appointed Arup to design and procure the scheme, with a planning application set to be made in autumn. Procurement will begin next spring with construction due to start by autumn 2017. The system will be operational by 2020. The fully automated 24-hour system will reduce journey times between London St. Pancras and the airport terminal to less than 30 minutes. A preferred 2.2 km route for the link has been identified between two purpose-built stations. Meanwhile, a £110m redevelopment of the airport is already underway, with McLaughlin & Harvey expanding the terminal building and Buckingham Group Contracting delivering a new 1,700-space multi-storey car park, among other works. Other schemes unveiled today by Luton Borough Council include multi-million pound mixed-use developments at Napier Gateway, Henry Boot Developments’ Butterfield Business Park, High Town, Sloane International luxury apartments and British Land’s Power Court. Luton Town Football Club owner 2020 Developments has also set out plans to develop a new stadium, while Capital & Regional – the owner of the 1 million sq ft The Mall shopping centre – announced significant redevelopment plans. Councillor Andy Malcolm, chair of London Luton Airport Limited (LLAL), said: “With a catchment area of 23m people within a two-hour travel time, London Luton Airport is ready and willing to make a significant contribution to meeting the growing demand for air travel in London and the South-East. “Combined with the prospect of four fast trains an hour which we are lobbying for, this investment in mass passenger transit will transform the experience of those travelling to the airport by rail, and will encourage more people to do so and therefore help to reduce congestion on the roads.” Luton Borough Council chief executive Tony Holden said: “The investment framework presents a clear and coherent plan to the local community, partners and potential investors, and focuses attention on ensuring everything that we do is aimed at improving health, wellbeing and prosperity of our residents. “The council has grasped its ‘place shaping’ agenda and is delivering a comprehensive investment strategy of local, regional and national significance.” Source link
HSE supports calls for an MOT style Landlord’s Gas Safety Record Published: 10 June, 2016 The Health & Safety Executive (HSE) is supporting the Association of Gas Safety Managers (AGSM) campaign to move to an MOT style of annual gas safety check for landlords, and is beginning a consultation process on the change. Since the launch of its campaign in November 2013, the AGSM has lobbied with Home Group and others to raise awareness of the benefits of moving to an MOT style of Landlord’s Gas Safety Record (LGSR). A move to an MOT style of servicing would mean that the gas safety check could be carried out up to two months before the due date, but that the due date would remain unchanged each year. Claire Heyes, chief executive officer of the AGSM, said: “We believe that the key to making significant savings in gas access is through an industry-wide move to the MOT style of servicing. It will lead to improved productivity for landlords, planned servicing for summer months, improved tenant cooperation, less confusion for elderly and vulnerable tenants, allowing for a greater focus on other areas of safe affordable warmth.” The HSE’s Stuart Kitchingman spoke at the 2016 AGSM Gas Safety Management Conference and confirmed the HSE’s support of the move to an MOT style of LGSR. He confirmed the wording of the proposed amendment to HSE Regulation 36(3)(aa) which would state: “For the purposes of paragraph (3)(a), a safety check carried out not less than 10 months and not more than 12 months after the date of the most recent safety checks shall be treated as if made at the end of that period.” Subsequent meetings between the AGSM and the HSE have confirmed they are currently putting in place a comprehensive consultation process and an impact assessment to assist with the additional approval, which is still required. Ms Heyes concluded: “We are working closely with the HSE and welcome their support and their plans for consultation. The change to an MOT style of LGSR will have a significant impact on the rented housing sector and make considerable savings.” Mark Henderson, chief executive of Home Group, added: “The Gas Access Campaign has put the issue of annual safety checks firmly on the agenda. The MOT style proposal is a significant change which can help improve safety and at the same time produce considerable savings for landlords. “More than 200 voices from the highest levels in housing associations, local authorities, MPs and gas experts supported our call and we’ll now harness that support to make sure the MOT style system works as best as possible for the sector by fully engaging with the HSE.” Source link
RCM, the complete through wall solutions provider for the UK construction industry has announced that they have formed a new charity partnership with the Douglas Macmillan Hospice. The DougieMac hospice looks after adult patients with a palliative or end of life diagnosis. The hospice serves people across North Staffordshire and offers free care and support 24 hours a day and 7 days a week through the help and support of staff and volunteers working diligently to have a positive impact on the lives of and journeys of their patients. The hospice sports those living with cancer as well as other non-cancer illnesses that are life limiting. The DougieMac hospice was established in 1973, serving primarily the North Staffordshire area for more than 40 years. The hospice the only one of its kind to offer care only to adults in this area therefore all of the help and work that goes into delivering the proper care is vital. The DougieMac relies heavily on donations from the local community. This is because they need to source 75% of their running costs from voluntary donations in order to keep the hospice running. At the moment it has been calculated that the operational costs for the hospice are just under £12 million a year. RCM have committed to raising as much as possible for the local hospice, and a dedicated to supporting this charity and the good work that they carry out for palliative care patients in the area. As part of their efforts to fundraise for the charity, RCM will be hosting a Corporate Charitable Golf Day to raise money for DougieMac. This event will be held in September and will offer the construction supply company the opportunity the chance to give back to the local community in North Staffordshire.
