A concept image of going paperless

Companies House is stopping paper reminders

A concept image of going paperless

With Companies House stopping paper reminders, directors of LTDs and partners of LLPs can opt for email reminders instead.

In the past, Companies House sent out paper reminders to limited companies and limited liability partnerships, informing them that their accounts and confirmation statement were due for filing. This process cost Companies House £1.2 million in 2019. Aiming to improve efficiency, Companies House is stopping paper reminders.

Companies House also makes it clear that it is the directors’ responsibility to file a company’s information on time. If you are working with our team at Tax Agility, then you already know that we file your accounts on schedule.

Email reminders

For directors and partners who have been relying on paper reminders, you can take this opportunity to switch to email reminders instead. The email reminder service is free and it allows you to:

  • Choose up to four email recipients to receive a reminder (including your agent)
  • File your document immediately from a link within the reminder

In essence, email reminders should be more convenient for business owners, while also cutting paper waste and helping Companies House to become a fully-digital organisation.

To sign up for email reminders, sign in to the Companies House online filing service, select ‘Get email reminders’ from your company overview screen, click ‘Add an email address’ and continue to add (up to four email addresses). After that, Companies House will send you an email asking you to validate your email address, which you need to follow to join the email reminder service successfully.

Company House takes filing seriously – directors who do not file company accounts on time face penalties. In addition, failure to file confirmation statements and accounts is a criminal offence which can result in directors being fined personally in the criminal courts. At Tax Agility, we take deadlines seriously too, which is why we file your accounts on time if you are a client of ours.

We can also assist with the confirmation statement on your behalf, should you choose to.

Contact our friendly Small Business Accountants today on 020 8108 0090. We’re always here to help and safeguard your business interests.

by aleah

A concept image of business that is closed due to COVID-19

An update on COVID-19 support available to small businesses

A concept image of business that is closed due to COVID-19

As the daily number of people tested positive for COVID-19 continues to rise across England, many businesses and self-employed individuals are bracing for tighter restrictions.

(Updated on 7 November 2020)

On Friday (30 October), as the Furlough Scheme was coming to an end, we wrote this blog to talk about the Job Support Scheme (JSS) and other measures. But a day later, Prime Minister Johnson announced the second lockdown in an attempt to slow down the spread of Coronavirus. Accordingly, we have updated this post to reflect the latest support available to small business owners.

The Furlough Scheme is extended

Introduced in March, the Furlough Scheme (also known as the Coronavirus Job Retention Scheme or CJRS) was supposed to end on 31 October 2020, but as the second lockdown is set to begin on 5 November 2020, the scheme will be extended until March 2021. Essentially, it allows you to furlough your staff full-time, or ask them to work on a part-time basis and furlough them for the rest of their usual working hours. You will have to cover their wages for the hours worked, as well as National Insurance and employer pension contributions. You will be able to claim either shortly before, during or after running your payroll.

Employees who are being furloughed will receive 80% of the current salary for hours not worked, up to a maximum of £2,500 per month. All of the 80% is fully funded by the government – this is in contrast to how the scheme was administered previously. Before November, the scheme required affected employers to pay 20% and the government paid 60% to make up 80% of the salary.

Employee eligibility: You can claim for employees who were on your PAYE payroll on 30 October 2020. You must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee. If employees were on your payroll on 23 September 2020 (i.e. notified to HMRC on an RTI submission on or before 23 September) and were made redundant or stopped working for you afterwards, they can also qualify for the scheme if you re-employ them. Neither you nor your employee needs to have previously used the Furlough Scheme.

For employers, the first task is to check if your employees are eligible for the scheme, based on the information above. Then talk to your employees so they know if they are being furloughed fully or part-time, and agree working hours if applicable. Keep the records that support the amount of the furlough grant you claim, in case HMRC needs to check it. You can view, print or download copies of your previously submitted claims by logging onto your CJRS service on GOV.UK

Other forms of support

Before the announcement of the second lockdown, local councils have different levels of support to help businesses based on the COVID alert level of the area. But as the second lockdown is affecting the whole of England, the government has announced the followings:

  • If your premises is forced to closed, you will get £1,334 per month (for properties with a rateable value of £15k or under), £2,000 per month (for properties with a rateable value of £15k to £51k), and £3,000 per month (for properties with a rateable value of more than £51k).
  • £1,000 for every furloughed employee kept on until at least the end of January.
  • £1,500 for every out-of-work 16-24 year-old given a "high quality" six-month work placement.
  • £2,000 for every under-25 apprentice taken on until the end of January, or £1,500 for over-25s.

Job Support Scheme (JSS)

The Job Support Scheme (JSS) aims to help employers retain their employees if they are struggling or when they are required to close. The JSS, which was scheduled to come in on 1 November, has now been postponed.

Professional services grant

In July 2020, the government announced £20 million in new grants to help small and medium-sized businesses recover from the effects of this pandemic. The scheme will offer grants between £1,000 to £5,000 to these businesses, helping them purchase new technology and equipment, as well as paying for professional services (legal, financial, HR and other qualified services).

The schemed is administered through the Local Enterprise Partnership (LEP) and each LEP has a minimum of £250,000 to get the program going.

For businesses in London, you can access the businesshub.London page for more information.

Deferral of VAT

Back in March, the government announced that VAT-registered companies could opt-in to defer their VAT payments (between 20 March 2020 to 30 June 2020) and pay them by 31 March 2021. This scheme is now closed, but those who have opted-in have the option in pay in smaller payments until 31 March 2022 instead, a much longer period than previously announced.

Self-Employment Income Support Scheme (SEISS)

Introduced in March 2020, the SEISS allows self-employed individuals whose businesses had been adversely affected by the pandemic to claim a taxable grant. To be eligible, you must have:

  • Traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
  • Traded in the tax year 2019 to 2020
  • The intention to continue to trade in the tax year 2020 to 2021
  • Trading profits less than £50,000 and at least equal to your non-trading income (if you are not eligible based on the 2018 to 2019 Self Assessment tax return, HMRC will look at the previous tax years)

The first SEISS grant ended on 13 July 2020 and the second grant ended on 19 October 2020. On 5 November 2020, the chancellor Rishi Sunak confirmed that a third grant – and a more generous one – will be made available to help self-employed individuals. The third grant will cover 80% of profits for November, December and January, up to a total limit of £7,500. Applications will be open from 30 November 2020. Details for the fourth grant, covering three months from February 2021 to April 2021, will be announced later.

Deferral of second payment on account

Self-employed individuals are aware of the two payments on account taking place each year, with the first one due on 31 January during the tax year and the second one on 31 July following the end of the tax year. The second payment on account for the 2019/20 tax year was supposedly due by 31 July 2020, but taxpayers with up to £30,000 of Self Assessment liabilities could defer the second payment (due July 2020) to 31 January 2021. In September 2020, the government further announced that you could pay instalments (by entering into a Time to Pay arrangement) if you couldn’t pay in full by 31 January 2021 – this means you could stretch the final payment to January 2022.

