Giving you the heads up.... Monthly Newsletter of TI Payroll & Accounting
Welcome to June’s Newsletter Wow, as you can imagine, I've had quite a month. My honeymoon was fantastic, however, since returning to the office I feel like I have never been away. In fact I feel like I have pinched someone's lovely memories as they can't be mine!! I also am struggling to believe its June already, the first half of the year gone, still waiting for summer to turn up and Christmas will be here before we know it. While I was away I sky+ a programme that was on the History channel called “The Men Who Built America” and last Sunday I watch a few episodes. They covered the rise of railroad tycoon Cornelius Vanderbilt, John D. Rockefeller founder of the Standard Oil Company, Scottish-born Andrew Carnegie who was an American industrialist who amassed a fortune in the steel industry and J.P. (John Pierpont) Morgan, one of the most powerful bankers of his time who financed railroads and helped organize U.S. Steel, General Electric and other major corporations. I am fascinated at how these men dominated their industries in their young country. It got me thinking about what they all had in common and if there was any characteristic I could take from that to move my business forward. They were all focused, determined at all costs, to succeed. All of them captains of industry, they could see the bigger picture, they could envisage what 'could be' just round the corner. J.P. Morgan's father told him that he was to sever any ties with Thomas Edison and his 'new electric light bulb' invention. Morgan's father, himself a very successful banker, just could not envisage the dream that his son could see. Fortunately for JP Morgan, due to his father's untimely death, he was able to continue to finance Edison's vision. continued overleaf
Productivity Tip:
June 2013, Edition 15
Dates for your Diary June 8th 13th 19th 19th 21st
Tracy off to the Canyon! The Business Network Payment to HMRC CIS Submission Due Pink Link Furness
July 17th 19th 19th 19th
The Business Network Pink Link Ladies Furness CIS Submission Due Payment to HMRC
Tweeter of the Month @BizGrowthHub
Want to grow your business? Operating out of the North West we can help with support, events & expert advice - delivered by business people for business people. This Business Growth Hub provides advice on business from start up grants to helping your grow a successful team. They organise events and have expert advice. www.businessgrowthhub.com
Checklists Are Productivity Boosters: One of the traits of successful people are "lists". They not only streamline your workflow but they ensure you don’t forget important tasks. You should prioritise your lists into 3 sections: A: Very important things you need to do today, B: Things that need to get done if you have done everything on list A and C: The things you would like to get done. Sometimes things will move up a list from C to B or from B to A. This way you prioritise on the most important tasks, the tasks that help your business move forward.
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Look at the more modern titans of business today, Richard Branson, Bill Gates, Donald Trump. They all share the same characteristics that those early titans did. Their ability to see the bigger picture and believe in what they are doing, regardless of mockery or well-intentioned advice that they are crazy, is shared over the decades of History. In building your own business, who do you ask advice from? Who do you listen too? You need to hold on to your 'vision' and be careful who you take advice from. J.P. Morgan's father had him reconciling accounts from a very young age, investing in companies as a teenager, however if he had listened to his father when he saw the vision of how the electric light bulb could light up the whole of America, I don't think I would be talking about him as a success today. We all need guidance and direction but think about it, would you take financial advice from a guy in dog-tired shoes who drives around in a 20 year old Ford, whose business card claims to give you “Financial freedom”?? To leave you with my own dream , I thought I'd share my photo of a hotel I found in New York last month… roll over Mr Trump, Tracy is coming though ;)
Tracy X
Thomas Edison
Genius is 1% inspiration and 99% perspiration. Accordingly a genius is often merely a talented person who has done all of his or her homework
An end to tax-free employer childcare vouchers The tax break for employer-provided childcare vouchers is to be scrapped. The good news for parents is that they will be replaced by a more generous version direct from the government. But what effect will this have for employers? New Childcare deal You'll no doubt have seen the headlines about a generous deal on offer from the government for parents who pay for childcare. If you're having to fork out for a minder for little Jimmy while you're at work this could mean you'll receive twice as much in tax and NI-free financial help as is currently possible through an employer-supported childcare scheme (ESC) What's on Offer? The tax-free childcare (TFC) scheme will be available to parents where neither earns more than £150,000 per year. They'll be able to open an online voucher account with Voucher Company and have their payments topped up by the government. For every 80p parents pay in, the government will add 20p up to the annual maximum of £1,200 for each child. The vouchers may be used in the same way as they are with ESCs. Existing tax break Currently, employers can offer vouchers to staff with children that they can redeem with Ofsted-regulated childcarers. These can be for any value, but the amount