Magazine - The Accountancy People - Homeyou be saving time on your exercise routines, but you can also save a third off our annual membership price, at only £39.95 for unlimited access

Looking after youLooking after your business

Issue 7Autumn 2013Quarter 4

Magazine

t: 0161 947 9207e: [email protected]

w: www.theaccountancypeople.co.uk

www.theaccountancypeople.co.uk


2

WelcomeThe recession seems to have finally ended. Of course we are a long way from the easy times of a boom. It’s a good time to really take your business forward. I hope you find some inspiration in our magazine.

Revolutionary thinking but is it Rocket Science?There are so many different types of accountancy software out there. What should you choose?

Go to the gym...in your own homeOur client of the month in this edition is Kevin Wiltshire

of Gymcube.com

If your business could talk what would it say?Roger Longden talks about the exciting new Growth Accelerator programme

Tax MattersWe give you some more tax insights in our regular

column

3

6

5

7

Mitzi has been playing the violin since she was six! She studied for Grade 8 violin whilst also reaching the semi-finals of the BBC Young Folk Awards. “When there are so many different opportunities to play – from an orchestra to a folk band - you really have to be on the ball with how you sound and what suits. So this requires a constant awareness of what’s going on! It’s good fun and where’s better than Manchester to be surrounded by music?” Her favourite venues are Dulcimer in Chorlton and the Deaf Institute in the city centre

Mitzi’s Hidden Talent


3


3

Revolutionary thinking but is it Rocket Science?

There are so many different types of accountancy software out there. What should you choose?

Julia and I took our family to London recently, no trip to the capital is complete without visiting the grand museums. Off we went to the Science Museum. We agreed to split up and meet back at ‘The Rocket’ after a hour or so. Unfortunately I thought ‘The Rocket’ was Stephenson’s version, a steam train from 1829, whilst my children thought I meant the Rockets that went to the moon. Thanks to mobile phones I couldn’t lose (shake off?) my children for long. As I waited at ‘The Rocket’ I noticed another steam train built just 16 years later, and the difference was immense. Technology had moved on from a very basic looking rustic locomotive to one that would not seem out of place in the 1930s. It took 16 years to get the


4

design and build right. I then had a look at the cars and the same thing happened. A car from 1895 is a very odd specimen without so much as a steering wheel, but 15 years later the Model T ford looked like a car with all the essential ingredients we still enjoy.I occurred to me that it has taken us say 15 to 20 years to go from invention to creating a mature product in the past. The train and the car have both, in their turn, been at the forefront of technology and transformed how we live. It’s the turn of the internet to transform our lives now. From its creation a few years ago we are still grappling with how it will change our business and personal lives. It means that…the genteel world of accountancy is going through a revolution. Accountants are measured sensible people but the changes happening are well......the biggest change in accountancy since double entry bookkeeping....which, as I’m sure you can imagine, sets our hearts pounding and our blood pressure rising. So what is this revolution all

about? What could tantalise and tease us away from our bookkeeping, and excite us more than ‘A well prepared balance sheet’?

Well, we have found a solution that solves so many problems:

Our clients no longer need to maintain and back up their accounts software, taking hassle and cost out.Clients can do their bookkeeping where they want and when they want, on the train, waiting for the kids...in bed if you want!Routine transactions can get posted automatically saving loads of time from tasks that add no value. People just do the thinking and analysing.We can give beautiful graphically presented information making understanding your accounts easy, especially with a little help from us.Accounting is made easy by using words normal people use rather than the arcane language of the accountant.

We can look at our client’s records as they prepare them

without any messy transfers of data. This is revolutionary, it turns your accountant from being a historian, just interested in what happened last year, into a journalist, helping you understand your numbers as the year unfolds and helping you get the results you want.

So how is this possible? How can something as steady as accountancy be changing so much? Why has this not been possible before?

The answer is simple. Cloud based accountancy. It’s new, but it brings huge benefits to our clients, and turns our relationship with them on its head. The increase in efficiency and up to date information allows us to really spend time working with our clients to improve their business.

For me the use of the cloud for your accounts is the way we move from Stephenson’s rocket to High Speed 2. Let me know if you want to join me on the ride.

“the changes happening are well...the biggest change in accountancy since double entry bookkeeping...”


5


5

Mike had been really clear about where he wanted the business to be in 3yrs/2yrs/1yr, the problem was that I couldn’t see any clear plan to drive the sales to get him to his 1st year targets. Mike, like most who go into business, didn’t really set up to sell, he set up to use his main talents and skills (plumbing & heating). The problem was that his reluctance to look at anything that even resembled selling or marketing made him come out in a cold sweat and he hadn’t a clue where to start.