Other things to be aware of

Before the announcement of the second lockdown, the government had already encouraged companies to allow employees to work from home if they can carry out their normal duties without going to the office. Now people are told to stay at home, except for education, work (if cannot be done at home), exercise, medical reasons, shopping for food and essential items, or to care for others.

If an employee must self-isolate (either they have tested positive or been in contact with someone who has tested positive), the business owner must not knowingly allow the employee to come into the office or attend meetings elsewhere. Violating this provision is an offence with fines starting at £1,000 for the first offence, rising to £10,000 for the fourth and subsequent offences.

Be careful of COVID-19 scams

The pandemic has already affected millions of people across the UK, yet scammers are still actively targeting small business owners, their employees, as well as self-employed individuals. Apart from criminals pretending to be government agencies ‘phishing’ for information, some of us have also received emails from supposedly company server informing us of unread messages – but taking us to a phishing site instead.

Members of the public have also seen texts informing them of tax rebate from ‘HMRC’ and encountered fraudulent products, anything from hand sanitisers to COVID-19 swabbing kits. Remain vigilant is key, and report the scams to Action Fraud (0300 123 2040 or online).

Disclaimer
The information contained in this newsletter is of a general nature and no assurance 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 consequence of the material can be accepted by the authors or the firm.

by Robin Brown

A concept image of marketing

Small Business: Simplify marketing to increase sales

Every business needs to market their brand, products and services. Have you done enough to create awareness, attract new customers and build relationships?

A concept image of marketing
Marketing is a process where you (the business owner) identify your unique selling proposition (USP), profile your target market, communicate your brand and your USP to the target market, persuade them that your products and services can satisfy their current and future needs, and your company is here to nurture loyal customers.

The marketing process is long, sometimes costly, and definitely more comprehensive than just ‘advertising and selling’. Occasionally, marketing also requires unwavering commitment from you and your staff.

At Tax Agility, we are small business accountants working with entrepreneurs from all walks of life. Our objective is to help small businesses flourish by managing their business accounts accurately and effectively. In addition, we provide a range of business consulting services that aim to help companies reaching their goals. Like our clients, we are small business owners ourselves, and we see marketing as a key discipline which allows us to communicate what we do and build lasting relationships with our clients. With this in mind, we spoke to several marketing specialists and put together this article which we hope could help our clients and other small businesses to establish a stronger competitive advantage through marketing.

The seven ‘Ps’ of marketing

The seven ‘Ps’ refer to a set of recognised marketing tactics which small business owners could use in any combination to create a successful marketing strategy. The seven aspects are:

1. Product

Product refers to the goods and services you are selling – naturally, you want to sell goods and services that are in demand. Successful small business owners tend to spend time researching what the target market needs (or wants), and can highlight the features and advantages of their products and services to the target group, convincing them to purchase.

When marketing products or services, bear in mind that you cannot give false or misleading information to customers. It pays to understand the law on product safety and demonstrate compliance. You should also prepare for (and respond to) product safety incidents and take up appropriate product liability insurance.

Here’s a quick example: one of our clients found out that there is a market for toy robots in the UK and he imports them to sell. In his marketing campaign, he highlights the physical features of the robots and shows how these robots can interact with growing children (through voice, touch and/or remote control). All toy robots he sells also comply with the provisions of the Toys Regulations 2011, meaning they bear the CE mark, satisfy the ‘essential safety requirements’ in the regulations, be properly marked to ensure traceability, and be accompanied by instructions for use, along with warnings where necessary.

2. Price

As consumers ourselves, we all know that a product or a service is only worth what the customers are prepared to pay for it. The price has to be ‘right’ and perhaps even competitive, but not necessary the cheapest. Ideally, the optimal price is what your customers are willing to pay and it also allows you to make a profit (after covering your costs).

Accordingly, setting a suitable pricing strategy for your products and services take some planning. You probably need to spend a good amount of time reviewing your costs – fixed and variable – as well as knowing your break-even point. The break-even point can help you to work out how much you need to sell before you make a profit and how profitable a particular product or service is. If you need help with business costs, talk to a trusted small business accountant like our team here at Tax Agility.

Sometimes, you may choose to enforce the value of your products or services through a higher price tag. This could be a wise approach, especially if the value you provide is not something that your competitors can easily copy.

3. Promotion

This is about the promotional activities you undertake to make your customers aware of your products and services. They can include direct marketing, telemarketing, above-the-line advertising, PR activities such as media releases, sponsorship, as well as short-term sales.

Successful promotional campaigns tend to tell a story, so give your brand a story – why it exists, why it cares about customers and the world, for instance. Savvy customers today prefer to engage with businesses that they can connect and build direct relationships with, so don’t be afraid to show your passion, talk about the values you stand for, and why your business is the one to choose.

Keeping up with the times, your promotional activities may include an online element too. You can find out more about online marketing by following the link to the article Small Business: Win customers with a strong online presence.

4. Place

The place refers to where your customers are able to see and purchase your products and services. The place may be your website, an online marketplace, a physical store, via other distributors, or a combination of the above.

If you are selling your products and services in a physical store, then you probably know the importance of using effective visual display to create an identity and maximise sales. Retail display is actually a part of branding, helping to make a statement about your business as well as attracting prospects to purchase your products and services.

If you are selling online, then you know the benefits of using excellent photographs and concise product descriptions, along with online optimisation. You may also consider using ‘behaviour targeting’ to show your products and services to your target market throughout their buying process – from needs or problem recognition, information search, evaluation of alternatives, making a decision, to purchasing.

5. People

The fifth P here refers to everyone in your company, including yourself and your staff. The aim here is to recruit the right people who are as committed to the company as you are. Devoted staff will champion excellent customer service, which in turn will help you win referrals and grow your business.

To retain good staff, you may need to provide adequate training and skill development opportunities, along with suitable motivators (which may or may not be monetary). A good tip that our small business accountants often share with entrepreneurs is to look at the products and services with the highest profit margins, and check to see if they are adequately supported by your staff.

6. Processes

This refers to the processes involved in delivering your products and services to the customers. It ranges from the process to ordering new stock, ensuring products and services are delivered in a timely manner, allowing customers to give feedback, handling negative customer reviews, and regularly reviewing your financial statements to make sure that your company is on track.

Good processes will undoubtedly increase efficiency, thereby saving your company time and money. On the other hand, inadequate processes (or lack of) may create confusion and mistakes, risking a vicious circle that may lead to business failure.

7. Physical evidence

Physical evidence refers to everything your customers see when interacting with your company. Ideally, everything they see should reinforce a positive image of your company and boost their confidence in your brand, products and services.

Accordingly, think about every aspect, from how you package your products, the physical environment where you provide or sell the products or services, to how your staff act in the premises.

Marketing and growth

While the above seven ‘Ps’ of marketing are vital points for small business owners to consider before creating a marketing strategy, we must also point out the financial aspect. For instance, your marketing plan should have a clear financial objective, like how a campaign can help you achieve a net profit of x through sales of product y within the next 12 months.

Your marketing plan should also include campaign costs, which must be affordable by your business. From time to time, we do hear stories that business owners spending most of their money on branding or sponsorship, hoping to make a big impact but only to find little return.

