Business Rates leap and what to do about it

Posted 24 October 2022 | | 0 Comments

A multi-billion pound business rates hike will be a severe blow to struggling companies, especially high street retailers, according to industry specialists.

The tax is linked to the September measure of consumer prices index (CPI), confirmed at 10.1 per cent on 23rd October 2022.

It will add an alarming £2.7 billion to bills, just as pandemic-era rates relief for businesses such as shops, cafes, cinemas and bars end.

Property consultancy Gerald Eve says that this is the biggest annual jump in the business rates levy for 32 years. "Businesses are quaking in their boots. Huge business rates hikes are not the way to grow our economy and attract inward investment."

Corporation tax is also expected to increase from 19 per cent to 25 per cent costing firms £12.4billion in 2023-24.

Martin McTague, chairman of the Federation of Small Businesses, said: 'With rates help for many firms ending in March, higher rates bills in April will be a hammer blow at precisely the wrong time.'

He said it 'risks worsening the vicious circle of decline seen in too many of our towns and high streets'.

Kate Nicholls, chief executive of trade body UK Hospitality, said: "There is a real risk that hospitality businesses will face an enormous cliff edge in April if these numbers are used to hike the business rates tax level."

Retailers have long called for an overhaul of business rates, which they say unfairly burdens those with high street stores compared to online sellers.

The Retail Jobs Alliance, which represents the likes of Tesco, Sainsbury's and Kingfisher that together employ over 1 million staff, said there was an "urgent" need to freeze rates, followed by "proper reform".

How to protect yourself from the Rates uplift

If you haven't challenged your current business rates valuation, now is the best time to do so, to mitigate business rate increases at a time of surging cost inflation. Fortunately BSA Buying Group can help you. Click here for more details on how we can help reclaim previously paid Business Rates. Note that the most recent revaluation came into effect in England and Wales on 1 April 2017, based on rateable values from 1 April 2015. The next revaluation will come into effect on 1 April 2023, based on rateable values from 1 April 2021. There are no upfront fees, with our business rates specialist taking a slice of the total tax saving achieved.

by Peter Smith | 24 October 2022

Partnership with West Midlands ScaleUp

Posted 25 March 2021 | | 0 Comments

We're delighted to have partnered with a group of high-profile professional services organizations dedicated to the success of mid-market businesses, their CEOs and leadership teams based in the West Midlands. We are a partnership of well-established, ethical and successful firms committed to sound business advice, good service and long-term relationships. We have come together to create a business portal in order to contribute and celebrate the success of West Midlands and its business community. We hope you will join us on this journey!

To visit the West Midlands ScaleUp web portal, Click Here

by Matt Roper | 25 March 2021

Reclaim your Corporation Tax via GDPR Tax Credits

Posted 8 February 2021 | | 0 Comments

Cybersecurity has become a top priority for businesses adapting to remote working. What is becoming clear is that the threats to companies from data breaches caused by hacking has become a major headache for company bosses. A recent BT Security survey of over 7,000 business leaders, employees and consumers from around the world found some startling findings - 84% of business leaders admitted that their organisation had experienced data loss or another security incident in the past two years; less than half of respondents had received training on data security and only one in three were fully aware of their organisations' policies and procedures for protecting data.

Research has shown that at least 90% of UK companies are GDPR non-compliant even though many think they are. For example, Is your company registered with the Information Commissioner’s Office (ICO)? Millions of UK companies are not.

Now that the PPI Claims bonanza has ended, many of the claim companies and law firms involved in claiming PPI for clients are retraining as they see the next big opportunity is to claim GDPR compensation from companies. If you google ‘GDPR compensation No Win no Fee’ you will find more and more claim firms are popping up, looking for claimants. The media are increasingly reporting GDPR data breaches and the eye watering fines – you may recall British Airways were recently fined £20m for data breaches.

Ideally every company should be preparing a GDPR Compensation claims pot in case of being sued but the reality is that the vast majority don’t and so that protection fund instead ends up expanding the declared gross profits, resulting in more Corporation tax being paid.

