< Previous40 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk CORPORATE HOSPITALITY B usinesses have at their disposal an entire arsenal of tools to secure new trade, contacts and contracts. Of all these tools – from social media marketing, exhibitions and networking events – one of the most important is corporate hospitality. Unlike the aforementioned, businesses that have a bad experience and get burned by corporate hospitality so often don’t return to give it another shot. But with the re-opening of society and the return of face to face business (albeit with masks), Business Link aims to show that corporate hospitality can be a powerful tool within reach of any and all businesses – from SMEs right through to national powerhouses. The first thing to understand is cost. Ultimately, corporate hospitality is about securing new business or, at the very least, ensuring loyal customers and clients want to continue spending their cash with you. This pretence isn’t lost on anyone attending, so don’t try and dance around the financial side of the equation. It’s important to consider both the cost and one’s aims in the early planning stages of any planned corporate hospitality event – be that wining and dining or taking a slew of clients out to the races or the opera. The budget for any corporate hospitality event should be directly proportional to the amount of new business and contracts a company is hoping to generate. For example, if a company is looking to generate £10 million in new business, then spending £100,000 on an event (or events) is a decent ballpark figure. Likewise, if a company is looking to generate £1 million in new business, a budget of £10,000 can be set aside. As the old adage goes, it takes money to make money. Once a budget has been established, a business must then decide on what event or activity it wants to utilise. It’s important not to pick something for the sake of it, or risk using a pin in a catalogue approach. It’s far too Winning business face to face With the lifting of most social restrictions enforced to contain the spread of COVID-19, senior leaders and company bosses can once again wine, dine and entertain prospective clients to try and secure new contracts and business. Just don’t forget your mask! Winning business face to face 40-41.qxp_Layout 1 01/07/2021 12:25 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 41 CORPORATE HOSPITALITY scattershot by half and presents an element of risk that threatens to undo all a company’s careful planning. Instead, think of the people you’re looking to invite, whether it’s existing customers or prospective new clients (or a mix of both) and take a view. Of course, you could always come right out and ask, though that does run the risk of feeling too much like a box ticking exercise. With the rise of social media, it’s now easier than ever to find out what a person is interested in, making organising corporate hospitality events easier now than it’s ever been. So if the majority of the people you’re looking to invite have a penchant for football, it’s worth hiring a private corporate box at stadium. Although sporting events are the old faithful when it comes to corporate hospitality – from football right through to horse racing – it’s far from the only event or experience at a company’s disposal. Our region is blessed with all manner of cultural events and world-class venues putting on opera, stage productions and art galleries. All of these are great choices to woo and impress clients and customers, prospective or otherwise. It’s can be especially advantageous for winning clients from outside of the region, as they’re not only getting to know you and your offering better, but the town or city itself. After all, our region has a lot worth shouting about. The important thing to bear in mind when booking any event is to go through official channels. In a bid to find a cheaper rate of tickets, it can be tempting to utilise some questionable looking websites. Not only can you end up with counterfeit or even non-existent tickets, but should they prove legitimate, might be terrible seats or standing to an event and risk having the opposite effect on customers. A prospective client will hardly look kindly on loosing a day of work for a stressful, time-wasting outing. So always use trusted websites and suppliers, even if it means doing a bit of research first. Planning well in advance will help to ease some of the stress and ensure that every eventually can be catered for should issues arise. That way, when the day of the event comes around, there’s nothing left but to turn up the charm and show clients a good time. As safety measures remain in place, more time than in previous years will want to be given to planning, but so long as both parties stick to health and safety measures, all you’ll need to worry about is whether or not a prospective client will want to sign a contract. © Shutterstock /Dean Drobot © Shutterstock /Norenko Andrey © Shutterstock /Vlarvixof 40-41.qxp_Layout 1 01/07/2021 12:25 Page 242 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX The tax implications for electric company cars By Katie De Niese, Tax Manager at Streets Chartered Accountants The electric car market is growing quickly, with more than 245,000 pure- electric cars on UK roads at the end of April 2021 and over 515,000 plug-in models (including plug-in hybrids). More than half of all cars are registered to UK businesses on UK roads. Last year saw the biggest annual increase in number of registrations, with more than 175,000 electric vehicles registered showing a growth of 66% on 2019. This increase could be as a result of any number of factors, social responsibility, increase in mileage range, or indeed Company Car Tax incentives offered by the Government. Are electric cars exempt from Company Car Tax? This is a common misconception and one that is easily made. In April 2020, the Benefit In Kind (BIK) rate applying to hybrid cars with Co2 of less than 50 and pure electric cars with a mileage range of over 130, was reduced to zero. This means that for the 2020/2021 tax year, if a car meeting this criteria was provided to an employee, then there would be no Income Tax Liability for the employee and no National Insurance Liability for the employer. Some may call this a ‘win win’ scenario. The benefit isn’t exempt, a rate of 0% simply applied for this tax year Is now the time to purchase electric cars for your company cars? Whilst we don’t at present know the BIK rate or Capital Allowance treatment that will apply to electric cars after 2022/2023 it is highly likely that the rates will be significantly lower than that of petrol/diesel cars. In recent years it has, in a large number of cases, become more beneficial to stop providing company cars and for employees to use their own cars for business travel, seeing the number of company car users drop significantly. The introduction of the new rules gives a great opportunity to provide company cars again, at little cost to both the employee and the employer – a benefit which is usually held in high regard by employees. The employer can also regain some control as to what cars ‘represent’ the business name and also ensure that the cars are maintained correctly. If you would like further details relating to the tax treatment of electric cars or company cars in general, please visit www.streetsweb.co.uk or email info@streetsweb.co.uk alone. For 2021/2022 the rate increases to 1% and for 2022/2023 increases to 2%. By any standards, these rates are exceptionally low. H M Revenue & Customs also offer beneficially lower fuel benefits for hybrid company car users. There are a number of rates that apply to both hybrid and pure electric cars that don’t meet these criteria, and on the whole these rates are lower than that of petrol or diesel cars. How is the capital cost of the electric company car treated in the Accounts? For cars with an emissions rate of 50g/km or less, a 100% first year capital allowance is available. Some hybrid cars will also fall into this category. Contrast this with cars that fall into the emissions bracket over 50g/km and not exceeding 110g/km, where an 18% annual “writing down allowance” is available. After four years of ownership, just under 55% of the cost will have received tax relief. Even slower tax relief is obtained where the emissions rate exceeds 110g/km. The annual writing down allowance for these cars is reduced to just 6% per annum. In this case, only 22% of the cost will have received tax relief after four years. 42-43.qxp_Layout 1 01/07/2021 12:26 Page 142-43.qxp_Layout 1 01/07/2021 12:26 Page 244 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk AUTOLINK Prestige guaranteed This month we’re profiling a quartet of stunning luxury vehicles that add a touch of prestige parked outside your home or office. 44-47.qxp_Layout 1 01/07/2021 12:29 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 45 AUTOLINK Ferrari 296 GTB The 296 GTB, the latest evolution of Maranello’s mid-rear-engined two-seater berlinetta, was premiered today during an online event broadcast on Ferrari’s social media and web channels. The 296 GTB redefines the whole concept of fun behind the wheel, guaranteeing pure emotions not just when pushing the car to its limits, but also in day-to-day driving situations. The 296 GTB ushers in an authentic revolution for Ferrari as it introduces a new engine type to flank the marque’s multi-award-winning 8- and 12-cylinder power units: a new 663 cv 120° V6 coupled with an electric motor capable of delivering a further 122 kW (167 cv). This is the first 6-cylinder engine installed on a road car sporting the Prancing Horse badge; it unleashes its massive 830 cv total power output to deliver previously unthinkable performance levels and an innovative, exhilarating and unique soundtrack. The car’s name, which combines its total displacement (2992 l) and number of cylinders was chosen, with the addition of the GTB (Gran Turismo Berlinetta) acronym in finest Ferrari tradition, to underscore this new engine’s epoch-changing importance to Maranello. It is not simply the living, beating heart of the 296 GTB, but it also ushers in a new V6 era that has its roots deep in Ferrari’s unparalleled 70-year-plus experience in motor sports. The 296 GTB’s plug-in hybrid (PHEV) system guarantees it is an incredibly usable car as well as cutting pedal response times to zero and delivering a 25km range in all-electric eDrive mode. The car’s compact dimensions and the introduction of innovative dynamic control systems as well as meticulously honed aero ensure that the driver will instantly experience its astonishing agility and responsiveness to commands. Its sporty, sinuous design and extremely compact dimensions also visually underscore its exceptional modernity, brilliantly referencing the likes of the 1963 250 LM, the perfect marriage of simplicity and functionality. 