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WITNESS’S FIRSTTIME AT TRIBUNALPTwrites: As an employer I amto be awitness at an employmenttribunal. As this ismy first timeI have no idea how the tribunalworks.What can I expect on theday andwhatwill be asked ofme?
Remember, it is not your job to winthe case. Your job as a witness is totell the truth and help the tribunalwork out what happened, writesPeter Done, managing director ofPeninsula.The tribunalmay require a
writtenwitness statement. Set outwhat happened, in chronologicalorder, and address anymattersraised. It should identify the pagenumber in the bundle of anyrelevant documents that link withwhat you are saying. Take time tofamiliarise yourself with the bundleso you knowwhat documents arebeing used.While waiting to go into the
tribunal, the clerk will ask if youwish to swear on a holy book oraffirm that your evidence is true.When it is your turn to giveevidence youwill be called to thewitness stand and asked to take theoath. Youwill also be asked toconfirm that the contents of yourwritten statement, if you havegiven one, are true.Youwill be cross-examined by
the claimant’s representative whowill try to shake you from yourevidence. Try not to take thispersonally, it is simply their job. Tryto keep your cool and not get angry.Listen to the question, think
about it and answer honestly. Youcan agree with what they put toyou if it seems to be right but if youthink it is too simplistic, thenqualify that in your answer. If youcannot remember something, orhave no knowledge of it, say so. Trynot to be obstructive or defensive asthat will look as if you havesomething to hide.If you think the answer is in the
documents then it is perfectly fineto ask for the time to check. Youmay also be asked questions by thetribunal and by your ownrepresentative. Answer as helpfully
as you can. It may be worth goingto see a tribunal hearing so you canfamiliarise yourself with what toexpect. Clear policies andprocedures, reasonably andproperly applied, can ensure astrong defence at tribunal.
HOW LONGMUSTWE KEEP RECORDS?EFwrites: A former director hascleared out his personal storageand unearthed company recordsgoing back up to 20 years. Dothese need to be kept, or couldwejust retain scanned copies to saveon storage costs?
Recordsmust be retained fordiffering periods depending ontheir type, but keeping electroniccopies should save on storage costs,writes Jon Sutcliffe, partner at KingstonSmith LLP.You should keep VAT records for
six years, unless you get writtenapproval fromHMRevenue &Customs (HMRC) confirming ashorter period. HMRCwill nowaccept records stored electronicallyprovided they can be converted tolegible form on request and that itcan access the computer to checkthem if required. It recommendsthat PAYE records be kept for atleast three years.For accounting records, the
requirements depend onwhetheryou are a limited company or a soletrader. If a limited company, youshould keep all records until thesixth anniversary of the end of therelevant accounting period.For sole traders, self-assessment
rules require records to be kept untilthe fifth anniversary of the January31 following the year of assessmentinwhich the accounting year istaxed. In either case, if there areany outstanding tax inquiries fromHMRC, recordsmust be kept untilthe issues are resolved.For some records, such as
insurance cover, longer periodsmay be advisable, especially if youconsider a future claim by anemployee for a workplace injury,say, 10 years ago. It is alwaysadvisable to keep original signedcopies of legal documents and, inparticular, property documents.
Kingston Smith LLP, the charteredaccountant, and Peninsula, theemployment law firm, can adviseowner-managers on their problems.Send your questions to Business Doctor,The Sunday Times, 3 ThomasMoreSquare, London E98 1ST. Advice is givenwithout legal responsibility.
HOW IMADE IT
After importing eco-friendly nappies fromChina for six years,Martine Carroll hasswitched topayingher
supplier in renminbi instead of USdollars. “Our trading partner askedus to swap because she was losingmoney on all our transactions,”said Carroll, who set up her busi-ness, called Close, in 2000.“The dollar has been so volatile
that our payments were nearlyalways worth less than sheexpected.”Dealing in the deregulated Chi-
nese currency will be better forClose too. “Taking dollars out ofthe equation means we no longerhave to pay that extra bit of com-mission on the deal. Prices aremore stable, so it’s easier for us tomake decisions, and for our sup-plier to review how much shecharges,” said Carroll, 43.Making the change has been
straightforward for the Hertfordcompany, which turns over about£1.4m a year from the sale of prod-ucts such as Pop-In reusable nap-pies and Caboo baby slings.“I think our supplier found it
harder than we did to figure outthe financial logistics. For us itmakes very little practical differ-ence whether we are wiring dol-lars or renminbi.”More small companies are
starting to profit from the Beijinggovernment’s decision to relaxcontrols and allow foreign busi-nesses to pay their trade partnersin the Chinese currency. Since therestrictionswere eased in 2011, thedollar’s value has fluctuatedagainst the pound while the ren-minbi has steadily appreciated.