An extensive refurbishment project is currently taking place at the Saint-Gobain Weber HQ which is located in Flitwick, Bedfordshire. As part of this refurbishment and used extensively throughout the building is weberfloor. Saint-Gobain designs, manufactures and distributes materials and solutions vital to ensuring the wellbeing of all, whether that’s for buildings, transportation, infrastructure and a range of other industrial applications. As part of this, Saint-Gobain Weber is the provider of flooring solutions that are innovative and easy to apply. Refurbishments are being carried out in the 240 ㎡ industrial and commercial floor space of the HQ in Flitwick. The project entails demolishing the old training workshop on the Bedfordshire site in order to transform the area into a new product storage area. The floor of this new storage areas will be pre-treated and primed with the weberfloor 41716 primer, which is ideal for this floor and suitable for all substrates prior to the application of other weberfloor products. Following this weberfloor 4310 fibre flow will then be applied on to the mesh as a high performing pumpable and levelling floor screed. This product has an enhanced level on durability because of the fibre reinforcing in the screed. It was important that Weber worked fast to get the following applied in order to allow more trades to access the site and continue with the work. The facilities that are being renovated are used often by a range of staff and overseas visitor, therefore it is vital that the work is carried out in the shortest time possible. Weber’s extensive collection of floor screeds are all manufactured in the UK and have been developed so that they can deliver optimum speed, durability, strength and smoothness in the finishing product. The product range is known for being one of the most technically advanced available, and therefore an ideal solution for the new Saint-Gobain Storage area.
TIMco, one of the UK’s largest independent suppliers of screws, fasteners and fixings, has released its new summer catalogue with 10% more new product lines, taking their offering to over 6,000 products for the first time. The increased number of products offered comes as a direct response to customer demand for a broader range of high quality products from TIMco. The new catalogue, which is now available, details the full range of TIMco products, guides on how to get the most out of the products, environmental and corrosion ratings as well as ordering and delivery information. TIMco’s product range has grown to include more than 6,000 products, including brand new product lines such as Addax X6 impact driver bits, chucks, adaptors, sockets and drill bits. There are also new products from the newly extended SHIELD protection range as well as the usual comprehensive selection of high quality fixing and fastening products under the TIMco brand. Simon Midwood, Managing Director of TIMco comments: “We aim to be the wholesale supplier that supports independents, and this brochure helps merchants extend the range they offer to their customers which makes the end user’s shopping experience quicker and easier. This catalogue includes many new products outside of our core fixings and fastener lines and was launched as a direct result of the research conducted by our marketing team, who found merchants wanted a better choice from their supplier.” Merchants interested in the new product catalogue are being advised to contact their regional sales manager or visit www.timco.co.uk/contacts to download the latest version. TIMco is head quartered in Nantwich, Cheshire and is one of the UK’s largest and most experienced importers and wholesalers of screws, fixings, fasteners, nails and power tools accessories. A family company, TIMco was founded in 1972, starting off in a small unit in Chester city Centre. Now the company has up to 110 members of staff from offices in the UK, Ireland and Taiwan. For more information, visit www.TIMco.co.uk.
