The Bean Counter

Top Tips for Start-Up Businesses...Tip 10!!

2010-04-22T11:08:00.002+01:00

Work "ON" not "IN" Your Business

> Minimise your administration time by using good systems and being organised
> Maximise your time spent on marketing, networking, research and business development....as these activities will move your business forward

Top Tips for Start-Up Businesses...Tip 9!!

2010-04-20T11:19:00.002+01:00

Get an Accountant!!

> A good one helps you grow successful business and helps you avoid problems!
> "Chemistry" is important
> Get a fixed fee quote from 2 or 3 different accountants
> Pay your accountant for tax AND business advice

Top Tips for Start-Up Businesses...TIP 8!!

2010-04-19T11:16:00.002+01:00

Dont Try to Beat the System

> If your sole aim is to pay as little tax as possible-then why are you bothering?
> HMRC are spending £1 billion this year on making sure people dont't break tax laws
> Aim to make Profits and utilise the tax allowences that are available

Top Tips for Start-Up Businesses- TIP 7

2010-04-16T14:20:00.002+01:00

Claim Back Personal Expenditure!

> Most start-ups are funded from owners pockets
> Keep a record of money you have spent-even before you start your business (travel, stationery, research) as it reduces your tax bill!!
> Remember to keep receipts

Top Tips for Start-Up Businesses...TIP 6!

2010-04-15T11:27:00.002+01:00

Don't Undersell Youself!

> Calculate a profitable price for your goods or services and STICK TO IT!
> Being the cheapest is a no win strategy
> Services: Hourly rate x 3. Get a time management system.
> Goods: Aim for Cost Price x 2 or 3

Top Tips for Start-Up Businesses..TIP 5!

2010-04-14T10:37:00.002+01:00

Invest in Good Accounting Software

> Go for user Freindly over complexity
> Good records = lower accounting fees
> Go online

Using user friendly good accounting software will allow you to do your own book-keeping and produce your own records. It will help you answer the question 'Am I making any profit'.

There are now numerous online accounting services such as FreeAgent Central which offer an even simpler way to produce your own records, it also allows your accountant to directly access your data. It will save you time and money! You can find out more about FreeAgent here.

Top Tips for Start Up Businesses...TIP 4!!

2010-04-13T11:14:00.003+01:00

Keep Your Records Neat and Tidy

Make sure you have separate files for:

> Sales (money in)
> Purchases (money out)
> Tax Stuff
> Bank Statements

Top Tips for Start Up Businesses...Tip 3!

2010-04-12T13:54:00.002+01:00

Put Money Aside for the Tax Man!

> Get a second bank account and link it to your main account
> Transfer money each month to the second account
> Remember you may not need to pay tax for 18 months to 2 years
> Know what you tax liabilities are!

Its vital you know what your tax liabilities are when you start your business as this allows you to plan ahead! You can find out what your liabilities are from your accountant or HMRC.

10 Top Tips for Start Up Businesses...TIP 2!

2010-04-09T10:13:00.003+01:00

Get Paid By Your Customer

This made sound simple but many people stuggle to recieve payment for the work they complete for their customers! So remember to:

> Be clear about your prices and payment terms
> Ask bigger companies for a purchase order number
> Put your bank details on your invoices
> Send out monthly statements

10 Top Tips for Start Up Businesses. Make sure yours doesn't join the Failures!!

2010-04-08T15:57:00.002+01:00

TIP 1

Understand Your Tax Obligations!!

> Sole Traders need to register with HMRC within 3 months of start up!

> Limited Companys need to make sure they register for PAYE

> Learn the basics about your tax obligations. There is PAYE, VAT, Corporation Tax, Personal Tax and CIS to consider! The HMRC website will provide information on many of these topics, if not ask your accountant!

PAYE Coding Notice- What does my code mean?

2010-03-15T13:16:00.012Z

Your employee tax code is used by your employer to calculate the amount of income tax that must be withheld or deducted from your salary.

The significant part of your code is the number
The number indicates to the employer how much of your earnings are "tax free". For example if your code is 647 this shows what your tax free allowance for the given year is £6475, if your code was 728 you fax free allowance would be £7285.

The standard personal tax allowance for a year is £6475. If your allowance is over this amount it is likely to be because you are entitled to another tax allowance, or you have simply over paid tax in an earlier year.
If you allowance is less than £6475 then it may be that you owe tax from a previous year.

If your tax code starts with a letter then the letter is important.

BR codes indicates that you must pay basic rate (20%) on all your earnings. This code is often used when you have two jobs, you are likely to take your whole tax free allowance on one of the jobs and pay basic rate on all of your earnings from your second job.

NT codes mean you pay No Tax, this is only used in exceptional circumstances. Students at university will have a NT code when they work during their summer holidays.

K codes are a little more complex....

A negative PAYE code, or "K" code, means your personal allowances for the tax year are less than untaxed income and benefits which have been included in the code. Your employer or pension provider will add the negative figure from this code to your annual income rather than deducting it, as they would with a normal PAYE code. However, please check that all your allowances are included in the code. If you are married and were born before 6 April 1935 you may be due a married couple’s allowance. In some cases the married couples" allowance has been missed from PAYE codes issued since 1 July 2009. If this applies to you, ring the Tax Office number shown on your code notice, or ask us to check your code for you.

