issue 42» JUNE 2017

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HOW SAFE ARE BREXIT BRIEFING & TAX YOUR TECH SYSTEMS? MATTERS The recent Wannacry with good procedures in place attack can be limited. ransomware attack to protect their office systems There are simple changes FREE INSIDE which disrupted or website. Often, however, your business can implement organisations across businesses do not apply the to enhance security such as: Managing the globe is the latest in a long same level of security to mobile • Using antivirus software line of high profile incidents devices such as phones, USB and firewalls. Working that show how damaging the keys, laptops, tablets and • Keeping systems up to loss of systems and/or data other equipment. This was date and avoiding delay in Capital can be, both for individuals and powerfully demonstrated at applying the security patches Pg2 for organisations. PKF-FPM’s cybersecurity provided by your technology It is estimated that two seminar in February where an suppliers. thirds of businesses were international hacker showed • Keeping your backups up R&D hit by cybercrime last year. attendees how easily the to date and stored securely. Roadshows The problem has become so growth in computer related security of servers and mobile • Implementing strict Pg5 serious that PKF-FPM recently crime is that the complexity phones can be breached. controls for the use of mobile set up a dedicated cyber businesses need to manage is However, where organisations devices including limiting the security team to assist clients. increasing all the time. have good controls in place, use of apps and downloads Tougher One of the reasons for We see many businesses the potential damage of an continued on pg 3 > Stance from HMRC PKF-FPM Win Large Practice of the Pg6 Year and Overall Practice of the Year Leading island hosted by Colm O’Regan, Managing Director, Feargal to win these two prestigious based accountancy attracted a very influential McCormack, stated that he awards”. He added “PKF- practice PKF-FPM audience, including high profile was “humbled and overjoyed FPM always strive to exceed Accountants won leaders from the Irish business for the recognition of the our client expectations by the Overall Practice of the and accountancy sectors. collective PKF-FPM team leveraging technology, the year at the prestigious Irish digital revolution and cloud Accountancy Awards Gala accounting as tools to be the Banquet Ceremony which took business advisor of choice place on Thursday 18th May and help the businesses and 2017 at the Ballsbridge Hotel people we work with become in . more successful. PKF-FPM HOW WILL After winning the Large will continue to build a strong Practice of the Year earlier integrated client focused BREXIT in the evening against stiff team to ensure excellence competition, the final award in service delivery through of the evening, Overall emphasis on collaboration, AFFECT Practice of the Year, was communications, innovation presented to PKF-FPM with and creative thinking. We YOU? acknowledgement from the empower all TEAM members Brexit will have profound tax judges that PKF-FPM were to live the PKF-FPM Ethos implications for individuals innovative, caring business of positivity, enthusiasm and domiciled in , advisors with global expertise fun to ensure the best service the UK and Ireland. and local knowledge along Gerry Devitt, Managing Director of Harvest Financial for our clients!” Feargal was with a strong cross border Services presents the Overall Practice of the Year joined at the presentation Find out how you and your focus. award to PKF-FPM Directors, Feargal McCormack, ceremony by a cross section of business will be affected and The Awards Ceremony, Teresa Campbell and Malachy McLernon. members of TEAM PKF-FPM. how to minimise your future tax liabilities. Contact PKF-FPM’s Brexit Global Expertise with Local Knowledge |www.pkffpm.com Centre of Excellence. a newsletter from 2 pkffpm accountants about us NEWS PKF-FPM CORE VALUES Anne Heraty - Keynote Speaker at • Passionately believe in caring for our clients, colleagues and community. PKF-FPM/Ulster University Business • Listen, understand and solve, to make it happen. • Invest in the Best! School Leadership Talk • Pushing out boundaries and “Back yourself, believe in yourself, believe in your with the Ulster University Business School held at the Belfast creating opportunities. idea.” These are just some of the thoughts shared Campus. • A culture of ethical business with business leaders by Cpl Resources plc Chief During the one hour conversation with broadcaster Gerry and trust. Executive, Anne Heraty, as keynote speaker at the Kelly, Anne’s passion for business aligned to a clear set of • An ethos of positivity, PKF-FPM Annual Leadership Talk 2017. The event was part values was evident as she traced her career from telesales enthusiasm and fun! of the 2017 MLM Management Month initiative, in association to becoming the first female Chief Executive of an Irish company to float on the stock exchange. “Have no fear of failure. Success and failure are two sides of the same coin,” PKF-FPM says Anne. “Both are just experiences and each set different CORE FOCUS challenges for you.” Anne’s success in the business world has also been widely • Caring and proactivity are at the heart of everything we