< Previous30 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk CORPORATE FINANCE The similarly named but different asset finance, having grown for the fourth year in a row according to the British Business Bank’s report, enables a business to acquire an asset through leasing (without owning it) or hire purchase (to own the equipment at the end of the contract period), allowing a firm to secure critical assets, replace aging equipment and expand operations without adding pressure on cash flow or raising significant working capital before a purchase can be made. It means small or zero upfront costs, spreading of payments, and the asset being purchased is the security for the finance provider. However, with ownership in the hands of the finance provider until the borrowing business has paid in full, a provider could put limits on the use of the asset, the business may be liable for damage, and failing to keep up with repayments or terms of the agreement could lead to repossession of the asset. Invoice finance, meanwhile, allows businesses to borrow against their unpaid invoices. Firms can gain quick access to a percentage of the value of invoices, usually within 24 hours, obtaining the remaining percentage — minus the finance provider’s fees — upon payment of the invoices by the customer. Making use of an untapped asset, aside from the funding provided being employed in the running of your business, with invoice finance there are not normally restrictions on how the money is spent, presenting flexibility, plus an invoice finance facility can grow in real time in line with sales. The funding, however, is dependent on your customers, where a business may be held responsible if customers fail to pay their invoices. For this, invoice finance providers often offer bad debt protection. Furthermore, depending on the form of invoice finance chosen, there is the chance of impacting customer relationships, where in the case of invoice factoring, the finance provider will manage your sales ledger and be involved in collecting payment from your customers. In contrast to debt financing, with equity financing investors provide funding in exchange for a stake in the company, which avoids committing to a loan repayment schedule. These investors can also bring their experience and networks to help the business grow. According to the British Business Bank’s Small Business Finance Markets report, equity investment in 2024 was similar to 2019 and 2020 levels, prior to a significant uptick in activity beginning during the pandemic. Though the number of smaller business equity deals fell 24% in the first three quarters of 2024, compared to the same period of 2023, the value of deals increased 7%. Amongst the common types of equity financing is angel www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 31 CORPORATE FINANCE In last year’s Budget, the Government announced a major shift in pensions policy: from 6 April 2027, undrawn pensions will become subject to Inheritance Tax (IHT) upon death. This represents a significant departure from the longstanding exemption pensions have enjoyed and marks a turning point in estate planning. At WBR, we have been vocal about this change. Our recent industry survey highlighted widespread concern over the perceived unfairness of the proposed rules, particularly among those who have carefully structured their financial legacy around existing pension provisions. This is especially relevant for SSAS trustees, many of whom have included pensions as a key component of their intergenerational wealth transfer strategies. Currently, pension death benefits are treated as follows: • Death before age 75: benefits can be passed to beneficiaries tax-free. • Death after age 75: benefits are subject to income tax at the recipient’s marginal rate, but not IHT. These rules have supported the use of pensions as a valuable estate planning tool. The proposed changes may require a fundamental reassessment of strategies. As the detailed legislation is not expected until later this year and therefore the implications remain to be seen, we strongly recommend that clients seek professional advice before making any changes to their arrangements. Despite this looming reform, SSAS pensions still hold strong tax and strategic planning advantages — and will continue to play a valuable role in wealth preservation strategies. Stay tuned — we’ll be unpacking the implications and latest developments in this space every month, helping readers navigate the evolving landscape with clarity and confidence. For further information call 0333 320 9230 or visit wbrgroup.co.uk Caitlin Southall, Head of SSAS Proposition, WBR Group investment, where a high net worth individual uses personal funds to support an early-stage business for a share in the company, also acting as a mentor. Angel investors usually invest as part of a syndicate, with a lead angel coordinating the deal, and the backing of angels can provide credibility to a business upon seeking further investment. Often coming on board after an angel has helped businesses get off the ground is venture capital, where venture capitalists (VCs) invest in early-stage firms with high growth potential, while offering expertise. Acquiring a minority stake in a firm, generally alongside other investors, early-stage businesses can raise money from VCs in rounds (series A, B, C and so on), to gain investment from the same and new investors as they grow. With VCs holding investments typically for five to seven years, businesses will then usually go public on the stock exchange or be acquired by a corporation or another investor. In 2024, exits from venture capital-backed businesses illustrated improvement, with £10.4bn of total value from exits, as noted by the British Business Bank’s report, representing a 100% surge on 2023. This came from an increase in the valuations of individual businesses, while the number of exits remained similar between 2024 and 2023. With venture capital focused on young businesses with little history of profitability, turning to private equity (PE) firms is an option for established businesses seeking finance to grow, where PE firms invest in exchange for a large or controlling stake. PE allows businesses to secure investment alongside expertise to accelerate expansion, with PE managers working closely with