Future of True North Brew Co secured, saving 325 jobs
The future of Sheffield-based True North Brew Co has been secured following a sale out of administration in a deal which safeguards approximately 325 jobs.
Howard Smith and Rick Harrison from Interpath Advisory were appointed joint administrators to True North Brew Co Limited on 2 August 2023.
The company operates 12 licensed venues across South Yorkshire, as well as its own brewery and distillery.
In common with many other leisure and hospitality businesses, True North Brew Co had been negatively impacted by lockdown measures during the COVID-19 pandemic and the ensuing series of economic and trading headwinds, including spiralling food, labour and energy costs.
Immediately following their appointment, the joint administrators concluded a sale of the business and assets to Cocktails and Craft Beers Limited. All of the company’s 325 employees have transferred to the purchaser as part of the transaction.
Howard Smith, Managing Director at Interpath Advisory and joint administrator, said: ”True North Brew Co’s pubs and bars have long been a popular destination for customers across South Yorkshire, but the impact of lockdowns and hyperinflation have placed an enormous amount of pressure on the business.
“After exploring a number of options, we’re pleased to have concluded this transaction which will see the continued operation of the company’s venues, brewery and distillery, and which importantly, safeguards over 300 jobs. We wish the management team all the best for the future.”
Irwin Mitchell acted for the administrator, while Lupton Fawcett acted for the purchaser.
Interest rates rise again
The Bank of England has raised interest rates for the 14th time in a row, to 5.25%, as it looks to fight inflation.
It marks a quarter percentage point increase and comes despite inflation coming down quicker than expected in June. However at just under 8% inflation remains quadruple the Bank’s target.
The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 6–3 to increase Bank Rate by 0.25 percentage points. Two members preferred to increase Bank Rate by 0.5 percentage points, to 5.5%, and one member preferred to maintain Bank Rate at 5%.
The Bank noted that inflation is expected to fall to around 5% by the end of the year, accounted for by lower energy, and to a lesser degree, food and core goods price inflation. Services price inflation, however, is projected to remain elevated at close to its current rate in the near term. Inflation is anticipated to return to the 2% target by 2025 Q2.
A statement from the Bank of England said: “Inflation in the UK has begun to fall, the economy is growing and unemployment is low. But inflation is still too high. In June, prices were 7.9% higher than a year ago, well above our target of 2%.
“As the UK’s central bank, an independent body, our job is to keep price rises in the UK low and steady. The best way we can make sure inflation comes down and stays down is to raise interest rates. So that’s what we’re doing.
“We’ve raised our interest rate to 5.25% this month.
“Higher interest rates mean higher costs for some people. We know that is not easy when there is already a lot of pressure on their finances.
“But if we don’t raise interest rates now, high inflation could stay with us for longer. That hits everyone, particularly those who can least afford it.
“We expect inflation to fall further to around 5% this year and meet our 2% target by early 2025. That means prices would still be rising, but they would be only rising gradually.”
Anna Leach, deputy chief economist, CBI, said: “With inflation having come down quicker than expected in June, the pressure was eased on the MPC to deliver another bumper rate rise. But, with inflation close to 8% – quadruple the Bank’s target – and wage growth around 7%, interest rates are likely to head higher in coming months.
“Economic conditions remain challenging for households and businesses alike. For firms, the cost of inputs is a third higher than pre-pandemic, the labour market remains very tight driving up wage and recruitment costs, and demand is sluggish.
“Meanwhile real incomes are still falling for households and higher interest rates are squeezing spending power further. To drive up growth and living standards in the UK without generating inflation, we need investment to increase the productive capacity of the economy.
“Improvements in the tax and regulatory system – as recommended in our recently published tax roadmap and green growth reports – can provide a platform for transforming the UK economy.”
Stronger than expected first half for Belvoir Group
Belvoir Group, the property franchise and financial services group with its central office in Grantham, has witnessed a “stronger than expected” first half.
