Monthly Archives: December 2012

Freedom2choose Newsletter another insight to Smoking

Freedom2choose Newsletter

December Newsletter

Posted: 17 Dec 2012 12:00 PM PST

In this month’s more lighthearted holiday issue:

  • 2 for 1 Multibuy. F2C Chairmen write: A Christmas Fairy Tale, and Greetings from Scotland
  • Once Upun a Time: Christmas Competition Results
  • Drinkuary
  • Dead Smokers Outside the Pig & Firkin in Cumbria
  • Good News in brief
  • F2C Articles and official Blog
  • Round the Blogs – some oddities including Knit Your Own Cigarette Case
  • The Last Word: Mark Twain on New Year’s Resolutions

Warmest wishes to all F2C members, friends and supporters, wherever you are in the world


In a dramatic bid to reverse the Coalition’s poll ratings, the recently ennobled Chairman of Freedom2Choose has just been made Health Secretary. Immediately grasping the task in hand a whirlwind of laws have been struck from the statute book.
1. The smoking ban has been forthwith scrapped. 2. Action on Smoking and Health will not only be deprived of further funding, but have been asked to return the millions of pounds wasted in the last 10 years. They will also have their assets stripped to pay compensation to the pubs they have closed as a result of the smoking ban. 3. All smoking cessation classes and drugs will be stopped. 4. Nick Hogan will receive a Royal Pardon for being jailed for allowing smoking in his pub. As well, Nick’s fellow publicans Tony Blows and Hamish Howitt will have their fines returned in addition to being paid substantial compensation. 5. Taxation on tobacco will be scrapped. 6. Minimum alcohol pricing is cancelled. 7. A Royal Commission will be initiated to look into the claims of the harm of passive smoking. 8. The UK will be resigning with immediate effect from the United Nations Framework Convention on Tobacco Control. 9. Only one small health warning on cigarette packets will remain. 10. Tobacco companies will be allowed to advertise cigarettes after the 10 o’clock watershed. 11. The EU will be told to mind its own business and snus will be legalised. 12. Also a new law will be put to Parliament: that everyone will have a great Christmas and a prosperous New Year.

Thank you to all members and supporters for your great work during the year.
Dave Atherton Chairman Freedom To Choose



The highlight of our year in Scotland was Belinda Cunnison’s petition, based on the European Air Quality Standard, to the Scottish Parliament. It has been referred to the Health And Sport Committee and will be looked at early in the new year. This is an excellent piece of work and it will be interesting to see what kind of arguments are ranged against it. It’s a hard road we travel and I salute your courage in continuing on it; you are a brave small beacon in an ever darkening world and I am proud to be a part of this movement. Dear members and friends, this is my message to you all at this year’s end: Turn around and give yourselves a pat on the back! Please continue to be courageous and strong, as I know you will. On behalf of Freedom To Choose (Scotland) I wish you all the very best for Christmas and the New Year.
Michael Davidson Chairman Freedom To Choose (Scotland)



F2C member davidb was the winner of the random draw: congratulations! And many thanks to member B7 for organising it.

Entrants were asked to supply alternate words for months, days and seasons, after the dreadfully-named Octabber stop smoking campaign.
Here are all the entries.
Ash Wednesday: The day we can flick ash where ever we like. Bannantyne’s Day: 14th February when all lovers of smoking get together in defiance of Duncan. Burns Night: 25 January 2013 when we all light up whether north or south of the border. Chooseday: when we choose to do what we want Dissember Joynuary: the Joy of Drink? Faguary Fryday Good Freeday: A moveable feast day in spring when we eat chocolate eggs, drink and smoke. Junkuary: The month during which we expose the lies about SHS, miraculous heart attack reductions, and protecting the cheeeldren March of the Zealots: see here. MAY: The month when our esteemed government MAY come to the conclusion that the whole anti smoking rhetoric MAY be absolute bulls–t, MAY be damaging the economy and heads MAY have to roll. Maynotday Puncake day Saturdaze Septyranny: For those subject to smoking or other oppression in September. Snusday Thirstday Vapril ‘When Autumn Leaves Start To Fall’ : A traditional English folk song about home-grown tobacco harvesting. Why July TCI? (we were baffled at first too)

And one final entry which baffled us all – the clue is allegedly to do with cigarette brands: ‘6/10/555 or 6/10/1839’. We still have no idea.