do; recognised by a raft of prestigious awards including the Ernst & Young Entrepreneur of the Year (2006), Business & Finance • We commit to helping you maximise your wealth and Business Person of the Year (2014) and Image Business lifestyle aspirations, through Woman of the Year (2015). In September 2016 she was understanding you and your elected the President of IBEC, the group that represents Irish business; and business. • We have a proven track Speaking at the event, which attracted a capacity audience, record in delivering simple PKF-FPM Managing Director, Feargal McCormack, stated solutions to complex problems. that Anne’s approach to leadership underpinned by values of honesty, respect and accountability was truly inspirational. “Anne Heraty is a role model in so many ways and a person PKF-FPM who has quietly and very effectively made a significant mark on THREE UNIQUES Ireland’s economic landscape.” (1) We ‘get’ you, and foster a Professor Mark Durkin, Executive Dean of the Ulster sense of urgency, with a bias University Business School, Anne Heraty and Feargal towards passionate thoughtful McCormack. action – (we’re business owners ourselves). (2) We’re different (“brave, bold and gutsy”, we tell you what we think, rather than what you would like to hear). Managing Working Capital (3) Acknowledged independently at local, regional Careful management of capital. Keep your overheads under and national level as “best in working capital will be critical review and look for opportunities to class” with unique Cross Border as business prepare for Brexit. substitute cost-effective alternatives expertise. Improving working capital builds where appropriate. resilience and is a cost-effective way to Speakers also covered the difference protect your company’s profitability and between cash and profit and provided a fund growth. wealth of practical tips including advice Last month (May 2017) PKF-FPM on how to move away from focusing on hosted a series of practical seminars in what credit the banks will provide for Belfast, Newry and to help your business to generating cash within businesses get a grip on their working your business so as to become self- capital management. sufficient from a working capital / day to Newry Office: Practical strategies discussed at the day operations perspective. Dromalane Mill, seminars included: The importance of robust, rigorous The Quays, Newry • Managing customers: Prompt and regular reporting on cash flow - T 028 302 61010 invoicing and effective control of daily bank reconciliations, weekly and account receivables and debtors which monthly forecasts - was also highlighted. Belfast Office: minimises payment times and provides In addition to these practical strategies, 1 - 3 Arthur Street, Belfast T 028 9024 3131 an early warning of potential bad debts. options such as sales credit insurance, Examine how long it takes to bill your leasing, asset-backed finance, debt Dungannon Office: customers and look for ways to reduce factoring, invoice discounting and 30 Northland Row, Dungannon this time and build efficiency. effective tax and VAT planning may also T 028 8775 0400 • Managing stock and Work-in- have a role to play depending on your Progress (WIP): Businesses sometimes business circumstances. Mallusk Office: Unit 1, Building 10, Central Park, make the mistake of allowing too much The seminars, run in association with Mallusk Road working capital to get tied up in stock Kevin Kelly from Management Credit Risk Brokers and Euler Hermes, T 028 9083 0801 and WIP. Implementing a robust stock Leadership Network addressing attend- were designed to help businesses and WIP management system that ees at the Belfast Seminar. understand the critical importance of Dundalk Office: keeps stock to a minimum will improve tracking and managing cashflow for Block 5, Quayside Business Park your working capital. Always remember growth, resilience and for peace of Dundalk, Co Louth. that the value of WIP normally reduces T 042 9388898 mind. over time as customers / clients may For information on how PKF-FPM Balbriggan Dublin North Office: forget the value of the service provided. can help your business improve your Balbriggan Business Campus • Managing suppliers: If your business working capital management, please Balbriggan, Co Dublin does not have a system that provides contact a member of our team. T 01 6913500 regular reliable data on how much you are spending with individual suppliers, www.pkffpm.com you may miss out on opportunities to Pictured (from left) are Cormac Harty [email protected] negotiate better terms. (Cormac Harty Insurance Services), Mike Buggy (Euler Hermes Ireland), • Managing overheads: Cost control Feargal McCormack (PKF-FPM and the elimination of unnecessary Accountants) and John Simpson expenses will improve your working (Credit Risk Brokers Limited).

All details and tax data correct at time of going to press. PKF-FPM cannot be held responsible for any errors, omissions or action taken as a result of the enclosed information. PKF-FPM always recommend that you seek professional advice and consultation. a newsletter from pkffpm accountants 3

Family Business Seminar ww

ADVICE issue 42» JUNE 2017

Leaders Convene In Belfast Business and Public Sector leaders from across Ireland were in Belfast in May for The Management & Leadership SuMMit sponsored by .

