Old Mill has beaten off stiff competition from some of the UK’s top financial firms to win one of the industry’s top prizes.

The West Country firm was named Financial Adviser Life & Pensions Awards Best Small Adviser 2012 at a ceremony at the exclusive Sartoria restaurant on London’s Saville Row last week.

There were around 20 firms shortlisted in the Small Adviser award; these were then judged individually by chartered financial planner and business consultant Dr Peter Williams, and Gavin Tisshaw, chairman of IFA firm Executive Advisory Services.

Old Mill, which has branches in Shepton Mallet, Yeovil, Melksham, Exeter and Dorchester, was chosen from a plethora of top names, including NeedanAdviser, who were highly commended and Chapters Financial and Wingate Financial Planning who were both commended.

Old Mill was represented at the ceremony by partners Simon Cole, Kevin Whitmarsh and Paula Hodge and associate director Duncan Parkes, who was himself recognized by the industry in November when he was named Chartered Financial Planner of the Year by the Personal Finance Society.

On receiving the award, Simon said: “The Financial Adviser Life & Pensions Awards are one of the hardest fought in the industry, so we are thoroughly delighted with this award. The entrants for this title really are the cream of the crop so the win really is testament to the ongoing hard work undertaken by Old Mill team throughout the year.”

While Kevin added: “At Old Mill we work tirelessly to ensure we deliver the highest possible standard of advice by always making sure the client is at the heart of everything we do, so it is really encouraging for us that our client-centered approach is being recognized and rewarded, firstly with the Professional Adviser award in February and now this accolade from Financial Adviser.

“But these awards will not leave us resting on our laurels; we will continue with our commitment to delivering highly professional services where the client’s needs are always paramount.”

Pic: L_R Host, Gill Cardy of the IFA Centre, Duncan Parkes, Kevin, Paula and Simon Cole.

For more information please contact Alan Stone on 01749 335007.

Old Mill’s recent award wins 

May 2012 – Best Small Adviser, Financial Adviser Life & Pensions Awards 2012

February 2012 – Best Small Adviser, Professional Adviser Awards 2012

November 2011 – Duncan Parkes named Chartered Financial Planner of the Year 2011 by the Personal Finance Society

August 2011 – Jamie Thompson, (Accredited Personal Financial Specialist) wins Best Paper – J05 (Pension Income Options) Award at the Insurance Institute of Bristol’s 2011 Awards.

Tim, a chartered accountant and auditor has joined the firm’s Wiltshire office, in Melksham, as Director of Commercial and Corporate Business Services. Tim is the latest in a number of significant appointments for the Wiltshire office, which has more than trebled in size since it opened in 2008, following a merger with Devizes firm LE Bull. The office moved to its current site in Melksham two years ago when it grew too big for its original premises.

A Maths graduate who qualified as a charted accountant in 1999, Tim, 38, started his career at HW Fisher in London, and also worked at KPMG in Bristol before joining Richardson Groves – which merged with Baker Tilly in 2011 – eight years ago, where he made partner.

Ricky Haines, head of the Melksham office, says Tim’s experience and extensive knowledge of the region will be a real asset to Old Mill in Wiltshire: “Tim has worked in the area for many years now, where he has made really good contacts and gained extensive audit and regulated client experience, so we are really pleased to welcome him on board.”

Tim, who lives in Winsley near Bradford on Avon, specialises in helping and assisting small and medium sized businesses, particularly in the creative and technology industries, along with charity and professional practices.

He says he is really looking forward to starting his new role: “Old Mill is a very strong West Country accountant and business advisers with the depth of services to really help small and medium sized businesses succeed, so I feel this is a great opportunity for me to develop my work as a ‘business champion’ helping clients achieve their aims and ambitions.

“I want my clients to know that I understand what they are trying to do and believe that through building good, open, honest relationships and offering timely service and proactive advice, I can help them achieve their aspirations whether in the start up, growth or exit phase,” said Tim.

Andrew Moore, head of corporate services said: “Tim’s skills and knowledge as a business advisor will greatly compliment our corporate offering in the region, while his open and honest approach, fits in perfectly with Old Mill’s client-driven philosophy.”

As well as being a champion for small and medium sized businesses, Tim, who is married to Amanda and has two children, Maisie, eight and three-year-old Jake, has another passion – in his spare time writing children’s books.

Tim feels his sideline as a writer of children’s books means he understands what it is to follow a passion and have the determination to create something new and exciting and is looking forward to encouraging this entrepreneurial spirit:

“I plan to try out new ideas to stimulate networking in the region, that way my clients can get to know other like minded people and businesses can start working and succeeding together.”

For more information please contact Alan Stone on 01749 335007.

