Comment · Miles Brown Managing Partner Coin Mew LLP milesbrown@coffinmew.co.uk 023 9238 8021 Welcome to Comment Welcome to the fourth edition of Comment, our magazine for valued

CommentISSUE 4

The best laid plansIntroducing our new planning resource

Balance and well-being Mental health in the workplace

Tomorrow’s leaders Modus: First Call

A team effort Albion in the Community

A unique family Services to the Armed Forces

Miles Brown Managing Partner

Coffin Mew LLP

[email protected]

023 9238 8021

Welcome to Comment

Welcome to the fourth edition of Comment, our magazine for valued clients,

contacts and friends of the firm. I hope you find this edition informative and

enlightening.

2015 was a landmark year in the firm’s 125-year history as we embarked upon a period of substantial and sustained growth. That growth has been underpinned by the continued approach, professionalism and insightful support that our clients value from our legal advisers.

During 2015 we opened our new office in Brighton, our fifth, and we have already grown and strengthened that team, doubling the size and tripling the number of people. The demand for quality legal support along the South Coast is strong and will continue to build as entrepreneurial businesses grow and move into the region. This is reflected by the firm successfully achieving its turnover target of £10m earlier in 2015.

Like you, we are ambitious. We recognise that the legal sector is rapidly evolving and understand that the needs of our clients are constantly changing. We are eager to enhance what we offer and develop the ways in which you can engage with us to ensure that we lead rather than follow.

The firm will continue to invest in new technology and working practices – in this issue of Comment we announce the launch of Modus: First Call, Modus: Creditor Support and our new Planning specialists – and, of course, new people.

I would like to thank everyone who made 2015 a memorable year – our clients, referrers, friends and staff. We look forward to the challenges and successes that 2016 will bring.

Comment is written and published by Coffin Mew LLP.

Special thanks to Wildfire Creative & Marketing Ltd and Coast Communications.

For further information about Comment, please contact Richard Milner, Head of Marketing and Client Engagement on [email protected] or call 023 9238 8021.

© Copyright 2015. All Rights Reserved. Coffin Mew LLP.

Disclaimer: This information has been prepared by Coffin Mew LLP as general guidance only and does not constitute legal advice on any specific matter and should not be relied upon as such. No liability can be accepted by Coffin Mew LLP for action taken or not taken as a result of this information. Coffin Mew LLP is a limited liability partnership in England and Wales (registered number OC 323868) which is authorised and regulated by the Solicitors Regulation Authority (registered number 463138). Lexcel Accredited.

@coffin_mew

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in this issue...

Issue 4

04 Insight News and updates from Coffin Mew.

10 IHT threshold lifted What will the increase to the inheritance tax threshold mean for your family home?

11 South Coast Profit Index Coffin Mew and The Business Magazine create a new benchmark of company performance.

12 Modus: First Call Coffin Mew introduces a new subscription legal service for SMEs.

13 Accessing Export Markets The Government’s export finance adviser for the South East explains trade finance.

14 Albion in the Community With Brighton and Hove Albion FC blazing a trail in the Championship, Amy Richardson caught up with Gary Townsend, Chief Operating Officer of its charitable arm, Albion in the Community.

16 See you in court Faced with a dispute, businesses and individuals often find that a court hearing is the only way that their situation will be resolved. There is a better way, as Laura Harding explains.

18 DIY SOS DIY tax planning rarely works and can leave your family with an even larger tax bill, says Roz Wyeth.

20 NRIO re GRT on AFPS 75 and CEA Roger: Tango Delta out. A load of gibberish? Not if you are an Armed Forces family. Comment meets Tina Day and Bob Williams from Coffin Mew’s Armed Forces team.

22 Skulduggery and dishonesty in divorce Sally Pike explains what happens when a spouse is deliberately dishonest in disclosing assets and income.

24 Sticky floors and glass ceilings An employment law update looking at unequal pay and mental health in the workplace.

26 Creditor Support Coffin Mew announces a new service to help businesses with suppliers or customers facing financial collapse.

27 Government beefs up consumer rights Mark O’Halloran explains the new consumer rights legislation and how businesses should respond.

08 Planning takes centre stage With further reform of the UK planning regime underway, Coffin Mew launches a dedicated planning law service.

06 Making Waves Coffin Mew makes waves with Brighton launch.

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Coffin Mew has strengthened its team

in Brighton with the appointment of

talented lawyer Sue Warwick. Sue joined the growing team in

Brighton as a consultant in September to advise clients on their wills, probate, estate planning and powers of attorney.

Since opening our office in Brighton in May, the team has grown to include specialist lawyers in corporate and commercial, commercial real estate, residential property and employment, together with the wider support of the firm’s lawyers across its offices in Portsmouth, Southampton, Gosport and London.

Born and bred in Brighton, law was not Sue’s first career choice, having worked for a clothing and footwear company in its merchandising and marketing team, and as a school teacher teaching Spanish. Her varied career brings commercial and practical insights into her legal career.

On joining the firm, Sue said: “I have known a number of the Coffin Mew team for many years and have worked alongside them advising clients we have in common. The firm has a terrific reputation and an entrepreneurial approach, and I jumped at the chance of joining the team in Brighton.

“There is also a strong demand for high quality private client support, with an established elderly population, matched with a young, affluent and entrepreneurial community.”

Nick Leavey, Partner and Head of the Brighton office and the firm’s Commercial Property practice, adds: “Sue is a talented lawyer with a deep technical understanding of the law and, importantly, its practical application. She will be a real asset to the team and we all look forward to working alongside her.”

Scope and the Extra Costs Commission Our own Annabelle Vaughan – a specialist solicitor advising and supporting people with disabilities – has contributed to Scope’s research that revealed disabled people are paying a financial premium on everyday living costs.

The research showed that those with disabilities pay an average of £550 a month more for the everyday items needed. The research has triggered the Extra Costs Commission to recommend that businesses strive to be disability friendly. Its research, shockingly, found that over a third of people with disabilities surveyed left a business because of their lack of disability awareness.

Coffin Mew’s Miles Brown is determined that all of Coffin Mew’s clients and staff should have equal access to the team’s advice and services. He said: “Recognising that our clients are all different is at the heart of our commitment to client service excellence. We are constantly reviewing our office procedures to make sure that we are as accessible as possible.”

Insight

Coffin Mew strengthens Brighton Private Client team

Coffin Mew rocks

Bringing you the latest news from Coffin Mew

Coffin Mew staff have swapped their

desks and the court room for Fender

Stratocasters, keyboards and drums

as they battled their way to win joint

first place in the annual ‘Law Rocks’

battle of the bands competition.

Taking place in October at London’s

cult music venue – The 100 Club

on Oxford Street – the event saw

an unprecedented result as Coffin

Mew’s band Clover took the top spot

alongside Addleshaw Goddard’s AG/

DC after booming out Queen’s Fat

Bottomed Girls.