A few days after we launched the competition, we were delighted to see the launch of ‘Drinkuary’ – a fine counterblast to the puritanical suggestion of ‘Dry January’ where everyone gives up drinking for a month. As you can imagine, the British reaction to this piece of tomfoolery was hollow laughter followed by sarcasm and deep irony. Please visit the Drinkuary site if you haven’t done so already.





With kind permission from Frank Davis, we reproduce this picture from his blog post earlier this year. One of our favourites ever. His article starts:

‘As freezing Siberian conditions gripped Britain, Chief Medical Officer Sir Edward Spleen said he expected “several hundred” smokers to die outside Britain’s pubs each week.

“It’s not enough though. We were hoping for a lot more,” he added. “But far too many landlords have provided heated outdoor shelters for their smoking customers, out of a quaint and entirely misplaced humanitarian concern for these worthless addicts.”

Read the rest of his article here.


A ‘smoking bird’ story from Mexico City, where scientists have been looking into the practice that some birds have adopted of using discarded cigarette filters for nesting material. The scientists found that there is an inverse relationship between the number of filters and the number of insect pests sharing the same nest, which they attribute to the pesticidal nature of nicotine. This is borne out by a similar story in the Independent. This is another story on 2 blue tits that adopted a pub ashtray to build a nest, probably for the same reason.

Could this also explain that outbreak of bedbugs in superclean New York City a couple of years ago?

This month saw the opening of 4 new smoking lounges at Frankfurt International Airport. Financed by Japan Tobacco International, the lounges form part of 220m of airport space dedicated to the well-being of smokers and are noted for their ‘ventilation, design and comfort’..

Hospital authorities have admitted defeat in their 5 year battle to stop people lighting up in the grounds of Queen Elizabeth Hospital in Kings Lynn. Three new smoking shelters will try to entice people away from smoking around the main entrance.

A new battlefront opens in the war on smokers, as ‘vaping’ goes mainstream. Having bought the Blu brand of e-cigarette earlier this year, Lorillard has become the first tobacco company in decades to promote its goods on US television. See the video as well as old TV cigarette adverts from this BBC news report.

New Zealand Fail Retail figures from New Zealand show that the display ban, introduced in July, has done nothing to reduce tobacco sales and everything to annoy retailers and shoppers. The tobacco control industry says it was never about reducing smoking. The retail industry says, “The law’s an ass.”.

New Charity Commission Chair blasts fake charities Grant-dependence and political lobbying come under the scrutiny of new Charities Commission chairman William Shawcross, who thinks there is too much of both. Worth noting is the article’s reference to the Institute of Economic Affairs study, ‘Sock Puppets. How the Government lobbies itself and why’, authored by one of our favourite bloggers, Chris Snowdon of Velvet Glove, Iron Fist. Well done, Chris!

David Cameron and his new, tame Health Minister Jeremy Hunt have pushed hard for the introduction of minimum alcohol pricing. Unhappily for them – and happily for everyone else – the rest of the Cabinet is pushing back. According to a ‘well-placed coalition source’ : “Minimum alcohol pricing looks dead in the water and the search has begun in Whitehall for an exit strategy which will allow the maximum amount of face saving.”


Lonely Britain: The fastest growing health problem. Yet another Health Secretary launches yet another campaign against loneliness. We challenge him – and also give readers another chance to look at a member’s video on loneliness and pub closures.

Shisha: Standing Shoulder to Shoulder. It’s not just pubs and clubs and cafes that are suffering. We stand alongside and support owners and users of shisha bars.

What Happened to the Scottish Petition? Links to the progress of this important piece of work.


A few oddities for the festive season:

Your Body May Be Your Temple But It Isn’t Mine. That’s the title of the blog itself. Only a few posts, but a great title.

How To Knit Your Own Cigarette Case. For those winter evenings when time drags.

How to Crochet Your own Cigarette Case with attached Lighter Holder. For those who can’t knit.

How to make a paper ashtray. Following the handicrafts theme. You may have some old paper lying around, like the Bauld Report. Health and Safety Warning: Do NOT use this as a real ashtray.



For those who can’t knit and don’t want plain packs … take up crochet



“New Year’s Day: Now is the accepted time to make your regular annual good resolutions. Next week you can begin paving hell with them as usual.”

