< PreviousIt’s easy to buy and sell insurance – anyone can do it, the trick is to get claims paid! I help my clients review their exposures – whether it’s assets or legal exposure. I advise on the cost to transfer those risks to insurers and the benefits of doing so and also resolve claims personally and efficiently. I have 3 decades of insurance broking experience; I am an Associate of the Chartered Insurance Institute (ACII) and a Chartered Insurance Broker - so you can always be certain that I can protect your business properly. Contact me today nick.taylorward@konsileo.com 0797 6090 701 www.linkedin.com/in/nick-taylor-ward-insurance © Shutterstock /H_Ko PS: we are always looking to grow our team of insurance professionals - contact me to find out more! 30 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk INSURANCE Whether leased or owned, it’s critical for businesses to ensure their workplace and facilities are insured, and property insurance will cover equipment and furniture, but also signage – given how often letters go missing from company signs, it might be worth taking out a policy. Yet theft is hardly the only threat to a company’s workplace with the effects of fire, storm or flood leading to devastating damage and financial loss. Flood damage, however, isn’t typically covered as standard on a property insurance premium, so it’s necessary to check with insurers to price a separate policy. For areas prone to flooding – as much of Yorkshire and Lincolnshire is – more protection and financial safeguards might well be needed. For example, the 2007 floods in East Riding and Hull resulted in property damage of approximately £6.5 billion, while the Leeds Boxing Day floods of 2015 ended up costing the city an estimated £36.8 million. All of which brings us onto business interruption insurance. This type of insurance is often misunderstood by businesses who put their faith in the mistaken belief that they are covered under stand-alone buildings and contents policies should flood, fire or break-ins affect their operations. Although these policies will usually put initial damage right eventually, they don’t make allowances for consequential financial losses that can occur in the long term that can put businesses out of pocket by not an insignificant amount. A more specific and specialised policy is thus required to ensure total coverage should the worst occur. © Shutterstock /Jirsak 28-31.qxp_Layout 1 01/06/2021 15:52 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 31 INSURANCE Business interruption insurance covers fire and flood, being the two most common kinds of damages to the workplace. With fresh flood warnings announced as recently as March for Yorkshire, it’s probably worth businesses in high risk areas across our region looking into. Another misconception is that those in low risk areas are immune from flood damage, or that flooding is the result of rainfall and burst riverbanks alone. The most common cause of flooding is, in fact, a burst pipe or damaged water tank that occurs onsite. This kind of cover can include the cost of cleaning up after floodwater has receded, plus the costs of getting a business back up and running. Other possible effects may include the cost of short-term alternative business premises, the replacement of flood damaged stock or business equipment, as well as lost staff wages. All major expenses that a business – particularly an SME – may be unable to fund without a policy of this sort in place. Whatever the specifics, business interruption insurance always includes what’s known in the trade as material damage proviso which basically means it cuts in following a claim made against one’s buildings or contents insurance and covers financial losses that are a direct consequence of a business interruption – i.e. loss of revenue, loss of rental income and additional staff costs. Though not legally required, product liability insurance is essential for any business that manufacture and/or sell goods for reasons that will soon become clear. If a product injures someone or damages their property, the company that sold said product could be liable, even if it didn’t make the product. Should this occur, this kind of insurance would cover a company’s legal fees as well as any compensation they might be required to play. So while not mandatory it is very important for many businesses, particularly SMEs who may be unable to afford to pay the unexpected costs of legal fees and compensation pay outs. There’s a reason why so many businesses put their faith in this kind of insurance, with figures from the Association of British Insurers (ABI) revealing that liability insurers pay out £7.5 million every day. When it comes to protecting profits and looking after staff, it really is better to be safe than sorry. 28-31.qxp_Layout 1 01/06/2021 15:52 Page 432 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX The tax implications of residential property ownership and property transactions By Jennie Brown, Tax Partner, Streets Chartered Accountants There have been a number of changes over recent years impacting both UK Resident and Non-UK Resident property owners and landlords. For both existing landlords and those who plan to start out in property, it is important to be aware of the impact of the rules and seek advice when undertaking property transactions such as making purchases, sales, gifts or transfers. In addition, for those who have been landlords for some time, it may be wise to take stock of their property portfolio and fully understand their tax exposure. Rules impacted by recent changes that landlords will need to consider: * No more Lettings Relief - Previously providing up to £40,000 of relief against capital gains tax (CGT), £80,000 for joint owners, of a property once used as their main residence, this has now ceased. * Reduction of Principal