http://www.idealfinancesolutions.co.uk The Website for finding Ideal Finance Solutions en john.jackson@flgmoney.co.uk Copyright 2009 2009-05-05T16:57:00+00:00 http://www.idealfinancesolutions.co.uk/finance/feature/claiming-expenses-when-running-a-business-from-home/ http://www.idealfinancesolutions.co.uk/finance/feature/claiming-expenses-when-running-a-business-from-home/#When:16:57:00Z There are more people working from home in the UK than at any time since the onset of the industrial revolution. And working from home makes a lot of sense for small businesses. It’s just about the cheapest possible option and of course, the advent of the internet and ever-improving broadband speeds makes it a more viable option than ever before. So if you’re working from home, what expenses can you legitimately claim to offset against profits and minimize tax? Well the quick and easy answer is to find yourself a good accountant. S/he will be able to advise you on all legitimate expenses and keep abreast of any budgetary changes. The general Inland Revenue rule for claiming tax relief on business expenses is that you can reclaim costs that have been ‘wholly and exclusively’ incurred in connection with your trade. When working from home, this is a little more complex as many expenses are mixed. Your phone, for example, will be used for both business and personal use. In such cases, you can legitimately deduct the business element if it can be separately identified. In general, the Inland Revenue will allow claims for a home office as long as they are reasonable. Some accountants may suggest a calculation of the proportion of your home used for business purposes - and a claim back that proportion of your household expenses for electricity and/or gas bills for example. HM Revenue & Customs provide a great deal of advice on their website for what are or aren’t legitimate expenses. Here are some real-life examples of what claims can be made. This includes examples of what fixed costs can typically be offset against tax, including mortgage interest. But be careful; there are a number of dangers. For example, if your home is dedicated for business use, it could attract the attention of the local authority, who may try to apply business rates. However, If that space is for mixed use; personal and business use - then business rates should not be applied. Insurance and mortgage companies will often ask you to declare that your home is used only for residential purposes, but if you’re running a small home office, and take out business insurance for your business-related items, this shouldn’t be a problem. And if you need to finance your small business, lenders will often be impressed by your determination to minimize costs by working from home – and by your track record of success in doing so. 2009-05-05T16:57:00+00:00 http://www.idealfinancesolutions.co.uk/finance/feature/business-grants-for-small-businesses/ http://www.idealfinancesolutions.co.uk/finance/feature/business-grants-for-small-businesses/#When:22:06:00Z No businessperson in their right mind would turn down free money for his/her business. But it’s surprising just how many don’t even try in the first place! For small and start-up businesses in particular, a business grant can be the difference between success or failure. Start-up costs are difficult to come by from private investors and the banks aren’t exactly being free and easy with their cash in these “credit crunch” affected days. The best places to start your search for funding are in your locality. Your local council’s economic development department, your local enterprise agency and your local Business Link are the logical starting points to research the potential for support in your area. Get in touch with them and find out what kind of business / innovation they’re really looking to support at the moment - and in what way/s. Make sure you fully understand what the exact procedures are, and make sure you follow them to the letter when applying, even if they seem long-winded and detailed. Don’t be afraid of asking them directly what factors are most likely to make your application a success. You’ll need a clear idea of exactly what you require the funding for and exactly how it will be used. The more accurate this information is, the better will be your chances of success. Prepare an effective and detailed business plan that directly supports your ideas and need for funding. Potential funders will want to be 100% certain that the only way you can realistically move the idea forward is with their support in the form of a business grant. So you need to be sure of ground here. Why can’t the cash be raised elsewhere by more conventional means? And what really sets your application apart? If you don’t get a business grant – don’t despair. If your idea is good, talk to the business finance experts to see if you will be able to raise business finance by other means. 2009-05-04T22:06:00+00:00 http://www.idealfinancesolutions.co.uk/finance/feature/avoid-economic-meltdown-with-new-government-funding/ http://www.idealfinancesolutions.co.uk/finance/feature/avoid-economic-meltdown-with-new-government-funding/#When:17:17:01Z The finger of blame for the current economic crisis, which is impacting upon many small businesses across the UK, has been pointed at many different individuals, groups, and institutions during recent months. It seems as if a combination of factors is to blame for the recession but it has become clear that keeping a close eye on a company’s finances is essential for avoiding financial meltdown. Taking a half-hearted approach to monitoring, and assessing your financial situation as a small business owner is simply not good enough. It is extremely important to have someone at your disposal who knows how to deal with complex financial transactions and who can be trusted at all times. Finding such an individual can be difficult but it is certainly worth investing as much time and effort as is necessary in hiring the ideal member of your accounting staff. This process could now be made far simpler after the government revealed that it will provide additional training support for SMEs (small and medium enterprises) which are privately owned and employ no more than 250 members of staff. This new scheme will allow you to receive training and qualifications in areas such as accounting and bookkeeping, both of which are essential for running a small business effectively.  