As the financial aspect is critical, do talk to an experienced small business accountant like our team here at Tax Agility. We can help to review costs associating with your products and services, find ways to reduce wastage, calculate the break-even point, make profitability projections, among others.

We can also help you with the followings:

  • Accounting & Bookkeeping: leave your day-to-day finances to us. We will also provide monthly management accounts, prepare statements and help you set-up cloud accounting.
  • Tax: if you are tax-efficient, you will have more money to invest, expand and create jobs in your community. Let us help you with tax planning, tax computation and tax returns.
  • VAT: from VAT returns to manging VAT on import and export goods, we take care of them so you don’t have to.
  • Payroll: as your team grows, outsource your payroll administration to us so that you and your team can continue to enjoy accurate and on-time payslips every month.
  • Management consultancy: take your business forward with practical advice based on financial data and benchmark analysis.

Call our small business accountants today on 020 8108 0090.

Alternatively, you can use the contact us form to get in touch.

You may also like:

This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.

by Donovan

Small Business: Managing business risk

Knowing how to identify and manage risk is essential for a small business to survive, operate and prosper amid competition and uncertainty.

A concept illustration of taking risk

“Tell me about the biggest risk you’ve taken in your life.”

If you were to ask this question to small business owners, chances are you would hear them all talking about taking risks to launch their respective business.

Entrepreneurs tend to embrace risk, and successful business owners also know how to identify and skillfully manage both internal and external risks that their business is facing. In this article, our small business accountants look to explore a few common types of risk and discuss how small business owners can benefit from a risk management plan that works for them.

Common types of risk

While it is obvious that every company faces its unique set of risks, there are a few common types that most of us face, given that we operate in a well-connected world. These risks include:

  • Financial, such as managing rising costs, depreciation of assets, cash flow issues, bad debts, repayment of loans, problems associated with erroneous company accounts and paying an incorrect amount of taxes.
  • Legal, such as not filing the appropriate documents with Companies House and HMRC, not applying for or renewing appropriate licences, and failure to carry out contractual obligations.
  • Health and safety, such as dealing with workplace accidents and equipment failure.
  • Global events, such as a sudden political deposition in another country and a global pandemic that restricts travel movement.
  • Market, such as changes in consumer behaviours and purchasing habits.
  • Reputation, such as damage to your brand.
  • Security, such as theft and fraud.
  • Staffing, such as the challenge of finding the right people for the right jobs and conflict management.
  • Technology, such as network interruption, email server failure and a breach in cyber security.
  • Natural disasters, such as floods, heat waves and earthquakes.

Some of the risks mentioned above might seem indirect or even unlikely to some businesses. For example, if you have no suppliers or customers outside of a town or a city, then it is easy to assume that what goes on elsewhere isn’t going to affect your business. The truth is all businesses are actually more connected than ever, and consumers today can be personally affected by world events that seem far away. Consequently, it is better to prepare for indirect risks than to ignore them.

Managing risks

Risk management is the process of identifying risks specific to your business and coming up with strategies to deal with the risks and recover from the impacts should the unfortunate happen. You can develop an effective risk management plan by following these steps:

  1. Identify the risk
  2. Assess the risk
  3. Manage the risk
  4. Review and update

You can certainly get assistance from various specialists to help with your risk management plan. For example, when assessing financial risks, involve your accountant or speak to a small business accountant like us. Our team of chartered accountants can work with you to review financial risks related to your company, including but not limited to:

  • Risks from how your company is structured
  • Risks from incorrect financial transactions
  • Risks from cash-flow shortage and how to overcome them
  • Risks from changing customer trends
  • Risks from inaccurate tax calculations

Essentially, what a risk management plan does is to help you identify issues in various business situations and from there, you develop practical ways to protect your business. To guide you through the process, here are the four steps involved.

Identify the risk

A good risk management plan starts by asking a series of ‘what if’ questions that could affect your business. A few examples are:

  • What if my key supplier went out of business?
  • What if my website was hacked?
  • What if a new competitor opens on the same street?
  • What if I add eCommerce to the website?
  • What if a customer sue me?

Assess the risk

Assessing the risk is about the likelihood of any particular risk happening and the consequences it would have on your business.

Here’s an example: let’s say you run an e-commerce site so you need your website to be available 24x7. You have a good hosting contract and the risk of your website going down is low. However, should the unfortunate happen, your costumers cannot reach you nor buy from you. Consequently, you may suffer a financial loss during the period when your site becomes unavailable.

Now you have thought about the risk and the consequence, the next step is to manage the risk.

Manage the risk

The common ways to manage risks are:

  • Accept them – if the risks are very unlikely to happen, too expensive to mitigate, or impractical, you may choose to accept them and have a recovery plan to manage the consequences should they happen.
  • Avoid them – you could avoid the risks by not proceeding with an activity or by using an alternative method to achieve the same outcome.
  • Reduce them – you could reduce the likelihood of the risk occurring or you could reduce the impact if the risk occurs.
  • Transferring them – you shift the responsibility to another party, such as your insurance provider, through outsourcing or new partnerships.

In the UK, you must get Employers’ Liability insurance from an authorised insurer as soon as you become an employer. Your policy must cover you for at least £5 million. Apart from this statutory obligation, you may consider other types of insurance that are useful to small businesses. They can include content and stock insurance, business interruption insurance, cyber cover, and audit insurance.

Review and update

Just like other business processes, your risk management plan should be reviewed and tested as risks can change, as your business and the environment you operate in.

Developing a recovery plan

Going hand-in-hand with a risk management plan is a recovery plan. The idea here is about how your business can recover and minimise losses should an unfortunate incident happen.

Cyber security is a good example to illustrate this. Small business owners are often targeted by ransomware, malware and malicious emails. The risk is real and it may even occur regularly. To mitigate the risk, you may already have established strict procedures like installing the latest security software to keep your network and devices secure, regularly backing up your data and educating your employees. Despite the best effort, hackers and cyber criminals may still gain unauthorised access to your system. Accordingly, you need to have a recovery plan, detailing anything from stopping the incident from getting worse, calling up experts who can help you resolve the incident, informing the authority if necessary, and considering what legal advice you should take if the incident causes a significant impact on your business or customers.

Tax Agility can help you mitigate risks related to company finances

As leading chartered accountants for small businesses in London, Putney and Richmond-upon-Thames, we tend to involve risk management as part of our daily activities and discussions with our clients.

An obvious activity is that we can help to reduce your financial and compliance risks by managing your company accounts accurately and making sure that your business is tax-efficient.

We are also the person you can bounce ideas with, as we can help to evaluate risks and opportunities that are drawn upon financial data so you can make informed decisions accordingly.

If you are thinking of buying another business or selling an existing one, you can also count on us to assess the value by reviewing the business’s assets, operations, financial performance and tax compliance, to name but a few.

In short, by incorporating risk management, our goal is to make sure that your business is financially sustainable. You will also receive qualified insights that can help in your decision-making process and meet financial compliance.