Private Residence Relief - The last 18 months of ownership previously exempt from CGT is now reduced to 9 months. * Non-UK Resident Company’s change of tax regime - Non-UK Resident companies that carry on a UK property rental business will now be subject to corporation tax and not income tax. * 30 Days to pay CGT and submit the tax return - For residential property sales. * Non-UK Resident Landlords - Already fall within this 30-day regime and in April an area HM Revenue and Customs do investigate. Married couples and civil partners need to complete certain documentation if they wish property to be taxed differently than 50/50, which is the automatic tax position without this paperwork. This is even where property has been acquired as tenants in common in a ratio other than 50/50. * Gifts of Property - Unless this is between a married couple or civil partners, where property is gifted the person making the gift is subject to capital gains tax as if they had received proceeds equivalent to the property’s market value, even if no consideration is received. * The order of transactions - Tax advisers will often stress the importance of planning the timing and the order of transactions. An example: (pre and post the SDLT holiday) an adult child missing out on first time buyer’s relief for SDLT, because family members had previously gifted them property. Had the adult child acquired their first home, and then been gifted property, they would have benefited from this relief saving up to £5,000. In addition to this, not only is first time buyer’s relief lost but they would have also have had to pay the 3% supplement. * SDLT and married couples/civil partners - Whilst properties can be transferred free of capital gains tax for those who are married or in civil partnerships, if property has lending and 2019 it was extended to apply to direct and indirect disposals of all UK land, not just residential property. * Rent a Room Relief - If a room in a person’s main home is rented out, there are rules which can provide tax relief of up to £7,500 on the rents received, if conditions are met. * 3% Stamp Duty Land Tax (SDLT) Surcharge - This will usually apply on top of the normal rate if an individual is buying a residential property that means they will own more than one property. For companies and trusts the 3% surcharge applies on the purchase of the first property. * 2% Stamp Duty Land Tax (SDLT) Surcharge – From 1 April 2021 a new surcharge was introduced for Non-UK Residents acquiring property in England and Northern Ireland. * Mortgage/Finance Interest Restrictions – With the rules fully phased in, all financing costs incurred by a landlord will be given as a basic rate relief only and higher rate tax relief will be lost. Tax Traps - When landlords and property owners can get caught out * Property Ownership - A misunderstanding of the ownership is unfortunately very common and it is very important. Property owners should look to understand how they own property and where income is declared, as this is 32-33.qxp_Layout 1 01/06/2021 15:53 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 33 TAX this is also transferred, SDLT can arise on the value of the debt transferred. SDLT on debt in general is often overlooked and where any debt in relation to a property is due to be transferred, released or assumed, SDLT should be considered. * Finance Interest Restrictions - The change in rules means an individual’s income will increase as they can no longer deduct finance costs from their rental income as a standard expense, but instead can only receive a 20% tax credit from the tax due. This could have adverse consequences in addition to the individual’s income tax bill going up, such as the loss of child benefit, loss of personal allowance and hitting the higher rates of tax bracket. Tax Tips – When landlords and property owners can benefit from planning and tax reliefs * Purchase of properties with an annex - When the 3% SDLT supplement was first introduced, annexes were caught by this, however this rule has since been revised and many have unknowingly paid the supplement and can seek repayment. * Acquiring multiple properties - Additionally, when acquiring properties or a property that comprises of more than one dwelling, for example it includes an annex, a relief can be claimed which can provide significant SDLT savings and again is often overlooked and misunderstood. * Incorporation of a property business - Many landlords will be considering the structure in which they own their property business, given all the recent changes to the rules. Incorporation can provide a number of tax benefits both short and longer term and this planning should be considered with careful advice to ensure the tax reliefs can be claimed and all the benefits of the incorporation are fully understood. * Married couples and civil partners - Can benefit from the transfer of property free of capital gains tax and can therefore consider the most tax efficient way to hold property together. * Principal Private Residence Relief - If you are developing land within the grounds of your main home, seek tax advice before the spade hits the ground to ensure you retain PPR relief. How we can help There are many ways in which property can be held and multiple tax implications of owning property. This summary highlights some of the key changes for residential property specifically, and provides some examples of traps and tips that landlords need to be aware of, but it is by no means exhaustive. If you are a landlord who has built a property business over the years, we would recommend you take stock to ensure you are fully aware of your tax position and the options available to you, remembering a property business is not exempt under Business Property Relief for Inheritance Tax purposes. If you are new to the property scene then seeking advice as to how you acquire your first property and providing your thoughts on future plans is vital, to ensure you are on the correct path. For further information please email info@streetsweb.co.uk 32-33.qxp_Layout 1 01/06/2021 15:53 Page 234 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk CONSTRUCTION MACHINERY AND EQUIPMENT © Shutterstock /ART ST OCK CREA TIVE Tomorrow’s industry today While traditional equipment is continuing to be popular in sales, the equipment used in the construction industry is becoming ever more innovative as we explore. 