However, where the purchaser is a company or a joint venture with a corporate partner, they will be liable to pay a punitive 15%. “The new rules were brought in to prevent people circumventing SDLT by purchasing properties as a company, or holding property in offshore companies to avoid Inheritance Tax charges,” says Mr Butler. “However, it does seem to be using a sledgehammer to crack a nut, and means many bona-fide farmers stand to lose out, either through exorbitant tax rates or through reduced demand for property in the higher rate band.”

Residential properties worth £1m-£2m will be charged 5% SDLT, while the non-residential value of a farm will continue to be taxed at the existing rates of 1%, 3% and 4% for purchases costing more than £150,000, £250,00 and £500,000, respectively. 

“A further concern is the consultation on introducing an annual charge of between 0.3% and 0.7% of the value of residential property worth more than £2m held by a company,” says Mr Butler. “Often, farms and estates struggle to pay for the upkeep of large – often historically important – houses as it is. This extra charge of at least £6000 a year could be the straw that breaks the camel’s back.”

Landowners seeking to sell their farm will need to seek professional advice on the residential weighting of the property, while those in the market to buy would be better off not using a company or corporate structure, he warns. “While many farm businesses are seeking to incorporate to capitalise on beneficial Income Tax rules, they should ensure that any land and property remain owned by an individual or partnership.

“A small number of our clients already hold land within a company or corporate structure – while it may be tempted to unravel that to escape the proposed annual charges, doing so could crystallise taxable Capital Gains or even incur SDLT on the transfer. We would recommend that anyone in this position await the outcome of the consultation, and take professional advice before taking action.”

For more information please contact Alan Stone on 01749 335007.

Now in their 10^th year, the Professional Adviser Awards bring together top names from the advisory community to recognise and celebrate the very best providers in investment and retirement planning.

Entrants in the small adviser firm category were shortlisted down to 11 before Old Mill, which has offices in Shepton Mallet, Yeovil, Exeter, Melksham and Dorchester, was announced as the overall winner in front of more than 500 people at a ceremony held at the London Hilton on Park Lane on Thursday.

The firm’s Financial Planning team is headed by partners Kevin Whitmarsh, Paula Hodge and Simon Cole; Simon, who attended the ceremony and accepted the award on behalf of Old Mill from hosts Paul Daniels and Debbie MGee and Transact’s Glenn Sweet, says Old Mill is absolutely delighted to have won.

“Winning this award once again underlines the quality and professionalism of our staff. We are therefore extremely proud that all their efforts have been recognised,” he said.

“At Old Mill we pride ourselves on looking after our clients by providing exceptional service including our own unique investment management proposition and through delivering the highest standards of advice and this is only possible through the dedication and hard work of our staff.”

“In recent years, increasing numbers of people have become disillusioned with the standard of service they receive from the Financial Services Industry but through the drive for higher standards we are now seeing the emergence of a genuine Financial Planning profession.”

The award marks the third in just six months for Old Mill, which has 19 registered individuals amongst its 50 Financial Planning staff and as a practice, has the exclusive Corporate Chartered Financial Planner status. In August, financial planner Jamie Thompson won Best Paper at the Insurance Institute of Bristol’s (IIB) 2011 Awards Evening for an impressive performance in his Chartered Insurance Institute (CII) exams, and in November, Duncan Parkes was named Chartered Financial Planner of the Year by the Personal Finance Society.

Simon concludes: “This latest award hopefully gives comfort that there are firms out there like Old Mill who are committed to these standards in order to be able to deliver highly professional financial planning services which put the client at the heart of the advice.”

Debbie McGee, Simon Cole Partner at Old Mill, Glenn Sweet head of sales at Transact and Paul Daniels 

For more information please contact Alan Stone on 01749 335007.

With Capital Allowances set to change dramatically from April, rural businesses should consider bringing forward their investment, says Neil Cox, senior manager of rural services. “In recent years tax relief on the purchase of plant and machinery has been relatively generous – but that is about to change.

“Currently, most businesses can write off up to £100,000 of qualifying plant and equipment expenditure against profits each year, using the Annual Investment Allowance (AIA). But from April the allowance will be slashed to just £25,000, with any expenditure above that threshold receiving annual relief of just 18%, compared to 20% at present.

“Inevitably, this will lead to higher tax bills for businesses. For example, a farming partnership with annual profits of £100,000, investing £40,000 on average in equipment each year, could see its tax bills rise by £4,500 a year.”

Those with account year-ends other than 31 March / 5 April need to be particularly careful because of hybrid allowances that will be in place during 2012. “Most equipment will need to be bought before the end of March to get full relief, adding an extra degree of complication.”

Old Mill will be making the most of Somerset’s Agricultural Machinery and Equipment Show on February 1 to help farmers and rural businesses decide how best to invest their money. “The show offers farmers an ideal opportunity to combine getting the best deal on new kit and planning to minimise future tax bills,” says Mr Cox. 