Our services:

  • Accounting & Bookkeeping: leave your day-to-day finances to us. We will also provide monthly management accounts, prepare statements and help you set-up cloud accounting.
  • Tax: if you are tax-efficient, you will have more money to invest, expand and create jobs in your community. Let us help you with tax planning, tax computation and tax returns.
  • VAT: from VAT returns to manging VAT on import and export goods, we take care of them so you don’t have to.
  • Payroll: As your team grows, outsource your payroll administration to us so that you and your team can continue to enjoy accurate and on-time payslips every month.
  • Management consultancy: take your business forward with practical advice based on financial data and benchmark analysis.

Call our small business accountants today on 020 8108 0090.

Alternatively, you can use the contact us form to get in touch.

 

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This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.

by Robin Brown

A concept of protecting valuable items

Trusts and Income Tax

A concept of protecting valuable itemsWe explain six main types of trusts preferred by UK residents and the different Income Tax rates of these trusts.

In the UK, there are six main types of trusts, namely:

  • Bare trusts
  • Interest in possession trusts
  • Discretionary trusts
  • Accumulation trusts
  • Settlor-interested trusts
  • Mixed trusts

For non-residents who want to protect their assets here or want to make sure that their dependents living in the UK are taken care of, the type of trust applicable would be a non-resident trust.

Before we go into each trust type and their tax obligations, let’s get familiar with these terms:

  • A settlor is a person who puts assets into a trust
  • A trustee is a person who manages the trust
  • A beneficiary is a person who benefits from the trust

1. Bare trusts

Bare trusts refer to a simple structure where the trustee holds the assets and incomes of the trust on behalf of the beneficiary. The beneficiary of a bare trust is responsible for paying tax on income from the trust.

Here is an example: you want to provide for a young child, so you set-up a bare trust and create an investment account or a saving account. All funds in the account belong to the child. Once the child reaches 18, they have the absolute right to the money.

Whether your child is 8 or 18, they enjoy the same standard Personal Allowance as everyone else, which is £12,500 a year currently. Anything beyond this threshold is subject to Income Tax.

Here is a snapshot of the income tax bands:

  • No tax to pay if the taxable income is below £12,500
  • 20% basic rate for taxable income between £12,501 to £50,000
  • 40% higher rate for taxable income between £50,001 to £150,000
  • 45% additional rate for taxable income over £150,000

2. Interest in possession trusts

An interest in possession trust means the trustee must pass on all trust income to the beneficiary as it arises (less any expenses). Who pays the Income Tax depends on the arrangements. If the trustee ‘mandates’ the income to the beneficiary (meaning it goes to the beneficiary directly instead of being passed through the trustee), then the beneficiary will need to include the income on their Self Assessment tax return and pay tax accordingly.

If the income is passed to the trustee first, then the trustee will be responsible for paying the Income Tax.

The tax rate depends on the type of income:

  • Dividend-type of income is taxed at 7.5%
  • All other incomes are taxed at 20%

If the beneficiary is a disabled person, special tax rules may apply. It is best to speak to our personal tax accountants if you find yourself in a situation which you aren’t sure.

3. Discretionary trusts

Discretionary trusts are often used when you want to safeguard your assets for the future generations, including descendants who have yet born. Depending on the trust deed, usually trustees of a discretionary trust can decide:

  • What gets paid out (income or capital)
  • Which beneficiary to receive the payments
  • How often payments are made
  • Any conditions to impose on the beneficiaries

Trustees are also responsible for paying tax on income received by the discretionary trust and the tax rates are as follows:

  • Dividend-type of income is taxed at 7.5% (below £1,000) and 38.1% (above 1,000)
  • All other incomes are taxed at 20% (below £1,000) and 45% (above £1,000)

There are two accompanying notes here. The first is that if the settlor has more than one trust, the £1,000 threshold is divided by the number of trusts they have. But if the settlor has set up five or more trusts, each trust is allowed to have the standard rate band of £200.

In addition, trustees do not qualify for the dividend allowance (which is set at £2,000 a year currently). This means trustees must pay tax on all dividends depending on the tax band they fall within.

4. Accumulation trusts

In an accumulation trust, trustees can accumulate income within the trust and add it to the trust’s capital. They may also be able to pay the income out. For example, the beneficiary may be an infant, so the trustees will accumulate the trust’s income until the beneficiary is legally entitled to receive the capital and all incomes.

Accumulation trusts are subject to the same taxation as discretionary trusts discussed above.

5. Settlor-interested trusts

As the name suggests, a settlor-interested trust benefits the settlor or the spouse or civil partner. The trust could be an interest in possession trust, a discretionary trust, or an accumulation trust. Settlor-interested trusts are becoming popular, given that ageing is affecting health care and social costs. What most people do is that they set up a discretionary trust and put their assets in the trust – doing so will make sure that they have money in the future when they can no longer work.

When it comes to taxes, the settlor is responsible for Income Tax on these trusts, even if some of the income is not paid out to them. But because the trustee is the person managing the trust, they have to pay the Income Tax on behalf of the settlor first.

Here’s how it works:

  • The trustee pays Income Tax on the trust income by filling out a Trust and Estate Tax Return.
  • They give the settlor a statement of all the income and the rates of tax charged on it.
  • The settlor tells HMRC about the tax the trustees have paid on their behalf on a Self Assessment tax return.
  • How much tax to pay depends upon what type of trust the settlor-interested trust is.

Give our Personal Tax accountants a call on 020 8108 0090 when you want to make sure your Trust and Estate Tax Return is correct.

6. Mixed trusts

When you combine more than one type of trust, you are setting up what is called a mixed trust. In this situation, the different parts of the trust are treated according to the tax rules that apply to each part.

Non-resident trusts

If you a settlor and you don’t reside in the UK and are not domiciled in the UK, and you have a mixture of resident and non-resident trustees, or you have trustees who all live outside the UK, then you may have set-up a non-resident trust to protect your assets in the UK. The tax rules of non-resident trusts depend on many factors and can get complicated quickly. It is best to speak to one of our personal tax accountants and discuss your situations, so we could advise how to handle capital gains arise from a non-resident trust.

Experienced Trust and Income Tax accountants

When you set-up a trust, you generally have a few objectives which could be:

  • You want to look after someone who can’t manage their money
  • You want to safeguard your assets for your children and grandchildren
  • You want to have enough money to pay for health care and social costs when you can no longer work
  • You want to lower the Inheritance Tax your estate is liable for

Accordingly, you will need to choose a trust that can best address your needs and think about how the different tax rules may affect you. This is where our personal tax accountants can help. We will listen to your situations and explain the characteristics of each trust in detail, including:

  • Advising on the tax advantages and helping you to select the most suitable type of trust
  • Transferring assets into a trust
  • Advising on wills to ensure tax efficiency
  • Maximising inheritance tax reliefs and exemptions
  • Planning lifetime gifts and making full use of exemptions and lower tax rates available
  • Advising on adequate life assurance to mitigate any inheritance tax impacts

Call us today on 020 8108 0090 to discuss your situations and how a trust and its tax rules can best match your financial needs. The first meeting is free and no obligation.

Alternatively, you can also use the enquiry form to get in touch.

Important note

The Provision of Services Regulations 2009 requires us to advise you that our professional indemnity insurer is HCC International Insurance Company PLC, 35 Seething Lane, London, EC3N 4AH.

Our territorial coverage is worldwide except for any professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.

