< PreviousEast Midlands Business LinkBricks 2019A celebration of those helping tocreate the landscape for the next generationTo nominate a company for an award visitwww.eastmidlandsbusinesslink.co.uk/mag/bricks-2019EAST MIDLANDSEast Midlands Business Link Bricks Award2019 are now open for entries. The awards area chance to recognise and celebrate theregion’s top projects, as well as the teamsbehind them.The event will bring together the real stars of theregion’s commercial property sector and celebratethose helping to create the landscape for the nextgeneration. The East Midlands Bricks Awards willdrill down into what is really happening in the worldof property in our region – from offices, through to industrial, residential and communityprojects such as leisure schemes and schools.20-21.qxp_Layout 1 03/12/2018 15:29 Page 1Last years’ awards sold out in advance and saw 150professionals from the construction, development and propertysectors in the region attend the ceremony.To book your place at the event or find out more about thedate, time and venue, please visit: www.eventbrite.com/e/east-midlands-bricks-awards-tickets-52903127679Categories:Sustainable developmentof the yearsponsored by: Contractor of the yearsponsored by: Architects of the yearsponsored by: Overall Winnersponsored by: We still have sponsoropportunities for thefollowing categories:Residential scheme ofthe year Most active agentDeveloper of the yearDeal of the yearExcellence in designFree to enter, the awards will be held on the 28th March 2019 in the Derek Randall Suite at theTrent Bridge County Cricket club where the winnersin each category will be revealed.Nominate yourself or another company here:www.eastmidlandsbusinesslink.co.uk/mag/bricks-201920-21.qxp_Layout 1 03/12/2018 15:29 Page 2A cultureof latepaymentsA cultureof latepayments22East Midlands Business Link www.eastmidlandsbusinesslink.co.ukFINANCE AND INVOICE SOLUTIONS© SHUTTERSTOCK.COM / OLIVIER LE MOALFINANCE AND INVOICE SOLUTIONS22-25.qxp_Layout 1 03/12/2018 15:33 Page 1www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 23FINANCE AND INVOICE SOLUTIONSCash flow is the top priority for any firm, and never more so than at themoment, having come out of a recession, credit crunch and now waist-deep in Brexit uncertainty. It’s understandable that businesses will betightening their belts and trying to look after every penny, but this hascaused a late payment culture that is impacting business in our region. SMEs are hit more forcefully by this culture, especially when latepayments can come from larger firms who really ought to know better, butwhom can exert pressure on SMEs to ensure they cannot complain. Thecollapse of Carillion earlier in the year showcased this, with their poorpayment practices leaving many smaller companies out of pocket for workthey had already done. The Government have suggested they will lookinto the matter, but with the high-profile nature of Brexit, along with inter-party power struggles, this is likely to be a low priority.The average time large businesses (across the UK, not just our region)take to pay an invoice is approximately thirty-seven days from the date ofreceipt. Late payment is considered a problem for 55% of SMEs in the UKthat offer trade credit. More than half of SMEs experience late paymentwaits of a month or more beyond any agreed terms, with 20% waitingmore than two months! And, naturally, almost a third of SMEs reportedthat late payments from their customers forced them to delay paying theirown suppliers, causing a knock-on effect. In total, 24% of UK businesses report that late payments are a threat totheir survival, which is the highest reported level among all EU countries. The late payment culture stems from many aspects, some unavoidablesuch as a late payer being held back by his customers doing the same,but there are steps companies can take to try and mitigate the damage.In today’s world of the internet, online banking and transactions, somebusinesses are finding that their customers are not as averse to immediatepayments as they used to be, and while older, larger firms may stilldemand credit, clearer terms of trade can help prevent any discrepanciesfurther down the line. There are also those who allow politeness – a common problem in ourregions, apparently – to hold them back from issuing invoices andwarnings but considering that it will take time even from these to getpayment, companies are advised to issue invoices promptly and to nothesitate to ask for payment and send payment reminders.Obviously, there will always be those who hold back regardless, andwhile it can be a daunting prospect to bring in litigators or collectionsfirms for fear of alienating a customer, the bigger question always must beThe late payment culture is a bane to businesses in ourregion, but there are steps one can take to limit thedamage. 