I am often asked if a director of the company should have a company car. For several years now the policy makers have made it very unattractive to have a company car. It is usually more efficient to have an extra distribution and pay for the car privately and claim mileage (at the moment 45p per mile for the first 10,000 miles and then 25p per mile for miles over that figure). However there are some benefits to having a car with very low emissions or an electric car. These cars are normally quite small in stature so are not for everyone but if you just want a small run around for the town to visit clients and suppliers then this may be an option to investigate. The rules are too long for this blog but again get in touch with us to find out more.
From the next tax year it will be possible to transfer some of your tax free allowance to your spouse if this proves beneficial. Both of you have to be basic rate tax payers for this to be allowable. One of you would have to earns less than £10,000, for example if Mrs B earns £8000 then she can opt for her husband to have £1000 of her personal allowance allowing Mr B to earn £11,000 before paying tax thus saving the couple £200 a year.
If one of the couple is a director of a company and earns say £7500 in salary and the rest of the earnings are in dividends and the spouse earns over £10,000 then this too is a circumstance where it is worth transferring the allowance.
It is worth looking at if you are both basic rate tax payers. Ask your tax accountant if you can benefit from this change in the rules.
If you’re self employed being able to manage your business whilst keeping on top of your finances, tracking your expenses, mileage and holding on to all your receipts can be hard work.
We have just developed an app to help you do all this. Our LJ Hanbury App is available on apple and android devices and can help you do all those little jobs that can be time consuming when it comes to your accounts.
The apps main features are:
- Photo receipts manager
- GPS mileage tracker
- Income tracker
- Various calculators inc VAT, Mortgage, Apr, Corporation tax etc
- Up to date financial news
And much more
Click on the following to download it today:
I have worked with Linda for many years and she has always provided an excellent service for our mutual clients. She is positive, personal and treats all her clients as individuals. Linda always ensures her clients get the best and most appropriate advice. I am always happy to refer clients to Linda knowing they will be very well treated.
Linda has been my accountant and friend for 17 years and she is one of the most loyal, trustworthy, honest and kind people I know.
She goes out of her way to help clients, not just with their accounts but, in her capacity as a great networker, with other aspects of their businesses too.
She is surrounded by a great team who provide a professional service with a smile – the phone is always answered and promises are kept.
I would recommend Linda and her team to anyone, and everyone.
Last week we held interviews for a new apprentice via the apprentice scheme at Babington College.
We had some great candidates and it was hard to choose just one person. We finally decided on James Hales who has just finished school and is looking forward to starting a career in accountancy.
Last year we recruited Jake Harlow who has just finished his first year AAT with flying colours. We’re hoping with our support James will do just as well.
We are sad to say that our summer holiday trainee Sam Jenkins has left us to go back to University but not before giving us all a few laughs.
Any of you who know Linda (the Boss) will know that she doesn’t take life too seriously. So, weeks in preparation for Sam’s last day Linda announced to the office that we were going to have a fancy dress day. She then told everyone that she was joking apart from Sam.
Poor Sam on his last day has turned up dressed as Danny Zuko from Grease. What a good sport.
Thanks for all your hard work Sam and best of luck with the rest of our degree. Now goooooo grease lightning!
Sam with our very own Sandy/ Mary.
We are all very excited to announce that LJ Hanbury accountants Ltd have bought another accountancy practice.
Bob Guest from the Ilkeston based RG accountants has decided to hang up his calculator and retire. He has given us the exciting opportunity of buying his practice and working with his clients.
We’re very much looking forward to working with our new clients and hearing all about their businesses and background. Welcome to the LJ Hanbury family.
Starting up a new business could be one of the best things you ever do. I see people every day who have ideas that they want to turn into a business, a lot of them are great ideas. But is an idea alone what makes a business successful?
I feel that you not only need a good idea for a business but also the knowhow to make it function effectively.
Once you have your idea and you’re all set up and ready to go there is one thing you should really concentrate on that could make or break your business… money! You need to take care of your finances to ensure your businesses success.
Here are my top tips and useful bit of information for anyone thinking of starting a new business:
• Have an idea but make sure it can be a commercial reality. Don’t assume that just because you think it is a good idea that it will work. Do market research to make sure you have a commercial reality.
• Think about your costs – The start-up costs depend on what you are doing. Setting up a limited company can cost between £30 and £500 depending where you go. Unless you have knowledge of company law I would go to an accountant to set this up. A lawyer will do it too but it will be more expensive. Setting up as a sole trader or partnership is more straight forward in that you only need tell the revenue within 3 months and then the costs are just those that occur in the business.
• Everyone setting up a business should produce a business plan. It should include
- Sales forecast
- Costs both overheads, materials, assets and living costs
- A cashflow plan
- Forecast profit and loss and balance sheet
If you are going to a bank to borrow money a business plan is essential.
• Cash flow is the life blood of a business. You need this to sort out when you are going to be short of money, when you need to borrow, when you can afford staff etc….
• With a cash flow you have to estimate your sales and costs. This is fine and it does not matter if you have to change your mind, you just have to go for it. Sometimes with a new business you almost have to work out the costs and then put in the sales knowing what you need to sell to break even with cashflow. You only put cash items into a cash flow
• Your cash flow should be constantly updated and used as a planning tool even 10 years into trading.
• Many new businesses get hung up on sales. Sales figures are important but it is the profit you make from them that is vital. Keep your eyes on the prize and focus on what makes profit.
• I recommend that you keep a cash book and keep it up to date. This is because you need to know how much money you have got in the business.
If you have any questions on any of the above please feel free to contact us. Your first appointment is free!