business management and expecting board seats, while standing to gain substantial returns when exiting their investment. Regularly used to support management buyouts and buy-ins, PE investors work with established companies to drive forward growth. Giving away a significant, usually controlling, share in the business is a main repellent to this type of funding, which can involve substantial organisational change, whether involving strategy or management. Finally, in contrast to equity and debt financing options, grants present funding that does not need to be repaid and does not entail giving away a stake in a business. Qualifying for grants, offered by government and other bodies, can require meeting strict criteria, often features smaller amounts of funding that needs to be supplemented by other forms of finance, can necessitate match funding, and grants are designed to support specific projects and objectives. These are just some forms of finance businesses can engage with, showing the variety available, with more to be found amongst the likes of crowdfunding, peer to peer lending and others. With a declining share of small businesses reporting confidence in gaining information on the types of finance and providers available to them, falling from 60% in 2023 to 57% in 2024, according to the British Business Bank, many firms may be unaware of what is possible. With such vast options, determining which is suitable is not always easy, and professional advice should be sought. F ollowing the changes to the employer national insurance contributions, some concerns have been raised over the optimum amount a director should receive through PAYE on their Limited Company. For employee national insurance, the allowance is £12,570 per annum before any Class 1 employee national insurance becomes payable. The lower earnings limit which ensures that you receive a qualifying year for state pension and goes towards receipt of certain state benefits is £6,500 per annum. This means that earnings taken through PAYE between £6,500 and £12,570 will not incur any employee deductions. I am sure you are now thinking what about employer national insurance? From April 2025 the government lowered the level at which employer national insurance is applied to £5,000. Anything processed in excess of that becomes payable at 15%. Why pay it you may ask? You may not have to. The government also removed some of the restrictions on claiming employment allowance. If you have a payroll with two or more directors/employees earning above £5,000, providing it is a qualifying entity, the £10,500 per annum allowance can be claimed. This allowance offsets the employer national insurance that subsequently becomes due on the amount over £5,000. It therefore makes sense to process the maximum £12,570 per annum to obtain the qualifying year and the access to certain state benefits. A word of caution; one director on your payroll with no other employees means that you cannot claim employment allowance. In order to obtain your qualifying year for state pension you will need to pay employer national insurance. Please see the link below on how to make the payment: https://www.gov.uk/pay-paye-tax You may note that there is no mention of tax. Do be aware of your tax code as that may influence your decision, as could corporation tax. For these areas please do consult one of our tax specialists for the optimum solution for your personal circumstances. Please feel free to get in touch by emailing info@streets.uk or calling your local office. 32 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX Optimising director PAYE in 2025 – navigating national insurance changes for limited companies Theresa Waddingham, partner at Streets Chartered Accountants, helps navigate changes to national insurance. A word of caution; one director on your payroll with no other employees means that you cannot claim employment allowance.34 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk ONLINE TRAINING Workforce development goes digital As the need for agile and affordable training solutions grows, online courses are proving a popular and effective way for employers to invest in their teams’ futures. T he hum of industry in the East Midlands is unmistakable. From the clatter of workshops in Derbyshire to the innovative tech hubs blossoming in Leicestershire and the agricultural heartlands of Lincolnshire, businesses here are the backbone of the UK economy. But in today’s rapidly evolving landscape, staying ahead of the curve means investing in your most valuable asset: your people. And when it comes to upskilling and developing your workforce, online training isn’t just a convenient option anymore – it’s the smart one. For too long, traditional in-person training has been the default. Now, online learning is here. That specialist course your team needs, even if the leading expert is based hundreds of miles away, becomes instantly accessible. No more hefty travel budgets eating into your training spend, no more valuable work hours lost to commuting. Online training delivers the expertise directly to your employees, wherever they are based. The cost benefits alone are compelling. Beyond travel and venue hire, online courses often boast more competitive price points due to lower overheads for providers. This means you can stretch your training budget further, investing in a broader range of development opportunities for more of your staff. 