We are not authorised financial advisers but will introduce you to suitable firms or individuals when you are considering transactions that would benefit from authorised advice.

We are not regulated by the Financial Services Act and will refer you to an FSA-regulated provider if that will benefit you.

 

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by Robin Brown

TA staff

Small Business: Planning and optimising your workforce

The aim of workforce planning is to align your people strategy with short-term changes and long-term goals.

TA staff

As dedicated small business accountants in London working with entrepreneurs from various sectors, we have the privilege of meeting driven small business owners to exchange ideas and share knowledge. One of the topics that crop up regularly in discussions is human resources. Specifically, how does an entrepreneur know when it is the right time to hire and how to go about planning and managing employees effectively.

Successful small business owners, we find, tend to have a workforce that can meet two objectives. Firstly, the workforce is efficiently managed to meet short-term changes which may be related to growth (hiring more staff as you get more clients), decline (having less staff as clients leave), or when there is an increase in competition (having versatile staff who can achieve more with less), to name but a few.

Secondly, smart small business owners also have a long-term plan with specific goals. The plan tells them when they need the right people with the right skills at the right time.

In essence, we view workforce planning as a systematic way to identify what skills are needed, how to find the right people for the right job, and what alternatives are available to address gaps or skill mismatches. As this is a highly fascinating subject, we look to explore it more in this article and see how workforce planning can benefit us all.

When it is time to hire

Should you hire someone because you have just received a new contract? The answer depends on the situation you are in. In general, you know it is time to hire someone when:

  • Your current workforce cannot cope with the workload or does not have the necessary skills to cope.
  • You can generate more money if you hire someone.
  • You have calculated the costs and you are certain that your business can afford it.
  • The people you hire can support your long-term business goals.

In other words, before hiring, you must understand your current workforce capacity, you are aware of any skills gap in your company, you know how to get the most out of your (current and future) employees, your decisions are guided by financial data, and most importantly, you never lose sight of your future goals.

Labour cost is an area that is worth mentioning. In the UK, employers are required to pay salaries, National Insurance and pension contributions. In addition, business owners also need to spend time and money training the person, as well as offering staff benefits like paid holidays, sick pay and gym membership, to name but a few.

Finding the right people for the right job

Every small business owner is keenly aware that hiring the right people is vital for the success of your business but finding the right people can be challenging. Here are a few good tips that may resonate with some small business owners:

Look for a team player

In many small businesses, employees are required to work cohesively on a project or several projects at once. In this case, look for a team player who is genuine, committed and supportive.

Long-term potential

Job-hopping may be on the rise but it doesn’t mean that companies like it – because turnover is disruptive and it costs money. Look for traits of commitment, particularly if the new hire is vital to your future workforce needs.

Skillset

Test the candidate to make sure they have the ability to perform the tasks required. You can test both technical and soft skills. Technical skills are related to a particular occupation. Soft skills, on the other hand, cover a wide spectrum of traits that shows how one interacts with others.

Getting the best out of your employees

Small business owners know that working longer hours does not necessarily mean more productive or increased efficiency. To get the best out of your employees, a few useful tips include:

  • Make it clear what you and the business want from them.
  • Encourage them to take responsibility for their actions; show them how their efforts are tied into the bigger picture or the overall goals of the business.
  • Create a culture that promotes honesty and strong work ethics.
  • Incentivise them when a milestone is achieved. This can be something small like taking them out for a meal or something substantial like cash bonuses.
  • Train and develop people who are keen to contribute. Show them how they can achieve career progression within your organisation.
  • Provide mentorship, particularly to young workers. Mentorship involves one-to-one discussions that focus on transferring knowledge and connecting at a deeper level.

Alternatives to address skills gaps

It is highly common for small business owners to hire new employees to address skills gaps, but alternatives such as hiring contractors and upskilling current employees should be considered too.

Hiring contractors or freelancers is definitely something that can benefit small business owners as the advantages are obvious:

  • It is usually (but not always) cheaper to hire a contractor as you don’t have to pay National Insurance, pension, and benefits.
  • Areas of expertise such as database management and cybersecurity are best left to specialists who know what they are doing (unless your business is based around these disciplines).
  • You can respond to market changes quicker by hiring or letting go of contractors with short notices.
  • Contractors have their own insurance to cover for all eventualities.

For more information, follow the link to the article Hiring specialist contractors can reduce SME costs.

Another effective way to address skills gaps is to train your existing staff. Research has shown that upskilling can improve employee job satisfaction and engagement. There are various methods to develop skills, including:

  • On-the-job training
  • Accredited or non-accredited training
  • Attending special industry events
  • Mentoring and coaching

Don’t forget payroll and benefits

Although studies have shown that employees may not be necessarily motivated by money, every employee still expects to be paid fairly, satisfactory and on time. They also look for benefits like paid holidays, gym memberships and other goodies.

While it is essential to make the pay package attractive to your employees, you also need a robust payroll team in place to calculate individual payslip and deduct PAYE, National Insurance, pension and other items like student loans, along with handling ad-hoc items like bonuses and commissions. But having an in-house payroll team is expensive – fortunately, this is where the outsourced payroll services from Tax Agility can help.

Our complete payroll services are designed for small businesses, helping small business owners like you to manage the payroll function and compliance. We can take over the entire payroll process, help with ad-hoc payroll exercises, manage TRONC Scheme Management for restaurants, bars and hotels, as well as keeping you informed of any changes to the payroll regulations.

Tax Agility promotes small businesses

At Tax Agility, we are chartered accountants specialising in small businesses across London. We’ve helped many entrepreneurs grow from a one-person business to a successful enterprise with dedicated teams in place.

Our services to small businesses in London, Putney and Richmond-upon-Thames include:

Management consultancy is an area worth mentioning if you are looking to grow your business substantially in the near future. At its core, management consultancy is about analysing the financial data of your company and allowing you to use the data to make informed decisions that spur growth.

If you would like to know more about what we can do to help your business – be it to support your bookkeeping, provide tax advice, manage your payroll services, or work with you to grow your business – get in touch by calling 020 8108 0090.

Alternatively, you can use the contact us form to get in touch.

 

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This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.

by Robin Brown

A concept image of web and social media

Small Business: Win customers with a strong online presence

Creating a successful online presence can help you reach a larger audience, but are you doing it right?

A concept image of web and social media

Not so long ago, having an information website was enough for many companies. But with the advancement in technology and greater connectivity, many companies are expected to expand their digital capabilities to meet the ever-changing needs of customers. As a result, nowadays it is fairly easy to find companies that include e-commerce, social media, video content, location-based services and mobile apps as part of their product marketing and sales repertoire.

Then came the COVID-19 pandemic which ushered in a new normal and created a ‘social distancing economy’. Instead of going to the shop, most customers now choose to buy online and pick up their orders in store or buy online and have the orders delivered. Even when customers are visiting a physical store, they may prefer to pay with a mobile app or a credit card. Amid this new normal, companies that sell goods and services directly to consumers are rushing to reassess their digital strategy.

