BORN IN THE 80`S

SPRING 2009
aspect
News, views and information from Ashdown Hurrey and Spectrum
this issue
Guarantees
Are they really guaranteed?
CCH Fee Protection
More tax regulations
Start Ups
A beginner’s guide
BORN IN THE 80’S
SPRING 2009
Welcome
We are all used to the media
concentrating on the more negative
aspects of the current financial
situation but, without ignoring it,
Aspect would like to concentrate
on a few of the more positive
stories involving the team at
Ashdown Hurrey and Spectrum.
The Hastings half-marathon dominated the sporting
lives of the intrepid team of thirteen who completed
the gruelling course on a sunny Sunday in March.
The team had aimed to raise £5,000, which in the
early days had looked ambitious, but you all dug deep
and we are proud to say that the final figure was close
to £11,500. The combined efforts helped a wonderful
local charity, St Michael’s Hospice.
SUCCESS BREEDS SUCCESS
Carl has a regular question and answer section
in the business pages of the Hastings and Bexhill
Observers and has earned a reputation for giving
clear answers to quite complex tax issues.
We are delighted to announce that on 1 April Ann
Grant and Carl Read were admitted as Partners in
Ashdown Hurrey. Not only is this a recognition of
the contribution they make to the firm but evidence
that the firm's associate programme is working.
They are also both regular attendees at various
business networking functions.
Ashdown Hurrey have always had a high profile
in the local business community and Ann and
Carl's participation in this initiative has not gone
unnoticed. Ann founded the hugely successful
Women in Business Luncheon Club and, although
still actively involved, has recently passed on the
management of the club to Tamsyn Rayner-Vincent
in order to provide her with an excellent
opportunity to raise her profile.
Ann and Carl both manage portfolios of clients
and are always looking for opportunities to
promote their services. If you are one of the clients
that have Ann or Carl looking after you, please feel
free to introduce them to other businesses that
could take advantage of their skills.
We wish Ann and Carl every success in their
new roles.
Twenty-one years is traditionally the sign of maturity
and the day when a person is entrusted with the key to
the door. The financial world was quite different in
1988 when Ashdown Hurrey decided to set up an
independent financial advice arm but we are proud to
see Spectrum has now reached this critical milestone.
Everyone has heard the stories of get rich quick,
commission driven, so-called financial advisers
making a quick buck and leaving the public to pick up
the pieces; this is not and never will be our way.
With the financial difficulties currently being
experienced, there is an understandable tendency to
panic. Whilst many will make their situations worse
through an ill-considered knee-jerk reaction, there is
no better time for taking good advice. Spectrum does
not have a magic wand, but well-considered, rational
advice will always pay dividends and the team at
Spectrum are waiting to hear from you.
We are also pleased to feature some of the recent
start-ups who have benefitted from taking early advice
during these difficult times. It would be foolish to
disregard the current economic factors, but we
continue to see positive trading situations with
opportunities for success. Those facing difficulties
through factors beyond their control can also benefit
from sound advice and we believe those within the
Ashdown Hurrey/ Spectrum ‘community’ are as well
prepared as any.
Terry Weston Marketing Partner
For over 25 years, BeSure Security Systems
have been providing a complete security
service to government departments, hospital
trusts, local authorities, small and large
businesses and residential homes.
Carol Valentine has owned the business since its formation and has run operations with her fellow director,
Kevin Swaffer, for many years. They and their staff have in-depth knowledge of all available security systems to
ensure that they can recommend exactly the right system to match their customers’ requirements and budgets.
The company is recognised by the police authority and all insurance companies and has successfully carried
out major installations for hospital trusts, the MOD, police authorities and utility companies.
Serving the whole of Sussex, Surrey, Kent and South London, the company’s head office will be familiar to
many of you on Battle Road in St Leonards. It also has branches in Maidstone and Haywards Heath.
Carol and Kevin say ‘During the 25 years that we have been in business, there have been many positive
improvements in industry standards and technology designed to maximise security and provide peace of
mind’. To ensure that the company meets these standards, it is a Gold member of NACOSS (National Approved
Council of Security Systems) and has recently achieved Gold Status for Fire. They are also a member of BSIA
(British Security Industry Association).