That’s the beauty of coaching. Left alone, Mike’s business probably would have bumbled along just getting work through referrals (he is something of a craftsmen). Choosing to use a coach meant that he was prepared to take responsibility for challenging himself to go further than he would have done alone. In other words, he gave his business a voice and allowed himself to be held accountable by it.

What did we do? Well Mike got his head around the thought that selling is as much about “helping” as it is anything else. We also “chunked” down his 1st year target into quarters/months/weeks so that he could make a direct link between what he does this week and where he wants to be.

Growth Accelerator is the Government funded programme that is driving growth within SME’s of up to 250 employees. You can access high-growth resources from coaching to training and networking with other ambitious businesses like yours.

If you would like to find out more then go to http://volitionperformance.co.uk/supporting-your-business-growth/ and we’ll be happy to point you in the right direction.

Don’t you owe it to your business to make it the fittest, strongest and most successful it can be?

“Of course I want to see growth in the business!” This was the very clear proclamation from a Client (we’ll call him Mike for confidentiality). Mike had signed up to the Growth Accelerator programme to get some specialist growth support, we were in the midst of a coaching session looking at his

3 year strategy and 1 year plan.

If your business could talk, what would it say to you....?

Faster and lower cost copying / printing with Alex

We recently had a review of our Printing Costs in Stalybridge. Our client Alex Hutchinson from TBA Group installed a new device and he gave a truly professional service and made absolutely sure everything went smoothly. What’s more he is an independent consultancy with a transparent non sales approach – (even down to NET Pricing with pre-agreed margins, based on savings delivered!)... SO NO SALESPEOPLE! I’d certainly recommend you get in touch, [email protected] or 0161 763 0023, if you would like to review this area of spend in your business, I was very surprised at the savings available to us.

Quicker cheaper printing with Alex

by Roger Longden


6

Our client of the Quarter is Kevin Wiltshire of Gym Cube, who has created an on line Gym to help people get and keep fit in the comfort and convenience of their own homes. Exercise videos are not new, but the quantity and diversity of content they have created is genuinely impressive, all of which is available on demand. On line gyms are big in the USA but innovative and new in the UK, so Kevin and his team are genuinely innovative, and his subscriber list is growing really fast.

Without ever having to leave home, GymCube.com offers its members hundreds of different workouts to chose from, with thousands of exercise videos available to watch whenever they want.

With everything from fun dance classes and high intensity circuits, to relaxing

yoga and even indoor cycling classes, GymCube’s diverse range of workouts ensures there really is something for everyone, whatever their ability, and whatever their preference.

Kevin says “James and his team have been a phenomenal asset to our business, in the early stages of our accounts and in the development and expansion of the company, and James’ help and advice have gone above and beyond his duties. We’d consider him a close friend now, and his suggestions in an accountancy and non-accountancy role have been invaluable.”

Special offer for readers of The Accountancy People magazine

Enter the exclusive promo code “ACCOUNTANCY” when you sign up

to GymCube.com, and not only can you be saving time on your exercise routines, but you can also save a third off our annual membership price, at only £39.95 for unlimited access for the entire year.

EIS Seed

Kevin and Gym Cube are taking advantage of EIS Seed investment scheme to raise extra capital to develop their business. The tax advantages are huge – Income tax relief, capital gains tax relief and no capital gains tax to pay on the new shares….ever. To qualify the business needs to be relatively new, raise new money from outside investors and there is a limit of £150,000 per company. Please ring James if you or your contacts need more information on this scheme.

Go to the Gym….in your own home


7


7

Directors get a pay rise...what else can you get tax free?Saving you tax

Paul will be leaving us as a full time employee in the New Year, although he will be staying on as our tax consultant. Martyn will be taking over this column.

Pay Rise for Directors and ContractorsCurrently we normally advise directors to pay themselves just below the national insurance limit to minimise their tax. From next April all companies will not have to pay the first £2,000 of employers national insurance. The effect of this is that for director only companies it will be beneficial to pay employees national insurance up to the start of the basic rate tax band. The most tax efficient salary will be £10,000 – a 30% increase! We’ll advise you what to do at the appropriate time.

Should I Have a Limited Company?The opportunity of operating a business under a limited company has become much more accessible than it used to be. A company can be set up with just one director who is also the only shareholder (owner) but is incorporation right for you?This is a huge area and one that we can only scratch the surface of here but here is a summary of the key issues:

Tax on profits – Sole traders and partnerships pay tax at 20% on their first £32,010 of profits after deducting their personal allowance and then 40% on higher rate profits, eventually 45% if they reach £150,000 of profits. Companies pay tax at 20% on all

profit upto £300k, 23.75% from £300k to £1.5k and £23% thereafter.