We at BSA Buying Group are working with a team led by the former head of data privacy at 3 major banks, who have also advised clients such as Dell, Volvo and Hilton Hotels. They specialise in GDPR Tax Credits and have developed algorithms to calculate the level and value of GDPR claims risk specific to an individual company. Typically, once they understand what a client does to acquire, hold and use data they can put a £ value on that risk; as a result of this they can reclaim up to 2 years Corporation Tax from HMRC for our clients. As of the start of 2021 they had put through over 30 cases and HMRC have approved the full claim in every single case.

The reason why we’ve teamed up with these GDPR specialists is not just because they can generate significant cash for clients within 4-6 weeks. They equally see the importance of companies getting to grips with the GDPR non-compliance once the risk has been quantified. Our partners have developed GDPR expert software which guides the client to reduce future risks of being sued.

There are no upfront fees for the GDPR Corporation Tax reclaim service so if you would value an informal chat with our GDPR specialists about your own position and would value both a cash injection and future guidance to mitigate your risk of being sued for GDPR non-compliance, call 0800 254 0344 today.

by Matt Roper | 8 February 2021

You’re not on your own with BSA…

Posted 4 October 2019 | | 0 Comments

The UK economy is going through uncertain times and for many, times are tough. That’s why we like to remind UK companies that BSA Buying Group is here to protect your company finances. We offer a convenient way of validating whether your company is getting true value for money across its running costs.

Most companies never compare their deals with other companies, so how do they know they’ve got great value? So many buyers are convinced they’ve secured a competitive deal, but then we benchmark it and find that there is still 20-30% cost savings available. That’s not because the buyers are poor negotiators – no-one goes out of their way to get a poor deal - it’s just that the majority lack the buying power to enjoy the most competitive deals out there.

That’s why over the last 15 years BSA Buying Group has been so popular; we offer your buyers the chance to break through the economies of scale barrier, to provide an independent benchmark of the value being enjoyed across a range of overheads, plus it frees up the buyers to focus on more business critical supplier activities.

BSA Buying Group – the vehicle to protect your cash flow

Let’s consider one important sub-group within BSA Buying Group – company vehicles. We’ve got this covered as we offer several elements relating to the cost of your vehicle fleet: highly competitive car and van leasing (from an award winning broker), fuel cards which outgun most other fuel cards, vehicle insurances which are tailored to your business needs, vehicle tracking. We can even reduce your fuel consumption by 5-15% thanks to our innovative fuel magnetic conditioners – just strap one to the fuel line in each of your vehicles and that’s job done. No need for ongoing maintenance, just fit and forget.

BSASmartCash – now we can protect your staff (& the planet)

We’ve spent the last 15 years saving money for companies. Now we want to do the same for your hard-working employees too. We call this new service “BSA SmartCash” and we’d love you to offer this to your staff as a thank you for their efforts.

Just as BSA Buying Group can save your company money, it also has options for those company buyers who want to turn their companies into more ethical, sustainable organisations. Likewise BSA SmartCash has the same approach; of course it’s main focus is on helping your staff reduce their household costs. But it also has elements within it where individuals can do their bit to protect the environment.

We can use our buying power to help protect your staff in the following 3 ways:

Protecting cash

• Discounts off hundreds of retailers, cinemas, restaurants, hotels and entertainment venues across the UK
• A discount club on household services - gas, electricity, landlines, mobiles, broadband and LED lighting with 5-star service and 'double the difference' price promise - as well as cashback discounts off online and offline shopping;
• Highly competitive personal car lease deals for your Directors and staff; Click here to get a personal vehicle leasing quote.

Protecting the family

• Tailored financial health check, including pensions and retirement planning. They can also review your individual staff's private life and medical cover (assuming that you as the employer don't wish to offer this a company-wide benefit scheme; if you do wish to set up a company-wide scheme, BSA Buying Group can also help).

Protecting the planet

• Cut household and vehicle fuel bills by an average of 5-15% through greater fuel efficiency with our fuel conditioners; and reduce limescale build up with our water conditioners and thereby also save household bills through improved fuel economy and extending the life of heating appliances. Click here to buy these conditioners online.
• We can switch your staff to 100% renewable electricity and frack-free gas, greenest energy company in the UK. Click here for a free quote.
• Ethical insurance: we believe that the ‘comparethemarket’ type online auto quotes lack the personal touch and risk giving households cheap insurance deals with inadequate protection. Our ethical insurer takes the time to understand the individual’s insurance needs and donates up to 25% of their earnings back to the Wildlife Trusts.

