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HMRC – Targets – Electricians’ Tax Safe Plan campaign
HMRC are giving an opportunity to people working in the electrical industry, and have not told HM Revenue & Customs (HMRC) about all your income and now want to get your tax affairs back on track, use the Electricians’ Tax Safe Plan (ETSP).
An electrician is anyone who installs, maintains and tests electrical systems, equipment and appliances under stringent safety regulations.
How can you avoid Tax penalties for your undeclared income:
How to notify HMRC under the ETSP
To take advantage of this campaign you must:
1. Notify HMRC of your intention to take part in the campaign by 15 May 2012. At this stage you only need to tell HMRC that you will be making a disclosure.
2. Once you have done this, you must make your disclosure and pay what you owe by 14 August 2012.
Contact us for assistance on Tel No 07921885839 and we can help you sort out your tax affairs.
If you are an electrician this guide explains how you can tell HMRC of your previously undisclosed income and pay what you owe.
How to write a Business Plan
What’s a Business Plan?
Why have a Business Plan?
Five essential ingredients of your business plan
Some people believe that only business start-ups need funding and that only large companies need business plans. But the truth is that every business needs a ‘blueprint’ – not just for the benefit of potential investors, but so that the people who work in the business can have a clear idea of its direction and can commit to a plan.
A good business plan serves various functions, but it must have a practical structure. Here are five essential ingredients:
1. An executive summary.
The likelihood is that many potential lenders will initially only read an executive summary. That’s not to say they’ll never read your entire business plan – but it does mean that a concise, readable executive summary may be necessary to get your ‘foot in the door’.
An executive summary should show the highlights of each section of the business plan, providing a clear synopsis of who you are, what you do and where you’re heading.
2. Your business description and mission statement.
Every business needs a clear declaration of why it exists, and a basic description of how it intends to meet its primary objective.
If you look at a good company website, it will often include elements of the mission statement in an ‘About Us’ section. It needs only be a few sentences, and might be something like “Our Company aims to provide outstanding solutions and service to the e.g. Construction industry in and around the area of e.g. Peterborough. Think of your mission statement as the heart of your business plan. All your goals and activities should flow from it.
Having prepared your mission statement, you next need to comprehensively describe your company. Provide a brief history and then explain what it does, identify the marketplace niche it fills and assert why you and the business will succeed. You may also wish to reveal why your business chose its location and how you will benefit the local community.
3. Your Company’s management profile
In business, as in any walk of life, people matter. Potential investors, lenders and even employees are not interested in a faceless, soulless corporate entity. They need to know that competent, experienced people are steering the ship.
Provide an outline of your organisational structure and management team, giving solid reasons why your employees are competent to succeed. A chart illustrating the roles and relationships of key employees can work particularly well, and if you are a small company you may even be able to include every single employee.
4. A financial portrait and strategy
Prospective investors and lenders need a good idea of the financial aspects of your business. Include basic data such as current and projected balance sheet, a profit and loss account and an analysis of cash flow. If you are a start-up, project this information as accurately as possible. It is important not to cut corners with these calculations and do ask for our assistance with this.
Above all, make sure your numbers demonstrate that you and your management team have considered the key ‘drivers’ that will determine your success or failure. Don’t fill the business plan with overly optimistic financial projections that could ultimately depict your company in a bad light.
5. Sales and marketing objectives
Expertise and past success mean little without an up-to-date strategy for bringing your products or services to market. Describe your intended market, giving specific details on its size and how much of it you intend to serve. What is your market’s growth potential? What specific geographic and economic factors play a role?
Competitor intelligence is another crucial factor. Name your five largest competitors and explain why you can serve your market better than these rivals. Do not conceal your weaknesses: recognising the challenges you must overcome shows that you are realistic.
An Ongoing Process
Like keeping a ‘To Do’ list, writing a business plan is an ongoing process. Yours must adapt to changes in your company, its market and the economy – and that means regular reviewing and updating.
For help with developing a business plan or improving the existing one, do please phone us on 07921 885 839
©Genesys Business Services Ltd
Planning for minimising tax
This paper compares the best method of minimising taxes for a company with Pre-tax profit spend of £20,000. The paper compares tax impact on by either taking a Salary, Dividend distribution or pension contribution.