Mark Twain




Freedom2choose: c/o John H Baker 22 Glastonbury House, Priestfields, Middlesbrough, Cleveland TS3 0LF Tel/Fax 0845 643 9469

Freedom2choose (Scotland): c/o Michael Davidson, 15, Linksview House, Leith, EH6 6DP Tel 0845 643 9552

Howard & Company, Tax Tips and News

Tax Tips

Welcome… To December’s Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.
If you need further assistance just let us know or you can send us a question for our Question and Answer Section.
We are committed to ensuring all our clients don’t pay a penny more in tax than is necessary.
Please contact us for advice in your own specific circumstances. We’re here to help!
December 2012
· Planning for RTI
· Business Record Checks
· Taskforce Targets Private Landlords
· VAT Registration Advice
· December Question and Answer Section
· December Key Tax Dates
Planning for RTI top
If you are an employer you should have received information from the Taxman about operating PAYE under Real Time Information (RTI).
Employers with fewer than 5001 employees will have to operate RTI from 6 April 2013, and that includes one-man companies. Some employers have already started to use RTI under the pilot program. Individuals who employ carers in their own home may be able to defer migrating to RTI until April 2014.
You need to check whether your payroll software will be RTI-ready from April 2013. Don’t assume it will be. Some software providers have taken this time to discontinue legacy packages and force you to move to more expensive offerings. Even HMRC is cutting back on the free payroll software it provides. The HMRC PAYE Basic tools will work under RTI, but only for up to nine employees, and it does not handle net pay arrangements for employer pension contributions.
If you use an external provider to run your payroll, you must talk to them about how much it will cost to run your payroll from April 2013. RTI requires more data to be submitted to the Tax Office than currently required (see below). Also the RTI reports must be sent on or before the day on which employees are paid, which could be daily or weekly. Currently the Taxman requires an annual report of what has been paid and deducted under PAYE.
The ‘on or before’ requirement has been relaxed in limited circumstances where employees are paid in cash on the day they work, and the amount of payment cannot be known in advance. This may apply to bar staff and crop-pickers. However, the RTI report must still be made within seven days of the day of payment, or when the next payroll is run, whichever comes next.
As the purpose of RTI is to provide accurate information to the DWP on claimants’ earnings, employers are required to provide the weekly hours worked by each employee, as they fall into the following bands:
A. Up to 15.99 hours B. 16 to 24.99 hours C. 30 hours or more D. Other
You don’t have to record the exact hours worked, only the normal hours the employee is expected to work.
From April 2014 the Taxman will charge penalties where RTI reports are submitted late, or containing inaccurate information. Please talk to us about how your business can meet the RTI challenge and how we can help. You have just four months to get ready.
Business Record Checks top
The Taxman apparently believes that anyone who does business in cash must be a potential ‘tax cheat’. This is ridiculous of-course, but his latest business record checks campaign is based on this fallacy.
If you receive a call from the Taxman asking questions about your business records, please refer the caller to us before agreeing to answer his questions. You should not be penalised for doing this. The Taxman is required to deal with the taxpayer’s agent if asked to do so.
The telephone questionnaire is a computer-generated script, which only accepts a limited range of answers. For example: How many purchases are in cash? Answers accepted: none, a third, half or more.
The answers given determine whether the Taxman sends you guidance on how to keep better business records, or an Inspector to check what you may be doing wrong. Where the Taxman wants to inspect your business records, please ask us to be present when they come. The potential penalties for flying solo are not worth it.
Taskforce Targets Private Landlords top
The Taxman has announced a taskforce to investigate tax avoidance in landlords in South East England.
Private residential landlords have now been the subject of a taskforce in: Scotland, North Wales, London, East Anglia, North East, North West, and now South East England. That covers pretty much the whole of the UK. The message is clear; individuals who own rental properties must correctly declare all of the income and gains generated by those properties.
It is relatively easy for the Taxman to trace the owners of let properties through the Land Registry and compare the registered owner’s name to those recorded on the electoral roll for the property. If the names aren’t the same, the Taxman will assume the property has been let. He can also ask letting agents to provide lists of the landlords and properties they serve.
Please talk to us if you are uncertain about what reliefs and expenses you can claim for your let property.
VAT Registration Advice top
It’s one number (£77,000 from 1 April 2012), so why is so easy to get it wrong? We are talking about the compulsory VAT registration threshold in the UK. If your VAT taxable turnover (sales) total for the previous 12 calendar months exceeds this compulsory registration threshold, or the sales your expect to make in next 30 days will exceed that threshold, you MUST register for VAT within the next 30 days.
You can now register for VAT online on the HMRC website, but we recommend that you talk to us first, as so many things can go wrong. If you make a mistake with the form, the Taxman may not let you correct it. For example:
– If you exceed the VAT registration threshold due to a ‘blip’ in sales, you can ask the VATman for permission not to register for VAT, but you must ask first, permission may not be granted. – You can reclaim VAT on services you purchased for your business in the six months before the day your VAT registration is effective from, so it is essential to time your VAT registration date with an eye on the invoice dates for those expensive services. If the service relates to an asset which was no longer held at registration, the VAT can’t be recovered as pre-registration VAT. – If you receive a large order which will push your sales over the VAT registration threshold for the next 30 days alone, pay attention to the delivery dates for that order. A staggered delivery for the order may mean you do not exceed the VAT threshold in the next 30 days, and you may register for VAT too early.
December Question and Answer Section top
Q. I registered as self-employed in 2005, but as I didn’t have any income I ignored the tax returns the tax office sent me. When they demanded £1000 tax for each year I got my act together and sent in the completed tax returns which showed no tax due. Now the Taxman won’t cancel the tax demands issued for the years before 2008/09. What can I do?
A. You have been caught by the tax law here. The years before 2008/09 are ‘out of time’ and the Taxman doesn’t have to cancel the tax demands for those years. Although you may be able to appeal for the tax demands to be cancelled under ‘special relief’, but you need to show it would be unconscionable for the Taxman to collect the excessive tax. This is a very high hurdle to clear.
Q. From 1 January 2013 Independent Financial Advisers (IFAs) are not permitted to charge commission, and should instead charge fees for the advice and services they provide. Do firms of IFAs have to charge VAT on all the advice they give or is some advice exempt from VAT?
A. The VATman’s guidance says the IFA’s advice-only services will be subject to VAT, but if the fee is for an introduction to an exempt financial service, that introduction fee will be exempt from VAT. As an IFA you need to sort out exactly what you are charging for:
– general advice – introductions to exempt services (such as to authorised dealers in securities); or – introductions to services which are subject to VAT such as discretionary investment manager services.
We need to discuss your particular circumstances in detail to sort out the VAT position.
Q. I got divorced in 2007, but I still jointly-own my former family home with my ex-wife. We agreed she would live there with my daughter until she finished her school exams. The house is now about to be sold. Will I have to pay capital gains tax on my share of the profit made?
A. You can escape tax on the gain made on your former home if all these conditions are met:
– Since you left the property your former spouse has occupied it as her main residence. – The agreement for your ex-spouse to stay in the home was made either under a court order, or as part of your divorce. – You haven’t elected for another property to be your main residence for any part of the period since you ceased living in your former home. If you have acquired another property in the meantime, you need to think carefully about which property you claim capital gains tax relief on, as this relief can’t be applied to two properties for the same period.
December Key Tax Dates top
19/22 – PAYE/NIC and CIS deductions due for month to 5/12/2012
30 – Deadline for 2011/12 self assessment online returns to be filed if you are an employee and want tax underpaid to be collected by adjustment to your 2013/14 PAYE code (for underpayments of up to £3000 only)
Need Help? top
New Clients Welcome top
Please contact us if we can help you with these or any other tax or accounts matters.
In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list.
If you are not already a client and are interested in becoming one, we would love to come to meet with you to discuss how we can help and provide you with a competitive quote for our services.
All new client consultations are provided free of charge and without obligation.