Since it’s launch in 2009 Law Rocks

has raised hundreds of thousands

of pounds for a variety of charities,

and provides an opportunity for legal

professionals to unleash their inner

rock star. Coffin Mew raised money

for Naomi House, a charity that works

with children with learning difficulties.

Coffin Mew’s John Parkinson

comments: “This is our second time

taking part in Law Rocks and we are

thrilled to have won joint first place.

It was a brilliant night and the entire

audience was singing along with our

band which made the atmosphere

even more electrifying.”

STOP PRESS

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South East hospice charity Naomi

House & Jacksplace has named

Coffin Mew as its Outstanding

Corporate Supporter for 2015 at its

annual charity awards. The firm was

also given commendations for Most

Innovative Fundraising Idea and

New Corporate Supporter award.

Naomi House & Jacksplace hospices provide expert care to more than 280 life-limited and life-threatened children, young people and their extended families from across the south of England. This includes respite care, end of life care and bereavement support. It costs £7 million per year to run Naomi House & Jacksplace with only 10% of the income coming from Government and statutory sources. Its innovative team organise a huge variety of events, educational sessions and fundraising activities throughout the year to engage with the local community, making a difference to the lives they touch.

Coffin Mew’s staff voted Naomi House & Jacksplace as their charity of the year and set the CSR team to create a range of engaging and fun events for everyone to enjoy and contribute to. In the past year, Coffin Mew’s award winning band, Clover,

rocked Winchester’s Railway Inn to help raise vital funds for a music therapy centre. Alongside this, the team took part in Store Wars and organised a large quiz.

Sue Bowler, Partner and Head of Coffin Mew’s Services to Vulnerable People team said: “It seems incredible that our relationship with Naomi House & Jacksplace goes back less than a year, we feel like we have known them for a long time and some of the staff are like old friends already.

“Generating support for Naomi House & Jacksplace from our staff at all levels has been easy because of the fantastic work the charity does. However, supporting Naomi House & Jacksplace has been much more than just about fundraising.

“We are in a somewhat unique position as some of Naomi House’s clients are our clients; we have a significant team that specialises in supporting vulnerable and disabled

clients, so we have been able to share our knowledge with Naomi House by doing things such as delivering legal training to the senior care team. We also know from our clients just how important Naomi House & Jacksplace is for them and their families. We feel truly honoured to be recognised as the Outstanding Corporate Supporter.”

Client service excellence sits at the

very heart of Coffin Mew’s ethos. This,

combined with a passion to innovate,

grow and develop our service

offerings, has driven us to develop an

enhanced online offering.

A new website will be launched in 2016, together with a new communications platform delivered by Passle.

The new website includes an interactive online chat facility, allowing

visitors to quickly ask a question or seek advice. Alongside this, our new residential conveyancing calculator and sleek online payment facility combine to streamline visitors’ experience.

Through Passle, our team will provide local insights and opinions on the latest legislative changes and developments that will help drive your business and personal decisions.

Visit www.coffinmew.co.uk and tell us what you think.

Naomi House & Jacksplace name Coffin Mew as Outstanding Corporate Supporter 2015

Photos Laura Scottorn (© Laura Scottorn 2015).

A new digital presence for Coffin Mew

5

Coffin Mew makes waves with Brighton launch

Coffin Mew opened its Brighton office, the firm’s fifth, in May. It offers a full range of services to fast growing entrepreneurial businesses and to individuals and families living in one of the most vibrant and diverse cities on the South Coast.

Nick Leavey, Partner and Head of Coffin Mew’s Brighton office and the firm’s South Coast Commercial Property team, said: “Coffin Mew is an entrepreneurial firm with an entrepreneurial client base. We have had strong connections with Brighton for a number of years and the opening of an office in the centre of town is part of our commitment to Brighton, our clients and to the future of the firm.

Coffin Mew celebrated in style the

opening of its Brighton office on 15

July with more than 275 guests from

the East Sussex business community

joining partners and staff at Sea Life

Brighton for a beach party.

Making Waves

Coffin Mew’s Mirren McGinley, Nick Leavey and Elizabeth Gibbons

Brighton’s party people

6

“It was fantastic to see so many people join us at Sea Life Brighton, and the party continued long into the night.”

Coffin Mew was established 125 years ago and currently has 140 lawyers, professional advisers and business staff across five offices – Brighton, Portsmouth, Southampton, Gosport and London. The firm grew by 18 per cent in 2014/15 and completed some 850 separate commercial property transactions. The firm has a bold vision and is looking to open further offices and plans to significantly grow over the next 12 months.

“It was fantastic to see so many people join us at Sea Life Brighton, and the party

continued long into the night.”Nick Leavey, Coffin Mew

Miles Brown The party pavilion

7

The National Housing Federation,

the industry body representing

residential developers, estimates that

the UK needs 240,000 new homes

every year to meet demand and to

counter spiralling house prices.

Yet, according to the latest new housing numbers from England’s 326 local authorities for 2014, the latest available, show that just 124,520 new homes were completed.

The Government, and previous administrations, has implemented reform on top of reform, creating a planning regime that remains complex, cumbersome, costly and time-consuming. Commercial and residential developers need all the help, support and advice they can get.

A new planning

resource at Coffin Mew

In October, Coffin Mew launched a dedicated planning service for its residential and commercial developer clients, with the appointment of Paul Grant.

Paul joined the firm from Hampshire County Council, where he was Assistant Head of Legal Services (Environment) with responsibility for advising both the Cabinet member for the Economy, Transport and Environment portfolio and the Director of the Economy, Transport, and Environment department.

A specialist planning lawyer, Paul brings to the firm a detailed understanding of all areas of planning law and related issues including large planning applications and s106 planning

agreements, highways, major transport and infrastructure schemes, enforcement and environmental issues. Paul has experience of advising on a wide variety of local government law issues including decision-making and judicial review.

Perhaps uniquely, he also brings experience from both the private and the public sector having previously worked for other law firms on the South Coast.

Commenting on his appointment, Paul said: “Coffin Mew has a diverse and ambitious commercial and residential real estate team. It is behind some of the South Coast’s largest and most dynamic

With further reform of the UK planning regime underway to give a

much-needed boost to deliver new homes, Coffin Mew launches as part

of its holistic real estate offering a dedicated planning law service.

Planning takes centre stageA new planning resource from Coffin Mew

“In 2014, just 124,520 new

homes were completed.”

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schemes, and I am excited to be part of the team.

“The planning regime is complex. Developers need both the technical and practical support from advisers that have experience from both private and public sector perspectives, and to be able to work collaboratively with the various regulatory authorities. This is something we can now provide.”

Nick Leavey, Partner and Head of Commercial Property at Coffin Mew said: “We are delighted with Paul’s decision to join the firm. Our clients tell us planning guidance is regularly needed, and we wanted the best adviser available. He is a tremendously experienced planning lawyer with a unique perspective of the planning regime, able to influence and build relationships on all sides of the table on long-term projects. He will be a real asset to our residential and commercial developer clients.”

