Key Business Trends for 2020

Check out our key business trends for 2020. The environment, wellbeing, mental health and technology look set to be some of the big business trends in 2020.

As we move into 2020, businesses will have to adapt in a world that places greater emphasis on sustainable business practices. People will want to work for firms that take care of their employees in terms of their physical and mental health.

Technology will continue to be the key enabler to allow us to work flexibly, remotely and more effectively. It looks like 2020 is set to be a busy year for businesses in the UK and internationally.

Customers are becoming more environmentally aware. Companies like Beyond Meat, the maker of plant-based, protein-rich foods or Everlane, which creates clothes from recycled fibres and plastics, are gaining traction. People are trying to reduce their carbon footprint and are making buying decisions on the basis of the environmental credentials of businesses.

As a result, businesses are responding by focusing on their environmental and sustainability policies. Many firms are adapting their CSR activities to include environmental projects in order to help drive the green agenda in local communities. As we move into 2020, this trend is likely to accelerate.

On the technology side of things, machine learning and artificial intelligence (AI) are continuing to advance. The AI industry is growing and businesses have access to more powerful tools in order to create new customer experiences. For example, music-streaming service Spotify uses AI to make the listening experience more personal by creating customised play-lists for each user.

Younger workers are putting greater emphasis on physical wellbeing and their mental health. Employers will need to adapt in order to attract the next generation of talented employees. Flexible working and wellness programmes are high on the list of priorities for Millennials and Generation Z employees. The businesses that really embrace these new trends will attract the best people.

 

Need more information?

If you need any guidance with the above pointers please feel free to get in touch with us. Our team offer a wide range of services which are unique to your businesses who are just getting going! 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.

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    Advisory fuel rates for company cars

    Do you or your employees have company cars? These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 December 2019. Where there has been a change the previous rate is shown in brackets.

     

    Engine Size Petrol Diesel LPG
    1400cc or less 12p 8p
    1600cc or less 9p (10p)
    1401cc to 2000cc 14p 9p

    (10p)

    1601 to 2000cc 11p
    Over 2000cc 21p 14p 14p

     

    Note that for hybrid cars you must use the petrol or diesel rate.

    You can continue to use the previous rates for up to 1 month from the date the new rates apply

    Need more information?

    If you need help with your company car please do not hesitate to contact us. We offer a wide range of services which are unique to your business and 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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      New Year’s resolutions to save tax

      At this time of year we think about New Year’s resolutions. It is also a good time to start planning your tax affairs before the end of the tax year on 5th April. An obvious tax planning point would be to maximise your ISA allowances for the 2019/20 tax year (currently £20,000 each).

      You might also want to consider increasing your pension savings before 5 April 2020 as the unused annual pension allowance is lost after three years.

      For those looking to do some inheritance tax planning it would be a good time to review (or make) your Will.

      Need more information?

      If you want to have a chat to your accountant about your business New Year’s resolutions, feel free to book an appointment at any time. We offer a wide range of services for you and 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.  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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        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.

        Contact us below

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          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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            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.

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              Christmas gifts of up to £50 to employees

              Christmas gifts at Christmas: Remember that certain gifts to staff at Christmas are tax free if structured correctly. Ever since April 2016 employers are allowed to provide their directors and employees with certain “trivial” benefits in kind tax free.

              The rules were brought in as a simplification measure so that certain benefits in kind do not now need to be reported to HMRC, as well as being tax free for the employee. There are of course a number of conditions that need to be satisfied to qualify for the exemption.

              Conditions for the exemption to apply

              • the cost of providing the benefit does not exceed £50
              • the benefit is not cash or a cash voucher
              • the employee is not entitled to the benefit as part of any contractual obligation such as a salary sacrifice scheme
              • the benefit is not provided in recognition of particular services performed by the employee as part of their employment duties (or in anticipation of such services)

              This exemption will generally apply to small gifts to staff at Christmas, on their birthday, or other occasions and includes gifts of food, wine, or store vouchers.

              Note that where the employer is a “close” company and the benefit is provided to an individual who is a director or other office holder of the company, the exemption is capped at a total cost of £300 for the tax year.

              Please feel free to contact us if you are considering taking advantage of this exemption.

              Need more information?

              We want to wish all of our clients old and new, a wonderful Christmas. We will be on hand over the Christmas period to help you and your business during this busy time. 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 to learn more about how the team can help 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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                Gifts to charity

                Gifts to charity: Where possible higher rate taxpayers should “Gift Aid” any payments to charity to provide additional benefit to the charity and for the individual to obtain additional tax relief on the payment.

                For example where an individual makes a £20 cash donation to charity the charity is able to reclaim a further £5 from HMRC making a gross gift of £25. Where the individual is a 40% higher rate taxpayer he or she is able to claim a further £5 tax relief under self-assessment, reducing the net cost of their donation to £15.

                Note that the donor is required to make a declaration that they are a UK taxpayer and those that have not suffered sufficient UK tax to support the Gift Aid amount will taxed on the shortfall.

                Remember that Gift Aid does not just apply to gifts of cash. Many charity shops will now sell the donated items on your behalf and are able to treat the sale proceeds as Gift Aided donations.

                It is also possible to gift quoted securities and land and buildings to charity and claim Gift Aid on the market value of those assets.

                Need more information?

                If you need anymore advice on gifts to charities please to not hesitate to contact our experienced team. . 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  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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                  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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