So don't be alone. Call BSA today 0800 254 0344 to protect your company cash flow, your staff and their families, and the planet.

by Matt Roper | 4 October 2019

How well do you know your entire Supply Chain?

Posted 13 December 2018 | | 0 Comments

As you are aware, the UK Government is seeking support from its EU counterparts in a last-ditch attempt to secure a deal through Parliament. Most commentators think this will fail, meaning that there is now a high probability that the UK is heading for a No-Deal Brexit. Given this risk, it is imperative that Procurement functions prepare as best they can for a prolonged period of uncertainty and supply chain disruption.

As procurement and supply chain specialists, Buying Support Agency Ltd has audited countless clients’ procurement functions across many industry sectors since 2002. Yet worryingly, recent surveys show that, for the majority of UK businesses, there has been limited risk planning for a No-Deal Brexit. Even for those businesses that are preparing supply chain risk assessments, lack of internal resource means that only the most immediate (‘tier 1’) suppliers are likely to be included. This may give a false picture of the total risks – particularly if UK or non-EU based tier 1 suppliers are being reviewed.

Brexit is only one of several growing risks where exposure could bring severe economic and reputational damage, however. Other risks include cyber security, GDPR, financial risks and the need for extended legal compliance around stricter anti-slavery and anti-bribery legislation.

Buying Support Agency Ltd offers a solution to this challenge: We can provide independent, expert resources to provide detailed risk planning across a thorough breadth and depth of the entire Supply Chain using our tested approach and methodology. Our output provides our clients with a much clearer understanding of risk exposure through their extended supply chains.

In a world of change, the potential consequences of inadequate risk management are severe. For a no-obligation discussion, please call us on 01242 506970 today.

by Matt Roper | 13 December 2018

Classifying your goods in the UK Trade Tariff if there’s no Brexit deal

Posted 1 October 2018 | | 0 Comments

This second blog copies the HMRC guidance note re classification of goods for import/export should there be a no deal Brexit. The notice was published on 23rd August 2018.

In the event of “no deal”, goods traded between the UK and the EU after 23h on 29 March 2019 will be subject to the same requirements as third country goods, including the payment of duty. Under World Trade Organisation (WTO) rules, the principle of most-favoured-nation (MFN) treatment means that, unless a preferential agreement is in place, the same rate of duty, on the same good, must be charged to all WTO members equally.

For UK exports to the EU, the EU will require payment of customs duty at the rate under the EU’s CCT. For goods imported to the UK from the EU, the UK will require payment of customs duty at the rate set by the UK Government.

In preparing for “no deal” businesses will want to be aware of the following:

• the Taxation (Cross-Border Trade) Bill will provide the necessary powers for the UK to set its own tariff once it leaves the EU
• in a ‘no deal’ scenario, trade with the EU will be on non-preferential, WTO terms. This means that MFN tariffs and non-preferential rules of origin would apply to consignments between the UK and EU
• the EU will apply its MFN rates to goods imported into the EU from the UK. The EU MFN rates are set out in the CCT, where they are listed as “erga omnes” (which translates as “towards all”), rather than stating a specific country. The EU may change these rates between now and March 2019, but this provides an indication
• the UK will apply its MFN rates to goods imported into the UK from the EU. The government will determine and publish these new UK duty rates before we leave the EU. They may be different from the rates in the EU’s CCT
• the UK intends to continue offering unilateral preferences to developing countries, and to seek to transition all EU Free Trade Agreements for day 1 in order to ensure continuity for both goods imported to the UK, and for UK exports. Maintaining these benefits is of clear importance to businesses, consumers and investors, and will ensure a smooth transition for users of these provisions as we leave the EU. Further information on preferential trade under the UK’s existing trade agreements will be captured in the Trade Agreement Continuity technical notice
• the UK Trade Tariff, detailing the import duty rates and rules that will be applicable to each good, will be made available free on GOV.UK in the same way as now. Importers of goods into the UK will no longer use EU Tariff information published by the EU
• the UK does not intend to immediately change the classification of goods in a “no deal” scenario. The UK does not plan any immediate deviation from the current commodity code list published in the UK Trade Tariff, which is currently applied by the EU, except where necessary to maintain alignment with international standards, or for trade remedies purposes.