Paul has worked on some of the largest and highest profile planning issues across the South Coast, including the creation of the South Downs National Park and the redevelopment of what is now the Ageas Bowl. Over the last few years he has been engaged with the redevelopment of the former HM Royal Naval site at Daedalus, which has been at the forefront of the Government’s plans to develop more Enterprise Zones nationwide, and transport infrastructure development at Newgate Lane and Stubbington Bypass.

One million new homes by 2020

Over the summer, the Government announced a major initiative that will, it is hoped, deliver one million new homes by 2020.

The proposals will release brownfield land across the UK with automatic planning permission for new homes, and with major housing projects ‘fast-tracked’ through the planning system.

The reforms will also see the

introduction of new sanctions for local councils that fail to deal with planning applications effectively, with the Government able to intervene in councils’ local development plans.

“These are bold measures,” says Paul. “Yet, as always, the devil will be in the detail. Land may come with outline permission, but this will still require developers to submit detailed planning applications before they can bring forward schemes. This can be a lengthy process.”

Paul adds: “Local planning authorities are also short on resources. If these measures open a floodgate of new planning applications additional support for local authorities is going to be needed if a log-jam is to be avoided.”

And then there is the question of the cost of developing brownfield sites. “These can be difficult and costly sites to bring forward,” says Paul. “Developers are unlikely to take on a scheme, even with outline planning permission, if it is not economically viable.”

Legal challenges

Planning decisions are also at risk from legal challenges that can make the delivery of new homes more challenging.

In July this year, the courts delivered a blow to small residential developers, making schemes of up to 10 new homes economically questionable.

As part of the Government’s reforms of the planning regime, residential developers with small schemes of up to 10 homes have been exempt from the requirement to make contributions towards affordable housing.

“The arguments for the exemption are based on the fact that small sites, often in urban locations, are difficult and expensive to develop, leaving such schemes on an economic knife-edge.

The Government believes that if the often-onerous requirement to include or make contributions towards affordable housing were removed developers would be encouraged to bring forward these sites, and help alleviate the chronic housing shortage.

Two local authorities in the Thames

Valley – Reading and West Berkshire – have now successfully challenged this exemption, arguing that it would have a negative effect on affordable housing numbers.

Paul said: “Decisions like this will disappoint the Government as in practice it will do little to bring forward new homes, but this demonstrates the inherent difficulty that the planning system faces with the need to deliver economic growth on the one hand whilst promoting mixed communities and protecting the environment on the other.”

Contact us direct

Paul Grant Associate Solicitor - Commercial Property

023 8048 3785 [email protected]

Nick Leavey Partner - Head of Commercial Property

0333 000 0122 [email protected]

Further reading

Surveys and home buying information RICS www.RICS.org.uk

House Builders Federation www.hbf.co.uk

Coffin Mew property.coffinmew.co.uk

“The Government hopes

to deliver one million new

homes by 2020.”

“Schemes of up to 10 homes

are exempt from making

contributions towards

affordable housing.”

9

George Osborne revealed in the

Summer Budget that he would

abolish inheritance tax when parents

or grandparents leave the family

home that is worth up to £1million

or £500,000 for a single person. This

new “family home allowance” will be

phased in gradually between April

2017 to April 2020.

At present, a single or a divorced person’s inheritance allowance is £325,000 and a married couple or widow/widower has up to £650,000. From April 2017, the Government will gradually introduce the family home allowance for passing on an individual’s home, starting at £100,000 from April 2017. This will rise by £25,000 each year, until it reaches £175,000 in April 2020. Added to an individual’s existing tax allowance, a married couple or widow/widower will then be able to leave up to £1million free from inheritance tax.

However, an individual will only

be able to use this new family home allowance on their main home and where the recipient of the home is a “direct descendant” which will include children, adopted children, step children, foster children and grandchildren.

The Government is also planning to include a provision to allow the downsizing of the family home. An inheritance tax credit for the family home allowance will be given to cover sale proceeds received, provided that these are left to a direct descendant. This is an attempt to encourage older individuals to free up larger homes for growing families.

Although the new family home allowance is good news and should help reduce inheritance tax for the majority of people, there are down sides to the allowance.

The main disadvantage of the allowance is that it provides no recognition for childless couples,

spinsters, bachelors or those who rent their properties as opposed to owning it.

It will also affect individuals who have placed their share of the family home into a discretionary trust, even if the only beneficiaries are their children and grandchildren, as this will not amount to being left to a direct descendant and the family home allowance will not be available.

Inheritance tax threshold lifted to £1,000,000

Jonathan Sleep explains what the Government’s increase to inheritance tax thresholds means for your family home.

Contact us direct

Jonathan Sleep Partner - Wills, Trusts and Probate

023 9236 9520 [email protected]

Further reading

Coffin Mew privateclient.coffinmew.co.uk

10

The South Coast Profit Index will

identify and highlight the region’s

top 100 businesses along specific

measures that enable success, growth

and achievement.

Coffin Mew has long supported entrepreneurial and fast growing businesses through the provision of commercial and practical legal advice, and through mentoring and acting as a sounding board for clients.

Nick Gross, Corporate Partner, said: “Entrepreneurial clients need like-minded advisers. Coffin Mew provides more than just legal advice. We understand what it takes and what is needed to run a successful business. That is why we, together with The Business Magazine, have created this genuinely new benchmark of corporate performance.”

The South Coast Profit Index will discuss factors affecting business performance. These will include HR, productivity, cultures, financial management, innovation and IT. Retaining talent is a major issue presently. Understanding and sharing best practice

is key to enable growth.The Business Magazine is renowned for

its business listings – which include the Solent 250, Southern Manufacturing 100 and Southern Tech 100. The South Coast Profit Index will extend to SMEs and large unlisted ‘home-grown’ UK-owned businesses.

David Murray, The Business Magazine editor, said: “This is an exciting new concept and we are delighted to be working alongside Coffin Mew. The South Coast Profit Index will look to more than just turnover or profits, creating a benchmark against which businesses can measure their performance. It will encompass businesses along the South Coast from Poole in Dorset to Chichester in West Sussex.”

Coffin Mew is also a partner of the Executive Learning Partnership (ELP) at Southampton Business School, part of the University of Southampton.

The ELP is a progressive association between Southampton Business School and a wide range of member organisations who have chosen to

contribute to a connected business learning community.

It leverages the wider business network across a range of industries and geographies to draw out business critical issues and insights to align the University of Southampton’s research focus and drive the learning agenda.

The ELP delivers a series of topical, relevant and rigorous monthly masterclasses tackling enduring and emerging management and leadership challenges.

Coffin Mew contributes to the business led approach ensuring that the learning agenda is agile and has the intended impact.

SOUTH COAST PROFIT INDEX COFFIN MEW AND THE BUSINESS MAGAZINE CREATE

ENTREPRENEURIAL NATION

Coffin Mew’s Nick Gross and The Business Magazine are working

together to create a new benchmark of company performance for

South Coast businesses.