24 uFINANCE AND INVOICE SOLUTIONS22-25.qxp_Layout 1 03/12/2018 15:33 Page 2FINANCE AND INVOICE SOLUTIONS24East Midlands Business Link www.eastmidlandsbusinesslink.co.uk© SHUTTERSTOCK.COM / JAT306on how much that customer really means to a company if they aregoing to be a regular cash flow problem. And that is what it all comes down to in the end, cash flow. All toomany companies have strong figures in terms of revenue andprofitability, but the cash flow suffers, be it from late payments orother aspects. Considering that most businesses nowadays enteradministration as a result of poor cash flow, involving a specialist tohelp advise a company might not be a bad idea, particularly whenthey can pinpoint flashpoints or potentially problematic customersand make suggestions on how to better deal with them. This is a stepbest taken pro-actively, as many only look to bring in such firms in a“rescue” approach, when a company is already struggling. This is alltoo often a doomed affair because any of the changes such acompany might suggest have far less time to be implemented. Asalways, there are both short and long-term strategies, and a cohesiveapproach is the best way to yield results. Better, therefore, to look atcash flow when a company is doing well, then to bring someone inwhen the company is doing poorly. Cash flow problems due to late payments can also cause issueswhen it comes to paying ones’ own bills, which may require fundingin the short term. Finance solutions remain available from the banks,but these do not always make for appealing options, especially if cashflow is a known issue of a company. Alternative business lenders andfinance suppliers are available in our region and some specialise inlending to SMEs for purposes such as this. However, such should notbe relied on singlehandedly, and should be used in a holisticapproach while also working to solve the problem in the first place.Ultimately, whatever the Government decides to do, late paymentswill forever be a factor of business life, and it’s up to individualbusinesses to try and deal with the issue. Tightening contracts,keeping on top of customers and also building up more trust markthe routes most likely to lead to success, but bringing in outsideagencies and specialists should never be discounted, especially if thesurvival of the business is at stake. 22-25.qxp_Layout 1 03/12/2018 15:33 Page 3East Midlands Business Link 25FINANCE AND INVOICE SOLUTIONSwww.eastmidlandsbusinesslink.co.uk22-25.qxp_Layout 1 03/12/2018 15:33 Page 426East Midlands Business Link www.eastmidlandsbusinesslink.co.ukTAXImpact onbusinessof aNo Deal Brexit?By Robin Lee, Partner, Streets Chartered AccountantsThe governor of the Bank of England,Mark Carney, recently described theprospect of a No Deal Brexit as“uncomfortably high.” It is worthconsidering the possible implications. Under a no deal scenario there willautomatically be tariffs on goods movingbetween the EU and the UK. Fortunatelyboth the EU and the UK are members ofthe World Trade Organisation (WTO)which has set tariff rates for tradebetween its members. Rates on mostgoods are around 5% but some are10%.The cost of imported goods will rise.Similarly the cost of UK goods to EUcustomers will also increase. The UKimports £4 goods from the EU for every£3 goods it exports to the EU so this willproduce a boost to the treasury.As we saw in the immediate aftermathof the referendum result, sterlingdecreased, so imports into the UKbecome more expensive but our exportsbecome cheaper abroad. Confirmationof a no deal Brexit is likely to produce afurther fall in sterling. Accordingly theprice of any supplies, such as fuel, that isset in dollars is likely to increase. Youcould get a double whammy here withgoods produced in Europe, such as carsand wine. Committing to forward buycurrency appears a sensible precaution.Naturally in changing markets therewill be winners and losers. Car Dealersmay struggle but Used Car sellers arelikely to enjoy the benefits. In time thiswould filter down to benefit the carrepair market.It is widely assumed that a no dealBrexit will slow down the transportationof goods. However I have beenimpressed by new electronic deliveryprogrammes I have seen (similar to aprepaid Humber Bridge tag). Buyinggoods in advance would be sensiblethough. The labour market would be achallenge for many (Agriculture, Haulageetc). I am really encouraged though byfeedback from clients who have alreadysought alternative labour supply. In his assessment of a no deal MarkCarney made particular mention of theHousing Market which he forecast couldlose one third of its value. This mayprove excessive but there is likely to besome correction. Tax changesCorporation Tax is likely to reducequickly to attract new businessVAT/Fuel Duty may be cut back in anattempt to boost spending (additionalImport Duty gives flexibility here)Residential Property Taxes may be cutback sharply as the government tries tolessen the impact of a fall in the housingmarketThe VAT regime should becomesimpler as it will move into UKjurisdictionWe could follow the lead of manycountries outside the EU in applyinghigher taxes on immigrant labour (on NIcontributions for example) A No Deal is not my favoured option,but I believe it is manageable. 