Carol and Kevin have a close working relationship
with Carl Read. Ashdown Hurrey helps them stay in
control of the financial side of their business with
timely management information, which is especially
important in these turbulent times. Carol says
‘Whilst our cash flow situation gives us a good
indication of our financial position, it is important to be
able to see the whole position, look at comparisons with
previous periods and identify future liabilities’.
Aspect editors, Terry Weston and Patrick Lee,
struggle with another deadline!
For further information visit:
www.besuresecurity.co.uk
COMING OF AGE
A 21ST ANNIVERSARY IS WIDELY ACKNOWLEDGED AS A COMING OF AGE
AND THIS IS THE CASE WITH SPECTRUM. TERRY WESTON LOOKS BACK...
In the heady days of the late 80s, the partners of Ashdown Hurrey approached me to
establish a financial services division within the firm. Incredibly, not all accountants
are able to offer this service even now, so in 1988, this decision was not only
forward thinking but also highly original.
The business came into being on 1 February 1988
and there are obvious parallels with today's market
conditions. Whilst the crash of 87 now seems
fairly small beer in relation to the current situation,
it helps me and the rest of the team at Spectrum
empathise with clients' problems as we have had
this experience before. There have been further
setbacks through the 90s but nothing to compare
with the current situation. Perhaps, more than
ever before, a good working relationship with a
knowledgeable and experienced IFA is essential?
Financial advisers have a reputation of coming
and going and in the early days, many clients
voiced this particular concern. They would
not necessarily wish to share very sensitive
information with someone who may not be
around for very long. 21 years down the line I
think we have put paid to that particular myth.
Although there have been personnel changes over
the years within Spectrum, I am proud of the long
service of many of the team.
Thirteen years ago, David Lakin joined the team
to establish the Mortgage Division and you will
see later in this newsletter that he is retiring in
October but the Division will be left in the very
capable hands of Nigel Crush.
Many of you will have had dealings with Lindsay
Roff who has been on board for 18 years and will
hopefully remain until her retirement.
This type of continuity is excellent for maintaining
client relationships and I have no reason to doubt
that the current team will remain together for many
years to come.
NO LONELINESS
FOR THE LONG
DISTANCE RUNNERS
The close working relationship between the
accountants at Ashdown Hurrey and the team at
Spectrum is unrivalled and enables our advice to
always take into account a client's tax position.
Having an accountant and financial adviser in
the same team working on your behalf not only
reduces cost but significantly increases the
expertise and knowledge available from one
source. Perhaps this is best demonstrated by
Spectrum's Personal Tax Manager, Sue Crouch,
who has switched from Ashdown Hurrey to
Spectrum. Sue's services are perhaps more
closely aligned to those offered by Spectrum and it
does illustrate the extremely close working
relationship with the accountants.
I have got to know many of you over the last 21
years and hope to advise many more clients in the
future. I always maintained that I would hang up
my boots when I lost the spark and the interest but
I am pleased to say that my enthusiasm remains
unabated. The team at Spectrum has forged many
fantastic working relationships during its history
and we look forward to doing the same for the
foreseeable future.
In the last edition of Aspect I highlighted the
Ashdown Hurrey/Spectrum team's participation
in the 2009 Hastings Half Marathon. It was a
fantastic team effort all round and due credit
should not only be given to the thirteen runners
who all finished the course, but to the other team
members who provided enthusiastic support on
the day.
It was a marvellous event all round and I am
delighted to confirm that we more than doubled
our original sponsorship target, raising over
£11,000 for St Michael's Hospice. I would like
to take this opportunity to thank every single
sponsor, without whose generosity we could
not have achieved this fantastic total.
In the words of Sir Steve Redgrave, if anybody
ever sees me in a pair of trainers again, you have
my permission to shoot me.
Terry Weston
The Spectrum team pictured from left to right: Valerie Tagliaferro, Nigel Crush, David Lakin, Lindsay Roff,
Julie Curtis, Terry Weston, Sue Crouch
For further information on any of the topics covered in Aspect please email:
[email protected] or [email protected]
www.ashdownhurrey.co.uk www.spectrumfs.co.uk
WHEN IS A GUARANTEE
NOT A GUARANTEE?
