Archives / 144 post/s found
Not so trivial
Options for reducing the impact of taxation on our earnings are somewhat limited. That said, there are still opportunities that will keep you the right side of the law and will increase the take home pay of employees. One such opportunity available to employers is to pay so-called trivial benefits. The benefits may be of small value, but never-the-less, even small tax-free payments will be gratefully received. To qualify as tax-free, the benefits paid to employees need to fit the following criteria: they cost £50 or less to provide, the payments are not made in cash or by [...]
Are you doing too much?
As small business owners, we all do it! We take on too much; we do too much. We’re always saying, “there’s never enough time in the day!” But are we being productive? Or are we running around, sweat pouring out of every vein, doing tasks others could do for us? Are we always thinking about saving money, rather than the bigger picture? Is your accountant always on at you to reduce costs? But at what cost? You probably didn’t go into business to work every waking hour. You may have gone into business for the flexibility, so that you could [...]
Adaptability is the key to success
Every day we meet people whose small businesses are struggling; either the business is stalled or heading towards closure. I see the same facial expressions frustration, fear and inner turmoil. And I hear the same words – I don’t know what to do! Time and again we resist the temptation to wish that they had come to us earlier. But often it was beyond their control. If you see your accountant once a year and your business has been slowly sliding downhill over that year, you are in a very vulnerable situation. If you work with your accountant throughout the [...]
Powers of attorney
As we will possibly live on until our 80s, and as that may involve coping with disability of one form or another, the need for consideration of support as we get older is ever more pertinent. Readers will no doubt have heard the term “power of attorney”, but not many, we suspect, will have made the investment and appointed someone trusted to act as their representative if they become physically or mentally unable to look after themselves in old age. If you did become infirm and unable to make sensible decisions about your health care or finances, and [...]
Cash is king
If the present wrangling over the terms of our exit from the EU result in terms that disadvantage UK businesses, what can we do now to protect our hard-earned business assets? It is difficult to make this call as negotiations could drift in either direction: a continuing trade agreement or a so-called “hard-Brexit”. No-one can say what trading conditions will be like from April 2019, but it is likely that perception will rule the roost. If uncertainty continues to cloud the debate, and there is no sign of resolution on the political front, opportunists, those brave, and some [...]
7 steps to improving your cash flow
Did you know that more businesses fail because of cash flow problems than profit problems? Don’t let yours be one of them. The problem with cash flows issues is that they can creep up on us. If you are only seeing your accountant once a year, you don’t have the opportunity to react in time. If you are constantly monitoring and reviewing your business and its systems, you are less like to fall into a cashflow crisis. With our Build Your Business Better support system we can help you to improve your cash flow, but to get you started here [...]
Selling the garden shed?
When you are selling your home, you are likely to be selling a range of fixtures and fittings. For example: • White goods, washing machines, fridges, cookers etc, • Furniture, • Carpets, • Curtains, • Garden equipment, • Leisure or fitness equipment, jacuzzi etc, • And the garden shed. If identified in the sale contract, any value attributed to these personal assets, or chattels, will not attract a stamp duty charge for your purchaser. Accordingly, if you are selling at a value that just tips your property into the next band for stamp duty purposes, being able to allocate part [...]
Evidence or assertion?
In a recent tax case, three taxpayers asserted that cleaning costs of work clothes amounted to £2,200 a year and HMRC disagreed. The facts were compelling, each of the appellants worked in the drainage or sewage industry and to maintain personal hygiene washed work clothing on a daily basis. Why shouldn’t they claim for the costs of keeping their work apparel clean? Claims were based on the purchase of sanitising and washing products, wear and tear on their home washing machines and an apportioned cost of home electricity charges. Importantly, no receipts were kept. To succeed in their tax claim, [...]
Self-employed liability
If you are a sole trader, or in a basic partnership, and if your business gets into financial difficulties, any liabilities that cannot be covered by the disposal of business assets may have to settled out of personal assets. In accountancy speak, you have unlimited liability; there is no protection for your personal assets. You have options. The Office for Tax Simplification has suggested, welcomed, the idea that sole traders can elect for a form of limited liability status that will allow them to protect their homes from any claim by business creditors. At present, this is pure conjecture. Mr [...]
Planning or regretting?
As we have outlined in recent posts, change is upon us and come the end of March next year, the combination of Brexit and the advent of Making Tax Digital (MTD) will change much that we have taken for granted. Apart from the cross-border considerations (import VAT, customs duties and the like) MTD will require all affected businesses to link with HMRC by using approved software. The time to figure out the best strategy to survive these changes need to be considered now. Businesses should be taking time out to draw up contingency plans, and if possible, before March 2019. [...]