“As well as sponsoring the show’s seminars, we will be providing expert guidance on investing in the future of your farm, including how to make your proposition more attractive to banks and looking at aspects of company structure and tax planning.”

For more information on the AMES show visit www.bathandwest.com. To discuss any aspect of tax planning contact Neil Cox on 01749 335076.

Philip Kirkpatrick, who joined the farm accounts team in 2008, scored the highest mark in the South West region for his Business Change paper, qualifying him as a chartered accountant. He follows in the footsteps of Dan Knight and Venetia Morris, who topped the scoreboards in their business exams last year.

“We are absolutely delighted with Philip’s success, and are proud to have such exceptional young members on our growing team of rural accountants,” said associate director Andrew Vickery. “Old Mill places great importance in training staff to the highest professional standards – but we also value our team’s passion and experience in agriculture. Many of our 50-strong farm accounts team have a farming background, which helps them to fully understand the needs of our rural clients.”

Mr Kirkpatrick is no exception: Brought up on a mixed family farm near Yeovil he has always had an interest in farming. “Unfortunately my father sold the farm 10 years ago, so instead of pursuing a practical farming career I decided to go into agricultural accounting.” After studying for a degree in Maths atExeterUniversity, he joined Old Mill in 2007 to begin his professional training.

“I love working at Old Mill – I started at the Yeovil office and then moved to theExeterteam. Agricultural accounting is a very broad area, so there is always something different to tackle. But you can also delve into very specialist aspects – it’s great to be able to forge a career like this while still working with the farming community.”

For more information contact Alan Stone on 01749 335032.

Rural accountant Old Mill is urging sole traders and businesses to complete their Self Assessment returns online before the 31 January, 2012, deadline. “A recent request through the Freedom of Information Act has confirmed that 1.5m individual taxpayers were issued Self Assessment late filing and late payment penalties in January 2011,” says partner Mike Butler.

“This equates to 15% of the 10m Self Assessment returns issued for the 2009-10 tax year and an increase of 8% on the previous year. With a standard late filing penalty of £100, the sum of 1.5m penalties represents a minimum of £150m income for the Exchequer.”

HMRC has altered the penalty system in recent years, to make it more consistent across all the tax regimes. This means that taxpayers will be charged a penalty for late submission even if they have paid their tax by 31 January, or if no liability is due. It has also introduced daily penalties of £10 a day for returns that are more than three months late, up to a maximum of 90 days; and a minimum £300 penalty, or 5% of tax due, for prolonged failures over six and 12 months.

“With the government still finding it difficult to manage the fiscal deficit, compounded by the significant cuts in the headline Corporation Tax rate, it would appear that HMRC are looking to use the amended penalty regime to supplement income and bolster the income tax take,” says Mr Butler. “I would urge everyone who has failed to meet the paper return deadline of 31 October to file online before 31 January, even if they are not expecting a liability to be due.

If anyone needs any assistance in meeting this deadline please contact your local Old Mill office as soon as possible.

More than 300 people attended the Octagon Theatre in Yeovil for the annual event, which has been sponsored by Yeovil accountants and financial planners Old Mill for the past three years.

The main benefactors of the concert, which featured soloists Jeni Bern and Andrew Forbes Lane with Greg Arrowsmith as conductor, were St Margaret’s Somerset Hospice and the Dorset and Somerset Air Ambulance; both charities received cheques for £2850.

A further £800 was donated to local special school Fairmead which will go towards funding a sensory garden for the children.

Paula Hodge, partner at Old Mill, who hosted a drinks reception prior to the show and had around 70 guests at the event said “It was a really fantastic evening. Not only did guests enjoy a first-class concert, but also raised almost £6,300 for very worthwhile local causes.

“Dorset and Somerset Air Ambulance gets no Government help so is funded by charitable donations. It goes out to rescues on average, four times a day, which costs around £1.4million a year. The money raised from this concert will fund it for a day, which could potentially save four lives.”

L-R Nick Pearce, Dorset and Somerset Air Ambulance, Paula Hodge, partner at Old Mill, Mike Streatfeild president of the Rotary Club of Yeovil, Sally Harrison, Chartered Financial Planner at Old Mill and Frank Spurr, Rotary Club of Yeovil.

Old Mill has been battling with HM Revenue and Customs (HMRC) over whether digital printing and photo-processing firm Harrier Truprint, based in Newton Abbot, should have been paying VAT on the sale of its photo books.

“It was all about whether photo books should be defined as books, and therefore be zero rated, or as photo albums and be subject to VAT,” explains Old Mill’s VAT director Mark Peters, whose expertise helped win the case. “HMRC’s case was based on an argument that photo books were not books because they often had no content, only pictures.”

