Welcome to our latest blog. Christmas is around the corner and it’s our favourite time of the year here at Cross Accounting. It’s the time of giving and is there any other way to give your business a boost a grant to get your finance in place.

 

A business or an individual will be given a sum of money for a specific project or purpose. A grant usually covers only partial costs involved. Grants are given depending on your business activity, the amount of jobs that will be created due to this investment or if you are in a specific industry sector. Sometimes grants are linked to geographic areas. Such as those areas in need of an economic transformation.

 

Business Wales can support in finance, take a look at their finance locator to see if grants and other finance your business may be eligible for at https://businesswales.gov.wales/zones/business-finance/funding-search-tool-form

 

You should ensure that you meet the requirements of the scheme before applying for grants and finance. You’ll have to ensure you are ready to put up some of your own money as grants only cover partial costs. You’ll also need to have a detailed description of your project or purpose and a work plan with full costings. We can assist with a budget and full detailed cashflow to secure the finance you need.

 

The application process for grants can sometimes be time consuming and there usually is a lot of competition but on the plus side, most grants don’t have to be paid repaid giving your business that extra boost.

 

If you’re looking for that push to reach some New Years goals, the Development Bank of Wales can support to get the finance your business needs to succeed. Visit https://developmentbank.wales/ to get you ready for the New Year.

 

You will need to have a polished business plan at the ready.  If you would like us to look at your business plan, then you can book in for a free one-hour consultation where we can discuss how to start the New Year strong. Visit our website on www.crossaccountingservice.co.uk or call us on 02920 653 995. We wish you all a Merry Christmas and a prosperous New Year.

There has been a change in the VAT Flat Rate Scheme since April 2017. The government are concerned that some businesses are using the scheme to pay less VAT than appropriate. Read our blog to be reminded of the rules and regulations.

 

The Flat Rate Scheme is designed to simplify your records of sales and purchases. It allows you to apply a fixed flat-rate percentage to your gross turnover to arrive at the VAT due.

 

The scheme is for businesses with a turnover no more than £150,000 a year, excluding VAT. The Flat Rate Scheme is a simpler method of working out the VAT you have to pay to HMRC. The flat rate percentage you use depends on your business sector. The correct sector is the one that most likely describes what your business will be doing in the coming year. Click here to find out your sector percentage https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay

 

From 1 April 2017 the flat rate changes if you’re a limited cost business. The flat rate percentage will be 16.5% regardless of your sector if you are a limited cost business. You’re a limited cost business if the amount you spend on relevant goods including VAT is either, less than 2% of your VAT flat rate turnover or greater than 2% of your VAT flat rate turnover but less than £1000 per year.

 

You will also get a 1% discount if it is your first year as a VAT registered business. If you’re unsure about your VAT and would like to discuss, then please don’t hesitate to contact us.

Methods of Finance

 

In our latest blog, we talk about the best methods of finance for your business. Sometimes it’s great to have that extra push to take your business to the next level. To attract the best funding for your business, you will need a business plan. We are experts in the field of preparing a cashflow and a business plan and can assist you in achieving the best method of finance for your business.

 

Finance Wales

Finance Wales are set up to aid in funding. They offer bespoke debt and equity investment packages designed to boost your business and accelerate growth. They offer three types of packages, micro loans under £10,000 have an easy two-day process. Have a look at their website, 


http://financewales.co.uk/business-finance-/growing-a-business/micro-loans-under-%C2%A35,000.aspx 


for more information.

 

Bank Loans

Bank loans are probably the most common types of finance for you and I. These types of finance are an amount of money borrowed for a set period with an agreed repayment schedule. The repayment amount will depend upon the size and duration of the loan and rate of interest. The terms and price will vary between bank providers. There isn’t just one type of loan, there are many different types, which I will look in to and describe the differences.

 

·         Working Capital Loan – This type of loan is usually required at short notice or emergency situations. This will usually incur the highest percentage of interest.

·         Fixed Asset Loan – For buying assets, where the asset itself is used as a security for repayment.

·         Factoring Loans – This type of loan is based on money owed to your business by customers or clients.

·         Hire Purchase Loans – For long term purchase of assets such as vehicles or machinery.

 

It’s best to talk to your bank or bank manager, as they will let you know the exact amount you can get for finance. The bank managers love an excellent business plan and cashflow, so make sure yours is current and polished to get in the good books of your bank manager!

 

Overdraft

This method of finance is a sum of money extended to you as credit by your bank, set at a pre-arranged limit when your account balance drops below zero. Usually charged interest on any amount of overdraft you use. The terms and price, like the loans, vary between providers. This is a good source to manage cashflow, but it is probably not suitable if you’re looking for long term financing.