The government has come under fire from certain groups responsible for representing the interests of small business owners during recent months. Claims have been made that the government is not providing small business owners with the practical tools they need to be able to remain competitive in the current economic climate in the face of increased competition from larger firms eager to attract new customers and retain existing clients. This new scheme is likely to ease the criticism in the short-term but the government needs to continue to act in the best interests of smaller companies if it is to avoid long-term resentment. If you’re worried about what the budget means for small business owners or simply want some general professional financial advice, contact an expert financial solutions company. 2009-05-03T17:17:01+00:00 http://www.idealfinancesolutions.co.uk/finance/feature/too-many-small-businesses-failing-to-seek-financial-advice/ http://www.idealfinancesolutions.co.uk/finance/feature/too-many-small-businesses-failing-to-seek-financial-advice/#When:12:24:01Z Research carried out by YouGov and R3, the trade body which represents the interests of insolvency professionals, has revealed that an alarming number of small businesses are failing to take control of financial problems before they become major issues, with most choosing not to seek debt advice tailored towards companies. Approximately two thirds of businesses are following this potentially harmful trend. However, whilst this statistic is worrying in itself, the research also uncovered a rather more concerning trend: those businesses which do seek expert financial advice are being badly advised by unprofessional companies that often have ulterior motives and choose not to maintain impartiality. The organisations responsible for the research have spoken out about their findings. R3 in particular was keen to advise small business owners to seek professional help as soon as they think they may be encountering problems. Ideally, financial assistance should be sought before problems even enter the frame. Sound financial advice can be an essential part of the planning stage of any economic programme for a small business and help can also be provided with regards to important issues such as insurance and tax. Although the number of dodgy financial advice companies has decreased since the government introduced measures to crack down on them, it is still essential to seek professional financial advice for small businesses and stay away from any company which offers solutions that seem too good to be true. Furthermore, if you approach a company for help before debt issues (or any other financial difficulties) escalate, avoiding small business financial trouble will be far easier in the long-term. 2009-05-02T12:24:01+00:00 http://www.idealfinancesolutions.co.uk/finance/feature/recovery-in-sight/ http://www.idealfinancesolutions.co.uk/finance/feature/recovery-in-sight/#When:17:10:00Z Apparently, industrial output in Japan rose in March for the first time in six months, according to new government figures just published. “So what?” you might well ask! But the fact is that any hint of good news and recovery in the pipeline is highly significant if you’re thinking about making any kind of move in the business world at the moment. So if you are, it’s essential to keep an ear to the ground. The current economic crisis is a time of opportunity for may small businesses for many different reasons. For example, if your business is in providing a similar (and fairly essential…) service to others but at a cheaper rate, whatever the reason may be, then you may be doing well from the recession. Alternatively, you may be struggling to survive, but able to capitalize on your assets due to your prudence during the good times. Either way - now may well be the ideal time to grasp the nettle and take the necessary steps to achieve future growth. Entrepreneurs see opportunities where others see only the threats; that’s what sets them apart from the crowd and makes them true entrepreneurs. If you’re one of them and think the time is ripe to expand, then take action now. It costs nothing to finds out if you have the means at your disposal to finance growth, diversification or a completely new venture. And with interest rates at an all-time low, there’s really never been a better time to try your hand. So keep an eye on the news. If we really are beginning to see some green-shoots – however long away a true recovery may be – then it’s the business people who act first who usually take greatest advantage. 2009-05-01T17:10:00+00:00 http://www.idealfinancesolutions.co.uk/finance/feature/time-to-expand/ http://www.idealfinancesolutions.co.uk/finance/feature/time-to-expand/#When:16:53:00Z It seems like all is doom and gloom, there’s not a drop of good news to be had anywhere and this is no time to be expanding your business by taking out a loan of any sort.  