36 Á Workforce development goes digital www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 35 ONLINE TRAINING36 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk ONLINE TRAINING But the advantages go beyond mere convenience and cost. Online learning offers a level of flexibility that traditional training simply can’t match. Employees can learn at their own pace, fitting their studies around their existing workload. This is particularly crucial in our dynamic business environment where deadlines shift and priorities change. This flexibility can also lead to better knowledge retention, as individuals can revisit materials and concepts as needed, solidifying their understanding in a way that a fast-paced, in-person session often doesn’t allow. Furthermore, the digital nature of online courses opens up a world of engaging and interactive learning experiences. Today’s online platforms utilise multimedia content, interactive quizzes, discussion forums, and even virtual simulations to bring learning to life. This variety caters to different learning styles, ensuring that your employees are not just passively receiving information but actively participating in their development. The success being seen right here in Nottinghamshire underscores this shift. Octavian Security UK, for instance, recently launched its online learning initiative, the Octavian Learning Management System (LMS) Training Programme, and it’s already proving a hit with their staff. Offering nearly 100 courses covering everything from compliance and safety to communication and business ethics, the platform allows for self-paced personal development with certification upon completion. This commitment to employee development is echoed by other leading businesses in the East Midlands. MHR, also based in Nottinghamshire, a payroll, www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 37 ONLINE TRAINING and finance firm recently recognised as one of the UK’s Best Places to Work, clearly prioritises the growth and wellbeing of its 800-plus employees in the region. In a significant move in 2023, MHR consolidated its employee training programme into the MHR Academy, demonstrating a clear investment in enhancing learning opportunities across HR, payroll, learning, and finance. This initiative complements their existing apprenticeship programme, further underscoring the value they place on continuous development. Navigating the digital learning landscape, however, requires a discerning eye. With a plethora of options available, businesses need to be strategic in their selection to ensure they’re investing wisely. The first step is clarity: truly understanding the skills your organisation needs to flourish and the specific learning outcomes you aim to achieve. This focused approach will act as your compass in the often-crowded marketplace. It pays dividends to seek out providers with a solid reputation and demonstrable experience in delivering training tailored for the business world. Scrutinising their track record and perhaps seeking out testimonials from similar companies in the region can offer valuable reassurance. Delving into the course content itself is equally crucial. A compelling title isn’t enough; businesses should examine the syllabus and learning objectives to ensure a genuine alignment with their identified needs. Look for courses that promise practical, actionable insights – knowledge that your team can readily apply to their day- to-day roles, driving tangible improvements. The learning experience itself is another key consideration. Does the course offer more than just passive viewing? Engaging elements like interactive exercises, opportunities for peer discussion, and built-in assessments can significantly enhance knowledge absorption and retention. Furthermore, understanding the level of support offered to learners is vital. A quality online course should provide avenues for employees to ask questions, receive constructive feedback, and perhaps even connect with fellow learners, fostering a more enriching and less isolated learning journey.38 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk PUBLIC RELATIONS They say PR is full of egos. Well...how about an alter-ego?! Meet mine, Doctor Spin! This month, we head to the MCU — not the Marvel Cinematic Universe, but the Media Crisis Universe, where billion-dollar brands and Hollywood egos are currently engaging in the most unheroic of smackdowns. Here’s the plot: Justin Baldoni is countersuing Blake Lively (who accused him of sexual harassment), claiming defamation and civil extortion. Then, in a move that can only be described as Deadpool-adjacent, a character called Nicepool appears in Deadpool & Wolverine, allegedly mocking Baldoni. Marvel’s now being subpoenaed to reveal internal communications, and they’re not having it. Ryan Reynolds, of course, plays Deadpool and is married to Lively. Swifties are nervously hovering in the background. Hugh Jackman may get dragged into it too. Doctor Spin will see you now – Marvel’s PR headache dissected Greg Simpson, founder of Press For Attention PR, dissects a PR blunder.www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 39 PUBLIC RELATIONS Doctor Spin’s diagnosis: This is a textbook case of Brand Collateral Damage — when personal legal battles start bleeding into creative IP, blurring the lines between character and creator. Marvel’s plea to the court? “Leave us out of it.” But by the time the character’s on-screen and the internet’s doing side- by-sides, it’s too late. The narrative has mutated. Doctor Spin’s prescription: 1. Don’t let characters speak for you If you’re involved in legal proceedings, anything you release — a film, a tweet, a passive-aggressive cocktail napkin — will be scrutinised. Let your lawyers talk, not your fictional alter egos. 2. Pre-mortem your PR Marvel should’ve run a pre-release risk assessment on that character. If someone in legal or PR had said, “Is this a bad idea given the ongoing lawsuit?” we might not be here. Always assume someone will connect the dots — especially if the dots are married. 3. Third parties? Third rail. Dragging in Taylor Swift? Subpoenaing Hugh Jackman? These side plots only inflate the media oxygen. Every new name becomes a headline. That’s not “narrative control.” That’s a sequel no one greenlit. 4. Own it or ghost it Marvel’s current move — trying to stay quiet and legally separate — may work, if the courts agree. But silence can also look like evasion. If you’re staying out of it, say so early and clearly, before the speculation spreads faster than a mutant gene. Until next time, stay super. Stay strategic. Doctor Spin, signing off. P.S. Think you spotted a PR blunder worth dissecting? Email me, Doctor Spin might make another house call. A former business journalist, Greg Simpson is the author of The Small Business Guide to PR and has been recognised as one of the UK’s top 5 PR consultants, having set up Press For Attention PR in 2008. He has worked for FTSE 100 firms, charities and start-ups and conducted press conferences with Sir Richard Branson and James Caan. His background ensures a deep understanding of every facet of a successful PR campaign – from a journalist’s, client’s, and consultant’s perspective. Next >