By Katie Business Advice • Business News 0 Comments

Be patient and plan ahead for 2020

Plan ahead for the New Year. Patience is out of fashion in the modern world. It tends to suggest passivity, tolerance and even resignation. We believe now more than ever; patience is vital for effective business performance!

2019 has been a difficult year for the economy and the political uncertainty with Brexit and the constant argument amongst politicians has done nothing but add disruption to business planning.

The prospect of a no deal Brexit refuses to go away and is just one of the factors that is making Europe look uncomfortably close to technical recession. German manufacturing has shrunk because Chinese companies facing tariffs on exports to the United States are reducing purchases of German-made machinery – while German car companies are reluctant to invest given Mr. Trump’s threats to impose tariffs on German vehicles sold in the United States. Reduced German consumer spending contributes to weakness in other European economies like Spain and Italy.

So, what’s the big picture for 2020?

The global economy is slowing down – but although some nations are suffering economic shrinkage, the trend seen by the World Trade Organisation is still one of growth, albeit subdued. If the current trade wars can be ended in an armistice, the global economy should recover quickly.  Most economists say a global recession remains unlikely, but it makes sense to get expert help to prepare for a future that is full of uncertainties – and this is where a business plan for 2020 can help you set your targets and drive your business forward!

Writing and implementing a clear plan to drive the growth of your business is essential and probably the single most important thing you can do in January. The three main benefits are:

  1. Planning helps you by providing guidelines and goals for future decisions.
  2. It helps you exercise more control in a situation, establish goals ‘proactively’ and consider contingencies.
  3. It can help ensure a set of actions are implemented that are consistent with your values and priorities.

So how do you start this? Firstly, take some time in early January to document your personal objectives such as income, time away from work, health etc., and then look at what your business should be doing over the next year. Consider:

  • Turnover
  • Products/Services
  • Market Position
  • Costs
  • Profit
  • Customer Services
  • Quality and others

Have a good think about what your business will look like in 12 months time and then write down some targets.  Measure these monthly, know your key performance indicators and be prepared to change direction now and again!

If you are thinking of writing your 2020 business plan, please talk to us. We have some tools and templates that may be of use and we would be delighted to sit with you and help to formulate your plan.

Need more information?

We wish all of our clients a happy and successful new year. We look forward to working with you in the new year and if you need any help, remember we are always here.  Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

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    By Katie Business Advice • Business News 0 Comments

    Customer Retention Strategies

    Customer retention strategies: Without customers your business simply would not exist. Some businesses are so focused on winning new customers that they often neglect to put any effort into retaining the customers they already have! Winning new customers is often far more expensive than retaining existing ones. Winning a new contract may cost time in terms of developing a sales pitch and cash in terms of corporate entertainment in order to win over your target client. By contrast, retaining an existing customer might be as simple as sending them a thank you card with a voucher enclosed offering 10% off their next purchase!

    Businesses constantly strive to grow their client base and to do this they must go out and put time and money into sales and advertising efforts. It’s during these times that many businesses take their eyes off satisfying their current customers which can result in customers leaving. Customers of any business generally fall into three categories:

    Loyal customers

    Loyal customers won’t leave for another product or service provider – even if a special offer is put to them. At the very minimum they will give their existing supplier the opportunity to meet or beat the offer. Maintaining loyal customers is an integral part of any business. Over time it has been proven that loyal customers will spend more with you and they will refer new clients to you.

    Satisfied customers

    Satisfied customers are customers who are open to a better offer from the competition. They feel that the product or service they are receiving is on a par with other offerings on the market but they are open to switching to something better given the right opportunity / special offer.

    Dissatisfied customers

    Dissatisfied customers are not happy with your product or service. Some will complain, giving you the opportunity to target the customer with client retention measures. However, for every complaint that is received from discontented customers, there will be several who will complain to their friends or publish their complaints online. These customers must be targeted pre-emptively with customer retention tools.

    The goal of any business is to move the customers up along the customer chain. Dissatisfied customers move to the satisfied category, satisfied customers move to the loyal customer category and the business continues to look after the life-blood that is the loyal customer category. Identifying and categorising each customer will take time and effort (hours analysing sales data). However it will be worth the effort if it helps you retain some hard earned clients.

    Need more information?

    We understand how crucial customers are to your business. We want you to keep doing what you are best at and we will take care of all your tax and accounting needs. We offer a wide range of services which are unique to your business. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

    Our fantastic team at A&C Chartered Accountants are here to help.

    Contact us below

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      By Katie Business News 0 Comments

      HAPPY CHRISTMAS FROM TEAM A&C CHARTERED ACCOUNTANTS!

      From the team here at A&C Chartered Accountants we would like to wish all of our clients are fantastic Christmas and a Happy New Year.

      We would also like to extend our thanks to all of our clients who have generously donated to our charity Royal Manchester Children’s Hospital this year. If you would like to donate on our JustGiving page here we would greatly appreciate your help in reaching our target to support the Royal Manchester Children’s Hospital.