The following assumptions have been made in this illustration:
Basic tax rate applies
Small Companies Corporation Tax applies (20%- 2011/12)
The additional £17,730 slice of Salary is applied at higher rate of Income tax (40%) and 1% employee NIC
An Employer pension contribution of £20,000 will be tax deductible
The Tax treatment depends on individual circumstances for each client and may be subject to change in future.
| Salary | Dividend | Pension Contribution | |
| Pre-tax Cost to Company | £20,000 | £20,000 | £20,000 |
| Employer’s NI (12.8%) | £2,270 | ||
| paid as Salary | £17,730 | ||
| Corporation Tax 21% | Nil** | £4,200 | Nil |
| Salary* | £17,730 | ||
| Less Income Tax (40%) | £7,092 | ||
| Less National Insurance 1% | £177 | ||
| Dividend Distribution | £15,800 | ||
| Less Additional Income Tax Due | £3,950 | ||
| Benefit to individual | £10,461 | £11,850 | £20,000*** |
* Assumes taxable income below £150,000
** Nil Corporation Tax due before is full tax allowable
*** Income from this pension will be taxable
This publication is for informational purposes only. Opinions expressed should not be construed as tax planning or accountancy advice. The particulars of any person’s concerns and circumstances should be discussed with a qualified accountant and tax advisors prior to making any decision. Genesys Business Services provides accounts, Payroll, tax planning, property accounts and tax services. Ask for a free consultation.
To ensure delivery of this newsletter, please add Info@genesysuk.com to your email address book
To opt out of future Newsletters from Genesys Business Services Ltd emails, please email info@genesysuk.com ©Genesys Business Services Ltd
Spring 2010 newsletters
In Spring, we published two newsletters with some tips for tax planning as we hit the end of the financial year. Read and download them both here.
Genesys Business Services Ltd – Personal and family Spring tax planning tips – Feb 2010
Genesys Business Services Ltd – Business Spring tax planning tips – Feb 2010
Accountants with a Difference
This article was published in the Cambridgeshire Chamber of Commerce magazine.
Financial & Accounting knowledge are key skills which all businesses & individuals require. Some businesses may need help in controlling their finances whilst others may require assistance with cost savings & increasing profits in the current business climate.
You can count on Genesys Business Services Ltd (GBSL) to help as they are the “Accountants with a Difference!” They not only provide a complete Financial & Management Accounting services, but also provide value added services to their clients.
The philosophy at Genesys Business Services Ltd is:
- To work with their clients as partners in their business.
- Provide a range of Accounts services including VAT Returns, Taxation, Payroll & Financial Models.
- Fixed fee.
The following case studies indicate where Genesys Business Services Ltd made a difference to client’s business while working in partnership with them.
Case 1 : Help My Finance staff has left on early maternity leave & I need urgent temporary cover.
Issue: Full time accounts staff went on early maternity leave leaving the Finance Director had to carry out routine accounts in addition to his busy workload. Backlog of work needed urgent attention.
Solution: GBSL provided temporary cover, reviewed & recommended improvements to the business processes (Part of our value added service) to reduce costs.
Benefit: Process Improvement and Staff Costs reduction. The company has retained GBSL for ongoing process improvement projects.
Case 2: Can you improve our Payroll Process? We have a cash flow problem!
Issue: Client employed 20 staff including construction industry scheme personnel – paid in various cycles such as weekly, fortnightly and monthly.
Solution: Reduced Payroll frequency with the agreement of staff.
Benefit: Cash Flow savings reduced Payroll frequency, Staff time & Costs. GBSL is currently managing their Payroll system
Case 3: We need someone to look after our routine accounting function.
Issue: A Finance Company employed 2 full time accountants. Management wanted GBSL to review the accounting processes and suggest cost saving proposals.
Solution: GBSL assessed the client’s processes and recommended that work could be completed by employing one staff for 2 days per week.
Benefit: Savings in staff Costs & process improvement. The Company has retained the services of GBSL.
Interested? Why not start by visiting our website: www.genesysuk.com
Alternatively, just call me on 07921 885 839. I’ll be delighted to discuss the ways in which we can start helping your business to become more profitable.
Genesys Business Services Ltd article in Cambridgeshire Chamber of Commerce magazine
New website launched!
We’re excited to launch our new website today, after a pretty rapid period of development. From start to end of the first launch phase was less than 48 hours. Our technical guy will be blogging some tips on how you can set up a smart, professional website using a number of commonly available tools that don’t always require in-depth knowledge.
In the meantime, we welcome your feedback. Leave a reply to this post, subscribe to future posts or get in touch through the online form. We’ll be keeping you up to date with the latest tax news and letting you know how we’ll be responding to any opportunities to help local business as we head into the economic upturn.