NIGEL CRUSH CONSIDERS...
With the current losses in world stock
markets and very low interest rates from
the banks, the lure of rates over 5% with
capital guarantees look very attractive.
But is it really that straightforward?
As these products are classed as deposits
the Financial Services Compensation
Scheme only covers up to £50,000 per
individual if the provider or guarantor is
registered in the UK.
The main concern over the guarantee is who
actually provides it? Surprisingly this is rarely
by the bank offering the product. Sometimes the
guarantee is provided by a company three or four
times removed. You are then open to what is
known as counter party risk whereby if the other
party in the agreement defaults then, potentially,
there is no guarantee. Always check the small
print as not everything is clear cut.
Investments today do not come in just two
flavours; risk or no risk. Spectrum will carefully
consider investment options so that they meet a
whole range of requirements including access,
tax, income and attitude to risk. A well balanced
low risk portfolio can offer excellent returns
without the need to pay for a guarantee and with
the current market conditions now may be the time
to look for the opportunity rather than pay for a
potentially worthless guarantee.
In times like this basic fundamentals come to the
fore. If you are prepared to be exposed to market
risk then be prepared to take that risk. If not, a so
called guarantee may not give you the comfort
you require.
For further information email:
[email protected]
ROCK OF AGES - PADSTONE PUTS THE MARBLE IN YOUR HOME
Stone has been used in many different ways for the construction
and decoration of dwellings since the beginning of time. Its
strength and beauty has surpassed all of its rivals through fad and
fashion to remain popular, but finding something that suits the
requirements of customers today isn’t always easy.
This is what led the founder of Padstone, Patrick Townsend, to set up his
business specialising in the import and sale of the finest natural stones to both
retail and wholesale. Up until two years ago Patrick had his own tile fitting
business and found he was becoming increasingly fed up with the quality of
materials he was using and saw a gap in the market for good quality attractive
stone. His initial search took him to a quarry in Turkey and he now imports
Marble, Travertine, Limestone and Granite from several countries around the
world, to sell from his showroom based at Rye Harbour, East Sussex.
The firm offers something different from the large chain DIY stores and also
has the advantage of Patrick’s experience of working with the materials he
sells to ensure customers get the product that suits their needs best.
Patrick has found the import process added complications that would not
normally be expected in the supply chain. With the assistance of Ashdown
Hurrey he has successfully been able to lay some solid foundations for his
business to enable its future success including the development of his website.
For further information visit:
www.padstone.co.uk
WHAT MAKES A GREAT LOCAL?
Well, the family team running the famous Bo-Peep Pub on
the seafront in St Leonards think that they know the answer
and having had steady growth in business since buying the
lease in 1992, they should know what they are talking about.
Mark Jackson and his sister, Sarah Gatcum, with their
respective spouses, believe in giving their customers what
they want.
Good drink and food is an obvious prerequisite and the pub’s
extensive range of beers, wine and spirits, together with the
restaurant area serving excellent home-cooked food, means
that these items are well and truly covered. But it goes further
than this as the partners see their roles as being a hub of the
local community. This means running football teams and being
prominent members of the local pub leagues for darts,
shovepenny, pool and crib. The exploits of the teams gives the
pub its identity and provide endless topics for bar room debate
on just who really is the star of the team.
Every good local needs the kind of welcoming
atmosphere the Bo-Peep offers and for those
rare sunny days, the pub garden provides the
grateful customers with a little fresh air.
Running a successful pub is
not just a matter of luck; it
needs both hard work and
good advice. The partners have
been advised by Ann Grant
since taking over the business 17 years ago and seeing the
year-on-year growth led to her advising on the transfer to a
limited company in 2002. Mark jokes that he will have to
retire if Ann does, but the good news for both is that there are
no plans in this direction yet, so the customers can carry on
enjoying the best of locals. Why not drop in and see what it’s
all about?
THE KIDS ARE ALL RIGHT!
Ashdown Hurrey does all the usual things that accountants do but we also recognise that we work
in a community where we need to provide specialist services beyond purely business needs.