An agreement has been reached between the Lighting Industry Association (LIA) and the Lighting Association Ireland (LAI). This agreement comes as the two lighting associations have been in discussions and come to the conclusion that they share a similar outlook and philosophy in regards to their members and the future of the lighting industry. It is thought that the two associations can make significant improvements by working together. The Lighting Association Ireland has been in operation for three years, and in this time the organisation has been able to have valuable input into the design, manufacture, distribution and installation of lighting being carried out across Ireland. On the other hand, The Lighting Industry Association has been a dominant part of the industry landscape for the past 80 years and is the largest Trade Association in Europe for professionals working with lighting equipment. The older LIA will be able to offer insight and knowledge to the agreement that has been developed from years of working within the industry. The LAI will offer new and innovative solutions and possibilities for how changes could improve the lighting industry for their members in the future. The LIA has more than 250 members and is considered around the world as an authority in the industry. This means that the agreement will allow all of the members of both of the organisations to make the most of any changes that are made, and the associated benefits. Also, as part of the agreement that has been reached between the LIA and the LAI, all members will share the range of benefits on offer between the organisations, including training opportunities, social events perfect for networking and the LIA’s UKAS accredited lighting laboratory. With Brexit on the horizon, this agreement will create ties that are mutually beneficial for the industry and its continued improvement going forward.
If you are running a landscaping business an integral part of adding the finishing touches to your work will often be the installation of outdoor lighting and power outlets. It is great to see a garden lit up or a water feature as a focal point but you will want to ensure the electrical aspect of your work is carried out as safely as possible. Here are some useful safety tips to consider when you are working on an electrical installation outdoors, including a reminder about rules and regulations for mains voltage, cable installation insights, plus suggestions for mixing up your lighting options. Sticking to the code The fundamentals of carrying out electrical work safely involve knowing your limitations and when to get someone more qualified to help with the electrics and ensuring that you stay on the right side of building codes and regulations. Fitting plug sockets, outdoor lighting, and providing power for a water pump all require mains voltage and every one of these cables, wires, and sockets need to be protected by a Residual Current Device (RCD) which is designed to shut the power off instantly when something like a power leak to earth occurs. Someone like RS Components can provide you with all the sockets and circuit breakers you need to meet your outdoor power requirements and maintain the integrity of that power source. Make a plan If you are working on a design plan to give a garden a makeover those plans also need to incorporate details of how you are going to keep all the cables and wiring needed as safe as possible. You never want to see electrical cables trailed around the garden. It is not just unsightly but you are raising the prospect of a trip or fall and inviting a disaster like running over a cable with a lawnmower or hedge cutter at some point. You will need to use a steel wired armored cable if you are going to be burying cables underground together with some warning tape that identifies its presence when anyone is digging the ground in the future. You could also consider laying electricians plastic conduit pipe and then pull the cabling through to the other end, but whatever way you go about it, think safety and have a plan that meets the required standards for an electrical installation. Low voltage options Installing power cables will add to the cost of any landscaping work and a safer and less expensive option to consider would be to see where you might be able to get away with using a low voltage alternative. There are plenty of low voltage lighting options that don’t require any cables to be laid so you can light up the garden in places with the minimum of fuss and greatly reduce the risk of shock or any other electrical hazard. A successful outdoor lighting and power project requires planning and using the right fixtures and wiring in the right places. Get that right and the electrical aspect of your landscaping project should be as successful as the rest of your work.
Howarth Timber & Building Supplies will be hosting their award winning Trade Day Bonanza again this year with a variety of deals and competitions. Also, new for this third year of the Bonanza is the ‘golden ticket’ giveaway which has a prize worth £15,000. The Trade Day Bonanza will be returning for its third year and will be hosted at the Leeds United Conference Centre which is at Elland Road. The event will take place on Friday the 10th of November 2017. Last year the event was a success with more than 60 leading suppliers taking part and over 1,000 people visiting over the course of the event day. Hopefully this year will be as, if not more, successful. Howarth Timber & Building Supplies has created an event that is well known and popular for its amazing exclusive deals and competitions. At this year’s event, the new golden ticket draw will be the largest giveaway carried out as part of the Trade Day Bonanza. In order to be entered into this prize draw, visitors need to spend £250 +VAT or more in one single transaction before or during the event. When entered, the customers will be in with a chance to win a Nissan NV 200 van or a Nissan Micra at the event. The holders of the Golden Ticket must be in attendance at the event in order to be in with a shot of winning. Runners up in this draw will be entered into a second draw to win a range of other prizes, among these is a Samsung tablet. The trade day is a popular event for businesses, who use it as an opportunity display and demonstrate their latest products as well as offering a range of one off offers to their customers visiting the event. Tradespeople eagerly await the event due to the massive savings available and the ability to look at the most recent products from the best industry suppliers from all over the country.