What you would need to do

Anyone importing goods into the UK from the EU, or exporting goods to the EU from the UK, will have to comply with customs procedures, where these were not previously necessary. As set out above, this includes the potential payment of duty on UK-EU trade.

Establishing A UK Trade Tariff

The Taxation (Cross-Border Trade) Bill provides the powers for HM Treasury to establish a new UK trade tariff.

The importer (or their agent) must use the guidance in the tariff to help decide the correct classification of their goods (although it should be noted that the guidance is not the legal text of the tariff). This will require knowledge of the item being classified, as well as its constituent parts: what it is made of, and the purpose for which it will be used. It will also be necessary to know where it originates from. The process of classification will result in a numeric commodity code. The commodity codes will be listed in the Tariff with the rate of import duty applicable to the goods falling within those codes (duty rates are shown either by formula or percentage of the customs value of the goods). The Tariff will contain rules for determining the amount of import duty applicable to those goods based on their description (the commodity code) and country of origin.

The Tariff will also set out import procedures such as how the value of a good is calculated, and which forms, codes, and procedures are to be used.

The UK Trade Tariff will replace the EU CCT for imports to the UK. HMRC already publishes tariff data online for use by UK traders with third countries. Those currently importing goods from third countries into the UK will be familiar with this system.

UK Commodity Codes

Commodity codes in the EU are 10 digits long for imports, and 8 digits long for exports.

Commodity codes are standardised under the World Customs Organisation’s Harmonised System for the first 6 digits of the code. The UK is, and will remain, a participating country in this system.

The Harmonised System allows additional digits to be set by Customs authorities. Tariff codes beyond 10 digits are used for some food products, to identify sugar, starch, and fat content, and for trade defence measures. The UK does not intend to immediately change any commodity codes, but the rules will be set out in new UK regulations rather than EU ones.

Classification - an example

I am seeking the commodity code for a grand piano. Searching for “grand piano” on the UK Trade tariff identifies the commodity code 9201200000 for imports (92012000 for exports).

The tariff has a hierarchical structure. The first two digits (92) are the “chapter”, and refers to Musical instruments; parts and accessories of such articles. The next two digits (01) are the “heading”, and identify pianos, including automatic pianos; harpsichords and other keyboard stringed instruments. The following two digits (20) are the “sub-heading”, and identify a grand piano.

Up to this level, the same digits are used internationally as part of the Harmonised System. Because no further distinction is required, the next two pairs of digits are each 00.

For a more detailed worked example, please see the classification section on the uktradeinfo website.

More Information

Trade Tariff: look up commodity codes, duty and VAT rates – this will replace the EU CCT for imports to the UK.

https://www.trade-tariff.service.gov.uk/trade-tariff/sections

For business exporting to the EU, the EU publishes its tariff online TARIC, the integrated Tariff of the European Union. This is a multilingual database integrating all measures relating to EU customs tariff, commercial and agricultural legislation.

http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en

by M Roper | 1 October 2018

HMRC Guidance re trading with the EU if no Brexit Deal

Posted 1 October 2018 | | 0 Comments

Here is a copy of the recent HMRC Guidance notice re trading with the EU if there is no Brexit deal. It was published on the Gov.UK website on 23rd August 2018.

Businesses importing from the EU in a 29 March 2019 ‘no deal’ scenario

After the UK leaves the EU, in the event of a ‘no deal’ scenario, businesses importing goods from the EU will be required to follow customs procedures in the same way that they currently do when importing goods from a country outside the EU. This means that for goods entering the UK from the EU an import declaration will be required, customs checks may be carried out and any customs duties must be paid.

