Many small business owners are aware that business costs will increase in the coming year. Apart from pound dropping in value, making imported goods and services more expensive, we have also seen a few major changes to the employment law:
- The national living wage, currently stands at £7.20 an hour for staff aged 25 and over, will raise to £7.50 from April 2017.
- Business rates are expected to rise for some in 2017.
- Many small businesses are now required to contribute to workplace pensions. By 2018 all employers must provide a workplace pension scheme.
With costs rising, naturally many business owners want to increase efficiency and get better at managing their costs. They are many ways to achieve this, and listed below are a few ways to combat them:
- Eliminate Charges – one owner didn’t realise they could save a few hundred pounds of bank charges per year by using an independent online money transfer service to pay their suppliers overseas. They get a better exchange rate via the online service too. Go through your transactions and eliminate other late payment fees, credit card processing fees, and even the fines imposed by HMRC by setting up reminders to ensure you pay before the dateline.
- Better Time Management – many business owners want to do everything themselves, but time is a limited resource. If you are spending a couple days a week doing your bookkeeping or sorting out VAT, think about the opportunity costs and how much you can achieve by focusing the time on sales instead. So let us take the burden of bookkeeping and VAT responsibilities away from you so you can focus on running your business.
- Don’t Overlook Incentives – the UK government offers a range of incentives which can be confusing to some, leading to people overlooking them. We published an article titled Small Business: Tax Incentives before, in this you can find the list of tax incentives and how important it is for you to discuss with a reputable accounting firm like us.
- Hiring Temporary Staff – hiring temporary staff as opposed to permanent staff will definitely have a positive impact on your bottom line. The key element here is in managing the risks associated with temporary staff. You can read our article titled Small Business: Reducing Your Risks of Hiring Temp Staff to get some ideas.
- Increase Tax Efficiency – the UK tax system is complex, and you may not have carried out an effective tax planning with an expert, resulting in missed opportunities. To find out how you can minimise your tax liabilities or have a strategic tax planning session, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.
Managing business costs is a challenging issue, but rest assured, Tax Agility are with you every step of the way, just call us.