Summer Ball 2018

ABD decided to do things a little differently this year, with a “Golf themed” Summer Ball.  The Ball was held at the picturesque venue of Wellington Barn with members of staff having the opportunity to test their crazy golf skills late into the night on the mini golf holes.  The winning team even managed to win a days extra holiday for their members of staff with other guests winning Amazon vouchers. 

Welcoming drinks were offered on arrival which were much needed after such a scorching day of sunshine. 

Once seated, the whole room engaged in a Charity Auction.  The following prizes/services were auctioned by Tom Paget and Alexander David and ABD are proud to announce that the auction managed to raise an outstanding sum of £515.00 for the fantastic charity that is the Starlight Children’s Foundation. 

There were some fun and great lots on offer:   

1. Tim Hotchkiss and Alexander David’s garden and cleaning service – offering a lawn       mowing and car cleaning service.
2. David Turley’s DIY – Dave has offered one whole day of his time to help out with those DIY jobs which you simply don’t get round to doing. 
3. Nicola Hunt - our resident artist unveiled an original artwork which was snapped up.
4. Alistair Everett in Fancy Dress  – Alistair shall be wearing a fancy dress costume around the Firm’s Chippenham Office or at the Firm’s Sport’s Day.

Stay tuned for future updates as the members of staff begin carrying out their chores and tasks!

Following on from the auction, all guests had the opportunity to win several luxury raffle prizes.  These included a trip for two to the Shard followed by a meal at Marco Pierre White’s City restaurant and Laurent-Perrier luxury pink champagne with two flute glasses. 

 All guests then indulged in a delicious 3 course dinner courtesy of Clever Chefs and went on to dance the night away on the dance floor. 

Many people also took advantage of the fun photo booth by ‘striking a pose’ whilst using various different props.

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Prenups … Sharing more than an intimate meal for two…

As unromantic as it may seem, over the past 12 months Peter Berry at Awdry Bailey & Douglas has dealt with more enquiries about Prenups than during the last 10 years.

Why are so many people looking at Prenups?

More than ever before, people are choosing to marry later in life. The number of weddings for men aged over 50, and for women aged 35 to 39 years has increased substantially. The figures for over 65s have increased by over 40%!   

For younger couples, social attitudes are changing and the number of family businesses and people who are self-employed continues to grow.  

So why might a “Prenup” be on your wedding planners list?   

Do you:

Own your home?

Run a business?

Have a pension?

Have savings?

Have children from a previous relationship and possibly grandchildren too?

Have you:

Received an Inheritance from your parents, or relatives?

Invested in rental properties, or made long term financial plans?

Sold your business, and looking to enjoy your hard earned cash?

Been divorced before, and worked hard to rebuild your financial security? 

If the answer to any of these questions is “yes”, then you should think about a Prenup. Starting a conversation about this is never going to be easy. Fears of arguments and embarrassment are entirely understandable. However, talking through the reasons often opens up a depth of conversation about feelings, wishes and about family. 

A Prenup is worth a lot more than the paper it’s written on. 

If the agreement is drafted by a specialist and adheres to legal requirements, you should expect to be bound by its terms as long as it is fair. 

At #ABDlaw we can help you prepare a prenuptial agreement that can stand the test of time. 

Contact Peter Berry on  01672 518620, or via email on peter.berry@awdrys.co.uk where he will be happy to offer a free until consultation or or visit our website.

Awdry Bailey & Douglas are proud to now be a Business Partner of WiRE (Women in Rural Enterprise).  

WiRE is a national business support network; promoting, supporting and developing its membership of rural businesswomen. Grown from an academic research project based in Shropshire, WiRE is now a national membership organisation, widely recognised as a dynamic and positive force within the economy of rural areas and as the voice of rural women’s enterprise in the UK.

Awdrys recently hosted a legal clinic for WiRE members covering aspects of Family, Employment and Commercial Law in order to provide members with a general overview of important considerations for business owners. Three members of the practice spoke:

• Georgina Catlin (Family Law) discussed the wide ranging topic of family law to include ways of protecting your finances      both pre and post separation/divorce;
• Jessica Arnold (Commercial Law) provided an overview of the various ways in which a business can be structured and discussed the key risks and benefits that individuals and companies should consider when deciding what business structure is right for them; and 
• Maxine Nutting (Employment Law) then talked about factors businesses and individuals need to be aware of in terms of whether their workforce or contractors may actually be considered employees and what that could mean for you from a legal perspective if something goes wrong.

