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Budget 2018 – The Business Bits

Today saw the Budget announced.  It can be a fairly dull affair, so we’re bring it to you in manageable chunks!  Here’s The Budget 2018 – the Business Bits!

So that we do make this a manageable read, we’re just bringing you the highlights, and we’re aiming to keep it snappy. If you’d like more detailed info please get in touch!  Please also have a read of our blog:  Budget 2018 – It’s Personal! for personal tax changes.

Business Rates Relief

Business rates will be cut by 1/3 for small retailers for 2 years, for businesses with a rateable value (rent) of £51k or less.

Quick example:

If you’re rateable value is £51k, this could mean as much as £8k saved in business rates!

Weird announcement alert:

There will be business rates relief for public lavatories!

High Street Retail Boost

There will be a £675 mllion “Future High Streets” fund, in recognition of the decline of high street retail. The fund can be used to regenerate our high streets, including change of use to residential for some retail premises.

Annual Investment Allowance Increase

This is currently £200k, but will increase to £1 million in April.  What does it mean? You can currently spend up to £200k on allowable business assets (think equipment, vans, kitting out your shop premises) and all of this comes off your profit before we work out your tax.

£200k already sounds a lot, and in some cases means everything you spend is allowable.  However, for businesses growing fast, the increase is a major advantage.

Quick example:

If you have profits of £30k, and buy a van for £20k, this will reduce your taxable profits to £10k. If you’re a limited company this will reduce your corporation tax by £3,800. If you’re a sole trader it’ll reduce your tax and NIC by £5,800! Tidy!

VAT Threshold Stays the Same

For the 2nd year running the VAT threshold hasn’t increased, so it’s still £85k.  This means that if your sales for any 12 month period are over £85k, you need to register for VAT within 30 days.

Quick example:

If you go over £85k in one month, say October, you’ve got til 30 November to register, then you must start charging VAT from 1 December (and start claiming VAT).

National Living Wage and Minimum Wage Increase

Make sure you’re paying your employees the right amounts:

National Living Wage increases from £7.83 to £8.21 from April 2019 for over 25s

National Minumum Wage increases from £7.34 to £7.70 per hour for 21s to 24s

Apprentice Rate increases from £3.70 to £3.90

Alcohol Duties

This is an important one if you’re business is in hospitality:

Beer, cider and spirits duty frozen again

RPI increases on wine duty will continue

White ciders will be taxed at a higher rate

New Digital Services Tax

This has been introduced to tax big business, like Amazon and Google, and will apply to businesses with sales over £500k. More detail to be announced.

Summary

This budget was delivered with many references to “the end of austerity”.  It’s a welcome budget for help with business rates, and support for our high street, that is suffering badly.

If you’d like more detail on any of the above points, please get in touch!

Thank you for reading!

 

Sharon

Professional Services Business of the Year

Kinder Pocock are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.

We specialise in Security, Design and Indie Hospitality businesses.

@KinderPocock

01432 273400

Contact Us to see how we can help


Get Cash in the Bank Quicker

So you’ve done the work, you’ve sent your invoices out (via Xero of course) now how do you get the cash in the bank quicker?

I’m going to show you how you can do that, without spending a great deal of time, and without upsetting your customers or clients.

But first:

I’m going to assume you’ve done all the sensible things like getting your invoices out as soon as you’ve done the work, and followed the advice below:

Send your invoice as soon as you’ve done the work

Make sure you’ve agreed fees/prices and terms before doing the work

Make sure you’re sending your invoice to the right person

Send your invoice online (not in the post)

Add a “Pay Now” button to your invoices (more here)

What next?

So we have 2 great ways to get the cash in the bank quicker

Solution 1: Good old credit control

Credit control constitutes chasing your customers effectively to get them to pay.  Everyone dreads doing it, and who has time for it anyway?

Well, although we would always advocate chasing customers for payment, we don’t suggest you spend any time doing it.

Chaser is an amazing Xero app that does all the chasing automagically for you!  It sends reminders before the invoice is due (genius!) when the invoice is late, medium late and very late!  What’s more we can help you to completely customise the whole process, so that your customers think it’s you doing the chasing.

Chaser has amazing results, but don’t take our word for it!  Here’s Chaser’s blog on our lovely clients Signs and Labels‘ experience of moving to Chaser. When we started looking after Signs and Labels they were using desktop accounting software, and had £27k of old debtors. Things needed to change!

Step in Kinder Pocock, Xero and Chaser and 6 weeks later their £27k was down to £5k!  They’ve been using Chaser now since June 2018, and absolutely love the difference that Chaser has made! The cash is in the bank quicker, and they’ve saved about 4 hours per week on admin.