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Disclaimer The information contained in this newsletter is of a general nature and no guarantee of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.

Howard and Company is the trading name of GM Howard & Company Limited, a company registered in England and Wales. Reg No 5307665. Registered office, Unit 17, Park Farm Business Centre, Fornham St Genevieve, Bury St Edmunds, Suffolk IP28 6TS.

MORGAN & CLARKE December Newsletter, well worth reading


Pigeon House, The Broadway,

Oakridge Lynch, Stroud, Glos. GL6 7NU

Email:   Phone:  01285 719292

(Also at:  London, Cardiff, Matlock, Braunton, Lewes)


The year ends with a mixed bag of conflicting emotions.   From one side we hear constant chatter about the green shoots of economic recovery, yet from the other side it appears that the discretionary leisure spend in On licensed premises, is under further stress.   However, even that element of the overall equation is far from clear.  


For example, Adnams, the Suffolk brewer, “had a good six months” and reported a 5.1% rise in turnover and a 5.5% increase in operating profits.   Butcombe Brewery, however, reported a 3.7% rise in full year, pre tax profits in “an extremely difficult set of trading conditions”.   Brakspear and the Peach Pub Company both report over 50% rise in pre tax profits.   On the negative side of things, Ernst & Young sold off the Town & City Pub Company package of leased pubs through Fleurets and DTZ.   Waverley TSB has firmly hit the buffers and we have said goodbye to Churchill Inns and Clementines Tavern businesses that recently went into administration. 