Contact us direct

Nick Gross Partner - Corporate

023 9236 4314 [email protected]

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ENTREPRENEURIAL NATION

Mark O’Halloran explains that Modus: First Call has already an

expanding subscriber base with an official launch at the Brighton

Business Summit in October.

ON THE SIDE OF ENTREPRENEURS

FIRST CALLMODUS:

Contact us direct

For more information on

Modus: First Call contact

Mark O’Halloran Partner - Head of Commercial Services

023 9236 4959 [email protected]

Or visit www.coffinmew.co.uk

Entrepreneurial businesses need

entrepreneurial advisers – someone

who understands the challenges,

pressures and successes of running a

business.

Coffin Mew’s Commercial Services team is on the side of entrepreneurs. There is nothing more satisfying than helping someone achieve their dream of running their own business and supporting their growth.

First time entrepreneurs can often come up with interesting and novel approaches that keep advisers on their toes. That’s why we have spent a lot of time this year asking how we can better support them.

Mark O’Halloran, Partner explains: “What many of our clients and small businesses tell us is that they want access to expert legal advice, but worry about the cost. Another concern is that cash flow can vary considerably month to month and the arrival of unexpected bills can cause real problems.”

That is why we’ve developed Modus: First Call – our ground-breaking solution for start-ups and small businesses.

Modus: First Call is a subscription service that provides our clients with

access to real-time telephone and email advice at a fixed price for the year. Many issues can be dealt with if addressed quickly, and we firmly believe that Modus: First Call will help our clients save money by getting the right advice at the right time.

In addition to the helpline, Modus: First Call subscribers can also buy a range of affordable fixed fee products - such as contract templates, shareholders agreements and NDAs - which are regularly needed by new and growing businesses.

“Modus: First Call is designed to spread the cost of high quality legal advice over the course of the year, allowing to better budget and manage cash flow,” says Mark. “It is designed with start-up businesses in mind.”

Mark adds: “Of course, businesses don’t always know what additional work they might need and not all work can be done on a fixed fee basis. Therefore, as well as offering very competitive hourly rates for consultancy advice, clients can also buy hourly credits in advance at a further

discount which they can use at any time.”Coffin Mew’s Commercial Services

team has been canvassing views on the Modus: First Call concept over the summer from clients and prospects and the response has been overwhelmingly positive.

“We’ve already signed up our first clients following the launch at the Brighton Business Summit.”

Modus: First Call monthly subscriptions start at £200.

“MODUS: FIRST CALL IS DESIGNED TO SPREAD THE COST OF HIGH QUALITY LEGAL ADVICE.”

12

Trade finance is a specialist area of

banking which helps buyers and

sellers of goods and services to access

higher levels of finance for trade

than would be achieved through

conventional lending. It can support

and de-risk funding gaps between

the time exporters have to pay for

their own supplies and the time they

receive their final payment for the

end product. Here’s my whistle-stop

guide.

Explore the possibilities. Trade finance should not be seen as inaccessible. In fact, because it is lending against the value of an overseas order businesses that have been turned down for loans and overdrafts may be successful in raising money with a trade facility. Ask your bank whether it has trade finance specialists.

Letters of credit are among the most common trade finance instruments to provide peace of mind for both buyer and seller. A letter of credit (LC) is a guarantee of payment issued (for a fee) by the buyer’s bank, subject to the seller

meeting agreed conditions. A credit period can be built into the LC, whereby the payment is made within 30 or 60 days of goods being shipped. A UK bank may then confirm and then discount the LC, meaning they can provide funds in advance of receiving payment from the buyer’s bank, helping the seller with working capital.

Documentary collection is a slightly weaker but generally cheaper alternative to using letters of credit. While it does not guarantee your buyer will pay you, it involves formal communication between banks that can reduce the risk of losses.

Trade credit insurance is an insurance policy taken out to cover the risk of non payment from an overseas buyer, for example if the buyer becomes insolvent. As well as protecting the exporter, having an invoice credit-insured can also allow banks to advance funds to them as payment risk is reduced.

Bonds are promises to pay sums of money if contractual obligations, for example the performance of the contract, are not met, and are generally

issued by the seller’s bank to the buyer’s bank for a fee. Offering your customer a bond can lead to improved payment terms.

Banks and brokers can often help with trade finance, but where they cannot meet all your needs talk to UK Export Finance, the UK’s export credit agency. Our finance and insurance can bridge gaps in the trade finance market – and we provide a network of export finance advisers like me as an independent and free point of contact.

Are you looking to grow your business by exporting, but have

questions about how to fund the extra work or manage the

risk? Stuart Stoter, the Government’s export finance advisor

for businesses in the South East demystifies trade finance.

STUART STOTER : GOVERNMENT FINANCE ADVISOR

EXPORT MARKETSACCESSING

Contact us direct

For more information visit https://www.gov.uk/government/organisations/uk-export-finance

or email Stuart Stoter at [email protected]

13

“We can and do make a huge

difference to the lives of thousands

of children and adults every year.”

Most of the UK’s football league clubs

have charities attached to them,

extending the reach of the club into

local and international communities.

Brighton and Hove Albion is no exception. What does, however, set the Seagulls apart is that its charity, Albion in the Community, is one of the largest and most active in the country.

What is also surprising is that football is just a small part of a much wider programme of activity and support.

“A club like Brighton and Hove Albion plays an enormous role in the lives of a wide number of people, young and old,” explains Gary. “And Albion in the Community is an integral part of the club’s brand and what it stands for. It is a great way to reach out to those hard to reach children and young adults, often from fractured backgrounds, who may not listen to their parents or teachers but will listen to a coach displaying the club logo.”

“Football club charities have traditionally focused on, understandably, sport development,” says Gary. “People

are surprised when they discover that this plays only a part of our day to day support.

“What does gather all these strands together, however, is the philosophy of encouraging people and communities to improve the quality of their lives, whether through sport, healthy lifestyle choices or education.”

One example of this is the work Albion in the Community does with school children.

“Many primary schools do not have fully qualified sports teachers,” explains Gary. “We provide some 200 schools in Sussex with coaches that lead curriculum and after school sport lessons. That is terrific, but they also do so much more.

“Many of them use the children’s love of football to improve literacy and numeracy, by exploring the league tables and points allocated when winning, losing or drawing, and by writing match reports. It is very effective.”

Other successful programmes include Albion Goals, helping young people and

adults who are not in education, training or employment to gain training and employment opportunities.

“This is a simple but effective programme,” says Gary, “where young adults join us once a week for a morning of football, lunch and then one-on-one mentoring to perhaps improve their CV or apply for apprenticeships.”

Other programmes include Back to Exercise for elderly and those recovering from major surgery and Walking Football for the over-50s.

Each year, Albion in the Community touches the lives of over 30,000 people from Rye in East Sussex/Kent borders across to Chichester in West Sussex.

Over £3.5m a year is spent supporting its programmes, delivered by its 60 full and part time staff and 100-strong coaching team.