Pictured at PKF-FPM’s post-Budget breakfast briefing were Managing Director Feargal McCormack, Director Malachy McLernon, Irish News Business Editor, Gary McDonald and Brian Keegan, Tax Director, Chartered Accountants Ireland. Pictured above at the event were (from left), Kevin Kelly and Bill Manson (MLN). Lester Doak and Louise Butler (McKinty & Wright Solicitors), Post-Budget Guest Speaker and PKF-FPM client Tommy Bowe, Oonagh Murtagh (Dankse Bank), Feargal McCormack (PKF-FPM), Kevin Caldwell (Electric Breakfast Briefing Ireland) and Nick Reid (Ulster Business School). Over 200 guests attended a very equity-based portfolios worth more than about successful and informative PKF-FPM £60,000 (based on current UK dividend yields) Post Budget Breakfast Seminar at the who will pay more tax. Ironically one effect will be Quays Omniplex in Newry in March. to increase the appeal of ISAs. PKF-FPM Client to The event, run in partnership with The Irish Says Malachy, “The Chancellor Philip News, was chaired by Business Editor, Gary Hammond indicated last year that he wanted to Launch US Venture McDonald. Attendees heard Brian Keegan, Policy simplify the whole business of setting taxes and Shane Brett, Managing Director of PKF-FPM Client GECKO Governance was in New York recently and Tax Director, Chartered Accountants Ireland Government spending which had become too where he met with PKF O’Connor Davies to discuss highlight a number of significant Brexit issues, complicated thanks to the process involving not the launch of a new US venture. The meeting was some of which are discussed in more detail in one, but sometimes two, Budgets a year. We arranged through PKF-FPM’s membership of the PKF PKF-FPM’s Brexit Briefing 03. PKF-FPM Director, await the outcome post the UK General Election International network. Malachy McLernon was the lead speaker re the to see what happens with regard to the timing of Dundalk-based GECKO Governance provides a budget. future Budget Days.” RegTech fund management regulatory solution that Readers will be aware that this was the last allows users to schedule, manage and monitor a large portfolio of investment funds' regulatory and compliance UK Spring Budget. It came little more than requirements in real-time. The solution gives clients three months after an Autumn Statement that the ‘big picture’ by providing them with a live view of all suggested Government finances had taken a their funds' compliance requirements from one central post-referendum turn for the worse. However, dashboard. subsequent short-term economic numbers GECKO Governance was the overall new start up turned out better than the Office for Budgetary winner in the 2016 Inter-Trade Ireland Seedcorn awards. Responsibility’s (OBR’s) November projections. For once, the volume of Budget documents issued by the Treasury shrank significantly, but there were still some surprises to be found in the detail. Lions The biggest money raising measure for the Government was the cut in the dividend allowance Squad from 6th April 2018 which was unexpected and Trudy Grant, Enviro Group (pictured second catches not just the targeted owner managed Congratulations to from right) with PKF-FPM's Tanya Booth, PKF-FPM client companies but also personal investors with Magdelena Ryan and Aisling Hughes. Rory Best who was named on the Lions squad for this summer’s tour of New Zealand and played in the Lions How Safe Are Your Systems? opening game. < continued from cover Securing and protecting data e n f o r c e m e n t and ensuring that security patches is also critically important. There regime is set to are applied promptly. have been many instances get tougher with • Ensuring staff computer reported in the media where potential fines of screens are automatically locked data was compromised when up to €20 million or four per cent Bar of when individuals leave their desk. a laptop or USB key was lost of annual turnover for those who • Ensuring staff receive or stolen. As well as impacting fail to comply with the General the Year regular training and understand the bottom line through loss of Data Protection Regulation. the importance of not opening customer confidence - particularly PKF-FPM research suggests Award suspicious emails. where breaches involve the loss that around 90 percent of Congratulations to • Implementing protocols of financial information such as businesses will need to make PKF-FPM clients Colum to protect against CEO / CFO credit card or bank details, or changes to their data management and Sarah McAvoy, directors of The Bridge impersonation fraud. personal information such as policies and procedures this year Bar, Newry which was • Limiting guest access to your names, addresses and dates of in order to comply with the new named one of the top WiFi. birth — the reputational damage requirements. five bars in Northern • Restricting access to your can have long term adverse If your business is among Ireland at the Licensed technology and systems and consequences. those affected, now is the time to & Catering News ensuring that when staff members Organisations already have get in touch and find out how we Awards 2017 in the leave, their permissions are reporting obligations under data can help. Contact Dermot Morgan Europa Hotel on 2nd withdrawn. protection legislation and the [email protected] June. a newsletter from 4 pkffpm accountants

