Using a specially designed ballot form and the privacy of a voting booth, each member of the accounts team secretly nominates which of their colleagues they would like to see silenced for the day.  Votes are counted openly in front of everyone to avoid accusations of vote rigging and the person with the most votes is then silenced for the day.  Even their phone is diverted to a colleague so that they have no excuse for talking.  If they break the silence then a forfeit fine has to be paid for the infringement!

Rory explained that whilst the challenge may appear easy, if nominated, some of his colleagues will find it very very difficult to stay silent for the day.  To avoid any repercussions of the ‘silenced’ colleague being even more talkative the next day Rory has made sure that the activity is on a Friday so that it is friends and family who have to endure any talk time catch up.

The team hope to raise £50 from this the first of a series of fun activities that they have planned in support of the Many Hands campaign.

If you would like to become involved in the Many Hands campaign visit the Royal Manchester Children’s Hospital website for further information.

During conversations with Park owners I have posed the question whether the Government should encourage new permissions as a way of stimulating investment and employment in new Holiday Parks and have received a mixed response. Some Park Owners feel that, in the present climate there are enough new permissions i.e. lets fill the existing new pitches first.

I guess whether you are pro or against depend on your particular/local situation. I am not sure that driving power to a more local level will necessarily mean a more positive approach for Park Owners as in my experience many planning applications are rejected due to local objections.

Park Owners who build relationships with local government and communities may fare better under the new regime. However, I would not bet on there being a relaxation in planning restrictions any time soon. What are your views?

Len Bell, Head of the Northern Leisure Team at Montpelier Chartered Accountants, a specialist adviser to the holiday and caravan parks sector mailto: lbell@montpeliergroup.com.

The holiday park industry has significant potential to grow and create much needed jobs and investment. Individual Park Owners will each have a different list of regulations that frustrate and threaten their business expansion. However, I guess that excessive employment regulation would be common to most lists.

With Government struggling to come up with growth plans I think there is an opportunity for lobbying by the trade associations to make a difference.

Len Bell, Head of the Northern Leisure Team at Montpelier Chartered Accountants, a specialist adviser to the holiday and caravan parks sector lbell@montpeliergroup.com.

1. paying a bribe
2. receiving a bribe
3. bribing a foreign public official
4. failing to prevent bribery

It will be a defence to the charges for a company to show that it had adequate procedures in place to prevent bribery when the offence took place.

Is this going to be another example of burdening businesses with red tape like the money laundering regulations, which require you to appoint a Money Laundering Reporting Officer, to train and update your staff annually?

Let’s face it, most small to medium sized businesses are not affected by money laundering and are unlikely to be affected by bribery.  I am not saying money laundering does not exist, but do we need the bureaucratic approach to documenting our procedures and training our staff annually?  Aren’t business people already aware what money laundering involves and that it is illegal – for example to evade tax?

Likewise, don’t we all know and accept that it is wrong to offer or accept a bribe?  Regulating SME’s is not going to stop bribery.  Yes, it is important to have the offences defined and on the statute book but not to make business people set up more rules and procedures on how to conduct business ethically.

• The withdrawal of the right to set off losses from FHL against other income – ‘sideways’ loss relief. This change is effective for income for the tax year commencing 6th April 2011 and for corporation tax for accounting periods beginning on or after 1st April 2011.
• The extension [increase] of the number of days the property must be available to let and actually let in order to qualify as holiday accommodation. This change is effective for income tax for the tax year commencing 6th April 2012 and for corporation tax for accounting periods beginning on or after 1st April 2012.

The amended rules also apply to FHL properties outside the UK but within the European Economic Community.

Despite the withdrawal of ‘sideways’ loss relief the amended rules continue to provide significant tax breaks, including Entrepreneurs Relief which reduces the rate of Capital Gains Tax to 10% on lifetime gains of up to a limit £5m.

The new rules are not yet law and may change but if you have an FHL business we recommend that you discuss the proposed changes with a professional advisor; in particular whether you will still qualify as holiday accommodation. This will give you more time to plan and consider your options.

Len Bell, Head of the Northern Leisure Team at Montpelier Chartered Accountants, a specialist adviser to the holiday and caravan parks sector mailto: lbell@montpeliergroup.com.

The importance of getting it right.

If your sales targets are based on VAT inclusive selling prices then a zero rated supply means that you keep all of the sale proceeds. If the sale is standard rated then you need to account for VAT and pay it over to HMRC. With holiday lodge sales values typically exceeding six figures this can make a substantial impact on your bottom line.

The case of Lower Mill Estate illustrates this point – the appeal related to a tax assessment for £2.9m. The case was heard by the Upper Tier Tribunal and concerned the zero rating of construction services on a new holiday home (i.e. not a caravan).