An example of this is the Charities and Not-for-Profit Division headed by Steve Sampson,
which covers this increasingly regulated area with its depth of specialist knowledge.
Charities not only have to comply with the usual accounting requirements, but they also
have to comply with the additional areas monitored by the Charity Commission. Small
and even medium sized charities may not have the necessary expertise to meet the
regulations and this is where the Charities Division can help.
Take Club 4 Kids. The charity was set up in 1995 by two lone parents who realised that
their own needs were not unique and there was a desperate need for out-of-schoolhours activities in the area.
Since then, the club has grown to the stage where it is currently providing services to
400 children to the benefit of 270 parents/carers. The effect that this has on the lives of
those involved is hard to quantify, but the individuals involved understand the freedom
it allows them, secure in the knowledge that the club is not only aware of but exceeds
the requirements of the regulations placed upon it. The club has to interact with local
schools and all the other educational agencies interested in childcare and
development and provides great benefits to the children concerned.
Over the years, the club has drawn on the financial advice and business
experience of Ann Grant who works with Steve Sampson to ensure that the
charity’s audit requirements are fully covered.
Specialist workers need specialist backup and support and Ashdown Hurrey
is pleased to work in the Not-for-Profit sector where committed individuals
quietly go about serving the community, secure in the knowledge that they
are meeting their legal requirements. If you are involved with a charity
which is looking for backup in meeting its obligations, Steve Sampson will
be pleased to hear from you.
For further information email:
[email protected]
CARTER
M
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S
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L
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F
PLAYER PRO
1. How long with Ashdown Hurrey? 4 ½ years.
2. What would be your dream job other than being an
accountant? Being a professional fisherman during the week
and a professional footballer at the weekend.
3. Who do you admire most in the business world?
Anyone who achieves success as a result of hard work
and determination.
7. What is the
best thing you have achieved
since being with Ashdown Hurrey?
Gaining ACCA status with all first time passes.
8. On holiday, beach bum/culture vulture/adrenaline junkie?
It would have to be a holiday where I am doing something as I get
bored sitting around.
9. Biggest Hates? People giving up and lack of manners.
4. What would you do if chancellor for the day?
Stop playing around with 2.5% VAT cuts that are more of an
inconvenience than benefit to the economy and stop taxing successful
individuals at a higher rate.
5. Do you have a secret ambition? To be as successful as possible
in whatever I do, failure is not an option.
10. Favourite film? The Count of Monte Cristo.
11. What would be your perfect night out? A nice meal and
drinks with my girlfriend and mates followed by a club.
12. What one possession would you take with you to a
desert island? A boat with Sat Nav installed.
6. Fantasy dinner guests? Jonathan Ross, Kylie Minogue and
Sir Alex Ferguson.
www.ashdownhurrey.co.uk www.spectrumfs.co.uk
START UPS
L
SPECIARE
FEATU
Statistics show that it is the early months which are most
hazardous for new businesses. Mark Weeks-Pearson shows that
early planning can lead to a much greater chance of success.
Mark flicks through his case book and shows how he has got
involved with some exciting new ventures.
SCRIBBLEBUG
When friends Jo Brandt and Kaia Relfe found there was no
more room for the pictures on their fridge doors that their
children had lovingly given them they stumbled across the
idea for the product they now sell on their website
www.scribblebug.com
Customers have the choice of having the artwork more ‘neatly packaged’ in a book and can even have
it made into a story book whereby children add their own thoughts to make a story out of the pictures.
Mark says ‘Jo and Kaia recognise the risks associated with starting a new business and the
importance of keeping overheads to a minimum. They currently put together the books themselves
and use another firm for the printing as and when required.’
For further information visit: www.scribblebug.co.uk
BATTLE BEAUTY
When beautician Debbie Adams, owner of Battle Beauty, had the
opportunity to buy her boss out of the beauty salon she worked in she
jumped at the chance. All she needed was the finance to buy it!
She was recommended to Ashdown Hurrey for advice in relation to the
purchase of the business, which included buying the leasehold of the
business premises as well as the stock and goodwill.