46 Á Ferrari 296 GTB 44-47.qxp_Layout 1 01/07/2021 12:29 Page 246 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk AUTOLINK BMW 4 Series Gran Coupé The new BMW 4 Series Gran Coupé is a car that delivers on so many fronts, combining sporting elegance with driving pleasure and, with five full-size seats, a roomy cabin and a versatile luggage area, it also represents modern functionality that is hard to emulate. BMW has raised the bar even higher with the new BMW 4 Series Gran Coupé, building on the success of its predecessor. The latest version offers even sharper looks, improved driving dynamics, a superior engine line-up and even more interior space. Like its recently updated BMW 4 Series siblings, the third body variant in the range adopts the brand’s new design language, along with a refined premium ambience in the cabin and a wide array of innovations in the areas of control/operation and connectivity. Four doors, five full-size seats, a large wide- opening boot and a versatile luggage compartment also ensures the new BMW 4 Series Gran Coupé retains its characteristic strengths in both everyday driving and on longer trips. The new edition of the BMW 4 Series Gran Coupé will be built at BMW Group Plant Munich together with the all- electric BMW i4. Assembly of both at the company’s home plant will be almost entirely integrated into the manufacturing process developed for the BMW 3 Series Saloon and BMW 3 Series Touring models. The UK market launch of the new BMW 4 Series Gran Coupé will get underway in November 2021. Jaguar F-TYPE R-Dynamic Black The perfectly proportioned and extraordinarily beautiful Jaguar F-TYPE is now more distinctive than ever. New R- Dynamic Black models further heighten the purity and presence that set Jaguar’s definitive sports car apart. Developed from the 300PS four-cylinder and 450PS V8 R-Dynamic Coupé and Convertible, these exclusive additions to the line-up offer an enhanced specification and an even more luxurious, crafted interior. F-TYPE’s pure, sculpted form is accentuated by the Black Exterior Pack and 20-inch, five split-spoke wheels with gloss black finish. Known as ‘Style 5039’, these wheels are not available on any other model in the range. Complementing these perfectly is the choice of three metallic paints: Santorini Black, Eiger Grey or Firenze Red. The driver-focused ‘1+1’ cabin surrounds the occupants with rich, luxurious materials. The slimline Performance Climate Seats feature 12- way adjustment and are trimmed in Windsor leather with a choice of Ebony with Light Oyster contrast stitching or – for a more sporting theme – Mars with Flame Red stitch. Details such as the beautifully crafted monogram stitch pattern, repeated in the door trim, are among the subtle refinements which make F-TYPE feel special. The interior, like the exterior, has evolved into a purer expression of the car’s elegance and performance. By concentrating on further refining the traditionally British Jaguar craftsmanship and adding discreet, beautiful details, the sense of luxury and sportiness has Aston Martin Valkyrie AMR Pro 44-47.qxp_Layout 1 01/07/2021 12:29 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 47 AUTOLINK been heightened. The same monogram design is used to emboss the suedecloth wrap for the 12.3-inch reconfigurable Interactive Driver Display, while other refinements include satin-finish aluminium gearshift paddles, an Ebony suedecloth headliner and illuminated treadplates featuring the Jaguar script. Aston Martin Valkyrie AMR Pro Okay, so this isn’t one that you’ll be parking outside the office, you won’t even be driving it on roads as it’s track only – but we couldn’t resist including it. Billed as “the ultimate no rules hypercar”, the Aston Martin Valkyrie AMR Pro is definitely something special. In the pursuit of the lightest weight and fastest lap times, the Valkyrie AMR Pro relies solely on a modified version of the sensational Cosworth-built 6.5-litre naturally aspirated V12 engine. Revving to 11,000rpm, this masterpiece of internal combustion is on-target to develop 1000bhp. Weight savings will come from deletion of the battery- electric hybrid system, plus a host of other weight saving measures, including ultra-lightweight carbon fibre bodywork, carbon suspension wishbones and Perspex windscreen and side windows. Together with an aerodynamic efficiency that exceeds Le Mans Hypercar regulations, the Valkyrie AMR Pro promises track performance approaching that of a Formula One car. More details of the Valkyrie AMR Pro’s specification and performance will be released later this year, but with a target lap time around the 8.5-mile 24H Le Mans circuit of 3 minutes 20 seconds – blistering performance that would see the Valkyrie AMR Pro battling with the front running LMP1 cars for the outright win in the world’s greatest endurance race. BMW 4 Series Gran Coupé Jaguar F-TYPE R-Dynamic Black D Davies Turner Celebrating 150 years of pioneering service Your worldwide freight and logistics partner T: 01709 529709 www.daviesturner.com YEARS 44-47.qxp_Layout 1 01/07/2021 12:29 Page 448 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk DRIVING AND