NEWS & Family Business Seminar A recent Family it is vital that we harness all that Business Breakfast is good within these businesses Seminar hosted by to maximise their potential and PKF-FPM Accountants put the necessary structures in Limited and Dundalk Chamber place to implement business of Commerce helped to succession in whatever form is identify and resolve common Gareth Chambers pictured with appropriate to each individual Margaret Munford of TV’s Apprentice challenges and issues faced by business,” Feargal said. fame and Sahar Hashemi founder of family businesses. Chamber President, Michael Coffee Republic. The event at Creative Spark, Gaynor said that there is Dundalk attracted a large a growing realisation that Leadership number of delegates. planning in family business is Feargal McCormack thanked key to success and requires Award for Dundalk Chamber for providing forethought and understanding . the opportunity to share PKF- “These seminars are a key Gareth FPM’s experience and offer part of informing and advising Gareth Chambers, CEO of practical advice in this area. business owners of all the Pictured at the Family Business seminar were (from left) Newry food-to-go firm Around “Family businesses are the obstacles they may face or are Feargal McCormack with Dundalk Chamber President, Noon Ltd is this year’s winner of backbone of our economy and not addressing,” Michael said. Michael Gaynor and Michael Farrell. the Herbert Smith Freehills Young Leader of the Year Award. Founded by Francis and Sheila Chambers in 1989, Around Noon is a family business that delivers sandwiches and snacks Success For daily across the UK and Ireland. Gareth became CEO of the PKF- FPM client firm in 2012. Under MJM Group his leadership, sales have grown The annual Belfast Telegraph Business Awards, in from £2 million to £20 million partnership with , brought double success for PKF-FPM client MJM Group recently when they scooped and his ambition is to achieve the Excellence in Exporting Award and went on to be turnover of £100 million by 2021. named Outstanding Business of the Year at a ceremony in the He received the award at the Crowne Plaza Hotel in early May. Young Leaders Northern Ireland Established by Brian McConville as a family-owned business in Conference in May, an event 1983, MJM Group is today a world leader in the refurbishment of that focuses on encouraging and Pictured (from left) are Martina McGrath, CEO of cruise liners, ferries, yachts, and all kinds of public buildings. inspiring future leaders. Bridgewater Management, Aidan Browne, Incubation The company received a further accolade on 24 May when Manager at RDC at DKIT, Amanda Kierans, CEO of Rain + MJM Group was named Exporter of the Year at the 9th annual Conker, Ken Rooney Head of North East Business Banking Are Lingus Viscount Awards organised in association with Ulster at AIB, Michael Farrell Director at PKF-FPM, and Dennis Business magazine. Nordon, ‎Managing Director at Hanley Energy. Rain + Conker scoops €12k The second annual New Frontiers Programme business competition concluded recently with PKF- FPM client Rain + Conker taking the €12,000 prize. Rehabilitating Founded in Dundalk by Amanda Kierans less than two years ago Rain + Conker supplies its range of children's Young clothing to consumers, retailers and wholesalers internationally. Rain + Conker fought off tough competition from almost 50 Offenders other start-ups from all over the North East region. The New Newry entrepreneur Tom Frontiers Programme was delivered by Dundalk Institute of Declan Kearney, Director of Communications Aer Lingus, O’Gorman and PKF-FPM client, has Technology and Dublin City University and funded by Enterprise Gary Annett, Naoimh McConville and Jo Crozier, MJM Group established a new scheme called Ireland. and Jo Freeman, cabin crew member. Phoenix Resources that aims to give young people leaving prison a chance to start their own business or secure employment. Tom stated, “What's a really great thing about it is the satisfaction you Horatio get from seeing a young person, who maybe needs a bit of help and Group guidance, making a better life for themselves. You think of the savings Success of keeping them out of prison, that's PKF-FPM client The Horatio Group £60,000-70,000 you can put back picked up awards for Denvir’s into the public purse.” Coaching Inn in Downpatrick and The Northern Whig in the UK National Pub and Bar Awards in May. Denvir’s, Northern Ireland’s oldest Deli Lites coaching inn was named Best Pub UK Nisa Award in County Down while The Northern Nominated Whig, regional winner for County Congratulations to client Deli for Milestone Antrim, went on to take the overall Lites Warrenpoint Cafe who PKF-FPM client Milestone, one of the leading award for Best Pub in NI. were nominated for Best Cafe Nisa stores in Northern Ireland, has been named in Co Down in this year’s Irish UK Nisa Store of the Year 2017. Situated in Mel Frazer-Reid, Startle; Stephen Restaurant Awards. Rathfriland, Co Down, Milestone’s latest success Magorrian, Managing Director builds on a strong track record of previous accolades of The Horatio Group; Gerard including UK Independent Retailer of the Year 2016, Keaney, Manager of The Northern Ireland's Food-to-go Retailer of the Year 2016 and NI Whig and Tristan O'Hana, Editor Bakery of the Year 2016. of Pub & Bar Magazine. 5