But London VAT Tribunal Judge Roger Berner dismissed HMRC’s claims stating: “A book can have content that is exclusively text, or exclusively material such as photographic images or diagrams or drawings, or any mixture of that content,” and ordered them to repay £545,800 to Harrier Truprint to cover the tax years 2006 to 2009.

 “This case has been a long and hard battle, but a very significant one” says Mr Peters. “Because the law was unclear about whether a photo book was a book, there was inconsistency in the industry and while Harrier Truprint were paying 20% VAT on the sale of their photo books, many of their competitors were not.”

Harrier Truprint’s finance director Graham Clark, who says he is relieved the case is finally over, says as a South West firm, it is reassuring to know that the expertise needed to win such a significant case is right on your doorstep.

“VAT is such a complicated area, and we are grateful to have such high quality accounting expertise locally available,” he said. “Thanks to Old Mill’s expertise on this matter, common sense has prevailed, the playing field has been levelled and we can finally compete on fair terms.

Mr Clark concluded, “We have always offered fantastic quality photo books via our Harrier Truprint.co.uk website – our customers create anything from novels to diaries, recipe books, short stories and even autobiographies. Our ‘This is your life’ type books are also very popular as you can digitally scan and use all your old photographs in your photo book, which make fantastic affordable and unique Christmas presents.

“Winning this case gives us the opportunity to significantly expand our book production business in 2012 in both photo-books and commercial book printing which is likely to create additional jobs in the future and enable us to become a major player in the photo book industry on a regional, national and international scale.”

For more information please contact Alan Stone on 01749 335007 or alan.stone@oldmillgroup.co.uk

Now in its third year, the award honours the individual who has “demonstrated exceptional ability and commitment to the advancement of the financial planning profession.”

Duncan, who lives in Exmouth with his wife, four year-old-son and one-year-old twin girls, said: “The award is an unexpected honour and I’m thrilled to receive it.

“I am passionate about working towards higher standards in the industry and have always been an active champion for increased professionalism in financial services, so it makes me proud to think that my thoughts and views are held in such regard.”

Duncan, who has worked out of Old Mill’s Exeter office (other offices are in Yeovil, Shepton Mallet, Melksham and Dorchester) for four years, was presented with the award by Russell Facer, Compliance Director at award sponsor threesixty, at the annual Personal Finance Society (PFS) conference at the International Conference Centre in Birmingham last week.

Fay Goddard, CEO of the PFS, stated, “The Chartered Financial Planner title is hotly contested and recognises the best in the field. With a membership of over 29,000, this year’s recipient has excelled in an incredibly competitive environment.

“It’s a testament to the strength of Duncan’s work that he was judged the winner. Duncan was selected as an outstanding example of a true professional in the realm of financial planning for providing a quality service to clients and the public. I would like to personally congratulate him on a worthy achievement.”

Simon Cole, partner at Old Mill said: “We are really proud of Duncan and his achievements. This is a very prestigious award and once again shows the quality of staff in Old Mill.

He continued, “We are committed to providing clients with the best possible service, so we ensure our financial planners are trained to the highest possible standards.

“A very high proportion of our staff are Chartered Financial Planners – widely regarded as the gold standard of the financial planning profession – and the business has Corporate Chartered Financial Planners status. In an industry where the usual standard for advisors is a Diploma, Old Mill goes above and beyond and continues to stay ahead of the game.”

For more information please contact Alan Stone on 01749 335007.

Perry’s, based in Dowlish Wake, near Ilminster in Somerset, won the Best of Alcoholic Drinks Category, sponsored by West Country accountants Old Mill at the annual ceremony.

Perry’s has been making and selling cider for four generations, and received the prize for their bottled Dabinet single variety cider, with both the taste and the packaging winning high accolades.

Alan Stone, Associate Director at accountants and financial planners Old Mill said: “As cider is so much ‘the’ taste of the West Country it is great to see it been recognised.

“Perry’s are one of those manufacturers who have taken up the challenge of improving the rather rustic image of cider so that it can stand proud on any selection of West Country produce.

“At Old Mill we look after many local food and drink producers, and are very pleased to be associated with these awards.”

John and Liz Perry, who received the award on behalf of their family’s firm, said they were delighted to have won but were saddened that their son and cider maker George could not make the awards. He had been involved in a road accident the night before; fortunately he was unharmed.

George, who now runs the firm, said: “This award finishes off a really great year for our ciders. All in all we collected over 12 national awards so the future looks very good for our ciders and the company as a whole.”

For more information please contact Alan Stone on 01749 335007.

So far, more than 14,500 solar projects have been installed in the South West, the sunniest part of the UK and research shows that 2,000 skilled jobs have been created in the region to fit the panels with more than 380 companies are qualified to install the technology.  