34-37.qxp_Layout 1 01/06/2021 15:55 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 35 CONSTRUCTION MACHINERY AND EQUIPMENT Of course, there are highly useful advances with already commonplace machinery, and the constant evolution of engines. While these certainly improve on what is already available substantially, there is also more dramatic, industry changing machinery and equipment coming into play, more so than ever before, particularly with the acceptance of the digitisation of construction. These changes have been attributed to Industry 4.0 and the key technologies driving it: VR and AR, robotics and automation, 3D printing, machine learning, artificial intelligence, the industrial Internet of Things (IoT) and connectivity. Due to its noted rigidity in the past, construction has been considered rather resistant to embracing major technological changes that other industries are now using such as AI. However, if the UK construction industry is to keep up with the global pace of change, it needs to fully embrace innovation, especially while it is facing major problems around employment, efficiency and sustainability, which can all be assisted with incoming and future machinery and equipment. Perhaps the industry is now ready to fully embrace the digitisation in front of it with drones performing surveys, Building Information Modelling (BIM), and autonomous driving vehicles all being used on site. On a smaller scale, apps are now being integrated into machines on site. They can be key for increasing a construction worker’s productivity by illustrating how to complete a task quickly and safely. On a grander scale, AI machinery is now being argued by many as the next step for construction. It is becoming popular for streamlining work to increase efficiency. AI can also be beneficially used to monitor malfunctions in heavy machinery, track equipment, reduce or even eliminate human error and, perhaps most importantly, improve safety on site. Resulting from strides with AI, robots may be the next “big thing”. With this wave of advancement in technology and machinery, it is predicted by Balfour Beatty in its ‘Innovation 2050’ report that building sites may be worker free by 36 Á 34-37.qxp_Layout 1 01/06/2021 15:55 Page 236 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk CONSTRUCTION MACHINERY AND EQUIPMENT 2050, with “drones flying overhead … sending instructions to robotic cranes and diggers and automated builders”. Often ignored on this front, however, is that robots and other autonomous equipment are key for reducing risk, as robots can enter sites to assess their level of danger and stop people doing jobs that are excessively dangerous. Then again, this may result in a culture of remote working by less workers, and we need to consider: is this what we really want? Concerns also arise from potential cyber-attacks on AI. In 2017, for example, 200,000 businesses and 150 countries were affected by the now infamous ‘WannaCry’ ransomware. The rise in – and acceptance of – AI, on the other hand, could be a necessary solution to the skills shortage. The Arcadis Talent Scale reports that if the government is to reach its housing targets, the UK will need to recruit 400,000 people a year until 2021. AI machines could be helpful here as less people would need to be employed, filling the gaps many businesses are facing. Despite the technological advancement observed in the construction machinery and equipment market over the last few years, it is far from immune from the effect of the continuing coronavirus crisis – something that can be seen in the decline in sales of machinery and equipment. According to the Construction Equipment Association (CEA), retail sales of construction and earthmoving equipment in the UK market fell by 21.8 per cent in the first quarter of the year compared with the same quarter in 2019. This significant decline lays bare the extend of COVID-19’s impact on the sector. The Association says that although equipment sales in January and February were only down by six per cent compared with the same months last year – which was in line with expectation – March saw sales crash by forty-five per cent compared with last year as a direct result of the crisis. Although these figures paint a grim picture for the market, the construction sector may well have a key role to play in the nation’s economic recovery. Experts at Birmingham City University claim that an £11.27 billion investment in construction and a series of strategic decisions around new home building can kick start the UK’s economic recovery and deliver a £33 billion return for the government. The ‘Build Back Better: Covid-19 Economy Recovery © Shutterstock /Dmitry Kalinovsky 34-37.qxp_Layout 1 01/06/2021 15:55 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 37 CONSTRUCTION MACHINERY AND EQUIPMENT Plan’, which follows a clear instruction from Prime Minister Boris Johnson that those in construction and manufacturing should now return to work, also calls on the government to stand by its commitment to “do everything it takes” to fight the virus and support the UK economy, by investing in a wide-reaching programme designed to create mass employment and produce a major return. “History tells us that the construction industry is the tried