Our comprehensive range of financial and business support services and ongoing strategic advice has helped many of our clients to grow and develop their businesses over the years.

Our aim is to provide a professional, personal, effective solution to all of your day-to-day accounting, auditing and taxation needs. We use our expertise to complete this work quickly and accurately, and our experience to explore opportunities and identify potential problems before they arise.

By getting to know you and your business we aim to become a valuable member of your team. We always aim to exceed your expectations and go that step further.

Audit

Many limited companies and other entities are required by law to have their accounts audited. We are Registered Auditors and have experience in a wide range of businesses, from small family-owned companies to large organisations.

Our audit services aim to provide you with confidence in the accuracy of your financial statements, and assurance as to the efficiency and effectiveness of your accounting procedures and internal controls.

We also perform a range of specialist audits in the following areas

• Charities and not for profit organisations
• Farms and land based businesses

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Accounts

Accounts preparation is a core part of our business and we pride ourselves on being able to meet your needs promptly and efficiently. Our services include:

• management accounts, monthly or quarterly
• statutory accounts to comply with Companies Act requirements
• consolidated accounts for groups of companies
• bespoke reports for subsidiaries of overseas companies
• accounts for partnerships and sole traders
• budgets and cash flow forecasts

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Business and Corporate Tax

We relieve you of the administrative burden of complying with tax legislation and help you minimise your corporation tax payments. We deal with all business tax matters, including preparing income and / or corporation tax computations and preparing and submitting the relevant self-assessment returns.

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VAT

VAT (Value Added Tax) is one of the most complex taxes imposed on business and one that many businesses inadvertently overpay or underpay. With a constant stream of detailed changes to the regulations, businesses can find it difficult to ensure they comply. 

We provide a cost effective VAT service and work with a wide variety of businesses, providing varying levels of support from general advice to VAT return completion. We have helped many of our clients to reduce VAT assessments and minimise their VAT liabilities.

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Company Secretarial

We have extensive expertise in company incorporation, compliance and administration, and can provide a valuable company secretarial service to companies of all sizes. We can help you to comply with your statutory obligations under the Companies Act and ensure you avoid any penalties for late filing of annual returns, accounts and other documents.

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Personal Tax

A key service we offer to clients is in the area of taxation planning, aimed at minimising your future tax liabilities. In addition to providing the normal compliance services including Self Assessment Returns, we can offer advice on: Inheritance Tax, Capital Gains Tax, Benefits in Kind, Employee Pay Schemes and the use of Trusts.

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IT Advice

We can help you to decide on the best accountancy and payroll package to suit your business. In addition we can advise on the overall structure of your IT delivery including security, configuration and connectivity.

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Business Start-up

Most people who start up in business do so because they have a good business proposition. We can help by evaluating your ideas and helping you develop them into a viable business.

We will help you:

• decide on the most suitable structure for your business (i.e. sole trader, partnership, limited liability partnership or limited company)
• prepare a business plan, cash flow projections, budgets and trading forecasts
• assess your finance requirements and advise on the most appropriate source of finance
• help you establish relationships with banks and solicitors and any other necessary professional advisers
• carry out registration procedures with Companies House and HMRC
• set up an internal accounting system

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Estate Planning

We offer a full review of your IHT and estate position with a view to minimising the overall Inheritance Tax liability. We will ensure that you make the best use of all of the available IHT reliefs and allowances.

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Agriculture

Change seems to be the only constant in the rural economy at the moment. New regulations, endless form filling, and unavoidable diversification characterise the lot of many business owners. Times are undeniably tough in this independent and fragmented sector. Government has given us “rural proofing”, and will soon put in place a new, integrated agency called Natural England. Both of these should ensure new policies take rural communities and businesses into account – but many people feel the emphasis is still too strongly on preserving landscapes, rather than developing a thriving economy.

The price of land, which rose to quite high levels last year, appears now to be coming down. This coincides with a noticeable squeeze on rural planning consents, which is expected to get worse by the end of the year. Businesses and homeowners on edge-of-village sites will be most affected. Anyone who is thinking about submitting a planning application should do so now without delay.

Globalisation takes no prisoners, and a fundamental shift has taken place. European farm subsidies are no longer linked directly to food production, and agricultural businesses will be further exposed to the rigours of the open marketplace. Cashflow is currently a concern for many, as the long wait for the first Single Farm Payment is unlikely to end until at least February 2006. The “rural premium” – extra costs associated with distance and smaller populations – is only one of many issues rural businesses contend with. Rising fuel prices, bank branch closures, lack of broadband internet, and the effect of recent terrorist activity on tourism all add up to a somewhat gloomy outlook.

But it isn’t all black. The rural population is growing, and rural areas actually support a higher number of businesses per population than urban areas. 30% of the UK’s business activity is based in the countryside. Entrepreneurial spirit, in the form of inventive diversification, is keeping many businesses afloat. In today’s climate, revitalising the rural economy is a challenge all rural businesses must rise to in order to survive.

Make sure Single Farm Payments are included in your will
It’s crucial for anyone in farming who is drawing up a will to think about entitlements. Single Farm Payment (SFP) entitlements are considered to be a separate asset from the land they relate to.