Mark says ‘Debbie had clearly analysed the figures and knew that she
could make a decent living from the shop in Battle. What’s more she
had worked there and knew the customers and the amount of trade it had.’
She also recognised the importance of obtaining professional advice and it paid off as, on the
advice of Mark, she was able to negotiate a better price for the business.
Mark continues’ like many people that start off in business, finance is a major issue. By saving
money on the purchase price it meant Debbie increased her chances of getting a loan to finance the
purchase and she will have lower financial commitments each month which will be a real help while
she establishes the business’.
For further information visit: www.battlebeauty.co.uk
MITCHELL AND
MILLYARD
Andrea Millyard
and Anna Mitchell,
both qualified
hairdressers, always
made a good
partnership at the
hairdressing salon
they worked at
together for a number of years.
This has now led to the success of their own
salon, set up last year.
Mark met Andrea and Anna at 1066 Enterprise,
where, once a week, Ashdown Hurrey offers a
consultation to members of the public looking
to start their own business.
Based in the Hastings Old Town, the shop, also
named Mitchell and Millyard, has had a hectic
first 6 months of trading. Mark says Andrea and
Anna are not only excellent stylists but also
have sound business heads and keep an eye on
the future.
When they first set up there was just the two of
them, but they knew that they needed to look
after the financial side of the business as well
as their clients. They have already appointed
an apprentice to cover reception and train as a
stylist to help them with their day to day work.
Mark is now assisting them with not only their
bookkeeping and tax requirements but also
payroll and VAT.
For further information phone:
01424 200660
A&A CLEANING SERVICES LTD – ‘THE FOURTH EMERGENCY SERVICE’
Within 6 months of setting up, Anthony Hickman and Anita Crane had over 30 employees working for them in their company that
specialises in cleaning services. Still not afraid to get their own hands dirty Anthony and Anita have now been running the company
they started from scratch for three years.
Mark says ‘Anthony and Anita have a real entrepreneurial flair and, coupled with that, are hard workers, I’m sure this is the just start
of things for them.’
Anthony says ‘Ashdown Hurrey have been supportive since day one, most importantly they efficiently and accurately deal with our
payroll which is run fortnightly. Due to the nature of our customers, many of whom are in the tourist industry we have some very
busy periods during which our staff numbers increase dramatically. Ashdown Hurrey always ensure the staff get paid on time
which is vital, as without members of staff who are happy working for us our business would not be the success it is today.
For further information phone: 07809 832274
WHERE IS THE BEST DELICATESSEN IN THE SOUTH?
Well, according to the Guild of Fine Food
Retailers, it’s on our doorstep at Flimwell
on the Kent/Sussex border. The Weald
Smokery was founded on the heritage of
the ancient food preserving method of
smoking over oak logs. Over the last twenty
years, the business has grown to be one
of the country’s leading smoke houses.
The smokery specialises in both hot smoking,
where the product is cooked during the smoking
process, and cold smoking, where the product
either does not require cooking or is cooked
subsequently.
The success of this kind of business is very
dependent upon the passion of its owners and
Christopher and Suzie Millns have passion in
abundance. In 2007, the shop and smokery were
under threat of closure due to proposed A21
road improvements. The previous owner sold the
land to the Highways Agency and all employees
were given notice of redundancy. In stepped
Christopher, who at the time was the retail and
wholesale manager, to take matters into his own
hands and negotiate with the Highways Agency
to keep the business going and to re-employ all
the staff.
Suzie began her career in offshore investment
banking but now works alongside Christopher to
manage the business and its excellent team of
dedicated staff. Suzie says ‘What I love about this
business are the people! We have a great team;
every member of staff brings their particular skills
and qualities to their job and this spirit of
cooperation creates a pleasurable place to be
for both ourselves and our customers.’
and Ashdown Hurrey are fully involved in the
management process. Ann commented ‘It is
always satisfying to see people who are dedicated
to their business take a chance and achieve real
success. I love to visit the smokery, not only to
see how Christopher and Suzie are getting on but
also to browse in the shop and try some of the
irresistible choices of smoked foods.’
Christopher began his working life in the hotel
industry. He maintains a keen interest in fine wines
and cheeses and acts as a judge for the Guild of
Fine Food Retailers.