The problem with this is that it’s simply not true. The stock market, for example, continually looks anywhere around six to 12 months ahead to decide what will happen to the economy and to the earnings of its various constituent companies.  Business loans come in all shapes and sizes and to meet many different requirements. Choosing which is the best loan for your needs can be a minefield. Whether you need a start-up business loan, cash flow finance, funding for the purchase of a major asset or a new premises, for example, all businesses need finance. Deciding how much money to borrow in what form and for what purpose can be a time-consuming nightmare for the busy business person who is really more interested in getting on with running a company. The best business decision to take is to let someone else do the leg-work for you. If a finance company gets to know you and your business inside out, and to really understand your individual finance needs, then that company can support you seamlessly through all your business finance requirements while you concentrate on what you’re good at; running your business. There are many different options for business loans that a professional advisor can consider. Here, you will find advice and background on invoice finance, business overdrafts, trade finance, commercial mortgages, asset finance, venture capital and payroll finance, as well as many other forms of business loan. A talented advisor who really understands your business plans can mix and match these options to create the best value for money for you – over the right pay-back period. In the current challenging economic environment, there are some excellent deals around for the shrewd business person with an eye on long term developments. But it’s vital that you seek objective advice. 2009-04-30T16:53:00+00:00 http://www.idealfinancesolutions.co.uk/finance/feature/could-your-business-cope-with-a-crisis/ http://www.idealfinancesolutions.co.uk/finance/feature/could-your-business-cope-with-a-crisis/#When:21:32:00Z The sad fact of life is that you can do all you can to minimise risks in the workplace, ensuring that hazards are kept to a minimum and accidents are avoided at all costs, but businesses can be completely ruined financially in a flash as a result of an unseen crisis. You can’t prevent crises from occurring but you can take several steps which can help to reduce the damage inflicted. Common crises which can have devastating impacts upon companies are often physical and may include terrorist attacks, fires, flooding, storm damage, and vandalism. However, some crises may not be physical but can be equally as damaging. These may include computing failures, disease or serious contagious illness, and simple power cuts.  Obviously it is unrealistic to account for all these potential crises, particularly since, depending upon the location and nature of your company, you will be susceptible to some more than others. The first thing you need to do is assess the crises which are most likely to have an impact upon you and your company. Once you have done this, you can put into place sensible and detailed precautions. For instance, if you believe fire to be a viable risk, try to increase awareness of fire safety among your staff and install a working alarm. If you have vital information stored on your computing systems, ensure that it is well backed up and, if possible, keep sensitive data on paper as well as on your computer. As well as taking these specific steps, you will need to develop a large-scale approach. For instance, if the worst happened and you were unable to use your premises, what would you do? You may want to think about setting up a deal with a business located nearby which would allow you to use their premises alongside them for a specified period of time. The owner of this business may not have thought about preparing for crises, so make sure you explain the importance of doing such a thing and the potential benefits for them and their company if they agree to such a deal. Planning for business continuity really is essential for any small company.  The financial costs which could arise from a crisis of any kind could be significant no matter how well you plan, so make sure your insurance policy covers you for risks which you believe to be serious. A professional financial advice company will be able to help you make important decisions such as these.  2009-04-29T21:32:00+00:00 http://www.idealfinancesolutions.co.uk/finance/feature/commercial-property-plunges-good-news-or-bad/ http://www.idealfinancesolutions.co.uk/finance/feature/commercial-property-plunges-good-news-or-bad/#When:16:40:00Z The commercial property index just seems to keep falling. In fact, during 2008, UK commercial property values fell by a record amount according to Investment Property Databank http://www.ipd.com/ whose UK Quarterly Property Index showed that commercial properties lost 26.4% of their value last year - the most since records began in 1987. This is terrible news isn’t it? Well of course it not - unless your business is in investing in commercial property. If it isn’t, then the fall in prices should either be irrelevant if you’re already trading and have no urgent need to borrow against the property – or an opportunity at a reduced price if you’re looking to buy. So really; why worry? If you need a commercial premises - either to expand or establish your business, then buying on others’ weakness is a strength for you. And remember, you’re unlikely to be able to pick the absolute low point of the market. If the figures make sense for your business, go ahead and buy, forget about the price movement after you’ve bought, and