Gary joined Albion in the Community

Albion in the community -

a team effortWith Brighton and Hove Albion FC leading the way in the Championship, battling for a place in the Premiership, Amy Richardson caught up with Gary Townsend, the chief operating officer of the club’s charitable arm, Albion in the Community. As it starts its 25th anniversary year, there is much more to the Seagulls than just football.

14

having previously worked for Manchester United and Everton. As well as overseeing the day-to-day running of the charity he has also been a regular fundraiser – helping one of the charity’s ambassadors, Jadey Yesilada, who has cerebral palsy, complete the Brighton Marathon and Brighton to Paris cycle ride.

“Albion in the Community needs over £10,000 a day to deliver its full range of programmes,” says Gary, “and some people believe that this comes entirely from the club. In fact, we work with over 40 separate major funders, including local government agencies, our sponsors and of course the club. “We are also reliant on the many thousands of people that raise funds for us every year.”

The charity’s 25th anniversary provides a once in a lifetime opportunity to launch a dedicated campaign to encourage more and more disabled children and adults to take part in sports and to raise the funds to support it long into the future.

“Our estimate is that there are some 12,000 young disabled people in Sussex,” explains Gary, “yet just 2,000 regularly play or engage regularly in sport with us. This

is not because they do not want to, but that the opportunities for them to do so do not exist. We want to change this, and we have a terrific opportunity to do so.”

The campaign was launched on Saturday 3 October with a range of activities, including a blind football game at the American Express Community Stadium during half time against Cardiff.

The campaign will support the 25 community and sports clubs across

Sussex for young people and adults with additional needs, plus fund new programmes. Programmes are varied and include deaf football, Powerchair, disability leagues and tournaments, and disability awareness programmes in schools and colleges.

“Our motto is to ‘give people a chance’,” says Gary, “and that extends to everyone, every sport and opportunity. Sports clubs can motivate people, particularly young children, in ways that are just not available elsewhere. We need to do that and use football to bring communities together.”

“Our target is to raise over £500,000

over the next 12 months.”

Further reading

If you would like to find out more

about Albion in the Community,

the programmes it runs or how

you can get involved visit

albioninthecommunity.org.uk

Health Teaching and inspiring healthy lifestyles and diets with young people and the older generation

Disability Enabling disabled people to take part in a wide range of sports that challenge perceptions of disability

Schools Supporting and supplementing the curriculum in providing sports education, but also helping with maths and literacy

Skills and qualifications Providing training programmes that improve young adults’ employment prospects

Sport and development Increasing access to sport in order to benefit individuals and communities

Albion in the Community works across five core areas:

15

Alternative dispute resolution, or ADR,

is an umbrella term used for the various

ways disputes can be resolved outside

of formal court proceedings. There are

various options open to parties.

Negotiation

Parties to disputes often have an established relationship, which led them to do business together in the first place. When a dispute arises it can often be resolved with honest plain speaking and common sense without the need for expensive proceedings to be issued. Negotiated settlements can be achieved in respect of any dispute.

Mediation

This is a form of facilitated negotiation. An independent mediator will work with the parties to develop their own solution

to a dispute, allowing more flexibility regarding the settlement options available to the parties. A solution cannot be imposed and will only be binding when all parties are in agreement. Mediation can be used at any stage of a dispute, before or during the court process, and is often useful in commercial disputes where the parties want to maintain an ongoing relationship.

Arbitration

Arbitration is a form of private, binding, determination of a dispute by an independent third party. The agreement to arbitrate if a dispute arises is often included in commercial or construction contracts. Parties can opt for arbitration once a dispute has arisen. All parties must, however, agree to refer the dispute to arbitration.

Adjudication

Adjudication is a procedure introduced specifically for construction contracts. Any party to a construction contract has a right to have a dispute decided by an Adjudicator and adjudication is intended to be quicker and more cost effective than litigation or arbitration. It is normally used to ensure payment, although most types of dispute can be adjudicated, and should produce a decision in less than 42 days.

Due to the cost of litigation, especially in light of the recent increase in court fees, we are seeing ADR becoming more popular and think that an even greater emphasis will be placed on ADR in

Faced with a argument, businesses and individuals often think that a court hearing is the only way that their dispute will be resolved. In reality court proceedings are often a last resort with many other options being available to parties to achieve an early and economic result, as Laura Harding explains.

“Court fees have

increased by 309%.”

See you in court… or is there a better way?

16

the future. The courts already actively encourage parties to try and resolve disputes through the use of pre-action protocols and ADR, considering litigation as the last resort.

Whilst the majority of cases do not end in a trial, the increase in court fees places an even greater emphasis on all parties to consider ADR before they get to the stage where proceedings are issued.

Even if one method of ADR is unsuccessful, for example when the parties have failed to negotiate a settlement, there is nothing to stop the parties trying another form of ADR – such as mediation or arbitration – which may result in a resolution.

Indeed, in most of the corporate disputes that we handle, we do consider

that arbitration, which traditionally has been considered as an expensive option, is likely to become more prevalent for corporate disputes where confidential speedy conclusions are paramount.

Court proceedings are not the only option!

The increasing cost of court proceedings

In 2015 changes were introduced

to the courts’ fee system, resulting

in significant increases to the

court fees for issuing claims in

England and Wales. For example,

before March 2015, the court fees

for issuing a claim with a value of

£50,000 would have been £610; the

court fee for issuing that claim now

would be would be £2,500 - a 309%

increase.

These dramatic increases are due to the way in which the court calculates the issue fee when a claim is started. The court will now calculate the issue fee for claims above the value of £10,000 by calculating 5% of the total value of the claim, subject to a maximum cap of £10,000, rather than on a fixed fee scale.

There are already further consultations by the Ministry of Justice to consider whether these revised court fees should be increased again. The current consultation process, which closed on 15 September 2015, proposed a number of increases to application fees and fees for possession claims.

Some commentators suggest that the fee for a £50,000 claim could increase by 600% from the pre-March 2015 fixed fees if the proposals in the recent consultations are implemented. Although, normally, the successful party will be able to recover the fee from the other side, the court fee will have to be paid in advance.

We suspect that the policy reasons behind these increases is to try to reduce the number of claims in the court system and to make parties seriously consider whether litigation is the most appropriate way to achieve a resolution of disputes. We have also noticed that recently more courts now strongly encourage negotiations at an early stage in any proceedings.

Contact us direct

Laura Harding Solicitor - Dispute Resolution

023 8048 3757 [email protected]

Further reading

Coffin Mew businessservices.coffinmew.co.uk privateclient.coffinmew.co.uk

“Disputes can often be

resolved with honest

plain speaking and

common sense.”

17

Rising house prices have steadily

pushed more and more people above

the inheritance tax threshold. The

Government has delivered on its

long held promise to increase those

thresholds (see our article on page 11

of this edition), but there is always the

temptation to take matters into your

own hands and try and outwit the tax

man. Some steps are sensible; others

simply do not work.

Marrying on your deathbed

Married couples do benefit from generous IHT reliefs. At present, a single or a divorced person’s IHT allowance is £325,000 and a married couple or widow/widower has the potential for up to £650,000. It therefore makes sense for unmarried couples, particularly where one is terminally ill, to marry.