But after December 12 the Feed in Tariff (FiT) will be reduced from 43.3p per kilowatt hour to 21p, and it is estimated that as a result, it will take homeowners about 18 years to break even on the cost of installing panels, compared with the current ten, making solar much less attractive.

The current rate, which is guaranteed for 25 years and was due to remain in place until April 2012, will now only be paid to those who have physically installed and registered their panels before December 12 this year. Those installed after that date will receive the old rate until March 31 and then the new rate from April 1.

Climate change and energy minister Greg Barker said the tariff cut was in response to the ‘plummeting’ price of panels, which fell from £13,000 last April, to £9,000 for a basic system and argues that without the cut, all energy customers, who each pay £3 annually towards the scheme, face paying £26 a year by 2020.

But Mark Neath, Associate Director at Old Mill says the changes will drastically reduce the attractiveness of the solar photo voltaic option, which is terrible news for the south west.

“Following a first reduction earlier in the year for larger scale schemes this announcement affects everyone down to even the domestic roof top scheme,” he said, “and as the south west has one of the biggest solar industries in the country, this is very bad news for the region.”

Mark says that the success of the FiT scheme, and faster than anticipated falls in the cost of solar panels have led to a huge number of solar systems being installed, more than the government expected which seems to be the cause of this u-turn.

“Reducing the FiT now though raises serious questions as to how the government is going to meet its commitment to reach agreed levels of renewable energy output,” warns Mark, “and moving the goalposts for a second time ahead of the scheduled review cannot be good for the industry or for the financing of renewable schemes.”

However, points out Old Mill, the FiT for wind and hydro have not been affected by the latest announcement, so with solar becoming a less attractive renewable option, they are certainly worth considering.

Below, are the proposed new tariff rates:

*These are the current tariffs, which DECC are not proposing changing and which, like all other current tariffs, will be adjusted in line with the Retail Price Index from 1 April 2012.

For more information please contact Mark Neath on 01392 280337

The West Country firm, which has branches in Shepton Mallet, Dorchester, Yeovil, Exeter and Melksham, has agreed on a two year deal to become the main sponsor of the successful Gypsy Lane based club.

“We were holding a rugby dinner and announced that we were looking for a new main sponsor,” explains Frome Rugby Club’s promotions director Greg Bird. “Paul Treby from Old Mill, who has been the club’s accountant for as long as I can remember, is a big rugby fan and is often at our games, was at that particular dinner and got in touch.

Greg says that Old Mill becoming the main sponsor was a natural development for two organisations that have worked together for many years and says the deal will be beneficial for both parties.

“It is important that a club sponsor can enjoy genuine benefits from the agreement as well as investing in the local community,” he said.

“Old Mill is keen to promote their business to club members and to raise awareness of the full range of services they can offer, while we are keen to involve Old Mill in events at the club and will ensure the investment is used wisely to enhance the services and facilities the club members and supporters enjoy”

Paul, consultant at Old Mill agrees, and says he thinks the partnership will be a very successful one.

 “Frome Rugby Club does a lot for the people in this area – it has a fantastic junior section, which is very popular, and does a lot for the young people in the community, encouraging them to enjoy sport as well as teaching them about the importance of team work and community spirit.

“Old Mill has always had a strong sense of community – we are all local people with a genuine passion for the area in which we work and live – and we wanted to be able to offer something back to the community, so becoming the main sponsor was an opportunity not to be missed.”

PIC: (L-R) Frome Rugby Club first team captain Phil Meenan and Old Mill’s Paul Treby

The change has been dubbed “Tesco Law”, because it paves the way for supermarkets (Co-op has already made clear its intentions to become an ABS), banks and other high street retailers to offer legal services to customers.  

There has been much speculation in the weeks and months leading up to the change about whether High Street law firms should be worried about or welcoming Tesco law.

Accountants and financial planners, Old Mill, who work with a number of law firms in the south west, say their legal clients are not worried about the so called ‘impending doom’ with some actually looking forward to the introduction of Tesco law, calling it a welcome shake-up to the industry, as Craig Howes, Director of Business Services explains.

“There are going to be a number of firms that will go to the wall now that Tesco law has come in, but properly run law firms will be quick on their feet and think strategically, and will be making the most of what is actually a real opportunity to shine, like Somerset law firm, Dyne Drewett and Dorset based practice Pengillys.”

Justin Hopkins a member of the management team at Dyne Drewett says Tesco Law is what the industry has been waiting for: “There is a lot of suggestion that, because of Tesco law, the traditional practice is doomed, but to be honest, I have been looking forward to Tesco law!” he said, “I really am quite excited by it as I think it is going to change the industry for the better.

 “Tesco Law will allow these ABSs to take more simple and straightforward type of work, make it cheaper for the consumer, which will be popular with people trying to save money, and firms like us can concentrate on excellent service and the specialist areas that we excel in.”