ADVICE issue 42» JUNE 2017 Strabane Company Secures Significant Investment PKF-FPM client O’Neill’s Irish International Sports Limited recently secured significant IPAV Seminar Invest NI support for their three year growth PKF-FPM’s Gary Digney (pictured above with Alan plan which will see them create 170 new jobs and invest £8.1m in new facilities and equipment in Redmond, IPAV President and Keith Anderson, Strabane. Anderson Auctioneers) delivered a well-received Managing Director Kieran Kennedy said the proposed presentation to the Institute of Professional investment is required to service the company’s Auctioneers & Valuers in March. expansion in exports markets. The theme was ‘Full and Final Debt Settlement for “The uncertainty surrounding the impact of Brexit on Irish Citizens and the significant options now available our business is likely to create further challenges in the to debtors on foot of the Personal Insolvency Act years ahead. Our business will continue to remain agile as it implements its Brexit proofing plan,” Kieran added. (Amended) 2015’. In the course of his presentation, PKF-FPM is delighted to be working in partnership Gary described the introduction of the Personal Success For with Kieran and the team as they embark on delivering Insolvency Act 2012 as ‘a game changer’ in relation to the next chapter of growth for this exciting company. personal debt settlements for Irish citizens. “In all solutions involving property there is a significant role for valuers and auctioneers in both MJM Group PKF-FPM Director Michael Farrell is pictured with Managing Director of O’Neills Sportswear informal and formal deals. As these deals are Kieran Kennedy. basically consensual and debtor led quite often the debtor will retain control of the sales and can choose the auctioneer in conjunction with the Personal Insolvency Practitioner (PIP). This is a joint approach with a PIP and the auctioneer. Every job will require at McElwaine Security Merger the very least a valuation of all properties with the very likely possibility of the properties being sold.” PKF-FPM client McElwaine and customers throughout Ireland expertise in the specialist electronic Gary outlined the new procedures and explained Security, based in Belfast and the UK. security sector.” and Lisnaskea, has “We see the opportunity for the “Brexit was a consideration but how the new Insolvency Act facilitates informal recently merged with the Dublin market to serve as a new not the motivating factor for the settlements. Dublin-based RAS Group. growth hub,” said Managing Director merger,” Mr. McElwaine added. “Pre 2012, if an Irish citizen had personal debts Established in 1996 to provide Jason McElwaine. Both companies have significant there was effectively no way out however the setting specialist electronic security services “We admire the talent, integrity business interests in each others up of the Insolvency Service of Ireland brought in and solutions initially within Northern and high skill levels that RAS Group territories with multinational clients procedures for full and final settlement that are largely Ireland, McElwaine Security has management and staff bring. This in the pharmaceutical, education, in line with the UK legislation. expanded year on year to meet the merger creates a compelling new government, retail and petroleum demands of both the local market mix of services, experience, and sectors. Long gone are the days of parking residual debt and zero interest coupons. Debt write off is now a possibility and is starting to be accepted by all stakeholders,” Gary said, adding that an informal agreement can be less costly than a formal Personal Insolvency Arrangement or Debt Settlement Arrangement. For further information on the new legislation, contact Gary Digney or PKF-FPM’s Recovery and Restructuring team. Kukoon Rugs Newry headquartered company The Rug House, a family run business with over twenty years trading experience throughout the UK and Ireland, recently rebranded as Kukoon Rugs. New Franchises for Pictured at Dublin Roadshow in Balbriggan Pictured at Belfast Roadshow were Malachy were Michael Farrell (PKF-FPM), Siobhan McLernon (PKF-FPM), Peter Grant (Helix Glenellen Ltd McCreesh (PKF-FPM), Oonagh Monahan Innovations Partnerships Ltd), Michelle Following the acquisition of three new McDonald (Helix Innovation Partnerships Ltd) & Tony Hawkins (PKF-FPM) & Siobhan McCreesh (PKF- franchises in Balbriggan, Drogheda and Navan, PKF- Lambert (Fingal Dublin Chamber). FPM). FPM client Glenellen Ltd now has five restaurants. The company, owned by Elaine & Glenn Sterio, already has R&D Roadshows the McDonalds franchises in Dundalk and Monaghan. PKF-FPM’s R&D team held their annu- keeping, capturing qualifying R&D costs, grant al R&D road-shows recently. assistance and making a claim for R&D relief Bankruptcy limit The events which took place and tax credits. in Belfast and Dublin were held in It is essential that companies engaged in increases from partnership with Helix Innovation Partnerships R&D have a good understanding of these issues £750 to £5,000 Ltd and Fingal Dublin Chamber of Commerce. as otherwise they could miss out on potential The purpose of these roadshows was to help financial benefits. For further information, Since 30th November 2016 creditors must be owed companies understand what R&D is and get to please contact a member of our R&D Centre of £5,000 or more before they can proceed to issue Bankruptcy proceedings against an individual. However grips with the practicalities of identifying R&D Excellence team. the threshold for a creditor to issue winding up proceed- activities. The presentations covered record ings against a company remains at £750. a newsletter from 6 pkffpm accountants