Before importing goods from the EU, a business will need to:

• register for an UK Economic Operator Registration and Identification (EORI) number. Businesses do not need to do anything now. There will be further information available later in the year. For those businesses that sign up for the EU Email updates, they will be contacted when this service becomes available
• ensure their contracts and International Terms and Conditions of Service (INCOTERMS) reflect that they are now an importer
• consider how they will submit import declarations, including whether to engage a customs broker, freight forwarder or logistics provider (businesses that want to do this themselves will need to acquire the appropriate software and secure the necessary authorisations from HMRC). Engaging a customs broker or acquiring the appropriate software and authorisations form HMRC will come at a cost
• decide the correct classification and value of their goods and enter this on the customs declaration. To help classify the goods correctly, the following may be useful:
• HMRC publishes tariff information and guidance alongside the list of commodity codes needed to classify goods together with all the tariff rates, and measures

When importing goods from the EU, a business will need to:

• have a valid EORI number
• make sure that their carrier has submitted an Entry Summary Declaration at the appropriate time (see section 3)
• submit an import declaration to HMRC using their software, or get their customs broker, freight forwarder or logistics provider to do this for them
• pay Value Added Tax (VAT) and import duties including excise duty on excise goods unless the goods are entered into duty suspension (for example a customs or excise warehouse – a financial security will be required to cover the duty liability of the goods whilst they are being moved to the warehouse). Import VAT may also be due and more information regarding paying import VAT can be found in the ‘VAT for businesses if there’s no Brexit deal’ technical notice
• once excise goods leave a customs suspensive arrangement, they may be immediately entered into an excise duty suspension regime. A business will need to declare the goods on EMCS for onward movement via a Registered Consignor. Further information on how to do this can be found in Public Notice 197.

Businesses may also need to apply for an import licence or provide supporting documentation to import specific types of goods into the UK, or to meet the conditions of the relevant customs import procedure.

Businesses exporting to the EU in a 29 March 2019 ‘no deal’ scenario

After the UK leaves the EU, in the event of a ‘no deal’ scenario, businesses exporting goods to the EU will be required to follow customs procedures in the same way that they currently do when exporting goods to a non-EU country.

Before exporting goods to the EU, a business will need to:

• register for an UK EORI number. You do not need to take action now but you will want to familiarise yourself with this process
• ensure their contracts and International Terms and Conditions of Service (INCOTERMS) reflect that they are now an exporter
• consider how they will submit export declarations, including whether to engage a customs broker, freight forwarder or logistics provider (businesses that want to do this themselves will need to acquire the appropriate software and secure the necessary authorisations from HMRC). Engaging a customs broker or acquiring the appropriate software and authorisations from HMRC will come at a cost.

When exporting goods to the EU, a business will need to:

• have a valid EORI number
• submit an export declaration to HMRC using their software or on-line, or get their customs broker, freight forwarder, or logistics provider to do this for them. The export declaration may need to be lodged in advance so that permission to export is granted before the goods leave the UK (the export declaration also counts as an Exit Summary Declaration – see section 3)
• businesses may also need to apply for an export licence or provide supporting documentation to export specific types of goods from the UK, or to meet the conditions of the relevant customs export procedure.

When exporting duty suspended excise goods to the EU, a business will need to continue to use EMCS to record the duty suspended movement from a UK warehouse or premises to the port of export.

Carriers moving goods between the UK and the EU – Safety and Security Declarations

After the UK leaves the EU, in the event of a ‘no deal’ scenario carriers (for example hauliers, and train, vessel or aircraft operators) will need to make a Safety and Security Declaration for goods moving between the UK and EU. There are two types of Safety and Security Declarations: an Exit Summary Declaration (EXS) and an Entry Summary Declaration (ENS).

A carrier is generally required to submit an EXS to the customs authority of the country from which the consignment is being exported. For consignments exported from the UK the EXS generally forms part of the Export Declaration (a customs declaration).

A carrier is required to submit an ENS to the customs authority of the country that the consignment is entering.

Mitigations businesses may consider in a March 2019 ‘no deal’ scenario

Businesses should now consider the impacts on them in a ‘no deal’ scenario, which would mean a requirement to apply the same customs and excise rules to goods traded with the EU that apply for goods traded outside of the EU, including the requirement to submit customs declarations. Businesses should consider whether it is appropriate for them to acquire software and/or engage a customs broker, freight forwarder or logistics provider to support them with these new requirements.