 

Crowdfunding

Crowdfunding, also known as crowd financing or crowd sourced capital is usually carried out online. This allows several investors to individually invest smaller amounts of money in to a business. The individual investments are then combined to help a business reach its funding target. Crowdfunding is an excellent option for businesses that struggle to raise finance through loans or the conventional funding methods. Since crowdfunding is conducted online, you should make sure your idea is protected. In return of the funding, investors usually get a percentage of share of the business.

 

You can find more information by visiting http://www.crowdfunder.co.uk/help/what-is-crowdfunding

 

Government Offers

Governments usually offer support to businesses in all different shapes and sizes. https://www.gov.uk/business-finance-support here you can find from funding and finance, to grants and to mentoring for your business.

 

Caerphilly council are offering a business development grant. This grant can provide up to 45% of eligible expenditure to a maximum of £2,000. Business must be based in Caerphilly and be in the manufacturing or service to the manufacturing sector, or have a minimum of 60% business to business. For businesses in the Caerphilly area, please look at this link http://www.caerphilly.gov.uk/Business/Business-grants-and-funding/Business-development-grant to get more information.

 

Remember the key to accelerating your business in the positive forward thinking way to get that extra push is to have a business plan and cashflow in place. We offer a one hour no obligation consultation, where we can sit down with a cup of coffee and discuss your business. 


Visit our website on www.crossaccountingservice.co.uk or call us on 029 20 653 995 to see how we can assist you.

Its a couple of weeks to get everything done and ready for the when the New Year starts up again

6 April 2017

 

The government have made a number of changes to taxation during the year so its good to have a plan to make sure you maximised your tax free allowances.

 

Check you have used up all of your tax code,   because once its gone its gone for good and starts  fresh again in April.   The tax code is currently £11,000 for the year for individuals.

 

Husband and wife you can transfer £1,000 from either partner to the higher earner, this is good for part time or if a partner doesn’t work.

 

Have you bought your equipment ready for the new year to start.  Think of new equipment as not a ill put that off until later but an opportunity be more efficient, speed up your work or even make it easier for you.

 

Capital Gains Tax allowances timing of when you sell an asset is key as theres £11,100 tax free allowance for each year this is additional to your normal income tax code.

 

Flat Rate Scheme is changing from April 2017 are you ready, it will be 16.5% payment over if you are a business that is mainly labour orientated.

 

Are you one of the many higher tax rate earners who is having to deal with the mortgage tax relief restriction.   Wear and tear allowance has now gone,  keep all of your receipts if you are replacing furniture or equipment in your rental house, you cannot claim without your documents.  It is replacement only, first year purchases are excluded now.

 

Again Child Benefit is restricted or even taken away if you are a higher earner over £50,000

 

Child Care Vouchers ceases at the end of April 2018, have you signed up to them its £55 per week tax free allowance which saves you tax and national insurance for income of less than £43,000 per annum.

 

Have you used your £15,240 ISA allowance it all starts again in April.

 

Don’t forget the dividend tax rules have changed dividends now attract 7.5% to basic rate if your dividends are over £5,000.   32.5% for anything over £43,000 make sure youre saving your tax money.

 

So get planning,  check these items if you missed any of these out of your routine this could be saving you money.

 

 

 

We’re in the full swing of the Summer Holidays, as a business owner this can be a very busy time if youre in the food and leisure industry, it can also be a quieter time as many owners see because everything appears to be put on hold when suppliers and customers take time off and are on holiday.

How does Summer affect you? I see many business owners not taking time away from their business and carrying on regardless. Its important to have time away to recharge the batteries and to re-evaluate where you are going with it.

A lot of my clients are small micros businesses who might not have an army of staff to take care of things whilst theyre away. Heres a few tips they’ve shared with me on how they still manage to run their business but still take some important r & r.

Plan the diary around their holiday, do the bigger more important jobs in the run up to the holiday then plan the next jobs to be in the diary when they return.

Take small breaks so time away isn’t too dramatic and they don’t face backlogs coming back. Ie a long weekend away a couple of times a year.

Use a subcontractor to keep things ticking over until they come back.

Those companies with staff, leave clear instructions on what is to be done whilst theyre away.

Others leave the mobile phone on in case of emergencies but limit their workload reduced over the time period.

Whatever your business please take that rest time, you will read time and time again, those owners who take time away and have the rest are far more likely to succeed, than someone who never takes time away.

Work life balance is important to keep in the mind, we all like to think of ourselves as workaholics, and fully committed. Our health and wellbeing, and feeling motivated and energised is important too.

 

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.