UK Bankruptcy ADVICE & NEWS A question that sometimes arises is whether the sale of a UK bankrupt’s home can be postponed in exceptional circumstances. The recent case of Grant & Another v Baker & Another (2016) provides some clarification. A Fair Cop? The bankrupt had an adult child with significant health issues. The Taxpayers with undeclared bankrupt’s trustee had applied, as offshore assets have an per the rules, to the court for an opportunity to get their order for the sale of the property 12 affairs in order before months after the anniversary of his the Common Reporting Standard appointment. The order for sale comes into force next year. was granted but the judge ordered Seamus McElvanna & Pat Donnelly that the sale could not proceed until explain what’s involved. such time as the bankrupt’s child HMRC is currently advising people By Seamus McElvanna no longer lived at the property or of the tougher stance being taken Senior Tax Manager needed it as their home. where individuals have not paid tax on The trustee in bankruptcy assets held offshore. appealed this decision, on the For almost 10 years, various forms grounds that the child’s health of UK tax amnesty have been open issues were not exceptional and through targeted disclosure facilities that an indefinite longstop date was an incorrect use of the judge’s for specific professions and trades. discretionary powers. These facilities, which included the On appeal, the court held that Liechtenstein Disclosure Facility and while there were exceptional before that the Offshore Disclosure & Pat Donnelly to you’. HMRC circumstances in this case, the Facility, offered significantly lower Senior Tax Manager explains that it has court could not grant an indefinite penalties to those who made voluntary and will continue to longstop date for the sale of the disclosures to HMRC. obtain new financial home and postponed the sale for Now a Worldwide Disclosure offshore property. information from over a further 12 months. The court’s Facility (WDF) allows people to The facility covers all direct taxes 100 jurisdictions so it is role in this matter is to enable the ensure their affairs are correct before and Inheritance Tax dating back up to clear they mean business. sale of the property in order to the Common Reporting Standard 20 years. So, at the time of writing the Meanwhile, the Code of release funds for distribution to the (CRS) comes into force in October open period goes back to 1997/98. Practice 9 (COP 9) enquiry regime bankrupt’s creditors. 2018. which is used where HMRC suspect If you have any queries on the The CRS was developed in 2014 Tougher Stance tax fraud has been committed treatment of the family home in in response to a G20 initiative driving continues to run in the background. bankruptcy, please do not hesitate The main benefit here is that immunity to contact Alison Burnside on 028 the automatic exchange of financial The most important change to 9024 3131 or at a.burnside@ information across jurisdictions. be aware of is that HMRC will from prosecution is offered where an pkffpm.com. Once in force, the CRS will in future take a tougher stance outline disclosure is made to HMRC give HMRC access to lots of new where those affected fail to act. within 60 days of the date of issue of information. This could potentially result in the COP 9 letter from HMRC. The WDF is available to UK significant penalties or even criminal New and non-UK resident businesses, investigation if the offence is deemed Revenue Insolvency organisations and individuals that serious enough. have a hitherto undeclared UK tax Under the new legislation HMRC The Irish Revenue Commissioners Rules liability from an overseas source will introduce new sanctions for recently closed (30 April 2017) a New rules governing insolvency or from a UK source that was later ‘requirement to correct’ or ‘failure to ‘voluntary disclosure’ opportunity for came into force in England and transferred to another country e.g. correct’. Those who make voluntary those with undeclared tax liability Wales in April. While it could be some a bank account in the Republic disclosures via the WDF will receive on offshore assets. Like the WDF, time before these changes come into of Ireland, Isle of Man or Jersey, lower penalties. An HMRC factsheet this offered those affected a chance operation in Northern Ireland, many an undeclared bank account in currently being issued states quite to pay the tax owing, interest and a NI businesses trade with businesses a deceased person’s estate and fraction of the penalties that would located in England and Wales so bluntly: ‘Come to us before we come it is important to be aware of the changes. In future, physical meetings of creditors will only be held if 10% or more in value of creditors request a physical meeting. Instead, creditors will be asked to make decisions by Improving Productivity correspondence, electronic voting and virtual meetings. HMRC’s proposed Making Tax expectations of the information that we to streamline and improve efficiencies. The new rules encourage the use Digital project in the UK will cause expect to have available at our fingertips Where cost savings are achieved, the of electronic communication between many businesses to review their 24/7. funds generated can be reinvested to insolvency practitioners and creditors accounting systems. Cloud-based accounting systems allow grow the business. and permit a much wider use of the Business owners often complain that businesses to view real time information PKF-FPM has seen numerous insolvency practitioner’s website traditional accounting focuses on the past anywhere, anytime. PKF-FPM clients instances where, with the right tools in as a means of making information when what they really want is real time are using these systems to invoice on place, accounts preparation is almost a available to creditors. Creditors who information that helps them drive the go, integrate bank information, non-event and finance teams are much see no benefit of being part of the their business forward. get profit and loss information by more strategically focused. insolvency process can ‘opt out’ from It’s not unusual to find receiving correspondence. However, month, year or location, analyse For business owners, the advantage those who opt out will not be able finance teams who rely on sales by staff member, monitor is that they can walk into a meeting to receive a