If you have any queries regarding your tax code you can find more information on the HMRC wesbite

Also dont forget to double check your tax codes as HMRC had problems when issuing codes this year and people have recieved two coding notices, check out their website for more information!

Tax predictions for 2010

2010-02-19T16:21:00.001Z

Do you get the feeling that we haven't had the worst of the current financial crisis?

Two certainties for this year are (1) there will be a general election and (b) the winners will introduce some heavyweight tax policies to try and reduce the eyewatering £800 billion national debt.

Here are One Accounting's predictions for the first post election budget.

(1) VAT to increase to 20%

At 17.5%, our VAT rate is one of the lowest in Europe. As VAT is paid over quarterly, a swift increase to 20% by Mr Osbourne or Mr Darling will give a quick injection of cash into HMRC's reserves.

(2) Capital Gains Tax to increase to 30%

At a current rate of 18% (or 10% for entrepreneurs), the CGT rate is out of touch with the soon to be top rate of income tax of 50%. Expect a jump to 30%, midway between the 20% or 40% income tax that most UK taxpayers currently pay.

(3) Taxing the Skies

Our appetite for foreign travel shows no signs of reducing. Air travel is currently VAT free and is certain to rise. Don't bet against VAT being added to air travel or a hike in fuel surcharges.

(4) Interest on late payments to rise

HMRC will be charging interest on late PAYE payments from 6th April 2010. With tax revenues falling, the taxman will be keener than ever to get the payments in on time. Expect increased penalties, interest and general HMRC interference for anyone who pays their VAT, Income & Corporation Tax and PAYE late.

(5) Tax benefits for green technology

As Oil prices continue to rise, the government will offer greater tax incentives for businesses and private individuals to invest in green technologies.

Santander - Free Business Banking

2010-02-13T16:15:00.000Z

Whilst paying in junior's hard earned penny jar contents into his savings account at the Abbey (now Santander) branch on Shandwick Place, my eye was caught by their free business banking for life offer.

I'm not sure what happens if you actually want to pick the brains of a bank manager, but it sounds like a decent offer.

One Accounting - Live at Centotre

2010-02-06T16:01:00.001Z

Here's a three minute presentation by Chris on what we do at One Accounting.

This was filmed at the 6 degrees networking breakfast event at Centotre in Edinburgh in February 2010.

Beer 3-30

2009-10-27T18:31:00.002Z

We're having a "Beer 3-30" gathering on Friday 6th November 2009 at All Bar One, George Street, Edinburgh.

What is Beer 3-30? It's a very informal gathering of our clients, associates and other like minded folk. We talk about everything but business (that's what Monday 9.00 am to Friday 3.29 pm is for)

The Beer (or wine, soft drink if you prefer) is on One Accounting until the kitty runs out.

Oh, we start at 3.30 and finish at 6.00 (or later if the mood takes us)

Contact Chris or Neil at info@oneaccounting.co.uk if you want to join us.

Brad Sugars

2009-10-07T21:49:00.003+01:00

We went to see a great presentation by Action Coach founder Brad Sugars in Glasgow the other night. My favourite quote of the evening for all you procrastinators out there

"When is now the best time to do this?"

He also gives a lot of stuff away for free at http://www.bradsfreeebooks.com

Did you know?

2009-09-18T09:29:00.002+01:00

-The top 10 in demand jobs in 2010 did not exist in 2004.
- If myspace were a country it would be the fifth largest in the world

Many more nuggets besides are here -

http://www.youtube.com/watch?v=cL9Wu2kWwSY

Brad Sugars Event in Glasgow 5th October

2009-09-02T17:40:00.002+01:00

A seriously good speaker for only £49 - check him out.

http://www.businessisbooming.org.uk/find-out-more.html

Flipping Houses

2009-09-02T17:29:00.000+01:00

If you own and occupy more than one property as your home you can elect, within a set time period, for one of those properties to be your main home for tax purposes. You can change this election at any time so another property qualifies as your main home, hence the term 'flipping'. When you sell your main home the increase in value that has built up while it was your main home, and for the last three years of ownership, is free of capital gains tax.

Three years of the ownership period will be free of tax, even if the property has only been designated as your main home for a very short period, perhaps only a week. This is the tax rule many MPs used to avoid paying tax on the home that had been largely funded by their expense claims.

You can flip your properties just like an MP, if you make the first election within two years of acquiring another residence, or within two years of marrying (or civil partnership). If you have missed this deadline on your current properties it may be worth acquiring a very small third property to give you the option to make the election again.

However, beware that the law in this area could be changed with little advance notice following the MP's scandal.

Trams, Tourists and Traffic Wardens

2009-08-10T21:41:00.000+01:00

Hello there. This is the first in an occassional series of words and thoughts from a dynamic, modern accounting firm who in a previous decade would have been referred to as "The Bean Counters".

Like most folk in Edinburgh, we can't actually get out to see our clients in August because of the three T's that get in the way of daily transportation.

- Trams (apparently some tram rails have now been laid on Princes Street)
- Tourists (recession? what recession!)
- Traffic Wardens (Can anyone explain why I can't park on a yellow line on a Sunday?)

Of course wearing a suit and tie on the Royal Mile on a sunny Monday makes you a magnet for overseas visitors to ask for directions to The Scott Monument, Scottish Parliament, The Fudge Shop, Arthurs Seat and (I kid you not) Berwick-on-Tweed.

Sure beats answering questions about S419, IR35 etc.