Businesses may want to consider whether using customs procedures would be beneficial. These allow businesses to delay or relieve the payment of customs duty for goods they import into the EU until goods are ready to be released into free circulation. A customs broker, freight forwarder or logistics provider can advise in the event of a ‘no deal’ scenario whether one of these procedures would be suitable for your business. Customs procedures include the following:

• customs warehousing: this allows businesses to store goods with duty or import VAT payments suspended. Once goods leave the warehouse, duty must be paid unless the business is re-exporting, or moving goods to another customs procedure. The warehouse must be authorised by HMRC
• inward processing: this allows businesses to import goods from non-EU countries for work or modification in the EU. Once this has been completed, any customs duty and VAT due must be paid, unless goods are re-exported or moved to another customs procedure, or released to free circulation
• temporary admission: this allows business to temporarily import and or/export goods such as samples, professional equipment or items for auction, exhibition or demonstration into the UK or EU. As long as the goods are not modified or altered while they are within the EU, the business will not have to pay duty or import VAT
• authorised use: this allows a reduced or zero rate of customs duty on some goods when used for specific purposes and within a set time period.

For excise duty purposes, goods are not regarded as imported if they are immediately placed under one of these customs procedures. Businesses need to pay excise duty when these goods are released for free circulation, unless they are immediately placed in excise duty suspension.

As part of considering the potential impacts, businesses should take account of the volume of their trade with the EU and any potential supply chain impacts.

Businesses should now begin to look at the guidance for importing and exporting outside of the EU to familiarise themselves with the key processes. The UK government will provide further information on action to take to prepare for this scenario over the coming months.

As part of the government’s own preparations, the UK has applied to re-join to the Common Transit Convention (CTC) when it leaves the EU. The CTC facilitates cross border movements of goods between contracting parties to the Convention, by enabling any charges due on those goods to be paid only in their country of destination. The negotiations on the UK’s membership of the CTC are ongoing.

The UK government is committed to deliver a functioning customs, VAT and excise system that enables trade to flow, revenues to be collected and for the UK to have a secure border following the UK’s exit from the EU.

by M Roper | 1 October 2018

Effective Negotiation eBook now available

Posted 11 August 2016 | | 0 Comments

Effective Negotiation eBook (NEW)

All business professionals, particularly buyers and sellers, need to master their negotiating skills if they are to succeed in their careers. Following on from our highly successful Effective Negotiation training course, our CEO Matt Roper has written an eBook "Clinching the Deal...43 minutes to Negotiation Success" (PDF format). which you can now download.

Just click on the appropriate button below (there are 3 currency options, Pounds Sterling, Euros or US Dollars):

Buy now

Buy now

Buy now

by M Roper | 11 August 2016

BSA Buying Group partners with webexpenses

Posted 28 July 2016 | | 0 Comments

BSA Buying Group is delighted to launch a partnership with cloud-based expenses management software provider, webexpenses.

Thanks to the partnership, BSA offers all BSA Buying Group clients a 10% discount on webexpenses software.

Since 2000, the powerful feature set is designed to help companies fully manage employee expenses in one integrated solution for greater efficiency. Webexpenses software is simple, intuitive and significantly reduces the time staff spend submitting expenses.

The award-winning software is proven to save businesses time and money by automating the expenses process. Webexpenses can save businesses to 25% in T&E processing costs.

Configured for your company

Webexpenses software can be configured to your company, whether you are a SME or an international business - webexpenses can work with all sized organisations.

Seamless integration

Webexpenses integrates seamlessly with all major financial software providers; including Xero, SAGE and SAP. Webexpenses talks to your existing finance software; providing the flexibility to choose the best solution for your set-up. Whichever option you decide, the set-up is a simple and hassle-free process with no disruption to your business.

Click here to read more...

by M Roper | 28 July 2016

BSA Buying Group launches Vehicle Fleet Leasing

Posted 21 July 2016 | | 0 Comments

BSA Buying Group has recently launched its 24th overhead cost category - Vehicle Fleet. We've developed a framework of commercial vehicle leasing brokers to provide members with access to significantly improved vehicle fleet leasing deals.

All brokers have been carefully selected to ensure high levels of customer care, and all are members of the British Vehicle Rental and Leasing Association (BVRLA).

If you're looking to reduce the cost of leasing your commercial fleet, why not use our buying power? Give us a call on 0800 254 0344.

by Matt Roper | 21 July 2016