Please get in touch if you’d like to know more about Chaser, and help in getting set up.

Solution 2: Get paid by Direct Debit

Apps like Chaser are amazingly effective, but what if I told you you could get your invoices paid on their due date, every time? True story, another favourite app of ours is GoCardless. When linked to Xero GoCardless does a number of cool things:

It sends a DD mandate out when it sees you’ve invoiced a new customer

It looks at Xero every day and collects payment based on the invoice due date

It deposits payments into your account within 4 days of collection

I know right?!

A Match Made in Heaven!

Chaser and GoCardless are both awesome solutions but what if you got them to talk to each other?  Imagine your world:

Chaser sends a reminder to a customer

Customer clicks on the invoice

Customer clicks on the GoCardless “Pay Now” button

Customer pays this invoice via GoCardless and sets up a DD for next time

Chaser thanks customer for paying!

Genius! We absolutely love automations like this, and the icing on the cake is being able to share them with you. Our credit control and getting the cash in the bank now takes no time at all, and it will be the same for you too.

Thank you for reading! Please get in touch for more info on Chaser and GoCardless.

 

Sharon

Professional Services Business of the Year

 

Kinder Pocock are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.

We specialise in Security, Design and Indie Hospitality businesses.

 

@KinderPocock

01432 273400

Contact Us to see how we can help


I want to grow my business but don’t know where to start

So you’re at the stage where your business is growing, or you want to grow your business, but you don’t know where to start.

 

It’s easy to just go with the flow sometimes, and the next time you look you’re not going in the direction you intended to.  You might be too busy and constantly chasing your tail, you’ve forgotten what your family look like, or you might not be generating the income you thought you would.  Now’s the time to take stock, and make a plan, and grow your business the way you want to.

But where do I start?

Always a good question.  Start by making time to plan your future, not your business future but your own future.  What does your future self look like, where are you living, how many days a week do you work, how much free time do you have?  How much spending money do you have?  Don’t worry, we can assist with all of this, with our Business Strategy Sessions, and there will always be cake and biscuits!

I’m planning my business, not my personal life

Aha – yes indeed you are, but why are you in business?  Possibly to have the freedom of being your own boss, but definitely to earn a living, and make your own choices.  Which leads us back to what your future self looks like.  Because your business needs to support your future goals.

Once you know your personal goals, we can work out how the business achieves these personal goals.  We’ll look at your purpose and vision,  and what revenue your business needs to generate to meet your goals.

There should be cake and biscuits left to see you through this bit.  Working through your personal and business goals will take about 3 hours, but we promise to take care of you, and we won’t use any scary jargon.

We can also involve Kevin Morris our awesome independent financial advisor, who has a wealth of business experience, and together we can make sure that your plans are the most tax efficient too.

So now I have my business and personal goals, what next?

OK, now you can leave us to our calculators and forecasting apps, while you have a 2 week break, preferably somewhere sunny.  During this time we’ll pull together a 12 month budget and forecast, ready for part 2 of our Strategy Sessions.

How does my business grow after all of this?

The next time we meet, it will be to put together a One Page Business Plan.  This is another 2 to 3 hour session, but the time will fly!  At the end of the session you will have a one page business plan, with a clear plan on how you will grow your business over the next 12 months, with specific targets and goals.  You will have a clear purpose and vision, and you’ll know exactly what you want to achieve.

Each of these goals are further broken down into your goals and action plan for the next 3 months, including who’s doing what and by when.

That’s all very well, but I’m not sure I’ve got the time to stick to this

Ah we know this one all too well.  That’s why we’re going to meet with you every 3 months, to review what you’ve achieved, how well you met your last 3 months’ goals, and then we’ll set an action plan for the next quarter.

I hope that gives you the first step on your growth plan.

We’d recommend booking a strategy session with us, and our GrowMe Package includes the quarterly reviews I’ve talked about.

Our Strategy Sessions start at £1,000 for everything included above.  We normally charge 50% upfront, and 50% after the second session.

We’d love to work with you and help you to grow your business.  Do get in touch for more info.

“We really value our planning meetings with Kinder Pocock as they include the business owner, accountant and financial advisor all together, helping us understand our key focuses for the next year ”

James and Rich Manning | The Shack Revolution

#joinedupthinking

Thank you for reading!

Sharon

 

 

Kinder Pocock are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.

We specialise in Security, Technology, Design, Indie Hospitality, Indie Retail.

@KinderPocock

01432 273400

 

Contact Us to see how we can help