According to a trading update, revenue during the six months to 30 June 2023 increased by 3% on 2022, with revenue growth in both its property franchise and financial services adviser networks, despite more challenging market conditions in the first half of 2023.
The business noted that it is “outperforming the market across all three of its revenue streams; lettings, sales and financial services.”
Dorian Gonsalves, CEO of Belvoir Group, said: “Our tried-and-tested franchise business model, the diversity of our income streams, the recurring nature of our lettings revenue and our successful acquisition strategy, both at franchisee and corporate level, have enabled the group to meet and overcome the challenges currently facing the property sector.
“Our franchisees derive 80% (H1 2022: 78%) of their income from recurring lettings fees and have benefitted from increasing rents. This has more than offset the impact of a reduction in UK housing transactions in H1 2023. Meanwhile, our financial services advisers have been able to meet client demand for remortgages and product transfers in the face of increasing mortgage rates and this has mitigated the reduction in new purchase mortgages.
“The high degree of uncertainty created in the property and mortgage markets following the mini budget in September 2022 and subsequent interest rate rises, resulted in a drop-off in mortgage applications and house sales instructions towards the end of 2022 and made it very difficult to forecast the impact of increasing bank base rates on these markets in 2023.
“However, the outperformance of our business model continues to reflect the entrepreneurial nature of our franchisees and self-employed financial services advisers, who remain entirely focused on maximising the opportunities presented in all market conditions.”
Streets Chartered Accountants covers tax topics, NICs, alcohol duty changes and Investment Zones in new news roundup
Streets Chartered Accountants covers tax topics, NICs, alcohol duty changes and Investment Zones in its latest monthly news roundup.
South Yorkshire first UK Investment Zone
It was announced as part of the Spring Budget 2023 measures that the government would establish twelve Investment Zones across the UK, subject to successful proposals. South Yorkshire has now been named as the first of the UK Investment Zones…
What do we mean by cost of living?
A simple dictionary definition of cost of living would probably say something like:
The level of prices relating to a range of everyday items…
The problem is, the price inflation for food, or fuel for your car, or heating costs will vary. Although inflation is quoted as just under 9% in the UK, this disguises the true rate of cost increases in different sectors…
Getting a SA302 tax calculation
The SA302 tax calculation and tax year overview documents are commonly used as evidence of income for loan or mortgage purposes for the self-employed. The forms have become more widely used since the mortgage rules have required evidence of income for the self-employed. The SA302 provides this evidence for the last four years Self-Assessment tax returns…
Tax on savings interest
If you have taxable income of less than £17,570 in 2023-24 you will have no tax to pay on interest received. This figure is calculated by adding the £5,000 starting rate limit for savings (where 0% of the interest is taxable) to the current £12,570 personal allowance. However, it is important to note that if your total non-savings income exceeds £17,570 then the starting rate limit for savings is unavailable…
Tax on property you inherit
If you inherit property, you are usually not liable to pay tax on the inheritance you receive. This is because any Inheritance Tax (IHT) due should be paid out of the deceased’s estate before any cash or assets are distributed to the estate beneficiaries…
When you don’t have to pay Capital Gains Tax
In most cases, there is no Capital Gains Tax (CGT) to be paid on the transfer of assets to a spouse or civil partner. There is, however, still a disposal that has taken place for CGT purposes, effectively, at no gain or loss on the date of the transfer. When the asset ultimately comes to be sold the gain or loss will be calculated from when the asset was first owned by the original spouse or civil partner…
Filling gaps in your NIC record
National Insurance credits can help qualifying applicants fill gaps in their National Insurance record. This can assist taxpayers in building up the number of qualifying years of National Insurance contributions and which can also increase the amount of benefits a person is entitled to, such as the State Pension…
Check a UK VAT number is valid
The check a UK VAT number service is available at: www.gov.uk/check-uk-vat-number.