Craig says he thinks it is difficult to know what is going to happen in the long term, as it is all so new, but agrees with Justin, “I think it is likely that certain work will start to leave the law firms as they will get beaten on price, but the areas where service is more important will stay with the specialists,” he said.

Chris Berry, who is a Principal at Pengillys agrees that this is the most likely outcome, “inevitably, there is an element of worry about the unknown, but I think we will just have to wait and see, and we intend to be positive.

“I think it is likely that Tesco Law will create large national law firms, in the same way large national estate agents were created 20 years ago.  This is not necessarily a bad thing and will make some legal services more affordable for people.”

Chris says Pengillys are not particularly worried because they don’t think the service ABSs are going to offer will be in direct competition with them.

“They will probably be big national set ups, offering cheaper services on things like low value property sales. We offer a wide range of services with recognised specialists in many areas including IHT, family law, injury law and commercial property and we are local, concentrating on offering a personal service. I’m not saying places like Tesco and Coop will not offer a service, but it just will not be personal,” he said.

But despite the fact neither Dyne Drewett nor Pengillys are particularly worried about Tesco law, they are certainly not resting on their laurels.

“Our prime objective is to be excellent at what we do and be as profitable as possible, and we will do what we need to do to achieve that, and if that means becoming an ABS, and joining forces with say  accountants or surveyors, then we would consider it,” says Justin.

“But for now, we are concentrating on areas we have carefully considered to be away from the Tesco law risk, for example, agricultural, commercial litigation, planning, and have 10 new lawyers who are specialists in these areas.

“We know Tesco law will take some business away, making it cheaper for the consumer, and good luck to them, but firms like us will always have the upper hand when it comes to quality.”

Chris says Pengillys is also prepared to change, “we are led by the client and will continue to be, offering the services our clients want,” he said, “and if Tesco law shows us there is something we are not providing and should be, because our clients require it we will react to that.

“We have discussed and considered general plans for expansion, subject to the economy, and becoming an ABS with perhaps an estate agent, accountant, barrister or surveyor, is something that is under consideration.”

Craig concludes, “for some law firms, Tesco law is bad news, but those, like Dyne Drewett and Pengillys, that are dynamic and creative will be the ones that will survive and thrive. For some, that may mean dramatically changing the way they do business, and Old Mill can help them at every step of the way.”

For more information please contact Craig Howes on 01935 709325 or craig.howes@oldmillgroup.co.uk

AH Wilson & Son from Tregibby Farm, Cardigan, scooped the supreme interbreed championship, the Holstein championship, and the cattle presentation award at last week’s (5 October) Dairy Show. This followed a string of successes at the Royal Welsh Show and last month’s Dairy Event and Livestock Show with their pedigree Holstein and Jersey cows.

Sponsored by rural accountant Old Mill, the cattle presentation award recognises the efforts that farmers make to show off their cows to the general public in the lines. As well as a crystal rose bowl, the winners also received a £100 prize.

“I’m delighted to give this award to the Wilson family, who always go to great lengths to turn their cattle out so beautifully,” said Ian Sharpe, director or rural services at Old Mill.

“The Dairy Show is a wonderful opportunity for like-minded people to come together, do business, and keep up to date with new industry developments. Unfortunately, many dairy farmers in the South West are struggling with TB and lack of profitability, so it is even more important to support our local shows, encourage new entrants and bolster confidence in the industry.”

(Left to right) Ian Sharpe gives the Cattle Presentation Award to Arwyn, Ifan and Hefyn Wilson.

 For more information please contact Alan Stone on 01749 335007 or alan.stone@oldmillgroup.co.uk

Old Mill fully supports the ongoing campaign, which aims to cut down the piles of burdensome regulations that are harming businesses and society and instead start trusting people to do the right thing.

The Red Tape Challenge – which asks members of the public to say which regulations are working and which are not and acts accordingly – will eventually cover all areas of regulation, but so far the Government has only published reforms on one area; retail.

More than 9,000 responses were collected from the retail phase and as a result, almost two thirds of regulations aimed at shop owners will either be scrapped completely or reformed. Old Mill hopes the following phases will produce similar action.

“This first phase has been very significant, says Old Mill’s director of business services, Craig Howes. “There are literally hundreds of regulations facing the retail sector, and while some are entirely necessary, for example, age restrictions on buying alcohol, others are just taking things to extremes, like insisting a shop has an alcohol licence to sell liqueur chocolates.

“As a result of the responses, many of the ridiculous and archaic regulations that are harming our retail industry will be scrapped. For example, retailers selling TVs no longer have to notify TV licensing of the name and address of each customer, and there will be a reduction in the minimum age for buying harmless Christmas crackers, from 16 to 12.”

Craig says there were far too many unnecessary rules and regulations forced upon the retail sector, and thinks the scrapping of many of them will enable many of his clients to run their businesses more efficiently.