But, marrying without updating your Will may see your plans unravel - and it may even make matters worse, as marriage immediately revokes any previous Will unless that Will includes clauses stating that the Will is made in anticipation of the marriage. If you die

without a valid Will your estate is classed as ‘intestate’, with your assets distributed in a fixed way as set out by law. It is not uncommon when an estate is intestate for the surviving spouse not to receive the share that perhaps parties intended, leaving everybody disappointed and frustrated.

So, by all means do marry on your deathbed, but make a new Will a lasting wedding present.

Many people will have heard of, or perhaps even know, people that have married their long term partner on their deathbed. There is good reason to do so, with married couples benefiting from generous Inheritance Tax (IHT) reliefs. But not all last minute tax planning works so effectively, and with HMRC taking an ever-increasingly tough stance on tax avoidance, DIY measures may end up leaving your family with an even larger tax bill. Roz Wyeth explains why some of the more common steps rarely work.

DIY SOS - DIY tax planning rarely works

“Marriage immediately

revokes any previous Will.”

18

Giving away your home

on your deathbed

For many, the family home is their most valuable asset, and it is surprisingly common to see the home given away shortly before death. It may be that the gift is made to allow the beneficiary to benefit from the home before probate is complete, and in the hope that it will avoid IHT.

It is entirely possible to give away your home, or indeed any other asset, but strict conditions must be met. All too often they are not, and, disappointingly, IHT is almost always payable.

The gift must be made when the

donor believes death is imminent, and the donor must die. The donor must physically part with the gift and the gift must be capable of being given away. Importantly, the individual giving the asset away must have the mental capacity to do so and cannot be coerced in any way.

Any such gifts will continue to potentially attract a charge to IHT, as gifts made within seven years of death continue to fall into the estate.

Giving away assets,

but still keeping them

It is still commonly believed that it is possible to give away your assets yet keep them for your own use - for example, giving jewellery or furniture to your children yet keeping them in your own home for you to use. Some also believe that it is possible to give away the family home, but continue to live there. This does not work for tax planning or nursing home fee mitigation, in the former it is a gift with reservation of benefit, and in the latter deprivation of assets.

You are subject to IHT on all the assets you own. If you give them away but continue to benefit from them HMRC will consider them as a gift with reservation and the value of them will be included as part of your estate for IHT.

Loans and cheques

Some of the more unusual steps we have seen taken include giving cheques to grandchildren to be cashed after death and the making and writing off of informal loans. Both, sadly, do not work.

The idea behind writing a cheque to be cashed after death is perhaps based on the desire to avoid having to wait for the probate process, giving grandchildren cash immediately.

However, it simply doesn’t work as the bank account of a deceased person is frozen, making it impossible to cash that cheque. Even if a cheque was given and cashed before death it would make no difference to any IHT payable.

The same applies to loans that are written off or ‘forgiven’. People mistakenly

believe that such loans fall outside of IHT. Whilst technically that is possible, it must be supported by formal evidence by way of a witnessed deed. All too often these conditions cannot be met.

Writing your own Will

There are many ways to write a Will – with the help of your solicitor, a will-writer, even downloading a template from the internet. Many people mistakenly believe that it is expensive to consult a qualified professional and choose to write their own. As a result mistakes are made all too often, wording is misconstrued leaving your last wishes open to a challenge. In addition, tax implications are neither considered or understood resulting, potentially, to increased exposure to inheritance tax.

Wills are technical and complex legal documents and should be written by those that understand the process and can take the time to understand your estate and your wishes. They are not expensive; a Will written by our specialist team starts from as little as £195. Writing your own Will is a false economy, may leave your lasting legacy wrapped in a bitter dispute and lead to a hefty bill for your heirs.

Contact us direct

Roz Wyeth Chartered Legal Executive - Wills, Trusts and Probate

023 9236 4322 [email protected]

Further reading

Coffin Mew privateclient.coffinmew.co.uk

“You are subject to IHT on

all the assets you own.”

19

The Armed Forces is like a family, sometimes you love it,

sometimes you hate it, but you you know it will always

be there and will provide support when you need it. Like

a family it has its own “in jokes” and its own language.

The Armed Forces love acronyms and lapsing into TLAs

(Three Letter Abbreviations); if you are not in the know

you just might not understand the true meaning of the

conversation.

Our very own Bob Williams is a former Royal Naval officer and speaks the language fluently, much to the amusement of some colleagues who listen to him on the phone and have no idea what he is talking about.

Coffin Mew is a firm with roots firmly in Portsmouth and consequently has a close association with the Armed Forces. We act for clients throughout the country and of course those serving overseas – or indeed at the bottom of the sea!

Being part of a service family has unique benefits and challenges; having an adviser who has some insight into those facts can be invaluable.

Not having to explain the complex entries on pay statements or the significance of altering married status in so far as accommodation is concerned not only saves time but enables the person seeking advice to concentrate on the issues to which they really want answers. Accepting and understanding the limitations of communication in a submarine or understanding the resettlement process just makes life easier for service personnel and their families.

NRIO re GRT on AFPS 75 and CEA Roger; Tango Delta out.

[Or put another way, there I was with my Oppo down the gulch at stand easy,

spinning a few salty dits having had a belter of a run ashore the previous night in

Guzz, when the Killick of the Mess told me the Jaunty wanted to see me in the Reg

Office. It was then I knew the day was going to turn to rats and it was only a matter

of time before I’d have to get me hat and be up at the Skipper’s Table!!!]

“Being part of a service family has

unique benefits and challenges.”

Complete load of gibberish?

Not if you are from an Armed Forces family.

20

Tina Day - Family lawyer and Mediator

We receive a significant number of referrals from the White

Ensign Association. For the majority of those referrals

understanding the Armed Forces Pension Schemes is the key

issue. Whether seeking to protect their pension or maximise

the pension claim on divorce having the confidence that we

understand the intricacies of all three of the schemes is critical.

Our team is recognised as national experts in this field.

Helping parents make arrangements for their children on divorce or separation has its challenges, for service personnel there is potentially a whole myriad of additional hurdles to overcome. The Armed Forces have a fairly old fashioned idea of responsibility for children which is simply not compatible with modern day living or, indeed, parts of the Children Act. Take, for example, Continuity of Educational Allowance (CEA), which is an allowance designed to provide stability of education for Armed Forces children. A significant contribution is made towards a child’s education to enable children to board at school whilst their serving parent(s) take up assignments across the UK and abroad. There is an eligibility criteria for this allowance which includes in the event of a divorce or separation that the serving member must have full custody of the child to continue to be eligible for the allowance. Custody hasn’t existed in legal terms since the introduction of the Children Act 1989 which also established the “no order” principle, meaning the court will only make orders when it is necessary and considered to be in the child’s best interests. It is also increasingly common for shared care arrangements to be considered in the best interests of the children. The eligibility criteria immediately causes potential conflict between parents. Retaining CEA is often key to a child continuing their education at their school as well as being able to access travel allowances for staying in touch. For parents serving overseas being able to access the travel allowances

might be the only way to fund face to face visits whilst they are posted abroad.