For B2B companies that don’t face end-users, a strong online presence is still vital. In this case, your website and other digital tools are essentially your shopfronts to the world, allowing prospects to come and verify who you are, gaining their trust and confidence. Your online presence also helps your brand to be visible, offering you a platform to share valuable information and engage with customers. All of these will ultimately lead to increased sales and profitability.

Without a doubt, managing your company’s online footprint is important in this day and age. To help small business owners who need to reassess their online presence during this pandemic, we are asking some of our customers for ideas and here are the five tips that many entrepreneurs are following.

1. Evaluate your online presence

Before taking any step or spending any money, it is worth evaluating how your prospects and customers see your business online now and identifying your business goals first. Typically, prospects and customers find your business through:

  • Your website
  • Your social media profiles
  • A local business listing
  • Other information sites

Once you have identified the touchpoints, you can then decide on what you want to improve to achieve your goals. For example, if your goal is to sell online, then you’ll need to create an e-commerce roadmap that supports your strategy. Typically, the roadmap includes:

  • Choosing an e-commerce platform
  • Working with a web developer
  • Defining the fulfilment process
  • Outlining refunds, returns and warranties policies

Beware that running an e-commerce site can be intensive. Before making the commitment, it is best to get an experienced small business accountant like our team to assess risk and return. Our number is 020 8108 0090.

2. Deliver a great user experience

Every successful entrepreneur – be it B2B or B2C – is aware of the buying cycle. To them, digital tools should be used wisely to deliver a great user experience to their prospects and customers. In other words, meeting the different needs of prospects and buyers regardless of where they are in the buying cycle.

A typical buying cycle involves four stages:

  • Awareness: your customers become aware of their needs or a problem that needs fixing.
  • Search: they will then search for the solution that can best meet their needs.
  • Review: they may check a few reviews or ask around, or they may consider alternatives.
  • Decision: when they are ready, they will make a purchase.

No matter at which stage they are, your prospects and customers must be able to access your website, get the information they need, or make a purchase with ease.

3. Boost website security

If your website accepts payments and requires your customers to provide their personal information, then it is important to establish credibility and gain their trust from the start.

Usually, your hosting company should provide some basic level of security, and many of them also sell enhanced services to meet your requirements. Here are a few common types of website security:

  • A security scanner that automatically checks the website for malware.
  • An SSL certificate which shows customers that your website can be trusted.
  • A backup option that keeps a copy of your website and data.
  • A Web Application Firewall to protect real-time web traffic from certain threats.

Internally, you must make sure that your staff are using the internet safely. This may mean installing security software on your computer, get automatic updates, avoid clicking on links or open attachments contained in emails that you don’t expect, to name but a few.

Data protection is another key area – you need to be clear about your marketing communications and keep customer data secure.

4. Manage online reviews

Every customer can potentially influence others by posting their opinions online. Some common places where you will find reviews are:

  • Google review
  • General review sites like Trustpilot
  • E-commerce sites like Amazon
  • Social media
  • Personal blogs

Good reviews tend to boost sales but bad reviews may drive away potential customers. According to some of our clients who manage successful online businesses, the key is to encourage happy customers to post honest reviews, while tackling negative reviews professionally by looking into the incidents, apologising (if you were wrong) and learning from them.

Here is an example shared by one of our clients who runs a successful repair business – whenever he completes a job, he politely asks the customers if they are happy and would like to give a review. Most of the time, his customers leave a positive review, but whenever a client posts a negative review, he would look into the incident, offer an explanation or a remedy, and remain constructive throughout. As a result, the owner has tremendously improved his standing with customers.

5. Sharpen your campaigns

If you already have a website, then you know that getting audience naturally takes time and effort. To gain traffic quickly, you may be looking at a few ideas, which may include:

  • Run targeted search or display campaigns
  • Advertise on social media
  • Start email marketing
  • Partner with influencer
  • Use Google My Business to expand your online presence

While Google My Business is a given, other types of campaigns should fit your business goals and budgets. Generally, you want to run campaigns that are:

  • Targeted: finding people with specific criteria and whom you think are likely to buy your services or products.
  • Well-designed: from the picture to the wording you use, they should appeal to your target audience.
  • Has a call-to-action: clearly states what you want your visitors to do.

If you look to gain exposure quickly, consider offering incentives like a special discount if they sign up for email marketing or give vouchers to those who recommend a friend.

Grow your business with Tax Agility

Allowing yourself to focus on strengthening your online presence and growing your business takes time and effort, and it is likely to mean that you need professional help in specialist business functions such as bookkeeping and tax.

At Tax Agility, we are leading chartered accountants for small businesses in London, Putney and Richmond-upon-Thames. Our services include:

  • Accounting & Bookkeeping: leave your day-to-day finances to us. We will also provide monthly management accounts, prepare statements and help you set-up cloud accounting.
  • Tax: if you are tax-efficient, you will have more money to invest, expand and create jobs in your community. Let us help you with tax planning, tax computation and tax returns.
  • VAT: from VAT returns to manging VAT on import and export goods, we take care of them so you don’t have to.
  • Payroll: As your team grows, outsource your payroll administration to us so that you and your team can continue to enjoy accurate and on-time payslips every month.
  • Management consultancy: take your business forward with practical advice based on financial data and benchmark analysis.

Benefits of working with Tax Agility

At Tax Agility, we are ICAEW chartered accountants and it means you can count on our expert but affordable services. Our team of small business accountants are knowledgeable, staying on top with the latest developments in practice, legislation and techniques.

Our services are also competitively priced with no hidden charges. Most importantly, you are free to choose how you want to engage us. If you choose to combine our bookkeeping, VAT, tax and payroll services, you will certainly achieve bigger savings and run your business more efficiently.

As small business owners ourselves, we value long-term partnerships and believe in growing together with our clients, protecting your investments as your company grow.

Call our small business accountants today on 020 8108 0090.

Alternatively, you can use the contact us form to get in touch.

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This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.

by Robin Brown

Networking concept image - Growing your business concept

Small Business: The benefits of networking

Networking concept image - Growing your business concept

It’s not what you know but who you know – networking is a tried and tested method to grow your business but are you making the most of it?

Networking, a form of marketing, is about interacting with like-minded individuals and finding mutually beneficial opportunities. In this article, our small business accountants in London share great networking tips to help you get the most out of it.

Key benefits of networking

It is worth mentioning that networking is not a sales opportunity. At its core, networking is about building long-term relationships with minimal cost to your business. From these meaningful relationships, you and your networking friends benefit one another in the following ways:

  • Shared knowledge – networking allows you to share and learn. Through valuable information comes fresh ideas that can help you in many business areas.
  • Opportunities – the most common result of networking is business opportunities. These can range from getting new partners, customers, suppliers to finding investors.
  • Raised profile – the more you are out there sharing and learning, the more chances you have to build your reputation, which can lead to more business opportunities.
  • Increased confidence – when you push yourself talking to people you don’t know, you are building useful social skills and gaining self-confidence in the process, and these attributes are vital to a small business owner.

Where do you network?

Traditionally, networking has been performed face-to-face at corporate events, social events, or networking events. Even in this digital age, the tradition has endured. Many small business owners we speak to find that face-to-face networking is still essential when it comes to getting to know other like-minded entrepreneurs and fostering relationships with them.