“We need to go back to being a society where people know what’s right and wrong and can take responsibility for themselves and their own actions,” says Craig, “and it looks like the Red Tape Challenge could be a good start.

“These first proposals seem to show that the Government is really serious about cutting down bureaucracy and freeing businesses so they can compete, create jobs and bolster the local economy,” he said, concluding “it will be interesting to see what else changes as a result of this ongoing campaign.”

For more information please contact Craig Howes on 01935 709325 or craig.howes@oldmillgroup.co.uk

When shares in the company dropped more than 5% in reaction to the news of his departure, it showed that Jobs, who saved Apple from near bankruptcy in the 1990s and transformed it into the tech giant it is today, was more than just a CEO, he was vital to the company’s success.

Apple is certainly not alone in having one person on whom the business relies, and it is a strange quirk, says Greg Moss, chartered financial planner and SME business expert Old Mill, that businesses are more likely to insure their tables and chairs than the people who drive their growth and profitability:

“Recent research by the Institute of Directors and British Chamber of Commerce, in conjunction with Legal & General, found that the key person insurance “gap”, which is the difference between cover in place and identified risks, remains persistently high at over £1.1 trillion.

“Of Limited companies surveyed, 95 per cent identified at least one key person, without whom the business would be in jeopardy, with 39 per cent of those saying they would not survive for more than 18 months without that key individual.”

So what should companies do to avoid a Steve Jobs Apple situation? According to Greg, keyman insurance should be considered:

“If a senior member of staff dies or becomes seriously ill, it can be a massive blow for any business. Not only is there the emotional upset of losing such a key figure, but the loss can also harm the finances of the business. Unfortunately, the former is something that companies have to come to terms with, but risk of the latter can be minimised.”

Greg says that businesses need to think about how the loss of a key person could affect them and then look at insuring the business against financial losses that would arise from the death or extended incapacity of that person.

“Death is obviously the main risk, but it is also important to consider that serious illness can also be a big risk, and create even larger liabilities over the longer term

“Following a death, at least the scale of the problem is known immediately, and succession plans can be put in motion. But with a serious or long term illness, like in Steve Jobs case, businesses often feel an obligation to provide for the person affected, particularly if they are a founder or major equity holder.”

In this situation, businesses face the same shock to profitability/costs of replacement squeeze as with a key person’s death with the added pressure of funding continuing payments to the individual, generally for an uncertain period.

According to Greg, the key questions employers need to ask themselves here are, what their plans would be in the event of the long term illness of a senior staff member, what the formal sick pay arrangements are and, most importantly, is there a mechanism in place to fund this liability?

“The benefit of having room to manoeuvre in this difficult situation can be enormous,” he says, “to have the means to support a senior member of the team through illness without compromising profitability is a win-win scenario.”

Greg says it is also important to look at the different parts of the business, because people who may not seem ‘key’ actually are. For example, the loss of equity holders, even those with limited day-to-day involvement in the business, also poses financial risk. Problems with corporate borrowing where personal guarantees are in place or the forced transfer of share ownership can arise and often should be insured against.  

Businesses may also get into problems where, although a certain person may not be a key to the business as a whole, they have become irreplaceable on a certain project, the risk of this too can be minimised, says Greg.

“If a particular contract or project depends on the involvement and expertise of an individual and this key person is also the main contact for important customers of the business, short term key person cover is available and should be considered.

“It can be taken on a project-by-project basis to minimise the risks and also acts as cover against the risk of the loss of key accounts.

“Even if there is no immediate loss of customer or revenue, the company is bound to incur costs which should be covered, for example temporary replacements, advertising, and agency fees, the hiring and training of the replacement and the profitability gap until they are fully up and running.”

For more information please contact Greg Moss on 01749 335050 or greg.moss@oldmillgroup.co.uk

The firm, which has offices in Shepton Mallet,  Yeovil, Exeter, Dorchester and Melksham, will launch the scheme in September aimed at people who have just completed A Levels or equivalent and are interested in a career in financial planning or accountancy.

The scheme aims to offer people the chance to gain qualifications and experience at a well established local firm and the foundation on which to build a successful career in accountancy and/or financial planning, as Group HR manager Ken Hughes explains:

“Old Mill has always had a strong sense of community – we are all local people with a genuine passion for the area in which we work and live – and we wanted to be able to offer something back to the community. This training scheme takes talented people, who have gained good A Levels or equivalent, and gives them a start on the career ladder.”

Ken says that often, those who have just finished their A levels find themselves at quite a crossroads and it can be difficult to know where to turn next.

 “University is not right for everyone, and neither is going straight into a job,” he says. “Our programme offers another alternative – a kind of half-way house between further education and work. Trainees are given the chance to establish themselves in the work place and start earning a living, but also to continue learning and gaining new skills and qualifications along the way.”