Because of the transient nature of service life it is not uncommon for a family home to be owned in a home town but for parties to be living in service accommodation where they are assigned. Changing martial status will trigger an eviction from the service accommodation which potentially leaves the non service partner (more often the wife) and children homeless.

Family homes will often be occupied by tenants and may be hundreds of miles from where the children are settled in school or nursery and where the non service parent has a job and support network. Knowing

this will happen and discussing these matters in advance and preparing people for it can be key in preserving a good co-parenting relationship between the parties going forward.

Bob Williams - Consultant Barrister

As for Bob, he has a unique role to play within Coffin Mew.

His aim is to provide a knowledgeable, sympathetic and

reassuring initial point of contact for serving and former

members of the Armed Forces, Reserve Forces and their

families and to assist them with the myriad of problems

unique to service.

He works with all ranks and rates within the Armed Forces, with organisations that support the Armed Forces and former service personnel and their families, dealing with disciplinary, administrative and employment issues at all levels. These matters are in addition to his work in respect of representing serving personnel in disciplinary proceedings at Court Martial and the Summary Appeal Court.

Having served for 36 years in the Royal Navy, Bob has a very close affinity to all service personnel both past and present and having “been there; seen it and done it”, his aim is to provide as much help and support to those who now find themselves in difficulties.

Contact us direct

Bob Williams Consultant, Barrister - Armed Forces

023 9236 4309 [email protected]

Tina Day Senior Associate (FCILEx) - Family

023 9236 4954 [email protected]

Visit www.coffinmew.co.uk

Further reading

Coffin Mew http://www.coffinmew.co.uk/ military-solicitors.asp

“The Armed Forces have

an old fashioned idea of

responsibility for children.”

21

The Supreme Court in the recent

landmark cases of Sharland and

Gohil made it clear that there is now

zero tolerance for not disclosing

fully your financial means as part of

financial negotiations arising on the

breakdown of the marriage.

Mrs Sharland and Mrs Gohil took their cases all the way to the Supreme Court, when they found out that what their husbands had said about their own finances in their divorce was simply not correct. The Supreme Court said that this sort of lack of honesty was fraud and made it clear that the binding court orders that the wives had entered into should not stand and should be set aside. In other words, the wives could not be bound by the settlements they entered into and could ask the court to decide

again on the division of the couples’ assets and income. It’s the principle that “fraud unravels all”.

The courts could not have been clearer that dishonesty in hiding assets or failing to declare fully what you earn or have tucked away will not be tolerated, and spouses who attempt to take this route need to be fully aware of the serious consequences that follow.

There is the temptation, says Sally, for spouses who suspect that assets are being hidden to take copies of their partner’s documents or access, for example, their email.

“The law is very clear,” says Sally. “It does not allow you to snoop and take copies

of your partner’s financial documents.”Divorce lawyers for years relied on

the “Hildebrand rules”, a set of what seem odd rules that meant lawyers could advise clients that they could take copies of documents provided force was not used or post or email was not intercepted.

“This all changed with the case of Imerman,” says Sally, “which effectively said the old rules were wrong and that obtaining documents unlawfully was a breach of a person’s privacy. Documents acquired in this way could not be used in divorce proceedings.”

So even if you know and have seen documentation that suggests your spouse is concealing assets you can not give them to your solicitor if they are held under the control of the husband, even if

Sally Pike, Head of the Family Team at Coffin Mew, explains what happens

when a spouse is deliberately dishonest in disclosing their assets and income?

Skulduggery and dishonesty in divorce

“Fraud unravels all.”

22

they are kept in a study draw at home. “It may be possible to argue that a

person had waived their privacy if they keep statements lying around on a kitchen table or on a bedside drawer,” explains Sally, “but it’ is not clear-cut.”

Some divorce lawyers have said that the Imerman case opened up a cheat’s charter, where it was very difficult to prove that the husband is hiding assets.

The wife’s lawyers in the case of Imerman said “wives have until now been allowed to produce an ace from their sleeve: a document proving the husband had lied about his finances was admissible even if improperly obtained” .

But no longer. In that case, the husband argued that the documents had been illegally obtained and breached his privacy and could not be replied upon.

Sally offers this advice: “You can still apply for orders for documents to be

handed over if you have substantial reasons for suspecting a person of not complying with their duty to give full disclosure in a divorce, but the expense of such applications may make this difficult.”

Couples still, however, have a very high burden to provide a comprehensive overview of their finances on divorce, and failure to do so can and does lead to the court imposing cost penalties and now the threat of the settlement being overturned by the court. It can also result in the court making adverse findings as the credibility of that person which can lead to an inferior financial settlement.“ Trying to be clever rarely works in divorce proceedings,” says Sally. “Judges are not born yesterday and have heard it all before. I always advise clients to set out their finances clearly and constructively at an early stage. It puts the negotiations on a good footing and is far more likely to achieve a settlement without the costs of court proceedings.”

Contact us direct

Sally Pike Partner - Head of Family

023 9236 4955 [email protected]

Further reading

Resolution www.resolution.org.uk

Coffin Mew privateclient.coffinmew.co.uk

“Set out finances clearly

at an early stage.”

23

From a commercial perspective, it is

unwise for employers to ignore these

statistics and the well-being of their

employees. Businesses are reliant on

a healthy and productive workforce.

On the legal side, employers have a duty of care to protect the health, safety and welfare at work of their employees. In some cases, a mental health condition may be a disability under the Equality Act.

Coffin Mew has created a short guide for employers on the steps they can take to manage mental health issues in the workplace:

Promote well-being

Ensure that employees take rest breaks and annual leave. Encourage activities to create a friendly working environment, and consider whether flexible working options are viable.

Spot the signs

Mental health conditions may cause sudden poor performance, unreliability or changes in attitude or personality. Don’t ignore these warning signs.

Staff surveys and one-to-ones

Carry out anonymised surveys to gauge the mental well-being of your workforce. Use return to work interviews and one-to-one meetings to identify any underlying mental health issues.

Communication

Encourage openness within the workforce so employees feel comfortable disclosing mental health issues.

Training

Provide training to managers on how to manage employees appropriately. Promote awareness of mental health issues internally.

Stress policy

Implement a policy dealing with stress in the workplace, containing a procedure for employees to follow if required and detailing what steps may be taken to rectify this.

Alternative support

Consider using an employee assistance programme, providing employees

with confidential counselling for both personal and work problems. Provide employees with access to occupational health services, where required.

Sensitivity and confidentiality

Above all, be sensitive. An employee’s mental health issue should be kept confidential, unless consent is given to disclose the information.