dividend should one spreadsheets taking days key performance indicators, anywhere, anytime and have up-to-date become payable. or even weeks to produce speed up VAT returns and financial information at their fingertips. It is expected that there will be quarterly management reports. collaborate in real time with Importantly, when implemented some initial problems as creditors, Some take as much as 6-9 colleagues and PKF-FPM staff. effectively, real time accounting reduces directors and insolvency practitioners months to prepare the annual This cuts down on duplication risk and makes it easier to spot when get used to the new rules. To discuss financial statements. By the time these and time wasting and overcomes the things go wrong. This will be particularly the implications of the changes, reports become available, the information problem of bottlenecks in busy periods. important for businesses in the run up please contact Alison Burnside or is out of date so it is not surprising Systems that provide fast access to to Brexit. Conal Doherty on 028 9024 3131 that business owners complain about the more accurate, up-to-date information Implementing real time accounting can or at [email protected] and process. result in better productivity and improved be achieved on a step by step basis. For [email protected] In recent years, advances in technology process effectiveness. Finance staff can more information and to find out how PKF- have changed the traditional landscape. be released from manual processes and FPM can help you improve your business Mobile technologies in particular have transactional activities to focus instead on productivity and competitiveness, please been a game changer, raising our analysing data and finding opportunities contact a member of our team. a newsletter from pkffpm accountants 7

issue 42» JUNE 2017 Significant High Court Ruling Cyber Shocker! (23 May 2017) carried a report of a High Court judgment that has implications for how banks deal with insolvent debtors. The case concerned an insolvent couple whose bank had proposed to ‘warehouse’ half of their mortgage for Pictured were speakers Darren Martyn, Neil repayment at a later Richardson, Dr David Day with Feargal McCormack, date. PKF-FPM and Paul Hayes PKF Cooper Parry. Ms Justice Marie Baker ruled against the To raise awareness of the importance of bank. The significance cybersecurity and help clients understand how to of the ruling is that it protect against attacks, PKF-FPM hosted a special could make it more event in February where Darren Martyn, a hacker difficult to exclude turned good researcher, shocked attendees with live some mortgage demonstrations showing how easily the security on debt from write-offs servers and mobile phones can be breached. within the term of a Speakers at the event included Dr David Day, a personal insolvency National Crime Agency special officer working with apply if Revenue had chased the tax place where tax due is not paid. arrangement. the National Cybercrime Unit and Neil Richardson, themselves. PKF-FPM have a specialist tax “We at PKF- an academic, consultant and chapter lead for the There are obviously similarities investigation team with significant FPM believe that Open Web Application Security Project. with the approach taken by both tax experience in dealing with these warehousing is never Chris Tate from Datto explained the importance authorities. situations and can offer assistance in the solution,” says of proper business continuity solutions and gave negotiating with both tax authorities. Gary Digney. “It simply a ‘Live Disaster Demo’ using Datto’s Total Data Times they are a changing … Based on our experience of kicks the can down protection platform. handling these serious types of tax the road. It is essential Also speaking at the event were PKF-FPM IT Perhaps the most startling statement investigations and disclosures, we that debtors obtain Security and Digital Forensics Expert Consultant Dr. from HMRC’s factsheet is this: ‘things understand how stressful, invasive a write down with a Vivienne Mee and Robb Marshall of PKF Cooper are changing – the world is becoming and potentially life-changing these sustainable mortgage Parry IT Solutions who gave an overview of the more transparent.' situations can be. going forward in order issues that businesses need to consider. The bottom line is, if you have Taking specialist advice early on to achieve that long Two thirds of businesses were hit by cyber-crime concerns in either scenario, or both, is crucial to minimise the settlement term final solution.” last year yet research suggests that only 10 percent the chances of the tax authorities and give the individual peace of For further of breached companies have a cyber incident plan catching up with those impacted is mind. information, contact in place. higher than ever before. Please feel free to contact Gary Digney or PKF- If you are concerned about cybersecurity issues Tax authorities, North and South Seamus McElvanna or Pat Donnelly FPM’s Corporate in your business, talk to PKF-FPM’s business aim to leave people with no hiding at PKF-FPM to discuss further. Recovery & Insolvency advisory team to find out how we can help. team. Rural Enterprise General Data Protection Investment Scheme The second tranche of the Rural Investment Scheme Regulations ‘a game-changer’ opened recently in Newry, Mourne and Down District offers goods or services to EU If your business or Not for Council Area and the remaining councils are due to follow. residents or handles information Profit organisation, is not already Capital grants of up to £75k will be available for new about individuals based in the actively preparing for GDPR, it is micro, existing micro and