qualifying for tax and NI exemption is capped. The maximum annual total tax and NI savings for employees is £933 and for employers, £402 NI. So the new scheme looks like a good idea for parents but less for employers. Salary Sacrifice Employers tend to offer ESC under salary sacrifice arrangements. This is where the employee gives up some of their normal pay in exchange for the ESC vouchers. Employees will be happy to drop these in exchange for the new and more generous government scheme as soon as they can (see below). The upshot of this will be that employers will have to pay the employees concerned an equivalent amount of salary to the vouchers they give up. The salary will, of course, be subject to tax and NI meaning employers will lose the £402 per employee NI saving. TIP. The new scheme won't affect employers who provided free on-site childcare; this will still count as a tax and NI-free benefit in kind. Timetable The new scheme isn't set to be introduced until autumn of 2015. In the meantime, current ESC schemes can continue for existing users and employees who want to join. TIP. To avoid losing NI savings from the scrapping of ESC's, employers should use the time between now and when the TFC scheme is brought in to find other tax and NI-free benefits that they could offer employees instead. Here's what we think are the most user friendly: A pension plan contributions A mobile phone Sporting or recreational facilities Cycle to work schemes Free or subsidised meals (but not as part of a salary sacrifice arrangement)
Business of the Month Jo Rutherford Photography
Jo finds TI Payroll and Accounting really help to make her photography business 'click’ To set the scene, Jo Rutherford is a portrait photographer specialising in children and families. Jo started snapping for her current business three years ago while she was still a full-time lecturer and physiotherapist. Jo saw the opportunity to do photography full-time three months ago and now the business is 'zooming' ahead! Although Jo believes in her photography business and the quality of her products, she admits that learning how business works has been the 'steepest learning curve'. Jo seeks to grow her business by providing an excellent service. This has been 'mirrored' by Jo receiving two awards in 2013 - BIPP Northwest Photographer of the year and Portrait Photographer of the Year. She hopes that her clients will keep it in the family and 'snap' up more clients through spreading the word. Jo wants people to enjoy being photographed and to 'focus' on having fun rather than being worried about the 'spotlight'! The aim is for a photograph to be a memorable occasion for every subject, whether it's for families or for others. Jo also enjoys photographing babies, capturing a particularly special moment forever. But most of all, Jo loves being around people and photographing them whatever they are doing. Looking down her lens into the economic future, how does Jo think the financial situation will 'develop'? There are many 'negative' aspects to doing business in the current harsh climate. But Jo feels that people 'seem to have adjusted to difficult times' and this offers an opportunity for people to adapt to a more prudent way of life, as she says: 'less luxury, more saving and budgeting'.
Does Jo think that the government is offering small businesses any meaningful help, or is it all smoke and mirrors? Jo says that now she is relying on her photography business income full-time, she will be taking more notice of how government policy affects small businesses like hers Jo admits she doesn't really have much time for interests away from the camera at the moment. But to recharge her batteries, Jo loves going for long walks. She also hopes to splash out with doing some kayaking in the coming year. Looking down her lens into the economic future, how would Jo like her business to develop? She would like to build on her reputation as a high quality photographer throughout North-west England. Jo takes pride in her excellent customer service, and would like this to come to 'light' for more and more people. She particularly wants to become known for 'excellent children's portraits'. Jo's hard work will ensure that her business doesn't become a 'flash' in the pan. Jo met Tracy at a networking event. TI Payroll and Accounting has really encouraged Jo to face her fear of numbers by suggesting ways to deal with her accounts and the accompanying paperwork. Jo confesses that when it comes to this type of thing, she 'tends to bury her head in the sand'! The help that Tracy gave Jo to expand her photography business really put a smile on her face. Jo especially appreciated the help and support provided while she was starting up her business full-time. Jo says she is 'eternally grateful for their patience'. TI Payroll and Accounting offers a clear way forward for dealing with business accounts and payroll. This means that Jo doesn't have to take a second look at it and she can 'focus' on her photography. With TI Payroll and Accounting's help, you need never be left in the 'dark' about your businesses' accounting and cash-flow needs. Their friendly and professional advice will soon put you in the 'picture'. Why not contact Tracy today to see how they can help your business?
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“I came to TI Payroll & Accounting at a late stage in the year and close the Tax Returns being due. They managed to come and meet me, get the work done and submitted online in time. I was able to speak to Tracy at times that worked well for me which are not always conventional working hours.” Rebecca Dixon, Dark Horse Publications
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