This means that, for example, a son who inherited land from his father could find the entitlements attached to it formed part of his father’s general estate.

The entitlements would therefore have to be shared amongst the rest of the family, making it almost impossible for the son to continue to farm his own land. It is also important to remember in this context that DEFRA is unable to make SFPs to nonfarmers.

If it is a farmer’s intention to leave both land and entitlements to a family member, then this needs to be explicitly stated in the will.

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Farm business tenancies

Farm business tenancies (FBTs) provide a short-term way of producing income for retired farmers without diminishing their entitlement to 100% agriculture property relief. By letting the farm and appropriate agriculture buildings, the landlord will receive rent which will form part of his taxable income and will need to be declared on the tax return form. FBTs are not set up to run for a long period (an average of three to five years is common) and so there is no long-term loss of control by the owner of the land over the farm. Meanwhile, it enables another farmer to take the additional land in hand, and hopefully achieve some economies of scale.

The important point here is that there is no loss of IHT exemption, so should the farmer die or want to gift the land during the period of the tenancy, full agriculture property relief will be available. Disposing of the land whilst it is the subject of an FBT should, nevertheless, enable the value to be diminished below open market value and this may be an advantage.

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Share farming

Another option available to you is to enter into a share farming arrangement with a third party. This means that you continue to own the land and cover certain specific costs associated with production, but the majority of the running costs are picked up by someone else. This should allow you to release much of the capital currently tied up in the business.

By entering into a share farming arrangement, the owner of the land normally secures a minimum “rent”, ie a guaranteed financial return out of the proceeds of the harvest based upon the acreages involved. During the cultivating and growing period, the landlord will probably fund the cost of seed, fertilisers and sprays, whereas the partner in the share farming arrangement will provide labour and, most importantly, the necessary plant and machinery in order to carry out all the work involved. 

This means that the owner of the land no longer has to retain expensive agriculture machinery, the sale of which will release capital available to reduce borrowing facilities or (hopefully) for him to take out of the business. We can advise regarding the timing of such events, particularly if surpluses on the disposal of the plant and machinery are likely to give rise to charges to Income Tax. 

At the end of the farming year when the results of the harvest are known and the products have been sold, the landlord gets paid the guaranteed minimum per acre figure and reimbursed for the direct costs of the inputs; likewise his share farming partner gets paid for the cost of labour, machinery usage and so on and then any balance remaining will be divided upon the terms previously agreed – often the lion’s share at this point goes to the partner doing all the farming work, with a nominal additional sum being paid to “the landlord”.

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Contracting out

You could also consider contracting: instead of tying up your own plant and machinery and retaining your own labour force to work the land, the business engages farm contractors to do the work on its behalf. The obvious saving is, once again, the ability of the owner of the property to dispose of excess plant and machinery thus reducing the amount of capital involved in the business. There is, however, a practical problem of wanting the contractor to come when the crops are ready for harvest because it is likely to clash with the demands of other contractor clients whose crops are also ready.

In this example, a farmer continues to be responsible for payments to agronomists and all the costs of seed, fertilisers, sprays etc.  He or she must also, in conjunction with the contractor, make the basic farming decisions relating to the timing of planting, spraying etc and of course harvesting the end product. Having paid the contractor, the rest of the harvest proceeds belong to the farmer and they remain his or her responsibility with regard to storage, marketing and agreeing contracts for sale.

In the example relating to share farming, the partner handling the growing and harvesting of the crop will have an equal say with the landlord regarding the timing of the sales of the crops, their safe storage and so on.     

ReesRussell can provide specialist tax advice on how to maximise your allowances, as well as independent financial planning advice to help you manage your released capital and to plan for your retirement.

Capital investments example
During the year ended 5 April 2006, Farmer X bought a used combine harvester at the cost of £26,000 (plus VAT of  £4,550). As he is VAT registered, the VAT is recoverable and the net cost of £26,000 qualifies for capital allowances.

For the tax year 2005/6, £10,400 can be deducted against profits. In subsequent years the annual allowance will be deducted from the profits for taxation purposes. Assuming that the combine harvester is sold in May 2007 for £10,000, then as this exceeds the written down value brought forward from the previous year of £8,775, the surplus is called a “balancing charge” and will be added to the profits for taxation purposes in the year ended 5 April 2008.

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Forensic accounting and litigation support

The UK, following the USA trend, is becoming more litigious. Partners and business associates as well as employees are more likely to resort to the courts in order to settle disagreements. Whilst insurance claims and court cases to prove liability for personal injury have also risen in recent years.

In 2000 Lord Woolf recommended a series of reforms aimed at:

• driving down the cost of litigation
• allowing greater access to justice - leading to an increase in the number of no win no fee cases
• encouraging the use of appropriate experts to bring disputes to an early conclusion thereby keeping costs down

Accountants have found themselves being called upon as "expert witnesses" and "mediators" in a wide variety of circumstances. Their special skills of understanding business practice, taxation and finance has placed them in a position where they can advise on a range of litigation issues.