“Most SMEs still settle in dollars,but things are changing almost aswe speak,” said Raj Agrawal ofWesternUnion Business Solutions,which provides payment servicesfor smaller companies. “Moretrading partners could cut costs,improve transparency and boostefficiency by converting directlyfrom sterling to renminbi.”Agrawal’s company recorded a
43% increase in the number of ren-minbi transactions in the first halfof 2013 against the sameperiod lastyear. Just over 5.3%of payments byBritish clients were made in the
Chinese currency, up from 3.7% inthe first six months of 2012. InHong Kong the figure was 37%,while American firms used ren-minbi rather than dollars in 12% ofmoney transfers.A fifth of Chinese suppliers said
they added about 3% to their pricestoprotect against currency fluctua-tions, according to research byWestern Union Business Solu-tions. More than a third said theywould rather be paid in renminbiand, of those, almost half said theyhadnever asked their customers toconsidermaking the change.“Cultural barriers are a
problem,” said Andrew Blach,head of HSBC’s international com-mercial banking team,who thinksexporters could be adding up to 5%to their prices to cover foreign-exchange risks.“SomeChinese suppliers simply
don’t know that the regulationshave changed. Others are worriedabout changing the relationship
they have with their customers.”When Beijing first relaxed cur-rency controls two years ago, onlya small number of designatedenterprises could accept renminbipayments. SinceMarch 2012, how-ever, all Chinese importers andexporters have been permitted totrade in the local currency.Graham Elliott is the commer-
cial director of BC Designs, a bath-room furniture supplier that hasoutsourced manufacturing toChina for more than 30 years. Lastyear theColchester company askedits suppliers to take payments inrenminbi instead of dollars. “Wefound it hard to get the conceptthrough to them, but it’s beenworth it,” said Elliott, 57. Now hisChinese trading partners are morewilling to talk about their owncosts and labour issues, he added.“Cutting out the fumble factor
between the three currenciessaves us about 4% on every trans-action. Ifwe can knock that off our
prices, it’s the difference betweengetting an order andmissing out.”Small businesses selling goods
and services to China’s increas-inglywealthymiddle class are alsoswitching to renminbi, Blach said.“If British companies are com-petingwith Hong Kong firms theywill have to price in renminbi. It’sbecomingpart of thenegotiation.”The pushchair company iCandy
opened a renminbi account withHSBC last year when it startedselling to families in China, whereitsproducts aremade. TheBedford-shire company, which has about15 staff in China, sold goods worth£14.1mworldwide last year.“The account makes it easier
and more cost-effective for us topay our staff and receive fundsfrom our distributor in China,”said Bradley Appel, 53, who runsiCandy with his brother Warren.“With the future of China lookingso bright, we think it’s going to bean important currency for us.”
London has become a centre forChinese currency dealing sincethe regulations were relaxed. Inthe year to June, more renminbitransactions were processed byfinancial institutions in Britainthan anywhere else apart fromChina and Hong Kong, accordingto the City of London Corporation.
Gareth Austin-Jones, 43, co-founder of Cocorose London, ashoe retailer, has decided againstthe switch to renminbi. The com-pany, which has some of its balletpumps made in China, shopsaround for currency and paystrading partners in dollarsacquired from foreign exchangedealers rather than retail banks.“My suppliers would give me a
discount for renminbi payments,but dollars give me more flexi-bility. Theycostme less in commis-sion, I can buy them forward and Ican transfer them today, whereasit takes five days to move ren-minbi,” Austin-Jones said.
Call me if you want to holda party on a mountain top
Rupert LongsdonFounder of the OxfordSki Company
China takes downthe currency wall
RUPERT LONGSDON’S love of wild placesled him into the Guinness Book of Records.He was part of the first expedition to reachthe Antarctic pole of inaccessibility — theexact centre of the continent— by foot.“The expedition took about 48 days,”
said Longsdon. “I’ve always had a sense ofadventure.”It was a love of mountains that drove
him to found the Oxford Ski Company, awinter sports travel firm, in 1998. Based inWitney, Oxfordshire, it managed sales of£7.5m last year and expects that figure torise to £8.8m when it files accounts nextmonth.It has a portfolio of more than 400 cha-
lets and 70 hotels, about 80% of which arein France and Switzerland. “Hotels are thefastest-growing side of the business,” saidLongsdon. “The quality and investment inhotels in the Alps has gone up enormouslyin the past five or six years.”The Oxford Ski Company tailors its hol-
iday packages to the client, with a con-ciergedepartment organising accommoda-tion, food, childcare, ski instruction andentertainment. The staff plan everythingfrom honeymoons to family Christmases.“Santa seems to be turningup to a lot of dif-ferent chalets this year. People often careabout those extra details more than theskiing,” Longsdon said.He is used to taking requests from
“tricky” VIP clients, including celebritiesand royals. At themoment he is organisinga surprise 50th birthday picnic on top of amountain. A table and chairs will be cutout in the snowand butlerswill be onhandto serve the food.“Wewill arrange anything as long as it’s
legal,” said Longsdon. “The boundaries doget pushed sometimes by a few Russians.”Half his clients are British, with young
City workers making up many of thewinter bookings. The busiest period beginsthis month, although the company’s 13employees were hard at work during thesummer, visiting properties and findingnew landlords.Longsdon came up with the idea of
starting a winter travel company whileworking in a French ski resort. He spenttwo years travelling theworld after leavingEton College in 1991, and then arrived inVal d’Isère where he spent the winter as akitchen porter at Bananas, a popularaprès-ski venue.“I had a great time in that environ-
ment,” he said. “It was adventurous andfun, so I thought, ‘What business could bemade of this?’ I didn’t have a career pathahead ofme.”Longsdon was born and raised in
Cirencester, Gloucestershire. His mothercared for him and his three siblings. His
father was an army officer, which meantfor two years the family lived in Germany.“My parents were very supportive. They
didn’t believe we had to follow the normand go to university; rather, they encour-aged us to go out andmake things. We’re acreative and diverse family.”His younger brother, Charlie, is a race-
horse trainer. His younger sister is ateacher and his older brother is a banker.In 1998, after five years of working in
bars and ski resorts in the winter and asummer job with a marquees company,Longsdon decided to seek backing for hisbusiness idea. He borrowed £10,000 fromNatWest and got the Oxford Ski Companyoff the ground by acquiring the use of twochalets in Crans-Montana, Switzerland.The business did not have his full atten-
tion for almost a decade, however. Foreight years he dabbled in pyrotechnics,
staging firework displays at weddings. Hishobby became the Damn Good FireworkCompany, a small venture he set up with afriend in 2000. “I love fireworks and lots offriends were getting married, so happilythe business combined both.”In 2003 he bought his local pub, the
Tunnel House Inn, in the Cotswolds coun-tryside near Cirencester. While there, hedecided to takepart in theAntarctic expedi-tion— “my last adventure”.After six years he sold the pub for a profit
and the fireworks company. “Life hadmoved on. I wanted to concentrate on theOxford Ski Company and try to be morefocused.” With the benefit of his time andthe cash from the other businesses, theOxford Ski Company thrived.In 2011, Longsdon set up a summer hol-
iday company, OS Private Travel, whichoffers villas, yachts and private islands tocomplement the winter ski operation. It isalready turning over £1m and has pushedthe business’s number of employees to 16.“Winter holidaymakers come back to us
to organise their summer,” the boss said.“You become a kind of PA to your client tomake sure their holiday is perfect.”
Longsdon, 40, lives in the Gloucestershirehamlet of Calcot with his wife, Davina, achef by trade, and their three children.He advises entrepreneurs to be prepared
for hard work: “You are solely responsiblefor your business, so it is difficult; you haveto take some calculated risks. Be bold inasking people to help develop your idea.”
HattieWilliams
BUSINESSDOCTOR
VICKI COUCHMAN
Rupert Longsdon at the South Pole with a statue left by a Russian expedition
Martine Carroll hascut commission costsby paying suppliers
in renminbi
Forget dollars,Beijing now letsyou pay yoursuppliers inrenminbi, saysCatherineWheatley
10 SMALL BUSINESS [email protected]