This service allows users to check:
- if a UK VAT registration number is valid; and
- the name and address of the business the number is registered to…
‘Fairtrade Community’ status renewed in Hull
Hull has once again been recognised as a Fairtrade Community, ensuring farmers and workers in developing countries around the world are paid a fair price for their goods, earn a living wage and their communities benefit from educational and medical provisions.
The accolade was awarded by the UK Fairtrade Foundation and proves the city’s commitment to have promoted Fairtrade across Hull through campaigns and events, as well as demonstrating that a wide range of people and organisations are involved.
Hull’s Fairtrade Partnership is made up of representatives from voluntary, community and faith sector groups, Fairtrade activists, council officers, elected members, local Fairtrade businesses and Hull University Student Union.
Cllr Rob Pritchard, portfolio holder for culture and leisure at Hull City Council and chair of the Hull Fairtrade Partnership said: “Hull has always had time to stand up for social justice and is proud to be recognised as a Fairtrade Community.
“Every action taken to support Fairtrade locally challenges unfair trade practices and advocates for decent workers’ rights, safer working conditions and fairer pay for farmers and workers globally.
“Everyone involved in the Hull Fairtrade Partnership and many others who have supported our local Fairtrade campaigns should be proud that Hull has achieved this award.”
Hull City Council passed a resolution to become a Fairtrade City in 2005.
Isabelle Tracy, Co-op Member Pioneer and Hull Fairtrade Partnership member, added: “The Co-op pioneers Fairtrade products as part of our mission to promote the aims of the World Fairtrade Organisation and Fairtrade Charter.
“As a Co-op Member Pioneer, I help to drive Co-op’s commitment to ethical trade and local community activism.
“I am proud to have supported Fairtrade events in Hull over the past two years and look forward to many more of them.”
Rotherham set to agree £6.4m of funding to support economy
Ensuring that more residents benefit from a more inclusive local economy is at the heart of proposals set to be considered by Rotherham Council.
Rotherham Council’s Cabinet are set to allocate the £6.4m of borough’s UK Shared Prosperity Fund (UKSPF) monies next month.
Recommendations on how to use the funding is focused on increasing opportunities for residents across the borough in employment, skills and support to local businesses.
Proposals for the funding will be allocated across three areas, including:
- Supporting Local Business
- People and Skills
- Communities and Place
BT Group’s flagship Sheffield office building reaches key milestone
BT Group has marked a key milestone in the development of its multi-million-pound new home in Sheffield, as the state-of-the-art building was formally handed over from developer, Scarborough Group International (SGI).
The tech and telecommunications firm celebrated the latest phase of construction of its Endeavour building, which will serve as its new South Yorkshire base, alongside representatives from SGI and Oliver Coppard, Mayor of South Yorkshire.
Delegates gathered at the seven-storey, 65,000 sq ft office building to hold a hand-over ceremony, marking the completion of the building’s structure and preparing it for the next phase of its development.
BT Group will now progress the fit-out and kit-out of the building to prepare to welcome staff next year.
Endeavour forms part of BT Group’s Better Workplace Programme, one of the largest workplace improvement and consolidation schemes of its type ever undertaken in the UK.
Sheffield joins other key locations including Belfast, Birmingham, Bristol, Cardiff, and Glasgow in undergoing a workplace transformation under the Programme. It also follows the multi-million-pound refurbishments of BT Group’s contact centres across the UK, including its site in nearby Doncaster.
South Yorkshire’s Mayor Oliver Coppard said: “It’s great to see businesses like BT expanding their base here in South Yorkshire, not only creating a brilliant working environment for their teams but redeveloping a key site in Sheffield City Centre, too.
“The Endeavor building is located within South Yorkshire’s Investment Zone – the first to launch in the UK. It’s a really exciting time for our region as we work to make South Yorkshire the best place to start, scale or relocate businesses, and I’m glad BT are going to remain a part of it.”