concentrate on what you’re good at; your business. But if you are considering a commercial property, be sure to take expert business finance advice in plenty of time. Experienced advisers should be able to give you a considered view of the market, a reasonable offer to make at the moment and, more importantly, tell you what the best finance deals available for commercial mortgages are. And with interest rates at record lows, there are some excellent deals around. Commercial mortgages are available for different purposes such as own-use commercial property, investment, residential development, commercial development, business purchase, re-finance of existing mortgages - or simply to raise additional funds for business needs. They cover a wide range of properties such as offices, warehouses, shops, public houses, restaurants, farms, hotels and guest houses and investment properties.  An adviser with a long track record in finding the right deals should be able to advise you on everything you need to consider. 2009-04-28T16:40:00+00:00 http://www.idealfinancesolutions.co.uk/finance/feature/business-continuity/ http://www.idealfinancesolutions.co.uk/finance/feature/business-continuity/#When:16:45:00Z It’s a simple fact that most small businesses don’t make adequate plans for business continuity during times of duress. It’s the same kind of over optimism about the future that leads many small businesses to run out of cash – even when they’re trading profitably. If you run a small business, you need to address both these issues in plenty of time – by seeking expert professional debt advice. For example, what would happen to your business if you were to fall ill, or if you lost an essential customer? Alternatively, perhaps a flood or fire could damage your premises, or there could simply be a huge seismic shift in the market-place that undermines your business. After all, how many businesses are going to the wall during the current economic crisis that felt their position to be completely unassailable just 18 months ago? The Federation of Small Businesses says that around 80% of companies affected by a major incident close within 18 months. Of course, money solves most short-term business problems, so it’s always a good idea to have emergency finance in place for if and when the need arises. This will help you get over whatever obstacle is in your way as you begin to turn things around. Effective business continuity planning should have contingency plans in place for all these eventualities – and should be integral to a good business plan. You’ll need to think about what the immediate actions you’ll need to take are. Then think what you’ll need to do next to try and get things back on an even keel. Remember, no-one else knows your business as well as you do. You’re the best person to create your own business continuity plan and to come up with solutions for different scenarios. But colleagues and friends can certainly help by brainstorming with you and helping to come up with creative solutions to these potential problems. And expert external advisers with many years’ experience in can certainly help with finance planning. 2009-04-27T16:45:00+00:00 http://www.idealfinancesolutions.co.uk/finance/feature/good-alternatives-to-hiring-staff/ http://www.idealfinancesolutions.co.uk/finance/feature/good-alternatives-to-hiring-staff/#When:20:35:00Z You may think that in order for your company to expand effectively and significantly, it is necessary to hire new staff, whether they be on a permanent contract or a self-employed basis. Whilst hiring new staff to increase the size and maximise the potential of your workforce can be a good decision to make, there are alternative choices which could suit you more. In particular, you should think about the following aspects: • Could you simply re-model your current staff structure? If you’re looking to expand your business, the likelihood is that your existing members of staff are working well for you and possess the right skills that you need for success. If this is the case, could you increase their working hours, whilst making sure you obey working hour regulations? Increasing the number of hours worked by each member of staff per week by a relatively minor amount may not seem like a lot but, if everyone sticks to this new regime, the extra work which could be completed may be significant. • Could you re-allocate tasks to different people? Are some members of staff performing tasks that they are not completely comfortable with? Do other members of staff possess more suitable skills for those tasks? If you allocate people tasks which suit their own individual skills, they will be able to complete projects in a shorter period of time and to a higher level of quality as well. • Do you currently employ part-time workers? If you do, consider asking them to become full-time. • Could you take on additional responsibilities? Managerial roles are taxing but taking on a few extra tasks each week may not add too much to your workload. Doing this could also improve working relations between you and your workforce because you will be showing that you don’t mind getting your hands dirty for a while. Could you offer unpaid work experience? Students may not possess the right level of experience to be able to complete some tasks but some may possess the right skills you need for basic administrative tasks, for example. The likelihood is that you will not need to spend too long searching for a willing candidate for such a role, since students of all ages are becoming increasingly keen to gain valuable experience in the workplace to boost a CV whilst at school or university. 2009-04-26T20:35:00+00:00