The case demonstrates that Park Owners/Developers need to be careful that the structure they adopt for the business has a sound commercial justification – i.e. not solely tax driven – and the contracts are watertight. The application of VAT to lodge sales is a complex area and we strongly recommend that you seek suitably qualified professional advice on your specific circumstances to avoid the pitfalls.

Len Bell, Head of the Northern Leisure Team at Montpelier Chartered Accountants, a specialist adviser to the holiday and caravan parks sector http://lbell@montpeliergroup.com.

The report indicates that buyers have been more active in the holiday market with sales volumes up on 2009. On the residential side, despite the lack of sales, most parks are generating a steady income and there is little incentive to sell at present.

Most park owners I talk to are cautious about the outlook and will only consider opportunities where they see value in strategy and or strong cash flows. There are signs that finance is becoming more readily available.

Is that your experience?

Len Bell, Head of the Northern Leisure Team at Montpelier Chartered Accountants, a specialist adviser to the holiday and caravan parks sector lbell@montpeliergroup.com

Prenups – or the lack of them – have been in the spotlight after high-profile divorce cases such as that of former Beatle Paul McCartney and Heather Mills, and a former JPMorgan Chase investment banker, Nicolas Granatino, from a German heiress, Katrin Radmacher.

In a case of contrasting fortunes, Mills was awarded £24.3 million in her 2008 divorce from McCartney, based on a four-year marriage and the birth of a daughter. The couple did not sign a prenup when they tied the knot.

Radmacher and Granatino did have a prenup, but that didn’t stop him challenging it in London, where the courts are not obliged to enforce them.

It was the Supreme Court’s ruling in October in the case of Radmacher and Granatino, who was seeking a bigger divorce payout, which sparked the review of prenups in this country.

French-born Granatino had claimed their prenup should not be enforced because Radmacher had withheld the full extent of her wealth. Radmacher, a paper heiress, is worth an estimated £100 million.

After a long legal battle – the first UK judge who ruled on their divorce case did not defer to the prenup and awarded Granatino £6m before that was overturned by the Court of Appeal – the Supreme Court held that prenups were enforceable when entered into freely.

That ruling, along with the Law Commission’s consultation, could give entrepreneurs the power to protect their businesses from ruin following a divorce.

The consultation period runs until April and any change in the law would need the approval of Parliament.

Do you think the law should be changed to make prenups binding in this country?

Brian Spence is a member of Network of Independent Forensic Accountants (NIFA) and the Manchester Pod of Resolution.

Most Park Owners I know are fairly conservative – with a small c. They are not interested in risky and complex schemes to avoid tax. But naturally want to be treated like other businesses in terms of reliefs and exemptions. They want to be sure that, like other businesses, they will be eligible for Business Property Relief from Inheritance Tax and Entrepreneurs Relief on any Capital Gains.

However, these reliefs remain a massive grey area for family businesses in the Parks Industry and this affects the allocation of resources and investment in the Industry. It is time the Government and HMRC made this a level playing field and introduced legislation to confirm the eligibility for relief. This would reduce uncertainty and benefit the UK leisure industry by encouraging investment and employment.

What is your view?

Len Bell, Head of the Northern Leisure Team at Montpelier Chartered Accountants, a specialist adviser to the holiday and caravan parks sector lbell@montpeliergroup.com.

HMRC have given notice that they intend to withdraw ESCs covering a range of different areas including a number that relate specifically to caravans. They plan to withdraw the concessions with effect from 1st January 2012 so that there is time to change your systems. The changes specifically affecting caravan parks have been summarised below although you will need to consider the detail before taking action [for the detail visit http://www.hmrc.gov.uk/menus/extra-stat-con-tn.pdf ].

Currently the first time connection of services – gas, electricity, water and sewerage – by the park owner are zero rated. With effect from 1st January 2012 the VAT treatment will depend on whether these supplies are separately metered; if they are separately metered the VAT liability will follow the supply of the utility (zero rated for water and sewerage and reduced rate for gas and electricity); if not separately metered the supply will follow the pitch fee (standard rated or exempt).

Currently the recharge of local authority non-domestic business rates is outside the scope provided the charge is based on the Regulation 4 notice. With effect from 1st January 2012 the liability will follow the pitch fee; this only affects holiday parks, which means that the recharge will typically be standard rated. Park Home owners on residential parks are not affected as they pay council tax.

Currently the recharge of water and sewerage costs is zero rated provided the site owners costs are apportioned on a fair and reasonable basis.  With effect from 1st January 2012 the liability will follow that of the pitch fee (standard rated or exempt) unless the actual supply to individual caravans is metered in which case the supply remains zero rated.

You should discuss the above changes and consider the withdrawal of ESCs generally with a VAT specialist advisor as soon as possible; the sooner you start reviewing your systems the better as some of the above changes will require changes to your records and or pricing decisions for 2012.

Len Bell, Head of the Northern Leisure Team at Montpelier Chartered Accountants, a specialist adviser to the holiday and caravan parks sector lbell@montpeliergroup.com.