Brent Mathews, property director at BT Group, said: “This investment demonstrates BT Group’s continued commitment to Sheffield and Yorkshire, which remains central to our long-term plans.
“Our Better Workplace Programme is about modernising the spaces where our colleagues work and giving them buildings and facilities they can be proud of.
“The handover ceremony is a key landmark in our journey towards opening this state-of-the-art building for our colleagues in the region, and we look forward to opening the doors to them next year.”
BT Group will take up all floors in the 65,000 sq ft building.
The state-of-the-art Endeavour building is the final phase of the acclaimed Sheffield Digital Campus and will allow colleagues to collaborate and to work more efficiently, helping to boost the service it provides to customers.
Adam Varley, development director at SGI, said: “Our decision to proceed with the speculative development of Endeavour in the midst of the pandemic was driven by our confidence that the building would have a meaningful impact on the wider city, stimulating the creation of new jobs and driving economic growth; a decision that was later rewarded having secured BT Group.
“Throughout the construction of the building, we worked collaboratively with BT Group’s Property team to ensure that it fully aligned with their ambitions to create a truly unique and innovative workplace and we’re delighted to officially welcome them to their new home so that they can start their fit-out process.”
R&D claims to come under greater scrutiny, as HMRC reveals £1 billion of ‘fraud and error’
Challenges against R&D claims are set to ‘intensify’ for businesses, after HMRC uncovered more than £1 billion of ‘fraud and error’.
A new report from HMRC has revealed £1.13 billion of fraud and error in research and development tax credits claimed by SMEs in 2020-21.
According to the report, the overall level of error and fraud for both R&D tax relief schemes (SME and RDEC) across all sectors of the economy was the equivalent to 16.7% of claims, significantly higher than HMRC’s previously published estimate of 3.6%.
Ross Northall, BDO partner and head of Innovation Taxes for the North, said: “This announcement will have a significant impact on businesses, particularly SMEs, as it cements HMRC’s stance on R&D claims and the level of challenge it’s prepared to undertake against potential fraud and error. What is clear is this level of scrutiny is not going to go away and will in fact intensify, as HMRC seeks to use newly introduced legislation to challenge claims.”
In August, tighter rules around R&D claims will come into force. Claimants or their R&D advisers will have to fill in an Additional Information Form which is designed to allow HMRC to quickly assess the validity of any claim and the level of expertise of any R&D agent used to prepare the claim. HMRC has also risk-profiled claims across the different business sectors and by size of claim.
Northall added: “Businesses will need to ensure more than ever that they are clearly demonstrating their qualifying activities to HMRC when submitting claims and, where they use professional advisors to support them in doing this, that they have the skills needed to provide high quality advice and support to these businesses.
“Failure to do so could result in HMRC opening enquiries that will prove expensive and time consuming to deal with. Should HMRC be successful in their challenge, it will also result in the denial of relief, potential penalties, and the possibility of HMRC also looking at earlier submitted claims, further compounding the problem.”
The figures come as the government unveiled draft legislation to change the UK R&D regime, with proposals to merge two schemes – the Research and Development Expenditure Credit (RDEC) and the small or medium enterprises (SME) R&D relief.
The aim of the single R&D relief scheme is to achieve tax simplification, including having a single set of qualifying rules, particularly around subcontractor costs and in the restriction of claims where R&D work is deemed to be subsidised.
Northall warned that the changes could go ‘too far too fast’ if implemented from April 2024, hitting innovative businesses and creating more uncertainty. He said: “Following the review of R&D reliefs launched in Rishi Sunak’s 2021 Spring Budget, the government has taken many steps to reduce the costs of the UK’s R&D scheme to get better ‘value for money’ – while this is understandable, I’d argue that this latest move is going to prove the most disruptive yet.
“Given all the recent changes, creating yet more uncertainty by changing the R&D regime again for accounting periods beginning on or after April 2024 could risk turning innovative businesses away from investing in the UK.”
