Hi Martin, thanks for responding. That is broadly in line with what I have stated above, but what are your thoughts regarding the Planning Costs in A)? Or whether the treat the whole gain at Trading Profit in B) or split it between CGT for the first period of ownership and Trading Profit for the latter? And finally what do you think would be deemed the periods which PPR does/does not apply in C) and the apportionment of the gain into each period?
Many thanks.
WA.
Thanks Wilson. I has assumed (probably incorrectly) that simply writing off the debtor to avoid bona vacantia balances was a shortcut that could perhaps be challenged and that a share capital reduction (while more paperwork) was the 'proper' way to do it.
To be honest John, yes quite possibly. The liquidator has been involved with various other work for other subsidiaries and just advised that this was the route to follow for this one. I may have missed something which forces it down this route but will certainly go back to them now and just make sure we have't overlooked the obvious. Thanks.
I think a random spot check is sensible and if they are relatively regular/common journeys you should have an idea of what is a reasonable mileage. As others have said, unless an employee is wildly exaggerating mileage of claiming for fictitious journeys there is an element of trust.
I would question whether it is a good use of your time as well unless you are aware of people abusing mileage claims.
Also, micro managing in this way could negatively impact on what your employees think of you. During my training I once had a manager that decided there was a 'standard' mileage between two of our offices and refused to authorise claims above this. This 'standard' they had taken it upon themselves to invent was not in the company travel policy and was based on the most direct route on rural lanes between the offices instead of the quicker (but longer) route along the A1 and M25. After 3 weeks of driving to another office to help out my mileage claims were restricted retrospectively (the manager had never mentioned this 'rule' previously).
It is very easy to completely demoralise your employees over items like this if they perceive any unfairness in how they are treat. In my case I certainly felt at the time that there was a lack of trust by the manager and even a hint that I was dishonest which really made me angry when I was literally going out of my way to help them. The company earned far more from me on a daily basis with the overtime I worked which wasn't claimed (nothing was claimed unless it was over 1 hour and authorised in advance), than I would have earned if I had been fiddling mileage (which I was not).
I never volunteered to work for this manager again if I could avoid it and certainly always had a 'something important' I had to get home for if ever they asked if I could work any overtime again.
Further to my 'Wake up call' comment on the 12th December I just wanted to add that I have now handed in my notice from my role as Group FC and have secured a role within a small firm to make that transition back into practice.
Here is hoping for a successful 2017 and that taking the plunge (and the pay cut!) will pay off in the long run.
This message thread popped up again because of the recent posts. I originally commented back in 2012 when I had been in industry for 2 years, was bored, and looking at moving back in to practice.
Another 4 years down the line and it is quite scary looking back at my old views.
So here are my thoughts as I look back at my views then and what happened since. I think they are still relevant to the topic:
I did change jobs, but I stayed in industry, moving to a smaller business as a Financial Controller and then Group Financial Controller and now have fairly clear path to becoming a Director in the future. All fantastic right?
Wrong.
A change of scenery was good for a while. A change in job role and new responsibilities has also been good, but that all wears off eventually. So 4 years down the line I am still bored of month end, quarter end, year end, audit, interim audit, due diligence all of which has doubled since we are now US owned and now do everything in two formats. It is same thing time and again. The hours worked have become longer and pressures on personal relationships have become more acute. I have learned that as the business grows there are always growing pains before systems/recruitment requirements are addressed. These pains always result in later nights and more stress and always lead us to say 'next year we will have more time to do xyz', or 'once this project is finished it will return to normal'. I have gradually realised that this is what 'normal' looks like. I look at the current FD and I should be striving to be them and to have their job, but then I see the 2am emails, the Friday night/Saturday night emails, how tired the FD looks. The title of FD might sound great and be a boost to anyone's ego and result in a wave of 'congratulations' on linkedIn, but do I want to have that life? No. Would that life lead to serious consequences in my personal life? Yes.
So why is this a wakeup call? I have been looking to move back to practice again. This move is now more difficult than 4 years ago as my practice experience is even further out of date and the pay cut to get back in will be very significant. I see that in the last 4 years, my heart and gut feeling have not changed, but 4 years ago the lure of another pay rise clouded my judgement.
To look back at this message and see that I have been walking down the wrong path for 4 years is depressing. It has just made it very real to me how little progress I have made on my personal long term goals. Where might I have been now if I had made the move 4 years ago?
I now need to turn this into motivation and drive for the future. In another 4 years, what do I want to look back and see? 4 years further into a career that I know deep down is not for me and that I struggle to connect with emotionally or draw any satisfaction or intellectual stimulation from?
Or do I want to look back in 4 years time and be proud that I took the risk, to try something different even if I earn less.
There are many versions of this quote I have heard, but it seems appropriate here:
'You will regret the things you didn't do far more than anything you did'.
Right then, onwards and upwards. Thanks to the recent comments for reviving this thread and giving me the opportunity for reflection!
My answers
Hi Martin, thanks for responding. That is broadly in line with what I have stated above, but what are your thoughts regarding the Planning Costs in A)? Or whether the treat the whole gain at Trading Profit in B) or split it between CGT for the first period of ownership and Trading Profit for the latter? And finally what do you think would be deemed the periods which PPR does/does not apply in C) and the apportionment of the gain into each period?
