When you started your business, I am sure you had grand ideas as to how it would look, feel and the level of profitability it would achieve.  Well, how are you getting on?

I met a chap last week who works in the business networking arena and he admitted to positively discouraging those who wished to start their own business, if they did not have the capital to survive and support themselves and family for two years. 

His findings suggest that, even with a following wind, the average new business will make a loss in the first year, probably break even in the second, before becoming profitable in year three.  There are of course many exceptions to this, and I am sure that .........

A change in approach by HMRC may impact those companies who provide a range of benefits to their employees via salary sacrifice. This change was prompted by a case brought before the Court of Justice of the European Union, regarding a company who provided vouchers to its employees as part of its remuneration package. The judgement in the case was such that the goods and services provided to employees as part of their benefits will now come under scrutiny from a VAT perspective.

 

How many times have you seen people studying their smart-phones whilst shopping? You may assume that they are just keeping in touch with friends on Facebook or colleagues via LinkedIn.  However, they may well be doing something quite different, they could be checking whether the prices displayed in the shop are the best prices available or checking out the locality for a recommended wine bar or restaurant.

Whether we like it or not, mobile phones and in particular smart-phones give us immediate access to real-time information, enabling us to check for the best deals and get feedback on the quality of service at a restaurant before you venture inside.

You can now even download an application that can scan and read a barcode and tell you the product, identify where it can be bought and for what price, the results can be quite eye opening.

Excuse the pun. However, I am sure that the five plumbers who have found themselves in hot water (oh dear!) with HMRC did go pale when the summons arrived.

HMRC ran a well publicised amnesty for those in the plumbing trade to encourage the declaration of earnings and the payment of any overdue tax. A small number decided not to take advantage of the amnesty and have suffered the consequences, a potential prosecution for tax evasion.

Other trades are falling into the spotlight later this year and early in 2012 with amnesties again being offered to those who come clean and bring their accounts and tax returns up to date and in line with legislation.

Another HMRC team is focussing on companies who...

An impressive title, one that perhaps you think only applies to big businesses. Well, I suggest it is something that you should seriously think about, and, as a priority!  The recent riots in London and other cities around the country resulted in numerous businesses being adversely affected, some very significantly, others permanently!

Rather than “Disaster Recovery Planning” think about it as “What would I do if....?”

Thinking about the conceivable scenarios that could affect your business and its ability to operate could actually make the difference between the company surviving a situation or not.

It may help to break things down into a number of areas. Here are some examples: .....

For those of you not familiar with the Construction Industry Scheme, HMRC describe it as “a set of special rules for handling payments made by contractors to subcontractors for construction work. If your business works in the construction industry or does construction related work then it may need to register with HM Revenue & Customs (HMRC) as either a contractor or a subcontractor under CIS.”

The CIS requires contractors to submit a return for each month by the 19th day of the following month. The changes relate to....

 

It is fair to say that most business owners would like to generate more profit, although this can increase their tax liabilities and none of us like paying more tax! So what exactly is profit? Although accountants may explain this differently, it is simply the difference between your sale price and the overall cost of making the product or delivering the service.

The costs of running a business - premises, salaries, stock, software, and utilities (heat, light and power) - all appear to be increasing with rising prices etc. which in turn reduces your margin, thereby lowering your profit.

It has never been more important to review your costs; we recently reviewed one of our client’s telephone bills and successfully obtained a refund from BT of over £850 as they had failed to configure their billing service correctly.

All the money you save is immediately translated into increased profit for your business.

When was the last time you....?

A very good question.... We believe that there are a number of factors to consider and to help those currently looking to appoint an Accountant, we have written the attached document.

Download the PDF Document here.

For our existing clients we hope that we truly deliver exceptional service, but know we can always improve! We are currently creating a Client Survey which will enable us to obtain feedback from our clients and fine tune our services.

The second payment on account for Self Assessment must reach HMRC by 31 July 2011.

Please note that this year the deadline falls on a Sunday and therefore to avoid a penalty, interest charge for late payment, any amount due must be received by HMRC by Friday 29 July 2011.

This situation is exacerbated by the fact that HMRC do not accept 'Fast Pay' as they no longer use a UK clearing bank. When paying 'online' you should still allow a minimum of 3 days for funds to reach HMRC. Some banks and building societies may take longer for payments to be processed, therefore you should seek advice from your particular bank or building society.

 

If you are looking to set up a new company, there is one important area businesses often forget to check, sometimes with significant financial consequences and disruption to the business: That area is trade marks.