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
Thursday, 15 April 2010
Wednesday, 14 April 2010
Top Tips for Start-Up Businesses..TIP 5!
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.
> 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.
Tuesday, 13 April 2010
Top Tips for Start Up Businesses...TIP 4!!
Keep Your Records Neat and Tidy
Make sure you have separate files for:
> Sales (money in)
> Purchases (money out)
> Tax Stuff
> Bank Statements
Make sure you have separate files for:
> Sales (money in)
> Purchases (money out)
> Tax Stuff
> Bank Statements
Monday, 12 April 2010
Top Tips for Start Up Businesses...Tip 3!
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.
> 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.
Friday, 9 April 2010
10 Top Tips for Start Up Businesses...TIP 2!
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
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
Thursday, 8 April 2010
10 Top Tips for Start Up Businesses. Make sure yours doesn't join the Failures!!
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!
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!
Monday, 15 March 2010
PAYE Coding Notice- What does my code mean?
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!
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!
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