      Royal Manchester Children’s Hospital receives over 276,000 patient visits every year. For those children and their families it can be a very difficult time, especially at Christmas, but with your help we can make it better for every child, every day.

      The support that Royal Manchester Children’s Hospital provides helps families to stay together and support one another during what can be a very difficult time for them.

      RMCH charity is about making a difference to the thousands of children we see every year. They do this by supporting projects that provide state-of-the-art and specialised equipment to help improve the diagnosis and treatment of children. The charity also support research that can help us to better understand children’s illnesses and provide the treatments of the future and we support projects that help to create a more child friendly environment.

      Again, Team A&C would like to thank you for all of your support and we look forward to working with you in the coming year.

      Best wishes,

      Team A&C

      Need more information?

      We will still be available over the Christmas period to offer a wide range of services which are unique to your business! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

      Our fantastic team at A&C Chartered Accountants are here to help.

      Contact us below

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        By Katie Business News • Tax Advice 0 Comments

        Election tax proposals – more money for the NHS?

        Election tax proposals – more money for the NHS?

        The various political parties have all made bold promises in the run up to the General Election about increased spending if elected, particularly extra money for the NHS. Although many of the spending pledges will be funded out of increased borrowing, the parties have assumed that they can persuade voters that extra spending on the NHS should come from general taxation.

        The Liberal Democrats policy would be to increase the rate of income tax by 1% to raise £35 billion a year for the NHS and social care. The Conservative and Labour parties propose to provide extra money for the NHS from corporation tax changes.

        BORIS JOHNSON TO DELAY 17% RATE OF CORPORATION TAX

        Corporation tax is scheduled to be reduced from 19% to 17% from 1 April 2020.

        However, in a speech to the CBI on 18 November Boris Johnson announced that, if elected, the Conservative Party would keep the rate at 19% to provide an extra £6 billion for the NHS.

        Despite Jeremy Corbyn telling the CBI that the Labour party is “not anti-business” the party have previously announced that they would reverse the recent cuts in corporation tax. Note that the rate of corporation tax was 28% back in 2010 at the end of the last Labour government.

        Need more information?

        If you work for the NHS and need any support from our team of experienced chartered accountants, please do not hesitate to get in touch today. A&C Chartered Accountants offer a wide range of services which are unique to your business. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

        Our fantastic team at A&C Chartered Accountants are here to help.

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          By Katie Business News • Tax News 0 Comments

          Diary of main tax events December 2019/January 2020

          The latest tax events December 2019/January 2020

          Date What’s Due
          1/12/19 Corporation tax for year to 28/02/2019 unless quarterly instalments apply
          19/12/19 PAYE & NIC deductions, and CIS return and tax, for month to 5/12/19 (due 22/12 if you pay electronically)
           

          30/12/19

          		 Deadline for filing 2018/19 tax return online in order to request that HMRC collect outstanding tax via the 2020/21 PAYE code
           

          1/1/20

          		  

          Corporation tax for year to 31/03/2019 unless quarterly instalments apply
           

          19/1/20

          		  

          PAYE & NIC deductions, and CIS return and tax, for month to 5/1/20 (due 22/1 if you pay electronically)
           

          31/1/20

          		 Deadline for filing 2018/19 self-assessment tax return online and paying your outstanding tax for 2018/19 and first payment on account of 2019/20 tax.

          Need more information?

          If you need any support on meeting the latest tax events deadlines, please do not hesitate to get in touch with our dedicated tax department. We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want any help or advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

          Our fantastic team at A&C Chartered Accountants are here to help.

          Contact us below

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            By Katie Business Advice • Business News • Tax News 0 Comments

            Staff parties and annual functions

            It is that time of year again for staff parties and annual functions, so it is important to make sure you record it properly. An employer may spend up to £150 per head (inclusive of VAT) per year, in providing annual functions and events to entertain its staff. Provided the £150 limit is not exceeded, there can be any number of parties, for instance 3 parties at a cost of £50 each – at various times of the year.

            Staff parties

            A staff party or an annual function qualifies as a tax-free benefit for your employees providing that you meet the following conditions:
            The total cost must not exceed £150 per head, per year.
            £150 includes VAT together with any extra costs such as transport and accommodation. The £150 is a limit and not an allowance: if the cost is £151, the whole benefit is taxable.
            The event must be primarily for entertaining staff.
            The event must be open to all staff (in that location, if you have several branches or departments).
            The event is not just to be for directors, unless all your staff are directors.
            The cost of the whole event is an allowable expense for your business.
            You can claim back input VAT but this may be restricted where you are also entertaining customers.

            Tax treatment for employer

            The cost of the staff Christmas party (or any staff annual function) is tax deductible in the employer’s accounts.
            Show this expense separately in the accounts as it is a staff benefit and therefore a cost of “staff welfare” (or similar).