In London, there are thousands of networking events available, most of them target small business owners. They are also demographic-specific or location-specific groups, such as a group dedicated to professional women working in Central London.

With the advances of the internet, you can also network online through popular sites like LinkedIn and Facebook. LinkedIn is particularly useful as you can connect with an individual or join a group that interests you. As it is online, you can now build connections that transcend boundaries.

Top eight networking tips

Before you go to a networking session, it is worth taking a minute to prepare yourself. Here are eight good tips which we have gathered from successful small business owners across London and some of them may be useful to you.

1. Researching the event before you go

Not all networking events are created equal. When you are invited to attend a networking event as a guest, find out more about the event first, like who are the people attending, how long does it take, and what is the format. Check with your host if you will be given time to talk about your business to the whole group.

2. Arriving early

If you are going to a new networking group, arrive early as it gives you time to relax and prepare. Get chatting with a few other early birds is a good way of easing into a larger group as more people turn up.

3. Talking about your business

Have a clear message about what you do and why you are different, and you must deliver it smoothly and confidently. If time permits, you can illustrate the problems your business is helping to solve by telling a story or sharing an experience from your customer.

4. It’s about relationships

Networking is about building relationships, and every relationship takes time to foster and requires a good amount of trust and respect to sustain. Networking is also about giving and taking – so get ready to share what you know or even offer to help without expectation.

5. Finding the ideal partners

When you network, keep a lookout for people who know more than you, as well as people with strong networks. These are the people who can really make a difference in your business when they decide to help (usually after you have gained their trust and respect).

6. Be positive and professional

Remain positive and professional. Listen attentively and treat everyone with respect – you never know how they might help you now or where they might end up in the future.

7. Following up

Once the event is over, follow up by sending an email to the people you have had a discussion with or connecting with them through LinkedIn. You may keep in regular contact but avoid spamming their mailboxes.

8. Knowing what to avoid

Smart small business owners know how to avoid things that put them in a bad light. Things to avoid are:

  • Don’t be an aggressive person doing a hard sell.
  • Avoid political or controversial subjects.
  • Avoid probing for sensitive information.
  • Avoid glancing around the room when someone is talking to you.
  • Don’t drink excessively, if alcohol is available.
  • Make sure that your hands are clean (if you’ve picked up greasy finger food) before shaking someone’s hand.

Useful phrases

If you aren’t a seasoned marketer or sales person, you may find it hard to start a conversation with a stranger whom you have just met. Many of our clients, who are small business owners across London, have shared the fear of walking into a roomful of strangers and finding themselves tongue-tied. Thankfully, networking skills can be learnt and here a few useful phrases to help you breeze through any networking event.

When you break into a group conversation: “May I join you?” or “Do you mind if I join you?”

Good openers: “What kind of business are you in?”, “What brought you here today?” or “This is my first time here, is there something I shouldn’t miss?”

If the person has mentioned what they do: “What goals do you have for your business?” or “What does the future hold for your industry?”

If you want to exit the group: “Excuse me, my mouth is dry so I’m going to go to the bar and get a drink,” or “Excuse me, do you know if someone here who is in (industry)?”

The key, according to experts, is to show interest in the person you are talking to. Also, don’t forget to smile.

Business growth advice from Tax Agility

Almost all articles about business growth on the internet mention how networking can help a business expand and grow. While it is true that networking helps, it isn’t a silver bullet and there are other factors at play here. For instance, business growth also relies on strong finances and cash flow, having a reliable supply chain, knowing how to manage business relationships, hiring the right type of employees, providing outstanding customer service, becoming tax-efficient, to name but a few.

At Tax Agility, we are small business accountants dedicated to helping entrepreneurs in London, Putney and Richmond-upon-Thames. Specially, we thrive at analysing financial information and using financial data to identify opportunities for our clients. We have helped many of our clients grow from one idea into the companies they are today. If this is what you are after, give our ICAEW chartered accountants a call on 020 8108 0090.

Accounting and tax services from Tax Agility

The main services we provide to small businesses include:

Management consultancy from our chartered accountants is essential if you have an eye on business growth. Management consultancy is about using financial data, accurate budget, as well as forecasts, to unlock business potential. We strongly believe that once you start to use data-led information to make a series of good business decisions, you will soon discover that the good decisions feed a positive cycle that will yield more favourable results, including increased profits and business growth.

At Tax Agility, our small business accountants are also experienced management consultants. We look to build long-term relationships with you because we believe in growing together – if you grow, we grow too.

For honest, expert advice on how strong finances and cash flow can help your business better and more profitable, give us a call on
020 8108 0090.

Alternatively, you can use the contact us form to get in touch.

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This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.

by Robin Brown

Business planning advice with Tax Agility

Small business: The benefits of long-term planning

Business planning

You build a business for the long haul, so it is vital to have a long-term plan that extends five years into the future.

Broadly speaking, all business plans can be categorised into short-term, mid-term and long-term.

Short-term plans focus on immediate concerns and opportunities. For example, you may run a clearance sale to reduce excess stock in a given quarter.

Mid-term plans look at solutions to address both short to mid-term challenges. For example, if fraud is an ever-increasing threat to your business, you are likely to establish stringent internal control, invest in staff training and prevention tools as part of the continued efforts to keep your company safe.

Long-term planning for small businesses, on the other hand, looks at the business strategically and your ambitions for the business. The plans can range from what value you want the company to worth after five years, how the business can be diversified, to who is going to take over and run the company in the future.

In this article, our small business accountants in London look at a few long-term plans that can benefit small business owners and their companies.

Business growth planning

Every business exists to make money, but how much you want to grow and how you can achieve the target set largely depend on what long-term plans you have to fuel that growth.

There are several ways to grow a business, including:

  • Raise more capital – you borrow money to boost resources, leading to an increase in production or offer more services to your customers.
  • Sell online and internationally – the concept here is to grow by selling more products/services to people without the constraint of physical boundaries. For example, you turn your website into a shopfront and run campaign that reaches a large pool of international customers.
  • Franchise – you become a franchisor, attracting franchisees to sell your products or services throughout the country or even internationally.
  • Innovate – you improve or create a new product or service, or you find a new way of integrating technology to disrupt the market.
  • Merger and acquisition – you merge with or acquire another business.

One of the tools that small business owners use to identify growth opportunities is through the use of management accounts, which should be sent by your accountants to you every month. If you’d like help with management accounts, like how you can use the data to your advantage, contact our small business accountants on 020 8108 0090.

Business skills planning

Considering that the business landscape is regularly shaped by global events and new consumer trends are being developed over time, many small business owners know that they can’t afford to stay complacent. Accordingly, they need a strategy to respond, transform, innovate or even to reinvent themselves.

Implementing any strategy that can put your business ahead of the game is likely to require solid business skills planning. This process starts with developing a clear vision of what the business needs to thrive in the future, before identifying the skills that are required to achieve that.

Subsequently, you can choose to develop the new skills or capabilities in house, acquire through new talent or partner with another company which have the skills that you lack.