National Insurance – Sole traders and partnerships also pay National Insurance at 9% on their profits. Companies do not pay National Insurance and neither do their owners if you pay the right level of salary.

Limited liability – Companies benefit from offering protection to their owners by limiting the amount that they will be personally liable to pay if the business gets into financial difficulties.

Goodwill – If you have built an intangible asset in the business – customer base, loyalty, good reputation, essentially an ability to make profits and something that a third party would be willing to pay for – you can “sell” this to the company and benefit from huge tax savingsFor an in depth review of how incorporation can work for you, call us to arrange a meeting with one of the team.

What can I draw tax free from my business?Most of you who already run your business through a limited company understand that you can pay yourself a small salary and the usual business travel expenses and both obtain corporation tax relief and avoid personal income tax and national insurance charges. Here’s a run down of some other useful tax free benefits:

Childcare vouchers – upto £55 p/wk (lower limits if you are a higher rate taxpayer) can be paid to a registered childcare provider if you have

arrangements for whilst you are busy working

Directors life insurance through your company, protecting your loved ones and receive tax savings at the same time

Put up to £50,000 per year into your pension.

If you’re buying a bike have you thought about the cycle to work scheme?

Use of home as office - £4 a week without evidence or we can run some calculations to see if you are eligible for more

Mobile phone – Take your phone out in a business contract and get full tax relief on the cost of the phone and the contract.

Laptop – One laptop per director/employee providing it is used primarily for business purposes

Parking – The cost of parking at or near your place of work

Employing your spouse – Pay your spouse a small salary if they help out in the business


8

Please let us know if you want your business featured on our clients page.

t: 0161 947 9207e:[email protected]: www.theaccountancypeople.co.uk

Jude’s Drama was founded in 1997 in the Coliseum studio in Oldham. Judith Barker had performed in plays at the theatre for over thirty years and her husband Kenneth Alan Taylor was artistic director at the theatre. She’d had a yearn to pass on her past experience for some time and as the studio was largely unoccupied she persuaded Kenneth to ask the board for permission to start a few classes. They took off immediately. A couple of years later she was joined by Adele Parry, actress/choreographer/ daughter-in-law (most important). When Kenneth left the theatre they took up residence at the Edgerton Rooms, Oldham and finally at the

Congregational Church, Radcliffe Street, Springhead.

The classes have gone from strength to strength with now over 120 pupils, some looking forward to a career in the theatre, others just wanting to build self confidence and have fun. Adele and Judith have both successfully continued their careers and together with Fran Ellis, Speech Therapist, and Dave Bintley, Singing Teacher (you’ll spot him in the pit at the Coliseum every year as he is musical director for the pantomime) they hope to carry on for many years and keep on growing.

For more information contact Judith on 0161 624 5378 or mobile 07855792435 or go to our website

Howard Chambers writes: A fortuitous redundancy in April this year meant my dream of setting up a holiday company became a reality in September as Opposites Attract Holidays took flight.

The ethos of the company is around taking people away on holiday who don’t actually like doing the same things when they get there. So rather than just having traditional activities like hiking, biking, sub-aqua, we have also set up alternative options such as learn to paint courses, massage and aromatherapy sessions and even a vineyard tour to the wine region of Chania Crete where our first holiday was based. Some decided that just sitting by the pool was enough for them, but in the evening everyone met up together to enjoy a group meal in a different taverna to catch up

on what the other guests had been doing.

Getting to the point of setting up the Company was made easier after speaking with James and his team. We went through possible structures and went through the pros and cons of Limited Company or Sole trader, requirement behind VAT or not VAT registered. Within a session we had fleshed out the requirements and James did the rest.

My first destination is Paleochora sitting at the bottom of the White Mountains on the South Coast of Crete. It remains free from harsh holiday commercialisation and still has a feel of a living working town. In the evening however, the bustling

streets are transformed with tables and chairs as the whole centre turns into a sea of impromptu restaurants and tavernas. We had a very successful first trip. On returning to the UK, we were invited over to the Bulgarian ski region of Bansko to look at the possibilities of setting up something similar.

Working with James and his team has been great experience, having only ever worked for other people the advice on setting up my own company was invaluable and I look forward to their continued support as we plan for the coming season.

We thought you would be interested to see what some of our clients are up to.

Jude’s Drama

Do Opposites Attract?

http://www.theaccountancypeople.co.uk

Documents

Magazine - The Accountancy People - Homeyou be saving time on your exercise routines, but you can also save a third off our annual membership price, at only £39.95 for unlimited access