Contact us direct

Holly Cudbill Associate Solicitor - Employment

023 8048 3770 [email protected]

Further reading

Mind www.Mind.org.uk

Coffin Mew businessservices.coffinmew.co.uk

Mental health in the workplace A recent report revealed that seventy million working days are lost each

year due to stress, depression and other mental health conditions, costing

the economy “£70-£100billion annually. Holly Cudbill explains further.

24

Recent statistics published indicate

an average of 19.1% pay differential

between men and women. The

statistics change depending on

sectors and whether the roles

are considered full time, part-

time, skilled, unskilled, or senior

management. But whatever statistic

is used the differential is significant.

So what is Mr Cameron proposing? Well, it seems that he thinks a pay audit check and the publication of that information will result in more equal pay. His government published a consultation at the end of the summer asking for the views of employers. The results are expected any day now.

The consultation looked at whether actually requiring companies to disclose the information would assist with the gender pay gap, the level of detail and breakdown that would be required, what size employer should be included (current proposal 250 employees), whether it would be important to make a comparison between similar organisations, whether it should be a legal requirement, how it is to be published,

the frequency of publication and how it would ensure compliance.

The Government is open-minded about the level of information to be disclosed. Whilst it is probably helpful for employers to review their pay structures so that they are globally considering why there are pay differentials within their organisation, it is likely that most pay differences will not be a result of direct discrimination. To get to the bottom of why there are differences will require a detailed assessment rather than publication of broad-brush figures.

There have been hints from Government that it favours a banding process to allow a comparison of pay at each pay grade, and if the audit does disclose a gap it is likely employers will be required to provide an explanation for the difference.

Whilst this could be a time consuming and expensive process, the costs for employers could be more than just the costs of the audit. And whilst large employers do get it wrong, they are more likely to have adopted formal pay grade structures that do help to identify and eliminate pay inequality.

The proposals as they stand do not apply to businesses with fewer than 250 employees, effectively removing some 60 per cent of the work force from any resulting legislation. If the Government were serious about eliminating pay equality it would look at ways that all businesses can improve pay transparency.

And of course, if a pay differential exists without good reason it could not only result in negative publicity but could give rise to claims for equal pay, which can be claimed retrospectively for six years.

Contact us direct

Dorlee Monschau Partner - Employment

023 9236 6018 [email protected]

Further reading

Coffin Mew businessservices.coffinmew.co.uk

Sticky floors and glass ceilingsDorlee Monschau highlights that even 40 years after unequal pay and sex discrimination

became unlawful, differences in pay for men and women is still a significant issue.

David Cameron has decided that this is a matter that needs to be looked at (again).

25

Managing creditors is a critical

function to any business and its

cashflow, and most businesses are

very good at chasing what is owed.

However, when a customer or supplier is facing financial collapse that presents a very different challenge. All too often the first time a business might find out that a customer or supplier is in financial trouble is when a letter arrives notifying them of some kind of formal insolvency process.

Many businesses will simply resign themselves to the fact that this is money lost, and write it off as a bad debt.

But, as a creditor there are things that you can do to better protect your interests, which, in certain circumstances, can come at little or no cost to the creditor. And that is where our new Creditor Support service can help.

Creditor Support is designed to help and guide businesses that are owed money from failed businesses - from explaining what rights that business has, what information it is entitled to, and on how the insolvency process generally works .

Jonathan Lupton, Partner and Head of Insolvency and Business Recovery

at Coffin Mew explains: “Many people do not realise that as a creditor of an insolvent business they have certain rights, such as the ability to vote on the appointment of an insolvency practitioner and the basis for calculating their remuneration, and the ability to provide information about the conduct of the business leading up to its failure and those in control of it, as well as receiving information. All these things can directly affect the possible outcome for creditors.”

Creditor Support is a simple service

that will provide businesses with

the following:

• An honest appraisal of what chances they have of receiving any money back;

• Advice on procedures and your rights; • Guidance on the appointment of

insolvency practitioners (IPs); and • Recommendations on alternative

IPs that may be better suited to the position.

Jonathan adds: “The earlier we can get involved in advising a creditor of a business the better, particularly if an

insolvency practitioner has yet to be appointed. And the greater the size of the debt the greater influence a business holds.”

In certain circumstances Coffin Mew is able to offer this service at little or no cost to the client. Why? “It is,” says Jonathan, “a service that allows us to introduce Coffin Mew to businesses and hopefully a good starting point to a longer relationship. It allows us to demonstrate the collaborative way we work.”

Creditor SupportA new service from Coffin Mew’s Business Recovery team

It is a frustrating and unfortunate fact of business life that every once in a while a customer or supplier will default on a payment

leaving you owed money. Jonathan Lupton discusses further.

Contact us direct

Jonathan Lupton Partner - Head of Insolvency and Business Recovery

023 8048 3779 [email protected]

Further reading

Coffin Mew businessservices.coffinmew.co.uk

26

In the last couple of years the

Government has been reviewing and

consolidating the laws relating to the

purchase of goods and services by

consumers. The Consumer Rights Act

which came into force on 1 October is

the culmination of this wide review of

UK consumer rights.

The Act will regulate all contracts between businesses and consumers. Generally, the Act reflects the existing rights available to consumers but makes the legislation more user-friendly rather than introducing substantive changes.

However, the remedies available to consumers have been enhanced and businesses will need to adjust their trading practices to reduce any risk of incurring additional liability.

“Non-conforming” is the buzzword

that triggers consumers’ remedies, that include, among other things, rejection, refund, repeat performance and price reduction.

The Act introduces a new category of ‘product’ that has not been considered under previous legislation: digital content. Until now, the rules relating to tangible products have been made to fit the sale of digital products, and have arguably failed to adequately protect consumers.

The Act now sets out a hierarchy of remedies available to consumers that relate solely to digital content. These include a right to compensation where digital content causes damage to a device or other digital content belonging to the consumer.

The Act introduces a new definition of a consumer. This change is quite

significant as it brings “natural persons”, such as sole traders and home workers who buy goods for both personal and business use, within the scope of the Act.

Most business will be familiar with their obligations when dealing with consumers, but the Act does implement some significant changes such as the enhanced remedies available to consumers.

Businesses need to familiarise themselves with their new obligations and review procedures and interactions with consumers to ensure they comply with the new Act.

Consumers are becoming savvier, and will make sure they are aware of their rights when buying goods and services. So now is the time to make sure your business is ready for the change.

Mark O’Halloran explains the new consumer rights legislation and how businesses should respond.

Government beefs up consumer rights

Coffin Mew Consumer Rights Checklist

Review your standard terms and conditions to ensure they conform.

Review the processes you use when dealing with non-conforming goods, services or digital content. Your customer service terms will need to be familiar with the new remedies available to consumers.

Review the information, both written and oral, that you may provide to consumers about your business, and the goods and services that you provide to make sure the information is clear, accurate and reliable.

Contact us direct

Mark O’Halloran Partner - Head of Commercial Services

023 9236 4959 [email protected]

Further reading

Which? www.Which.co.uk

Coffin Mew businessservices.coffinmew.co.uk

27

Working for you

www.coffinmew.co.uk

@coffin_mew

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