The current SME and Research & Development Expenditure Credit (RDEC) schemes offer different rates of relief with the SME scheme being more generous – even after the reductions in tax relief from 1 April 2023.
Northall continued: “Under the proposals, many start-up and growing businesses will be concerned that they will get even less tax relief under a combined scheme – although the higher relief for R&D intensive businesses looks set to continue – albeit running alongside the new scheme.
“Businesses understand that the government will move the goalposts to make it harder for fraudsters to win tax reliefs from HMRC. But, making radical changes to tax law at such short notice not only creates uncertainty for compliant businesses it also risks introducing new rules with loopholes that fraudsters can exploit further down the line.
“The government has not made a final decision to push these changes through from April 2024 and I believe the changes should be delayed until at least 2026 so that they don’t damage the R&D investment the relief is supposed to support.”
Renewable energy projects to get more development cash from government
A multi-million-pound boost for cleaner, more secure energy will make Britain the ‘first choice’ for investors, says Energy Secretary Grant Shapps when he announced a £22million increase in Government backing for renewables through the flagship “Contracts for Difference” scheme.
The scheme – launched in 2014 – is the Government’s main system for supporting low-carbon electricity generation and has already led to an increase in the proportion of the UK’s energy coming from renewables.
In 2022, renewables fuelled around 42 per cent of the UK’s electricity generation – up from 7 per cent in 2010 – compared to around 21 per cent in the US and 23 per cent in Japan.
In the first quarter of 2023, renewables generated a record 48 per cent of our electricity, all making strong progress towards our targets to deliver a decarbonised power sector by 2035 and net zero by 2050.
Minister of State for Energy Security and Net Zero Graham Stuart, the MP for Beverley and Holderness, said: “Our successful, world-leading scheme has accelerated the roll-out of renewable, homegrown energy.
“Today’s increase will improve energy security and maximise the potential of the scheme. This will result in investment, a stronger renewables sector and growth to our economy.”
The increased funding combined with the introduction of annual auctions, will boost investments in Britain’s world-leading renewable industry, while strengthening the UK’s energy security, fostering growth in the country’s green industries and reducing exposure to volatile global gas prices. Energy Security Secretary Grant Shapps said the Russian invasion of Ukraine had made it plan that the UK had to do whatever was necessary to bolster the country’s energy security. Funding through our flagship Contracts for Difference scheme – the lifeblood of our renewables industry for nearly a decade – will help grow our economy by making Britain the first choice for investors in renewable energy projects and secure skilled jobs for future generations.“This will be the case for established technologies like solar, and new innovations like floating offshore wind and, alongside our backing for oil and gas, carbon capture and our revival in nuclear, will ensure we can help power more of Britain from Britain for decades to come.”
Today’s new funding for the current round (AR5) will mean:- An increased budget for established technologies such as solar and offshore wind – from £170 million to £190 million;
- An increase in the budget for emerging technologies such as floating offshore wind – up from £35 million to £37 million; and
- Maintaining £10 million ring-fenced budget for tidal stream projects
British Steel is at the heart of £35m railway station transformation
Scunthorpe-based British Steel is at the heart of a £35million transformation of Middlesbrough Rail Station – with a 200-tonne crane lifting in 40 tonnes of beams and columns.
They will form part of the ticket hall, new staircase, wall structures and undercroft, breathing new life into the site with new walkways and spaces for businesses, and providing increased capacity for more rail services.
An extension to the existing Platform 2 to cater for intercity rail services and a new Platform 3 to accommodate the planned increase in passenger rail services in the coming years are all part of the huge revamp. Work is being carried out by Story Contracting from Carlisle on behalf of Network Rail.
British Steel Strategy and Marketing Director Lisa Coulson said: “Building Stronger Futures is what we are about at British Steel and we are delighted we have been able to manufacture and supply vital materials to such an important and transformative project. In this case a local workforce has been key to the development of a pivotal project on their own doorstep.”
The project is set to be completed next year.