Maxine Nutting from the Employment Team discussing the issue that 'workforce' and 'contractors' could potentially be considered as 'employees' in the eyes of the law

The Clinic also provided members with an opportunity to ask questions on an informal basis and many members took advantage of this opportunity.  

Following this, the group then enjoyed a cookery lesson hosted by The Farm Cookery School in Bromham and were able to feast on their creations over a networking lunch.

For further information about WiRE and their members please read our profile http://www.wireuk.org/members/georgina-catlin/

Family Businesses - Avoiding the Pitfalls

Twice in the last week alone, our Commercial Team have been asked to assist with problems involving family businesses. It can be extremely difficult for those involved and sadly the emotional stress can often result in family breakdowns. 

Frustratingly for us as advisors, it nearly always comes down to the same simple issues which are easily avoidable, so here are a few tips which you should follow:

1) Understand your duties as a director

It is quite common in family businesses for family members to be appointed as a director even though they may have little or no involvement in the business. This is often suggested by accountants for tax reasons. 

However, as a director it is essential that you know what is going on with the businesses on a day to day basis, especially where finances are concerned. Directors have certain duties and, in some circumstances, you may be held personally liable where those duties are breached. 

If you are a director of a family business:

• It is therefore essential that you understand your duties as a director and take them seriously. 
• Take the time to understand the finances of the business and make sure that obligations, especially to HMRC and the banks, are being met.
• If you are not able or willing to be involved, consider resigning, as personal liability cannot be escaped by pleading ignorance.

2) Be open

Family businesses often rely too much on trust, with people being left to their own devices without the checks you might expect in a normal organisation. When the business faces a challenge, this trust can become an enormous burden, often resulting in problems being covered up or understated, whilst attempts are made to fix the situation. 

Unfortunately the others may be unaware of the problems until debt recovery letters arrive, perhaps from a supplier, HMRC or even the bank looking to repossess the family home. By this point it is often too late to save the business and sadly, the sense of betrayal can lead to the breakdown of the family relationship too. 

To avoid this:

• Meet regularly to review the finances and ensure obligations are being met. 
• If there are problems, share them. There is more chance of a successful outcome if everyone is working on a solution. This is the benefit of having a board of directors.
• Implement checks to ensure that tasks are carried out properly and do not leave important jobs to one individual 

3) Agree it, document it

Family members often come to arrangements between themselves that are not documented. This may take the form of a loan or the transfer of shares and property. Because of the close family relationship, people often feel it unnecessary to document the arrangement and, 9 out of 10 times there will be no issues. 

However, what if the unexpected happens? How do you prove whether the transfer of money was a repayable loan or a gift, or that money paid was actually consideration for a property which has yet to be transferred? This can become a big problem in the event of divorce or death as it may have a significant affect on the distribution of assets. 

It is therefore important to take advice and document agreements properly. This may also provide important evidence when it comes to paying tax. 

4) Tell your advisors everything

Finally, there is no point seeking advice unless you tell your advisors everything. Accountants and solicitors can often help, but only if we know the full picture and understand precisely what you are trying to achieve. By withholding information you can create big problems. 

This was the case recently where we advised on a family situation. Money had been spent on taking advice from an accountant and a solicitor but both had been told one thing, whereas the family had actually agreed completely different terms behind closed doors. 

The tax saving they thought they had made paled into insignificance compared to the liability for other taxes they had not considered. Furthermore, following the death of one director, the others then disagreed over the term of the deal they had made and, because the terms agreed were completely different to the terms recorded in the documents, the agreement could not be enforced. 

No doubt the advisors could have found a solution that worked for everyone had they been given the full details and significant tax liabilities could have been avoided.

SUMMARY

Whilst these examples may seem unlikely, they will be all too familiar to those of us advising family businesses on a regular basis. 

By understanding your obligations, meeting regularly, sharing problems, documenting agreements and taking proper advice, you may reduce stress, save money and grow your business all without risking the most important thing, which is the relationship with your family. 

If you require advice on any of these issues please get in touch with Tom Paget in our Commercial Team on 01380 722311.

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