How can ReesRussell help you?
Jonathan Russell is here to provide specialist services to help lawyers.  Our range of specialist services includes:

• expert witness including single joint experts
• quantum calculations
• forensic accounting investigations
• fraud investigations
• mediation
• arbitration

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Experts 

Single joint experts*

The Civil Procedure Rules require individuals who can bring an unquestionable level of independence to the case as well as extensive commercial acumen. Jonathan Russell’s' reputation for concise, unbiased reports has resulted in frequent appointments as single joint experts.

The ReesRussell knowledgeable team:

• understands its duty to the court
• understands the civil procedure rules
• has appeared in witness cross examinations
• is impartial, and understands its duty to point out weaknesses

*both parties agree to use one expert.

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Calculating value

The team is regularly called upon to calculate the value in personal injury and pension loss situations. We will assess the amount involved for share and business valuations, insurance claims and professional negligence claims.

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Personal injury and clinical negligence

We are able to act for both claimants and defendants, strengthening our position as joint single experts. As well as calculating damages for past and future loss of earnings and pensions, we can advise on all related benefits in employment.

• assessment of the amount of loss of earnings for claimant or defendant
• assessment of pension loss
• compilation of total future costs of care
• structured settlements and reports
• investment of damages awards
• provision of expert witness or adviser for claimant or defendant
• provision of single joint expert as ordered by the Court
• provision of mediation services, particularly in clinical negligence and Health Authority cases

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Professional negligence

In an action for professional negligence, liability will largely depend upon the claimant successfully demonstrating a breach of duty of care by the defendant, causing the claimant to have suffered reasonably foreseeable loss.

In such cases, our experienced professionals can assist in two principle ways:

• as an expert to advise in cases brought against accountants and other financial advisers. And to assist the court in determining whether the defendant had exercised the level of skill and care to be expected of a reasonably competent accountant or financial adviser
• to establish the amount (quantum) of loss experienced by the claimant

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Forensic accounting

The skills of the forensic accountant apply mostly in criminal investigations into fraud or money laundering cases. Since the Proceeds of Crime Act 2002 and the setting up of the Assets Recovery Agency forensic accounting experts working to Civil Procedure Rules have an increasingly important role to play in criminal matters.

We can assist with:

• preparation of expert reports for the prosecution or defence teams
• detailed investigation work in fraud and other financial crimes
• investigation work for the Proceeds of Crime Act including asset tracing
• advice on the approach to fiscal investigations in criminal cases.

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Fraud

Potential fraud cases require careful handling. In some instances an extremely sensitive approach is required while others require a tougher stance. We are able to determine the most appropriate route and then act quickly, and in complete confidence, according to our instructions.

We can advise on:

• asset tracing
• fraudulent trading
• false accounting and theft
• theft and systems reviews

We can provide:

• expert witnesses or advisers for claimant or defendant
• a single joint expert as ordered by the court.

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Commercial litigation

In order to advise on commercial cases, it is vital to have a complete understanding of the marketplace and the factors that may affect a business. As well as applying our commercial expertise, our team can call upon experts across the firm to obtain a complete perspective in cases that involve:

• loss of profits
• business interpretation and consequential loss
• breach of warranty
• contractual disputes or share valuation
• shareholder and partnership disputes
• provision of expert witness or adviser for claimant or defendant
• provision of single joint expert as ordered by the Court

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Litigation support services

The Woolf reforms encouraged the early use of mediation to keep down costs. Whilst the role of the arbitrator is a judicial role, in mediation the skills and knowledge of the mediator are vital.

Our qualified mediators use their skills to bring disputes to an amicable conclusion, avoiding the need to resort to the courts. They are frequently asked to mediate in contractual disputes, patent and intellectual property disputes, and partnership disputes.

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Family and matrimonial disputes

Often contentious, the accountant mediator can use his specialist skills to achieve the maximum tax efficiencies, pension protection and funding for both parties.

The team can advise in the following areas that can lead to disputes:

• valuation of business and corporate assets
• extraction of funds from private companies
• asset tracing
• tax and other fiscal matters

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Employment issues

We can provide advice and, where relevant, mediation services in instances of:

• director/shareholder disputes, including share valuations
• loss of profits
• theft of property (data, money or intellectual)
• misuse of IT facilities
• dismissal

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Mediation

The Woolf reforms encouraged the early use of mediation to keep down costs. The knowledge and skills of the mediator are essential if an agreement satisfactory to all parties is to be achieved.
 
Our ADR accredited mediator, Jonathan Russell uses his skills to bring disputes to an amicable conclusion, whether by running in parallel with the normal case management process or by avoiding altogether the need to resort to the courts. He has been frequently asked to mediate in contractual disputes, patent and intellectual property disputes, partnership disputes, family, matrimonial and employment disputes.

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Arbitration

The role of the arbitrator is a judicial one, usually appointed by the courts. Arbitrators listen to petitions from both sides and then using their skill, experience and judgement rule on the outcome. Jonathan Russell as a member of the Institute of Arbitrators is an experienced and skilled arbitrator.

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