So it’s a mixed bag to end the year on, with the South East definitely head and shoulders above the rest of the country.


1.  Dilapidations

The new dilapidations protocol came into force on 1st January 2012 and has been adapted as a Pre Action Protocol under the Civil Procedure Rules (CPR).  The 59th update of the CPR in relation to dilapidations, was confirmed by Government as being officially in being from 1st October 2012.   Basically any Dilapidations Schedule upon which reliance is placed after that date, should be compliant with the relevant CPR.   The Landlord has to now provide further details in respect of the dilapidations issues which are as follows:

       Confirmation that all works are reasonably required to remedy the tenant’s breaches.

       A statement making clear what the Landlord’s intentions are at the end of the term, whether the Landlord intends to seek change of use, or demolish the property, or undertake a significant internal development / refurbishment.

       A statement should be made available that the Landlord’s surveyor has taken into account the Landlord’s intentions.   This is obviously to avoid stating that items need replacing if, in fact, the Landlord will be removing these items at the end of the term.

       Confirmation that any costings are reasonable.


Finally and aside from the CPR Protocol as above, we also have the issue of the realistic extent of any damage to the value of the Landlord’s reversion.



The CPR specifically applies to any ongoing dilapidations issue concerning the termination of a business tenancy.   It does not matter if the original Schedule of Dilapidations was served say, last year, if the issue is still ongoing, full compliance must be observed.


The boys and girls at M & C would be delighted to give an overview if required on any such dilapidations issues that almost certainly do not comply with the CPR.    As far as we are aware, none of the Pubcos or brewery companies have even woken up to the fact that the CPR came formally into being only as recently as 1st October 2012.


2.  Mandatory Annual Rent Increases

Not a happy state of play, but we now have confirmation that inflation is on the up rather than the down.   Currently the Retail Prices Index has increased from 2.6% up to 3.2% and the Consumer Prices Index from 2.2% up to 2.7%.  It looks probable that further increases are on the way.   Yes, it goes without saying that the hike in rent linked to either RPI or CPI (rare), has nothing whatsoever to do with profitability.   So much for the abolition for upwards only rent reviews!


3.  Marketing

Think of a world where complete strangers do your marketing for you before you’re even open.   Some of the marketing luminaries are now saying that email marketing won’t even be around in 10 years time.   Why?   Very simple – social media.


Marketers have figured out that customers are not overly interested in lengthy, text heavy, hour long story stuff.   They simply want to see what you sell, where you sell it and who can recommend you.   Add videos and links to your social media platforms and you’re streets ahead of the standard market.


It is estimated that around 25% of your current web traffic is via a smart phone.   Next year that could easily be nudging 50%.   Scary!   Users want the information faster and your content has to be quick, snappy and easy to find.   It is essential that your website is optimised for mobile (particularly Apple’s operating standards).   Quite simply, you will be invisible to a large portion of your target market if you are not.


Data bases are all very well, but why should the punters sign up to your site if they can get the news and exclusives via social media.   One thing that is absolutely plain as a pikestaff is that the UK has an insatiable appetite for social media, which means Twitter, Facebook and Linked In.


Strangely enough it is estimated that 80% plus of strangers to you are willing to try something specifically because it is recommended to them by another human being rather than an advert.   Track into the restaurant sites of Byron, Gale, Tortilla or Pho and see what we mean.  


4.  Cheap Air Conditioning Units

One of our clients was offered what seemed like a staggerlngly cheap air conditioning system with all the associated kit and caboodle.   Being the inquisitive sort, he undertook some research and clarified that the refrigerant in the air conditioning system was Category R22.   Whilst it is not illegal to operate equipment that works with R22, the use of R22 for maintenance and repairs is in fact illegal.


R22 is one of the most widely used refrigerants in air conditioning systems since the early 1960’s.   However, since concerns were raised over the ozone depleting qualities, the gas has begun to be phased out.   European Regulation 1005 / 2009 clarified the position and in 2010 the use of virgin R22 has been banned in the maintenance of all air conditioning systems.   From 1st January 2015, the use of recycled R22 will also be banned.   So to put it simply, if your equipment contains coolant R22 and it fails in such a way that it needs to be decanted or topped up, repairs will soon be illegal. 


