Giving you the heads up.... Monthly Newsletter of TI Payroll & Accounting
January 2014 Edition 24
Welcome to January’s Newsletter Happy New Year to every one of you. I hope you had a lovely Christmas, a bit of “me time” and are now ready to take on whatever plans you have for 2014. I'm sat writing this between Christmas and New Year thinking how different my business is from this time last year. There has been some highs and some lows in our business this year, we've moved premises, there have been some staff changes, we have a lot of new clients and the majority of our old ones to bring the new year in with. The last few months have been a bit challenging at times but it's also been a rewarding time. Looking back, the one thing I was certain about was what turnover I wanted to achieve in the business by the end of 2013 (I'm pleased to say we surpassed this back in the summer and I have noted that this year we must aim higher). I didn't want to put our prices up, so the only way to increase turnover was to get more clients!! Firstly by letting our staff know exactly how many new clients, in monetary terms, we needed to secure each month. It's funny that when you throw something out there it comes back to you, as we exceeded our targets every month but June (I blame my absence in the canyon for this one). We did little things each month to promote the business and larger promotions throughout the year, we are still getting new clients from the exhibitions we did back in October. We extended our referral scheme from just staff and clients to anyone who wanted to recommend us. We also used moving to town centre premises as a way of promoting our brand. What I didn't do was keep these figures to myself, at our staff
Dates for your diary January
11th 19th 19th
19th 19th 31st
TIP HQ Re opens Pink Link Ladies Furness NOW ON TUESDAYS CIS Submission Due Payment to HMRC Self Assessment Deadline
Pink Link Furness Payment to HMRC CIS Submission Due
weekly meetings once we'd run through current work outstanding, we also ran through new clients and the percentages achieved to make sure we were on target. It's always a motivational boost when we better the previous month's figures. I truly believe this goal setting is one of the biggest reason's our business has grown over the last few years. While on your break I wonder how many of you have thought about what you would like 2014 to look like, how many of you have set a goal for the year, whether personal, monetary or number of clients?? Without this you don't know if you are heading in the right direction, how will you know in December 2014 if it's been a good year for you? For those of you that have set your goals, congrats!! You are definitely on the way to success and for those who have shared them with your team (whether that be your spouse and/or your staff) even better. For those that haven't then while we are still in the month for making resolutions make it yours to set a goal … honestly next year you will not know how you managed without them. All the best for 2014!!
PRODUCTIVITY TIP Create Inspiring Surroundings The mind is an easy tool to fool. Smile and laugh (even forcably) and your mood will improve. Paint your walls yellow and you’re likely to lose your temper more often. Paint them blue and your productivity should go up. If you want to calm down, sit in a “green room” like those reserved for TV show guests. Basic design principles are often overlooked in office settings, however things like natural lighting, decorations, colours and wall postings affect us on a daily basis. So use them to your advantage. For example, framing inspirational quotes and placing them on your office walls is conducive to productivity. Creating areas for socializing, creative thinking and reading also produces a fertile work environment.
Choose Wisely It is an exciting time. You have committed to investing in starting your own business. One of the things to consider is how to structure your new business for maximum benefit to you, the owner. If you have the option to choose the legal structure for your new business, choose wisely as each format has different taxation rules and personal liability implications. You need to opt for the structure that provides you with the highest benefit. Detailed below are the options available to new franchisees: Sole Trader This is where you trade on your own account- you are the business. You will need to keep records and prepare annual accounts to be included on your personal tax return that is submitted to HM Revenue & Customs each year. You do not have to create formal accounts to submit to anyone else, unlike limited liability companies and partnerships. This has the added benefit of typically lower accountancy fees. You will need to pay tax in January and July each year, based on the profit generated. Commercially, you are regarded as the business- so any business debts are in your name, not in separate legal entity. Partnership As the name suggests, this is where you are in business with another person. Similar to a sole trader structure, You will need to keep records so you can prepare accounts each year for your partnership tax return, which will then flow through to your personal tax return.