Long-term debt planning

If you look to grow your business rapidly, chances are you need extra capital from a bank or a group of investors. If it involves a bank loan secured against an asset, it is called debt financing. In this case, it is vital to know to plan and see how your business can generate extra income to pay off the debt.

If it involves investors, they may offer debt financing or equity financing. Equity financing means investors ask for a percentage of ownership in exchange for the money your company requires.

Talk to our small business accountants based in London, Putney and Richmond-upon-Thames if you are considering extra capital. We can help to make sure your company accounts are accurate, something that the bank or investors will look to scrutinise before lending you money.

You may also like to read this article Small Business: How to attract investors in which we share good tips.

Succession planning

Knowing that everyone retires at some point, smart small business owners would kick-start a succession plan once the business has achieved financial stability. This is because a succession plan can help to ensure that the company you’ve taken years to build will continue to operate with minimum disruption should something happen to you.

More importantly, it takes years to prepare and train potential successors – some of them may even choose to leave halfway through the training.

Exit planning

If you have no intention to find a successor, then a good alternative is to sell your business. The best time to sell your business is when the sales and profits are strong – ironically, this is also the period when most small business owners find it hard to let go. Having a plan, however, may help you to detach yourself as it is now your goal is to sell when the time comes.

Other types of long-term planning

Not all long-term goals focus on profitability or exit strategy. Some highly refreshing long-term goals focus on the environment like how to create a workplace that has little or no carbon footprint. It may also focus on the company culture, such as fostering a culture that promotes trust and honesty.

5 long-term planning tips

Long-term planning is undoubtedly beneficial but not every small business owner is ready to embrace it. One of the reasons, we have found from talking to seasoned entrepreneurs, is that some people find the prospect daunting. Also, long-term planning may not work for certain industries who need to adapt very quickly to changing consumer trends.

But if you are keen to give long-term planning a go, you may find the following five tips help the process.

1. Organise into stages

One of the ways to make long-term strategies less daunting is to break them into stages, with each stage having its own mini goal(s) and detailing tasks needed to achieve the said goal(s). Having a timeframe for each task and who should be responsible for it are also vital.

2. Involve everyone when necessary

If the long-term plan is about where the company is heading in five years’ time, then it makes sense to involve every team member. Hear their concerns, discuss any disagreements, use feedback to fine-tune your plan.

3. Acknowledge the unknown

You can plan but you can’t accurately predict the future. Both good and bad things may happen to your business along the way – like nature may throw you a curveball, the rise of the middle class in developing countries may create tremendous opportunities for you, market may swing to a territory that is at odds with your plan at a certain point, to name but a few. This is why it is essential to make use of the scenario planning technique when you are creating long-term plans.

4. Review and fine-tune

A good plan isn’t carved in stone nor sits on the shelf collecting dust. A good plan is regularly reviewed and fine-tuned to make sure that you are adapting. Quite a few small business owners find this part challenging as they juggle with an endless list of tasks daily. The key, of course, is to delegate and engage at the right level.

5. Stay positive

As a leader, you already know that things don’t always go your way. Learning to accept setbacks and focusing on finding solutions will strengthen your leadership skill. So stay positive by keeping your eyes on the ultimate goal.

Small business owners trust Tax Agility

Running a small business takes courage and determination. Successful small business owners also know they need an honest partner like Tax Agility who can work cohesively with them and help to take the business to the next level.

Our services to small businesses in London, Putney and Richmond-upon-Thames include:

Management consultancy is an area often overlooked and must be given airtime here. In essence, it is about helping small business owners like you to unlock business potential based on financial data, accurate budget and forecasts.

At Tax Agility, our small business accountants are also experienced management consultants. We seek to understand your business and your aspirations first. After getting a good grip on your business, we strive to deliver the following three key benefits to your business:

  • How you can reign in financial control by having accurate data
  • How you can make informed decisions that spur growth
  • How the numbers can help you to review, measure and optimise

If the benefits listed above are what you are looking for, then it is time to give our ICAEW Chartered Accountants a call on 020 8108 0090.

Alternatively, you can use the contact us form to get in touch.

You may also like:

This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.

by Robin Brown

Self assessment and tax advice for Putney residents

Self Assessment and personal tax services for Putney residents

Self Assessment and tax services in Putney.

Putney residents can expect quick, accurate and cost-effective Self Assessment and other tax services from Tax Agility.

Each year, thousands of people miss the Self Assessment deadline, make careless mistakes when they rush to complete their tax returns, or pay more tax than necessary – you don’t have to be one of them if you work with Tax Agility, your local Personal Tax accountants in Putney.

We’re here to calculate your tax and apply the appropriate allowances, so you can spend more time focusing on your family and growing your personal wealth.

Tax Agility, your local Personal Tax accountants in Putney

Tax is a complex subject with regular changes, and one’s circumstances can also change with time, meaning tax regulations that once applied to you may not be applicable now. So working with a Personal Tax accountant like us is hugely beneficial. Each year, we carefully review your income versus tax obligation, as well as exploring legitimate tax-saving options to reduce your tax bill accordingly.

Our professional accounting services provide you with:

Self Assessment tax return

In the UK, self-employed individuals, partners in a business partnership, high earners (with income over £100k) and anyone whose income is not taxed under PAYE will need to file a Self Assessment tax return. In addition, trustees, landlords and people with Capital Gains may also need to complete a Self Assessment tax return. Turn to one of our ICAEW Chartered Accountants for help when it comes to Self Assessment. We can be your agent and file the tax return on your behalf, as well as sharing tax-saving tips and applying the appropriate allowances and reliefs so you don’t pay more tax than it is necessary.

Tax advice

Capital Gains, as well as income from rental, selling products online and doing freelancing work may mean you have more taxes to pay if you are unaware of legitimate options which may reduce your tax bill for the given year. Give your local Personal Tax accountant in Putney a call on 020 8108 0090 when you need independent and trusted tax advice.

Estate and Inheritance Tax planning

A good estate planning can effectively lower the Inheritance Tax your estate needs to pay, thereby safeguarding your hard-earned assets and allowing your loved ones to cherish your legacy.

Specialist services

From forming a sole proprietorship, selling a business to tax-saving investment options, you can count on us to give honest tax advice.

Why choose Tax Agility

  • You receive a responsive and friendly service
  • You get a personalised service tailored to your circumstances
  • Competitive pricing with no hidden charges
  • The convenience of a local Tax Agility office in Putney
  • We take care of the tedious information gathering process
  • We learn about the changing tax obligations so you don’t have to
  • We are professional and welcome your query, be it big or small
  • We aim to save you money

“I’ve been a client of Tax Agility for more than 10 years now. They always complete my Self Assessment and provide great tax-saving tips,” words from a happy customer.

Call Tax Agility on 020 8108 0090 for all your personal tax matters today.

Personalised tax advice

Everyone’s situation is unique and therefore, you should receive tax advice that is unique to you too. This is why our service focuses on you – you can decide the level of engagement you want and our fees are transparent with no hidden charges.

Being local to you in Putney means you can meet one of our personal tax professionals if you’d like. We’re here to help with questions pertaining to your tax and personal finances.

Visit our Putney personal tax return service page and you may also find these relevant pages useful:

by Robin Brown