            There is no monetary limit on the amount that an employer can spend on an annual function. A party costing more than £150 per
            head will be an allowable deduction in the employer’s accounts, as the employees would pay tax on a benefit at this level so it is
            just another form of earnings.

            The full cost will be disallowed for tax if it is found that the entertainment of staff is in fact incidental to that of
            entertaining customers.

            Parties covered by the £150 exemption do not have to be reported on form P11Ds. If you do exceed the limit, and have created a taxable benefit in kind, you might consider settling it using a PAYE settlement agreement (you then pay your employees’ tax and NICs)

            VAT and annual functions

            1. Input VAT is fully reclaimable on the cost of the function (as it is “staff welfare” and not regarded by HMRC as entertaining),
            unless you are an owner-manager and having a one-man party, or if the function is mainly for directors (and so excluding other
            staff). In these circumstances HMRC will block claims for input tax.

            2. If you are also entertaining UK clients as well as staff, you have to disallow a proportion of input VAT (based on the numbers of clients v staff).

            3. If the event is to entertain UK customers and your staff are there to look after the customers, the whole event is regarded as
            “entertaining”; you are blocked from any reclaim of input tax.

            4. If the event also serves to entertain overseas customers then is may be possible to reclaim input VAT, however you should read
            HMRC Business Brief 44/10 first.

            Need more information?

            If you need anymore support on how to record your staff parties and annual functions properly, please do not hesitate to contact our dedicated team of chartered accountants. We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. Please do not hesitate to contact us today. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

            Our fantastic team at A&C Chartered Accountants are here to help.

            Contact us below

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              By Katie Business News • Tax News 0 Comments

              General election delays loan charge review

              It has been announced that the general election delays loan charge review.

              The Financial Secretary to the Treasury, Jesse Norman, has written to Sir Amyas Morse asking him to send his report on the loan charge review to the new government after the general election.

              The Disguised Remuneration Loan Charge review was commissioned by the Chancellor in September and was due to conclude mid-November.

              Up to 50,000 people who have run foul of HMRC over the loan-based avoidance schemes are expected to pay tax dating back up to 20 years by January 2020.

              Since the government will be dissolved on 6 November in preparation for the election on 12 December, the report will now be delayed so that Sir Morse can report back to the new government.

              It is to be expected, given that the election is so close to the Christmas period, that the government’s response to the review may not now be known until January 2020. Those affected by the loan charge only have until 31 January 2020 to pay the charge or interest and penalties will be due.

              The loan charge was introduced to reclaim unpaid tax through schemes that involved loans which have subsequently been deemed as tax avoidance.

              Need more information?

              We offer a wide range of accounting and tax services which are tailored to suit your unique business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

              Our fantastic team at A&C Chartered Accountants are here to help.

              Contact us below

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                By Katie Business Advice • Business News • Tax News 0 Comments

                Boris Johnson to delay 17% rate of corporation tax

                Boris Johnson to delay 17% rate of corporation tax. Corporation tax is scheduled to be reduced from 19% to 17% from 1 April 2020.

                However, in a speech to the CBI on 18 November Boris Johnson announced that, if elected, the Conservative Party would keep the rate at 19% to provide an extra £6 billion for the NHS.

                Despite Jeremy Corbyn telling the CBI that the Labour party is “not anti-business” the party have previously announced that they would reverse the recent cuts in corporation tax. Note that the rate of corporation tax was 28% back in 2010 at the end of the last Labour government.

                Need more information?

                Brexit continues to change and we understand how difficult it is for businesses to keep up with what is going on. If there is any pressing concerns you may have we are here to help. We offer a wide range of accounting services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed, so do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                Our fantastic team at A&C Chartered Accountants are here to help.

                Contact us below

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                  By Katie Business News 0 Comments

                  What does a no-deal Brexit mean for car production?

                  According to a report by the BBC, in the case of a no-deal Brexit – UK car production could be cut by more than a third. 

                  Following analysis commissioned by the Society of Motor Manufacturers and Traders (SMMT) it was predicted that £3.2bn a year would be added to car making costs, when falling back on World Trade Organisation (WTO) rules.

                  UK car manufacturing has already seen its weakest first nine months of a year since 2011, falling by 15.6% year-on-year. Honda and Ford have announced plant closures this year but both blamed factors other than Brexit.

                  Peugeot has said a decision to keep open its Vauxhall car factory in the UK is dependent on the final terms of Brexit.

                  SMMT chief executive Mike Hawes said falling back on WTO rules for imported components and car exports would result in a level of cost increases that the industry would not be able to absorb without prices rises and production cuts.  Mr Hawes stresses “The next government must deliver the ambition, the competitive business environment and the commitment needed to keep automotive in Britain.”

                  Need more information?

                  If your have any concerns with how Brexit will affect your business, please do not hesitate to get in touch with our team and we will help the best we can. Our team of chartered Accountants have a wealth of experience and  offer a wide range of services  unique to your business. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                  Our fantastic team at A&C Chartered Accountants are here to help.

                  Contact us below

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