Many thanks.
WA.
Thanks Wilson. I has assumed (probably incorrectly) that simply writing off the debtor to avoid bona vacantia balances was a shortcut that could perhaps be challenged and that a share capital reduction (while more paperwork) was the 'proper' way to do it.
To be honest John, yes quite possibly. The liquidator has been involved with various other work for other subsidiaries and just advised that this was the route to follow for this one. I may have missed something which forces it down this route but will certainly go back to them now and just make sure we have't overlooked the obvious. Thanks.
I think a random spot check is sensible and if they are relatively regular/common journeys you should have an idea of what is a reasonable mileage. As others have said, unless an employee is wildly exaggerating mileage of claiming for fictitious journeys there is an element of trust.
I would question whether it is a good use of your time as well unless you are aware of people abusing mileage claims.
Also, micro managing in this way could negatively impact on what your employees think of you. During my training I once had a manager that decided there was a 'standard' mileage between two of our offices and refused to authorise claims above this. This 'standard' they had taken it upon themselves to invent was not in the company travel policy and was based on the most direct route on rural lanes between the offices instead of the quicker (but longer) route along the A1 and M25. After 3 weeks of driving to another office to help out my mileage claims were restricted retrospectively (the manager had never mentioned this 'rule' previously).
It is very easy to completely demoralise your employees over items like this if they perceive any unfairness in how they are treat. In my case I certainly felt at the time that there was a lack of trust by the manager and even a hint that I was dishonest which really made me angry when I was literally going out of my way to help them. The company earned far more from me on a daily basis with the overtime I worked which wasn't claimed (nothing was claimed unless it was over 1 hour and authorised in advance), than I would have earned if I had been fiddling mileage (which I was not).
I never volunteered to work for this manager again if I could avoid it and certainly always had a 'something important' I had to get home for if ever they asked if I could work any overtime again.
Oh I see, when you click into the user profile it shows their real name still!
Thanks for highlighting this, I have now changed mine.
WA.
It now shows 'Moonbeam' again.
WA.
Hello again,
Further to my 'Wake up call' comment on the 12th December I just wanted to add that I have now handed in my notice from my role as Group FC and have secured a role within a small firm to make that transition back into practice.
Here is hoping for a successful 2017 and that taking the plunge (and the pay cut!) will pay off in the long run.
All the best,
WA.
Thank you Les and Shaun, that clears it up for me. Thanks for the prompt responses as well.
All the best,
WA.
What a wake up call!!
This message thread popped up again because of the recent posts. I originally commented back in 2012 when I had been in industry for 2 years, was bored, and looking at moving back in to practice.
Another 4 years down the line and it is quite scary looking back at my old views.
So here are my thoughts as I look back at my views then and what happened since. I think they are still relevant to the topic:
I did change jobs, but I stayed in industry, moving to a smaller business as a Financial Controller and then Group Financial Controller and now have fairly clear path to becoming a Director in the future. All fantastic right?
Wrong.
A change of scenery was good for a while. A change in job role and new responsibilities has also been good, but that all wears off eventually. So 4 years down the line I am still bored of month end, quarter end, year end, audit, interim audit, due diligence all of which has doubled since we are now US owned and now do everything in two formats. It is same thing time and again. The hours worked have become longer and pressures on personal relationships have become more acute. I have learned that as the business grows there are always growing pains before systems/recruitment requirements are addressed. These pains always result in later nights and more stress and always lead us to say 'next year we will have more time to do xyz', or 'once this project is finished it will return to normal'. I have gradually realised that this is what 'normal' looks like. I look at the current FD and I should be striving to be them and to have their job, but then I see the 2am emails, the Friday night/Saturday night emails, how tired the FD looks. The title of FD might sound great and be a boost to anyone's ego and result in a wave of 'congratulations' on linkedIn, but do I want to have that life? No. Would that life lead to serious consequences in my personal life? Yes.
So why is this a wakeup call? I have been looking to move back to practice again. This move is now more difficult than 4 years ago as my practice experience is even further out of date and the pay cut to get back in will be very significant. I see that in the last 4 years, my heart and gut feeling have not changed, but 4 years ago the lure of another pay rise clouded my judgement.
To look back at this message and see that I have been walking down the wrong path for 4 years is depressing. It has just made it very real to me how little progress I have made on my personal long term goals. Where might I have been now if I had made the move 4 years ago?
I now need to turn this into motivation and drive for the future. In another 4 years, what do I want to look back and see? 4 years further into a career that I know deep down is not for me and that I struggle to connect with emotionally or draw any satisfaction or intellectual stimulation from?
Or do I want to look back in 4 years time and be proud that I took the risk, to try something different even if I earn less.
There are many versions of this quote I have heard, but it seems appropriate here:
'You will regret the things you didn't do far more than anything you did'.
Right then, onwards and upwards. Thanks to the recent comments for reviving this thread and giving me the opportunity for reflection!
All the best.
Thanks MBK, that is a very useful reminder.