26.qxp_Layout 1 03/12/2018 15:34 Page 1www.eastmidlandsbusinesslink.co.ukCORPORATE HOSPITALITYTheChristmasbash –worth it?28 u© SHUTTERSTOCK.COM / MR. FIZKESMost people don’t tend to put toomuch thought into the usual workChristmas party; it’s just something that isdone. It’s expected, almost required, andalthough many would no doubt claimthat they’d rather go home or have thetime free, studies show that companieswho eschew the Christmas party oftenface consequences further down the line.Here are a couple of reasons why:It thanks staff for their hard workIt might at first seem that wages dothis well enough, and aren’t staff to beexpected to work hard so long as thecompany employs and pays them? Butwhatever a manager believes should bethe case doesn’t really matter in the longrun. Studies have shown time and timeagain that employees often do not feelappreciated or respected for the hardwork they put in. A roaring Christmasparty is the company’s way of showingthat this is not the case, and that themanagers have put some real effort intochoosing an event that the staff willgenuinely love. Having yet anotherboring drink with party hats at the officemight be cheap and convenient, but italso shows staff that the companydoesn’t consider them worth putting anyreal effort into. And if the managersaren’t motivated – why should the staffbe?It promotes teambuildingIt also promotes romance, as studiesshow that office parties are primelocations to pick up a life partner, butthat’s not the real goal here. WithoutEast Midlands Business Link 27It’s an age-old tradition andone that is expected, but is itreally worth holding aChristmas work party in thisday and age? 27-29.qxp_Layout 1 03/12/2018 15:36 Page 1CORPORATE HOSPITALITY28East Midlands Business Link www.eastmidlandsbusinesslink.co.uk© SHUTTERSTOCK.COM / OLGA SAPEGINAknowing anything about any companieswho might be reading this article, it’sprobably still a safe bet to say that 90%of people have not send their staff onany kind of dedicated team-buildingexercises or trips. These almost feel likeevents of the past or trips limited toAmerican firms who like those sorts ofthings. Once again, people from the UK – andour region especially, seem to assumethat staff should come together overwork. Forming lasting friendships that willhelp them rise to the best of their ability– for the betterment of the company. The truth is obviously less clear-cut.Disputes between staff, arguments or justa lack of social interaction can lead tonumerous problems. This is especiallyimportant where teams work together onprojects, as you need staff to be willingto talk to one another at every stage tomake sure everyone is working from thesame hymn sheet. Christmas parties helpto break the ice, but also encourage staffto keep in touch over the Christmasbreak – be it through Facebook or texts.This means that even in a two-weekbreak, staff are more likely to maintainbonds with one another outside of work –making their teamwork back in the newyear, all the better. It can lower staff turnoverIt’s important to keep in mind that itlowers this in many cases but cannotprevent it. ‘New year, new you’ may beall the rage come January, but the lastthing a company wants is to find out thatapplies to their jobs as well. TheChristmas period is a prime time forpeople to look for new work or considernew careers – with a large number ofemployees changing jobs during it. While it might be impossible tocompletely stop this – in many cases itcomes about as a result of a long break,time to think and the financial pressuresof Christmas – it is still possible to build27-29.qxp_Layout 1 03/12/2018 15:36 Page 2East Midlands Business Link 29CORPORATE HOSPITALITY© SHUTTERSTOCK.COM / VGSTOCKSTUDIOwww.eastmidlandsbusinesslink.co.ukloyalty to the company by giving them aroyal send off before they take theirbreak. This makes sure the final memory theyhave of work before Christmas is apleasant one, as opposed to themrecalling a miserable group of people sataround the photocopier with some plasticglass of beer. Imagining the last scene,it’s perhaps easy to see why peoplemight look for a change.Lowering your taxAn accountant might want to bechecked on this first, but there are somethings you can set aside as taxdeductible when it comes to theChristmas party. The UK Governmentwebsite can be helpful for finding exactfigures, but the HMRC does understandthat a Christmas party is important to thecontinued success of a company. Finding out what is and is not taxdeductible is important. Last year thefigures said that annual functions can betax-free where the total cost per personattending is not more than £150 per year(including VAT), but that might havechanged in the last twelve months. If indoubt, always seek advice from anaccountant.It prevents directors looking likemisersThis is perhaps a less altruistic reasonto hold a staff party, but no less animportant one. The distance betweenowners and employees will always be acontentious point, but the short of it isthat most employees will always lookunfavourably on their managers if thosepeople are saying how they will bejetting off to some tropical retreat, whilethe staff need to make do with take-outfood in the office. Again, poor memories of work orManagers before the Christmas breakcan lead to increased staff turnover,lower morale and job satisfaction, all theway through to higher levels ofabsenteeism in the New Year. All ofthese results need to be avoided wherepossible, and while a fantastic party maynot be the panacea that turns a companyaround, failure to have it can be the finalnail in the coffin.All in all, the Christmas party issomething that is here to stay for many inthe Business industry. The East Midlandshave a wide array of venues that cater toevents large and small, whether it’s ahuge party with staff, music and dancing– or a more formal dinner with speeches.It all depends on the company involvedand what they desire for their employees.Either way, the venues in our region arealways on hand to help.27-29.qxp_Layout 1 03/12/2018 15:36 Page 3Next >