The last thing that you want is for your air conditioning systems to fail when they are most needed, i.e. in the summer months.   Naturally the best time to refurbish or replace air conditioning kit, specifically the chillers, is when you have the central heating on as the air conditioning systems are either not in demand, or not being used, so either do the planned maintenance and verification of the coolant that you use this winter, or the winter of 2013 / 2014.   It would not be prudent to leave it to the last minute in the winter of 2014 / 15.


Perhaps this is us being cynical (yet again), but if you are either entering into a new lease, or taking over an existing lease with air conditioning, you really should insist on an existing R22 system being replaced with an alternative refrigerant.


5.  The Illusions of Double Speak

Did you know that you can now consider running your under-threat local pub as an owning co-operative.   Dear old Department of Communities and Local Government, under the auspices of Locality and Co-operatives UK, have set up a Community Shares Unit which will use community owned shares as a way of raising finance to buy under-threat local pubs.   Despite there being no key data over where the finance will come from, the terms of the finance, or even if any guarantees are linked with the money, Dan Foster MP, who is the local Government Minister, had the following to say:

“across the country communities are showing they have ambition and determination to secure ownership of important local assets and get new projects off the ground.


We want to create the conditions in which social investment and community finance can flourish to make this happen.   This new unit will give them the helping hand they need to take advantage of the opportunity and do things their way in the best interests of their area”.


I hope you are still with us at this point as the inference is that the Community Shares Unit will underpin the Community Right to Buy Scheme.   Our concern, however, is over two vital items:

  1. You need a strong hand or a governor to run a pub.   The worst thing in the world is to have a pub run by a well meaning band of committee members.
  2. What if it all goes wrong?  Somebody or a group of people will have to guarantee or underwrite the loan and have full responsibility for repaying the money if things don’t work out.  

It seems a great shame that the Government, rather the Department for Communities & Local Government, doesn’t itself act as the guarantor for well put together schemes.


6.  A Review of the Enterprise Accounts 2012

The following are the thoughts of Trade Accountant Brian Jacobs who is one of the most experienced forensic accounts analysts in the Industry.




Provisional figures dated November 2012 are available on the internet.  It is acknowledged that there have been some high value pubs sold and leased back which may marginally distort the following. 


Below is an analysis of some important elements that need consideration.


  1. The number of pubs [6060] have fallen from last year [6184] but the apparent average property value appears to have fallen from £736k to £708k. Since it is a fact that Pub values reflect their profitability, and the  fact that trade and profitability at retail level has generally fallen, then asset values should be reflecting a fall.
  2. The average debt per pub is now about £402k against £478k last year.
  3. The average 2012 debt, compared with the average pub is just under 57% of their stated value.  But is the stated value a fair value?
  4. Net income of the group for 2012 was £374m before admin and equates to £61.7k per pub which compares with £64.5k per pub for 2011. That is a 4.3% drop.
  5. As a generality Enterprise assume that  rent and tenant income equate.  As a result of the economic climate decline over the past five years with the rent being generally linked to R.P.I. increases, income for the tenant will have fallen lower. Average income is more likely to be £20k per annum or less [the BISC survey revealed £15k per annum].  The Enterprise aspirational “average income of £45,000 to the Tenant” is thus questionable.
  6. The average 61.7 per pub generated for Enterprise includes the exceptional wholesale profit from bulk buying, which probably averages say £18k per pub.  So Enterprise collect as lease rent, wet rent and royalties £43.7k per pub [61.7-18] and 18k as a wholesaler. Wholesale profit should not reflect in freehold values as it is not classed as tangible income, but intangible as it can vary upwards and downwards.   
  7. It is fundamental that any balance sheet should show a “true and fair view”. Tangible assets, freehold property,  should not be valued on the basis of alternative value [unless vacant] or  reflect the price of that of a special purchaser, such as a wholesaler.  It is only the tangible asset that gives security to a lender, as an “intangible asset” has no substance as security.
  8. Auditors have a duty of care and need to verify and validate financial statements to certify that the accounts show a “true and fair view”. That includes checking the basis of valuations and the relationship between borrowing and security given to bondholders and lenders.




7.  and Finally


“Alcohol and calculus don’t mix.  Never drink and derive”.  (Anon.)

“I personally stay away from natural foods.  At my age I need all the preservatives I can get” (George Burns)

“This rock salt is over 200 million years old, formed through ancient geological processes in the German mountain ranges.  Best before 01-04-2013”.  (Label on a box of salt)



Best Wishes for a profitable year end and a fulfilling New Year.

The Team at M & C


Phone: 01285 719292