31 Oct 2024
As the year draws to a close, many small business owners in Manchester are searching for ways to express gratitude to their employees. Offering thoughtful gestures, whether a simple thank you or a festive treat, can be both rewarding and cost-effective. Did you know you can provide your staff with perks without incurring tax liabilities? Welcome to the world of trivial benefits.
What Are Trivial Benefits?
Trivial benefits are low-value gifts or perks that can enhance employee morale without triggering tax or National Insurance obligations. According to HMRC guidelines, businesses can offer employees perks valued at £50 or less, as long as they meet specific criteria.
Criteria for Trivial Benefits
To qualify as trivial benefits, gifts must adhere to the following rules:
- Value: Each gift must be worth less than £50 (including VAT).
- Type: Benefits must not be cash or cash vouchers (gift vouchers are acceptable).
- Reason: Gifts should not be provided as a reward for work or performance.
- Contract: Benefits cannot be included in an employee’s contract or part of their regular benefits package.
For example, if you present your staff with a box of chocolates or a coffee shop gift card that meets these conditions, you’re on the right track!
Examples of Trivial Benefits
Here are some excellent ideas for trivial benefits that can help you appreciate your team, all while staying within the £50 limit:
- A bottle of wine or a selection of festive treats
- A gift voucher for a popular local restaurant
- A bouquet of flowers to brighten their workspace
- Tickets to a cultural or sporting event in Manchester
These small tokens of appreciation can significantly enhance employee morale without leading to tax complications. Remember, however, that these benefits must not be tied to performance or obligations.
Keep an Eye on the Limit!
It’s essential to remember that the £50 limit applies to each individual benefit, not the total amount you can give in a year. This means you can provide multiple trivial benefits throughout the year. For instance, you might celebrate your staff’s birthdays with a small gift and then surprise them with something special during the holiday season.
If a gift exceeds the £50 threshold, it loses its trivial benefits status, meaning you will have to account for tax and National Insurance on the entire amount, not just the excess.
Trivial Benefits for Directors in Manchester
Directors of limited companies with fewer than five shareholders can also take advantage of trivial benefits. In this case, there is an annual limit of £300 for benefits provided to directors or their family members. This means you can give yourself and your spouse four £50 gifts throughout the year, provided the total doesn’t exceed £300, with no tax implications.
Why Trivial Benefits Are Important for Your Business
Implementing trivial benefits is a savvy way to foster a positive work culture without straining your budget. These small perks make employees feel valued and appreciated, enhancing job satisfaction and improving retention rates.
From a financial perspective, trivial benefits allow you to reward your team without incurring additional tax or National Insurance costs. Plus, if you maintain accurate records, these perks won’t complicate your bookkeeping.
Keeping Track of Trivial Benefits
While offering trivial benefits is straightforward, it’s crucial to manage them properly in your accounts. Here’s how to ensure compliance:
- Keep Receipts: Maintain receipts for all benefits, ensuring each is under £50.
- Record Details: Log the specifics of each gift, including the date and recipient.
- Verify Eligibility: Ensure benefits comply with HMRC criteria—no cash or performance-related gifts.
Proper record-keeping will help you demonstrate compliance with HMRC rules if needed.
Conclusion: Enhance Employee Satisfaction While Minimizing Tax Liabilities
Trivial benefits may seem small, but they can significantly boost employee happiness and help manage your business’s tax obligations. By offering thoughtful, low-cost perks, you can elevate team morale while keeping your financial records in order.
Need assistance in tracking your business’s expenses and perks? Contact me today to discover how I can help ensure your finances remain compliant and tax-efficient throughout the year.
3 Aug 2024
Running a business is no small feat. Business owners face numerous challenges daily, from managing finances to ensuring smooth operations, staying competitive, and planning for growth. We know, because we’re business owners too!
Here, we’ll explore some of these common challenges and discuss how outsourcing, automation, and getting the right support can help overcome them.
Financial Management
One of the most significant hurdles for business owners is managing finances effectively. This includes budgeting, forecasting, cash flow management, and handling taxes. Mismanagement can lead to severe financial problems, even bankruptcy.
Just doing the bookkeeping for compliance purposes won’t help your business to succeed. A clear vision and understanding of your finances is key to a successful business. At [BUSINESS NAME] we come across so many businesses who have buried their heads in the sand for so long. Not addressing issues with cash flow for example can cause many implications for your business.
When you decided to be a business owner you didn’t think you’d be playing the role of a bookkeeper too and you don’t have to! Finding a bookkeeper who knows your industry and can support you with your business processes is the solution to your financial management challenges.
At [BUSINESS NAME] we support our clients to ensure that not only are they compliant but they have full visibility of their finances, allowing them to plan for the future. We leverage the latest technology to ensure that your processes are as streamlined as possible, giving you vital time back and reducing the risks of human error.
Time Management
Do you often feel like there’s just not enough hours in the day? As business owners we play multiple roles in our businesses which can often lead to a feeling of overwhelm and if left untreated this could lead to burnout.
Consider using time blocking techniques so that you can manage chunks of tasks at a time and use task management software such as Asana [OR ADD ANOTHER SOFTWARE OF YOUR CHOICE]. Software like [ASANA] will help you to manage your tasks better, giving you visibility of what needs to be done each day. It’s also a great tool for when you start building a team so that you can delegate tasks accordingly.
If you’re not yet in a position to employ a staff member, think about outsourcing the tasks you find time consuming or that you don’t enjoy. We can’t be perfect at everything! Getting the help you need can make all the difference to your mindset, health and wellbeing and the motivation you have for your business.
Keeping Up with Technology
I know it can be difficult to find the time to research the latest software, but knowing how to leverage the software available to you will give you back so much valuable time. Use technology to your advantage by using it to its full potential. