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8K – The Valuation See-Saw

by mike tombs
Week four – the Valuation See-Saw ‘Cash is king’, or so they say. And they’d be right! Nobody wants to worry about the bills that are coming out, so ensuring that you have cash in your business account can really help reduce some of the stress. It can also cut down on interest if you find yourself regularly taking out loans. Getting a better grip on your cashflow can be a tricky process, and it often involves a lot of moving pieces. But consider the following if you’re running into trouble: Renegotiating your supplier terms to pay later, and your [...]
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8K – The Switzerland Structure

by mike tombs
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Week 3 of the 8 Key Drivers of Business Value: The Switzerland Structure A business' value requires that the business not be overly reliant on any one customer, employee or supplier. This is quite a big subject, so this is just a quick overview. Post a comment if you’d like anything expanded upon. How can we get more independence? With customers, the danger point is around 15% of sales. The simple answer is to get more customers – but it’s never that simple in reality. You can also have a look at any low-margin products you’re selling and dropping them. [...]
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8K – Growth Potential

by mike tombs
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We’ve hit week two on the 8 Key Drivers of Business Value! It’s easy to think about what you have achieved in your business over its lifetime. Whether it’s awards, or an outstanding reputation or how many years you’ve been operating. None of this really helps in terms of the potential for growth your business has. A few things you should be thinking about: Can you cross-sell or upsell any of your products? Ensuring good client-facing systems are in place can automate much of this process and make a big difference to your business. Are there any complimentary products you [...]
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8K – Financial Performance

by mike tombs
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Today is the first day of our series on the 8 Key Drivers of Business Value Whether you’re growing your business for yourself, for the next generation, or to sell it, you need to ensure you have these drivers up to scratch. One weak area can seriously reduce your chances of hitting your goals for your business and your life. Our first stop is straightforward – Financial Performance. Here are a couple of things to think about to help you get it right: Are you getting the best possible prices from your key suppliers? Do you have any negotiating room? [...]

Green light for pension dashboards

by mike tombs
in news
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The government has given the green light to allow pension providers to create user-friendly services that display pension information for individuals on-line.   Savers will be in the driving seat with all the facts and figures about their pensions and potential retirement income at their fingertips in one place for the first time - on smartphones, tablets and computers.   Work and Pensions Secretary Amber Rudd said:   With record numbers saving for retirement as a result of our revolutionary reforms, it’s more important than ever that people understand their pensions and prepare for financial security in later life.   [...]

Tax-free property and trading allowances

by mike tombs
in Tax
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Since April 2017, you can earn £1,000 from a trading activity and £1,000 of property related income, without being liable to income tax. These tax-free allowances on property and trading income are useful as families can generate an extra £2,000 a year of income without increasing their tax bills. Obviously, these small amounts will not be a replacement for your day-job, but they do contribute to financing your monthly bills.   What property income could this cover? You could rent out: your drive as a parking space if you live in an area where parking spaces are at a premium, [...]

How are dividends taxed?

by mike tombs
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Dividends received from shares held in UK companies form part of a tax-payers self-assessment. The payments are made by the paying company without any deduction of tax and therefore the amount received is the sum that needs to be declared. Dividends are paid out of the company’s retained profits – these are profits after any corporation tax has been paid – once these reserves are exhausted, it is illegal to declare or pay any further dividends. Tax payable on dividends received by shareholders is not payable at income rates (20%, 40% or 45%), but as hybrid rates. The rates for [...]

What will HMRC avoid telling you?

by mike tombs
in Tax
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There are three things that you can count on that HMRC will do:   Calculate the amount of tax you owe based on the information they have gathered. Chase you for payment of this tax if not recovered by PAYE. Pursue you if they believe you have under-declared your taxable income or made excessive claims to reduce your tax.   What they will not do is advise you to maximise the benefit of reliefs and allowances to which you are entitled to claim.   HMRC rely to some extent on the age-old principal that ignorance of the law is not, [...]

Why does the UK tax year end 5th April?

by mike tombs
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A bit of history this week but with a practical outcome for 2019.   Up to 1582, Europe used the Julian calendar introduced by the Romans in 45BC. Unfortunately, the Julian calendar differed from the solar calendar by 11 ½ minutes; after 500 years this small difference meant that the Julian calendar was 10 days off the solar calendar.   To remedy this error, Pope Gregory introduced the Gregorian calendar in most of Europe under his influence, 1582. There was a notable exception, you guessed right, the British Empire. Sound familiar?   The Brits stoically maintained their use of the [...]

Turkey dinner and tax returns

by mike tombs
in Tax
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Completing your tax return may not have been top of your priorities on Christmas Day, but that didn’t stop 2,616 taxpayers from filing their Self-Assessment returns on 25 December 2018. For some taxpayers completing their return on Christmas Day is as traditional as spending time with family and friends or waiting for the Boxing Day sales to start. The peak filing time, according to HMRC, was between 1pm and 2pm, when more than 230 customers filed. Angela MacDonald, HMRC’s Director General for Customer Services, said: This year, more than 2,600 taxpayers chose to file their returns on Christmas Day. Whether [...]