Tax is arguably the most complex area for people who are starting a business. The tax code is constantly evolving and it can feel impossible to keep up with the latest developments at times. Among the many big decisions entrepreneurs have to make when setting up a new company is how to manage their tax affairs. While large companies usually have the option of handling tax in-house, it is likely that newer organisations are going to need outside help. Choosing the right tax advisers is a huge decision for a businessman. Ideally, they will have experience of working with firms…
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Cashflow can make or break any business, especially in the early stages of setting up a business. So it’s crucial to find the best bank to support your company when you’re starting out, building a relationship with them that will see you through any barren spells. Look at the overdraft the bank will extend to you and the credit facilities on offer to new businesses. Indeed, the best strategy might be to handle your business finance with the same bank that holds your personal accounts, as they might look more favourably upon you. This isn’t guaranteed, though, so check carefully.…
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If you’re setting up a new business, you’ll need to decide which accounting package to use. Accounting software can help you keep track of cash flow and enable invoicing. It helps you manage your tax and can mean you’re less reliant on the help of an accountant. It’s a more intelligent option than paper accounts and spreadsheets, and it’s a cheaper option than paying someone to do your accounting for you. You can either use a cloud based system (usually paid for monthly) similar to Xero or similar or one where the software and your data are stored on your…
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Intriguing news from Brussels brings hope that there will be some relief to the perennial problem of affordable business finance, which many companies face. Recently published Green Paper proposals for a European Capital Markets Union (CMU), if realised, would result in capital being more readily available to SMEs and reduce reliance on lending from banks. Less reliance on banking finance The resultant borrowing environment would closely resemble the current situation in the US, where only 20% of business capital is loaned through banks (compared with around 70% in Europe). Investment funds, private equity and a growth in venture capital would…
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Bankruptcy is a word everybody knows. The concept of bankruptcy and its general meaning are widely understood – Joe Bloggs has no money – but very few people truly understand how it works. Here’s a brief guide covering the most important points to remember when it comes to bankruptcy: – Creditors and debtors A fundamental point to understand is the role of creditors and debtors. Creditors are individuals or companies that are owed money by another. The person who is responsible for repaying the debt is called the debtor. – Who can be declared bankrupt? In the UK, only individuals…
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If you’re working for yourself as a self employed person, or are just in the process of setting up a business or already running a small business, chances are that you need a van to make deliveries or carry equipment to and from jobs. A good, reliable used van is probably one of the best investments any small firm or sole trader can make in his or her business. With a van you can get out there and make some money! Vans come in all shapes and sizes, so there’s a lot of choice available, and even at national firm…
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When you are setting up a business, whatever type or size of business it is, it will be subject to tax laws. If you are self-employed, you are responsible for paying your own tax and National Insurance. At the end of each tax year you must fill in a self assessment form and submit it to HM Revenue & Customs online; you will then have until the following January to pay your tax bill. A good way to budget for this is to immediately move 20% of every paid invoice directly to a savings account. That should provide enough to…
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Whatever you want nowadays, you can find it somewhere online. If you want a loan, you’re spoilt for choice. When it comes to getting a mortgage, however, there is a difference. The banks and other financial institutions are all trying to steer people towards their own products. The pressure is unrelenting. Unrestricted access means the best deal Unlike banks, a mortgage advisor can go anywhere they want in order to get the best possible deal for you. They can sometimes even get a preferential rate for you. They are also obliged to find the most suitable mortgage to meet your…
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So you’re currently in the process of setting up a small business and you’re slowly, but surely ticking off everything on your list of things to do, which are legally required. After months of getting everything sorted, you’ve finally made it, you’ve got new clients ready to start work on and your first day as a new Managing Director and CEO of the company has arrived. When setting up any new small business, it’s normally planned and developed by a team of just one person; you, so things are bound to be missed off. It’s natural, but everything falls into…
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Getting the funding you need for your business Whether you are setting up a new business or looking to expand one you already run, there are various options for sourcing funding. However, before you do anything, it makes sense to set down all the expenses you expect to incur, from staff and stock to rent, VAT, telephones and IT. If you are going to be borrowing money to cover some or all of these costs, have a repayment plan drafted so that you only borrow in loans what you can realistically afford to pay back. Here are some popular ways…