and tested solution to drive economic recovery, not least due to the fact we manufacture the vast majority of building materials in the UK which provides resilience, skilled jobs and fast returns on investment,” said Mike Leonard, construction expert, CEO of Building Alliance and co-author of the plan alongside Birmingham City University’s Dr Steve McCabe. “The upstream and downstream jobs in manufacturing, architecture, planning, engineering, distribution and construction, creates an unrivalled multiplier that can achieve inclusive growth, building back better and helping to rebalance our economy. Saving lives must remain our priority but we now have the signal to begin to safely unlock and begin the long path to economic recovery. Construction and the building materials manufacturers are now returning to work with the proper safeguards in place. We must now “Get Britain Building” and “Get Britain Working” delivering the scale of economic multiplier the county needs to bounce back stronger.” Of course, machinery and equipment and embracing innovative technologies is fundamental to the construction industry and, therefore, critical to the nation achieve economic success in the difficult post-COVID period ahead of us. © Shutterstock /Dmitry Kalinovsky Powder Handling and Flow for Additive Manufacturing Registration is now open for the online ‘Powder Handling and Flow for Additive Manufacturing’ course delivered by The Wolfson Centre for Bulk Solids Handling Technology. The aim is to guide delegates through the critical aspects of powder handling and management to enable them to identify potential problems and learn how to avoid or overcome them. Taking place between 12-16 July, each day begins at 14:00 hrs UK time and allows time for informal discussions amongst participants and presenters. Who should attend? The course is aimed at anyone working in powder based additive manufacturing, particularly with metal or plastic powders. Once again you will be entertained by a world leading team of experts from Industry, who will be able to deliver the latest understanding on the subject and to respond to your queries. Dipl-Ing Claus Aumund-Kopp, Group Leader for AM at the Fraunhofer IFAM Institute in Bremen, has worked with metal powders for AM powder bed fusion and AM binder jetting approaches for over fifteen years. Dr Neil Harrison, Materials Development Manager at Carpenter Additive, has over 5 years of academic and industrial experience in metal powder AM, including work on alloy design, powder behaviour and powder evolution. Richard Farnish, Senior Consultant Engineer at the Wolfson Centre for Bulk Solids Handling Technology, University of Greenwich, has worked internationally on design and troubleshooting of bulk solids handling as a commercial consultant and research expert for over twenty years. Course fees are £775 per person, discounted for multiple registrations from the same company. Registration is now open. To book your place now, visit https://bit.ly/3yCZrSf. For more information, visit www.bulksolids.com, email wolfson-enquiries@gre.ac.uk or call 020 8331 8646. © Carpenter Additive © Carpenter Additive 34-37.qxp_Layout 1 01/06/2021 15:55 Page 438 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk GEDA CONSTRUCTION GEDA Construction commenced working in the Midlands in 2011 with a vision of establishing GEDA within the Midlands construction market. With a strong market presence in Northern Ireland and the Republic of Ireland, our principal aim was to establish ourselves as a leading force in the construction housing market and ultimately grow from there. Despite the challenges faced throughout the years, the company has gone from strength to strength in establishing an extensive portfolio in affordable housing, education, retail, industrial and water infrastructure projects. Reflecting on 10 years in business Managing Director Aaron Hughes said: “I take great pride in what we as an entire team have been able to accomplish over the last decade. Personally for me, the significance of this 10 year anniversary is far more than a cake and balloons…It’s a key milestone for the company and also the team, at this juncture it’s important to reflect on how much we have grown and evolved throughout our 10 years. Team GEDA have shown commitment and resilience in delivering our clients aspirations regardless of circumstances. As a GEDA Construction celebrates ten years working in the Midlands Left to right Chris Stinson, Senior Contracts Manager, Aaron Hughes, Managing Director and Colm McVeigh, Commercial Manager Severn Ham Mains, Water Infrastructure Works 38-39.qxp_Layout 1 01/06/2021 15:56 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 39 GEDA CONSTRUCTION company we’ve been very fortunate to have such a dedicated and talented team who have been instrumental in our success and everyone should be proud of their efforts. One of the most pleasing aspects of our success to date is witnessing the development and growth of our staff, very much in parallel with the business. I believe we are very well placed within the Midlands Construction Sector and I am extremely optimistic that we will continue to build on firm foundations we have established.” Bricks 2020 winner GEDA Construction was crowned the ‘Overall Winner’ of East Midland Business Link’s Bricks 2020 property awards. Not only that, the firm also scooped the ‘Residential Development of the Year’ award for its Low Street, Elston development. It was also a runner-up for the ‘Responsible Business’ award. Nominations now open for Bricks 2021! EAST MIDLANDS BUSINESS For more information, visit www.geda.co.uk, email info@geda.co.uk, or call 01509 670 878. Bourne, Elsea Park Primary School, LincolnshireKnights Close, Billesdon Strelley Court, NottinghamStrelley Library, Nottingham 38-39.qxp_Layout 1 01/06/2021 15:56 Page 2Next >