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April - May 2007
ASIAN ENTREPRENEURS HAVE POSITIVE ATTITUDE TO GROWTH DESPITE CHALLENGES AHEAD
The findings, which were the result of a Barclays ‘all about business’ conference
held for Asian owner-managers of mid-sized companies, also reveal four in ten
owner/managers plan to spend less time on day to day management in order to
develop and expand operations. At the conference, successful entrepreneurs
Mike Jatania, CEO of international personal care business Lornamead and Sahar
Hashemi, co-founder of Coffee Republic provided guidance and insight on how
to successfully turn a mid sized business into a bigger, better company.
Corus Steelworkers to benefit from Employee Share Scheme
At least 7,000 Corus Steel workers will get payouts averaging more than £6,000 each as a result of being in the Corus sharesave scheme. The scheme enabled employees to buy up to £150 worth of shares each month at a discounted rate. In addition, around 6,000 were also in an employee share ownership incentive plan.
ifs Proshare, a not for profit organisation concerned with the issues of employee share ownership and financial education in the workplace, have welcomed the news as yet another example of the benefits of giving employees a stake in the company’s they work for.
Fiona Downes, Head of Employee Share Ownership at ifs Proshare, said,
“ifs Proshare are naturally pleased that once again thousands of UK workers are to benefit from an employee sharesave scheme. This news follows the fact that 12,000 employees at M&S are to receive payouts of between £1,000 and £45,000 as a result of their membership of a sharesave scheme.
2007 will see an increasing number of companies and employees benefit from such schemes and we hope this will act as an incentive for other companies to offer their employees a stake in their organisation.”
Many steelworkers who took advantage of Corus's Sharesave scheme bought up to £150 worth of shares a month for as little as 19p. The takeover bid values each share at £6.08.
A Sharesave scheme is an arrangement under which an employee has the right (known as an 'option') to buy shares at a future date at a price determined shortly before the options are granted.
The company can discount the price of the shares by up to 20% off the market value. The scheme has to be open to all eligible employees of the company although a qualifying period of employment can be set. Employees who do not miss any of their monthly payments also receive a tax-free bonus when the scheme matures.
Tax warning for UK Indians with overseas income
Many Indians who live in Britain, but were born abroad, face unexpected UK tax bills on worldwide income and gains.
When most individuals are accepted as resident in the UK for tax purposes, they must pay tax on all income no matter where in the world it is created.
The warning comes from Alan McCann, director of tax at UK top 30 accountancy and professional services firm DTE. He is urging Indians who receive offshore-generated earnings to seek advice from specialist advisers to ensure they complete annual tax returns correctly.
“Many Indians who were born outside the UK, or have parents born outside the UK often mistakenly believe that any income or gains arising overseas are not taxed in the UK, or of interest to the UK tax authorities. They could not be further from the truth,” ? says Alan McCann.
“Where an individual fails to understand UK tax law and does not disclose worldwide income and gains, HM Revenue and Customs (HMRC) will not only seek the tax arrears, but also pursue interest payments and, in many cases, impose stiff financial penalties.”?
As HMRC devotes more of its resources to collecting tax arrears, people who fail to disclose overseas income and gains will be increasingly targeted.
Alan McCann continues: “Opportunities are available people resident in the UK who are â€˜not domiciledâ€™ to reduce UK tax liabilities. The legal definition of an individualâ€™s domicile situation can be a complex issue and the need to seek specialist advice can hardly be overstated.
“Some individuals who might expect to benefit from being ‘non-domiciled’ may nevertheless fail crucial tests by HMRC, while others who assume they will not be treated as ‘domiciled’ may be surprised by the ruling.”?
Alan McCann adds: “With large scale immigration to the UK in recent times, all UK residents who receive income or gains arising from abroad should ensure they take advantage of all reliefs and concessions made available to them by the UK tax authorities.”?