Applicants to the scheme will go through a recruitment process and various testing to determine if they are suitable or not, and then successful candidates – around four or five a year – will begin a three year course. They will start by learning basic bookkeeping and then go onto financial planning qualifications. They will do all their training in house, and provided they perform well, there will be a job for them at the firm at the end of the three years.

The scheme is the latest in a long line of recruitment initiatives at Old Mill. The firm already takes on school leavers and funds them as they train and has a very successful graduate scheme, which sees around 10 graduates join every year.

Ken concludes, “This will run much like our other schemes – it is not Government funded, it is our own programme, and it is aimed at people who are local or have a local connection.

 “We think it will be great for Old Mill, because we are sure to find some fantastic local talent, we think it will be great for those who take part because it will give them the chance to begin a successful career with a well established local firm and we think it will give the local business community a real boost.

“We are glad to be getting involved in the development of local talent and hope it will encourage other local firms to start offering similar schemes too.”

To find out more about the Old Mill Apprenticeship scheme or any of Old Mill’s other career opportunities, contact Ken Hughes, Group HR Manager 01935 709355, careers@oldmillgroup.co.uk

A financial planner from financial planners and accountants Old Mill has won a prestigious finance award following an impressive performance in his Chartered Insurance Institute (CII) exams.

Jamie Thompson, an Accredited Personal Financial Specialist (APFS) at Old Mill’s Yeovil branch, was presented with the Best Paper – J05 (Pension Income Options) Award at the Insurance Institute of Bristol’s (IIB)2011 Awards Evening.

The 44-year-old got the highest mark of any Bristol member taking the CII J05 paper last year, and was presented his award by IIB president Paul Timmins in front of a packed audience at the Hotel Novotel in Bristol last week.

“I was thrilled to receive the award. I worked really hard on my exams and am delighted my efforts have been rewarded in this way,” said Jamie.

Jamie, who lives in Chew Magna, started his career in finance at 18 and worked at Clerical Medical, Prudential, Canada Life and Aegon before joining Old Mill in March. He says he’s delighted to now be working for a firm that has such a commitment to staff training.

 “Old Mill is committed to providing clients with the best possible service, so ensures its financial planners are trained to the highest possible standards,” said Jamie.

He continued, “a very high proportion of staff are Chartered Financial Planners, and the business has Corporate Charter status. In an industry where the usual standard for advisors is a Diploma, Old Mill goes above and beyond.”

Generating renewable energy can be a great way to boost your income while cutting costs and your Carbon footprint. With the Government’s introduction of Feed-in Tariffs (FITs) from April 2010, investing in renewable energy projects has finally become financially viable as well as environmentally attractive.

But, as with any new industry, there is a great deal of uncertainty – not least in the tax treatment of the FITs, capital outlay and income generated. With many installers vying for business, it is essential that potential investors understand the tax implications before committing to a particular project.

The first common myth is that income from electricity sales and FITs is exempt from Income Tax. This is not always the case. In general terms, renewable energy installations are a trade and therefore taxed as any other business. This means income from electricity sales, FITs and the savings from personal use of your own power, will all be subject to Income Tax.

However, there is an exemption for individuals (not businesses) with a domestic installation. Micro-generation equipment must be installed at, or within the curtilage of a dwelling house; and the power generated must not significantly exceed the amount of electricity consumed at those premises. There is, as yet, no definition for ‘significantly exceeding’ domestic consumption, but the household demand should represent the majority of the generation.

The supply and fitting of energy materials and equipment to domestic premises attracts a reduced Value Added Tax (VAT) rate of 5%. Businesses will be required to pay the standard 20% rate, but can reclaim it, as for other input VAT. Sales of power by a business will also be subject to standard VAT, but FIT payments are excluded, as is power generated and used internally by the business.

If, instead of investing in an installation yourself, you decide to rent a roof or some land to a developer, then the rental income and any lease payments are taxable in the same way as any other rental arrangement. The payment of up-front options will be subject to Capital Gains Tax.

Many potential investors are trying to get projects underway before the FIT rates are cut in April 2012. But there is another reason to bring expenditure forward, as Capital Allowances are also due to be slashed from that date.

Although individuals relying on the domestic exemption from Income Tax do not qualify for Capital Allowances, businesses should be able to claim 100% Annual Investment Allowance. This is available on the first £100,000 of expenditure on renewable energy equipment in the 2011/12 tax year, with any expenditure above this threshold qualifying for an annual write-down of 20%.

However, from April 2012, the amount available for 100% Annual Investment Allowance will be reduced to £25,000 and the annual write-down will fall to 18%. Bringing projects forward into the 2011/12 tax year could therefore save many thousands of pounds.

For more information contactCatherine Vickeryon 01935 426181.