existing small businesses EU on behalf of other entities. essential to begin work now so as (less than 50 employees) as well as training and Organisations that fail to comply to avoid problems when the rules marketing support. with the GDPR, could incur fines go live next year. The types of activity which may be supported of up to €20 million or four per The first step is to be aware include rural tourism, construction, social service Your business has cent of annual turnover. of what data your business provision, development of crafts and handicraft less than a year left activities, investments in leisure, recreational and collects and stores including sport activities developed by private businesses or to prepare for the Why is the GDPR data handled on your behalf by social economy enterprises, IT activities, the provision General Data Protection important? other organisations. You will need of services such as architectural and engineering Regulations which Irish Data Every time you shop online, book to assess how and why you activities, accounting, book-keeping and auditing Protection Commissioner Helen a flight, visit your doctor, open collect this data, how you obtain services, technical services, industrial cleaning, Dixon recently described as a a bank account, join a social consent, how you use the data, veterinary and animal welfare activities, bespoke ‘game changer’, explains Feargal networking website, you hand what controls you already have training associated with a capital item funded by the McCormack. programme, and marketing activities which include over vital personal information. in place and what changes are e-trading website development and the production of The GDPR rules, which come Vast amounts of personal necessary to comply with the information leaflets/brochures. into force on 25 May 2018, will information is stored and GDPR. The scheme does not apply to agri-businesses strengthen data protection for EU processed by businesses and If you are concerned about however a new DAERA scheme specifically for agri- citizens. They replace the existing other organisations every day. how the GDPR will impact your businesses will open later this year. data protection framework under Loss of this data is a major risk business, please contact a To apply for the Rural Investment Scheme, business the EU Data Protection Directive and can lead to serious financial owners must attend a mandatory workshop. Details are member of our Business Advisory available on www.pkffpm.com and apply to any organisation that and reputational damage. team. 8 STAFF

25 Years Service! Deloitte issue 42» JUNE 2017 Best Managed Awards Success Congratulations to PKF-FPM clients Hill Engineering, Genesis Crafty and Novosco who were among the companies recognised in this year’s Deloitte Best Managed Companies Awards. Newry-based Hill Welcome Ashok Engineering is a global PKF-FPM is pleased to announce the secondment exporter and manufacturer of Ashok Thomas to our Business Advisory Team. of award winning excavator Ashok joins TEAM PKF-FPM from our attachments. Genesis Crafty international network sister firm PKF Bouresli is the Magherafelt family-run in Kuwait where he worked as a senior McErlain bakery business. advisory consultant specialising in financial Novosco delivers enterprise- services until recently. In that role, he led a risk level hosting services to mid- advisory engagement for a large UAE bank and market organisations in the spearheaded the set up of Common Reporting UK and Ireland. Standards (CRS) for financial institutions in Kuwait. Novosco achieved a A competitive basketball player and keen ‘platinum club’ accolade at traveller, Ashok says what attracted him to PKF- this year’s awards having FPM was its people development policies and its There were celebrations in PKF-FPM’s Newry office in April to secured ‘Best Managed’ reputation for attracting and developing high quality mark Catherine Hillen's 25 years with the firm. Following Paddy status for seven consecutive staff for the international business world. Harty, Catherine is the second PKF-FPM employee to reach the years. Prior to joining PKF Bouresli, Ashok worked with 25-year milestone! KPMG in Bangalore, India where he provided deal advisory services for clients. As well as international work experience gained in India and the Middle East, Ashok has extensive experience in several industries including manufacturing, healthcare, pharmaceutical, property development and real estate, IT, media and financial institutions. Educated in Kuwait, Ashok is a graduate of Indira Gandhi National Open University, New Delhi, India. He trained as a Chartered Accountant with Deloitte in Bangalore and qualified in 2014.

Employees of The Year Congratulations to Employees of the Year Amy Mulholland and Catherine McKeown. Amy and Catherine are pictured above receiving their awards from Director Teresa Campbell at PKF-FPM’s Annual Staff Day in April. Special BEST Olympics Staff, pupils and friends of St Peter’s Primary School, Awards Cloughreagh, Bessbrook helped out recently at the Annual Collection Day for Special Olympics Ireland. To mark Special Olympics Ireland Collection 2017 Day across the island on Friday 5th May, PKF-FPM co-ordinated the collection in the Greater Newry Area Congratulations to Samantha including Warrenpoint and Camlough. An impressive Hyde, Southern Regional £6,847.32 was raised. College, who won the Visual Design Award for her Pop up Children's Book at the BEST Awards 2017. The award was sponsored by PKF-FPM. Pictured are PKF-FPM’s Nicole Curran presenting the Visual Design Award to Samantha Hyde. MOONEY EDIA DESIGN PRINT PUBLISH www.mooneymedia.com

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