If you are interested in excellent food, with the
emphasis on smoked fish, meat and cheeses,
we recommend a visit to the Flimwell premises.
There is plenty of parking and disabled access,
so even if it’s no more than a quick detour on
a tiresome trip up the A21, you will be fully
rewarded for your efforts.
For further information visit:
www.wealdsmokery.co.uk
Launching into this kind of arrangement requires
self-motivation and belief together with top-level
professional advice. Christopher and Suzie turned
to Ann Grant to give them advice and support
CCH FEE PROTECTION INSURANCE
MORE TAX REGULATION – WE’VE GOT IT COVERED, HAVE YOU?
BY BEN SALLOWS
New tax penalty regulations are to be
introduced from April 2009. The tax penalties
arising from an error or mistake on the part of the
taxpayer will be tiered and automatic percentages
will be applied to the additional tax due,
depending on the Revenue’s view of the severity
of the error or mistake. This will mean that tax
enquiries become more lucrative for H M Revenue
& Customs, as any errors or mistakes that they
find will likely result in additional tax penalties.
In addition to this, over the last few years the
Revenue has become more aggressive with their
approach to enquiries and the extra powers
detailed above can cause additional pain for the
unwary taxpayer. It is now normal practice for 6
years’ adjustments to be made when an error or
mistake is found; therefore, it is more important
than ever that the taxpayer has the means to fully
defend their position.
The cost of dealing with Revenue enquiries is
often substantial, as they need to be dealt with by
experienced personnel who have knowledge of
both the tax rules and the client’s situation. This
will include agreeing with the Revenue the amount
of the penalty in addition to the adjustment to the
tax liability.
Although you cannot insure against the cost of the
tax liability, you can insure against the fees to deal
with the Revenue’s enquiry and many clients have
found this invaluable. In the event of an enquiry, a
client with this insurance in place will not have the
worry of having to pay professional fees in addition
to any tax liability that arises.
For further information email:
[email protected]
At Ashdown Hurrey, we use the market leading
CCH Fee Protection Scheme, which we believe
provides the best cover available. We have written
to all of our clients and given them a chance to
take out this important cover.
In these times of financial instability, there is often
a tendency to reduce costs and therefore clients
may consider not taking out or renewing the cover.
However, it is at times like these that the cover is
more important than ever, as the potential impact
of a Revenue enquiry could be very costly indeed
to a struggling business. Ashdown Hurrey
therefore recommends that all of their clients
take this cover.
For more details of the scheme,
please get in touch with your
usual Ashdown Hurrey
contact or see the
details on our
website.
www.ashdownhurrey.co.uk www.spectrumfs.co.uk
THE LOAN ARRANGER...
BY DAVID LAKIN
After thirteen years as Spectrum's Mortgage Manager, this will be my last contribution to
Aspect as it is my intention to take retirement at the end of October this year. You can rest assured
of continuous first class service as I am handing over to my colleague Nigel Crush, who has worked
(as I did before joining Spectrum) for some twenty three years with banks and building societies.
Nigel joined Spectrum in January last year and there are a number of you who have already
been dealing with him, especially when it comes to matters concerning commercial
mortgages. I am certain that Nigel will continue to offer the service and solutions
to you which I have endeavoured to provide since 1996 and
I wish him well.
Rest assured I will still be here until the end
of October for any of your enquiries and
my thanks to those of you who have
entrusted your mortgage matters to me.
For further information email:
[email protected]
www.ashdownhurrey.co.uk
Bexhill 01424 730300
Hastings 01424 720222
www.spectrumfs.co.uk
Bexhill 01424 739222
Hastings 01424 710360
28 Wilton Road, Bexhill-on-Sea TN40 1EZ
20 Havelock Road, Hastings TN34 1BP
Whilst every care has been taken in the preparation of this newsletter, it is published without responsibility on the part of Ashdown Hurrey
or Spectrum for anyone acting upon or refraining to act upon the information contained herein. The information is of a general nature and is
not a substitute for professional advice. You are recommended to obtain specific professional advice before you take any action.
If you would like more information
on this issue please contact
Valerie Tagliaferro
on 01424 739222