Be silly, Be honest, be kind
Ralph Waldo Emerson @MalkinMichelle Owner Director of monthly business networking lunches for senior decision makers and business owners. www.business-network-lancaster.co.uk The Business Network has been operating their unique Business Networking lunch-time format for 20 years this year, attracting over 50 senior business decision-makers to each of thier monthly events - and there is one simple reason why we continue to go from strength to strength - it works! This is our local Lancaster group, but there are many over the country - check them out!
Tax is payable each January and July, based on the profits you receive. Partners in partnership have joint liabilities for any business debt. Limited Company This is a tax efficient way to structure your business if profits are over ÂŁ15,000, as all income is taxed at 20 per cent. Money is then extracted by way of a small salary and dividends. As well as the corporation tax implications, this structure ensures your business and personal affairs are kept separate. You will need to ensure there are no reasons prohibiting one specific business structure. For example, there are various VAT exemptions that require a business to be structured either as a sole trader or partnership, which would then mean a limited company or LLP would not be advantageous to you. You also need to consider if the business is set to make a loss in the first year. If this is likely and you have been employed previously, setting up as a sole trader or partnership will allow you to carry back losses. This should result in you receiving a tax rebate, which will no doubt assist with your cash flow at the crucial early stages of business development. When looking at the different options that are available, it is advisable to discuss which would be most advantageous to you with an accountant. The implications of getting the structure right or wrong could be thousands of pounds, even for relatively small businesses.
Business of the Month
Clarence House Country Hotel and Restaurant
However, she says that 'consumers are a little more cautious post 2008'. Victoria notes that greater local investment is planned for Furness in the next few years. She says this will bring 'local and consumer trust'. Victoria is clearly keen to make the most of these opportunities when they arrive. Victoria has wider long term ambitions for her business, she believes there is clearly 'room' for expansion and plans are to broaden the awareness of her business nationally.
Victoria Barber-Bolam finds that TI Payroll and Accounting deliver a great service for her hotel and restaurant business. Hospitality runs in the family for Victoria. The history of the Clarence House Country Hotel and restaurant began when it was set up nearly 40 years ago by Victoria's parents, Tom and Pauline Barber. It clearly rubbed off on Victoria, because she has taken it on herself and it is still going strong. Victoria has clearly found a recipe for success, as she says that running a hotel and restaurant business keeps her 'young at heart' For Victoria, her business is all about enabling customers to enjoy themselves. Above all, she wants to ensure that customers have a great experience at her hotel and restaurant. This is the 'key' to success in the hospitality trade for Victoria. Victoria says that the biggest challenge when taking over the business was 'staying true to what we wanted'. Her family also wanted to offer customers something that would make the business 'stand out from the competition'. After such difficult times recently for small businesses, Victoria thinks there are reasons to be optimistic regarding the UK economy recovering its 'appetite' for growth, 'it is showing signs of improvement nationally'
Victoria is not only Managing Director of her business; she's also a busy parent. All this activity means she doesn't have much spare time to herself, understandably! But when Victoria does get a spare five minutes and needs to escape the heat of the kitchen, 'a good bit of retail therapy doesn't go amiss'. Victoria says that TI Payroll and Accounting offer a â€˜friendly and efficient service' Tracy and her team are approachable and knowledgeable and are experts at providing the right help for individual situations. Small businesses needn't trip up on the everyday essentials that need to be dealt with. Victoria loves the way that TI Payroll and Accounting 'takes the stress out of sorting out payroll for any businesses. Victoria is clearly impressed with the service that TI Payroll and Accounting offer and wants to 'stay' with them long term. If you have a small business that could use some help with accounts, payroll or just some general advice, be our 'guest' and give Tracy a call.
Tracy and the team at TI Payroll and Accounting did a great job preparing the end of year accounts for Cryolabsports. Thanks again.
Karl Benn - Cryolabsports
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