LEASE HIRE The desire for flexibility when it comes to vehicles used by businesses has become key in the wake of coronavirus as firms try to adapt as necessary to fluctuating workloads and an expanding or shrinking workforce. As firms shift to higher or lower demand for their services or products, and see additional pressure on budgets, they are reassessing their needs when it comes to vans, trucks, cars et al., throwing up the question of whether they should be buying, leasing or hiring vehicles. Flexible rental and hiring solutions have proven to be important overt the last eighteen months - whether required just for a day, week, or longer - presenting an off balance sheet option which does not need extra funding or large cash outlay and comes with no long term commitment. Insurance and servicing are also taken out of your control. This is an ideal option for companies looking to protect and free up cash, avoid idle fleets and long-term risk, but also for growing businesses wanting to source vehicles rapidly as they expand. However, it is usually more expensive than, say, leasing, because of the flexibility of contracts. Leasing vans, trucks, and cars comes with similar benefits to hiring, but offers a number of others, such as the avoidance of large upfront costs, fixed monthly rentals for the lease term (easing budget planning), flexible duration and mileage terms, the choice to include maintenance and servicing in the monthly fee, the inclusion of road tax during the agreement, no concerns over depreciation risks or disposal, the new van being under warranty, and the ability leasing opens up to take on a new vehicle frequently (with an average three year contract) and keep up with new technologies. In addition, limited companies, sole traders, or LLPs may be eligible for business leasing agreements which present positive tax implications. Many businesses are able to claim back part or all of the VAT. One should, though, make note of the chance of excess milage charges, the need to return the vehicle in good condition, possible penalty clauses, and the fact that terminating the contract early can be expensive. Moreover, you will not own the vehicle, and it thus cannot be taken to cover debts if a business hits financial trouble. Nevertheless, many lease agreements now offer flexibility at the end of the lease so one can choose between handing the vehicle back, purchasing the vehicle outright, or refinancing. Buying, meanwhile, has the advantage of owning the vehicle, which Long live leasing One of the most disruptive forces to the vehicle leasing sector of late has been, unsurprisingly, COVID-19. 48-49.qxp_Layout 1 01/07/2021 12:32 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 49 DRIVING AND LEASE HIRE comes with no restriction on where and how many miles you can drive. This option is best suited if you are seeking to use a vehicle long term. However not everyone can afford this, maintenance and insurance are your responsibility, and as soon as the vehicle is driven, depreciation begins. Though often companies look at one route for forming their fleet, businesses are expanding their fleet funding options to include ownership, leasing, and rental, allowing maximum flexibility and the ability to scale up and down to fluctuating business levels. The influx of home working, the expectation that more employees will in the future be working from home regularly, and decrease in business miles driven, are seeing companies reconsider the types of vehicles they will need in the future. Simultaneously major change is on the horizon, in the use of greener alternatives - emphasised as businesses in the country are told to focus on ‘green recovery’. The desire for electrification is increasing among fleets, with record electric vehicle (EV) demand levels reported by leasing companies. Furthermore, an Arval Mobility Observatory report highlights that fifty- three per cent of UK businesses are already running battery electric vehicles (BEVs) or plan to in the next three years in comparison to forty-one per cent of those asked in 2019. New tax incentives for EVs, alongside the Government’s target to ban the sale of new petrol and diesel cars by 2035 and achieve net zero emissions by 2050 are set to accelerate the demand for zero-emission capable options. As of April this year for example pure EVs now incur no company car tax, growing to one per cent in 2021/22 and two per cent in 2022/23. According to BVRLA, this could see some drivers achieve company car tax savings in excess of £15,000 over a three-year cycle, compared to operating an equivalent petrol or diesel car. The BVRLA also pinpoints how the government is focusing on promoting the greenest cars by limiting its plug-in car grant to vehicles with emissions below 50g/km that can cover at least seventy miles in electric-only mode. While the strides being made with electric cars and growth of new models is clearly shown in the media, the variety of cost-effective choices for electric light commercial vehicles (LCVs) is more limited, seeing most LCVs still powered by diesel. Numerous LCVs are now getting an electric variant however, and the last eighteen months have been big business for the electric van market. We expect to see this trend continue in the years to come. © Shutterstock /Proxima Studio 48-49.qxp_Layout 1 01/07/2021 12:32 Page 2Next >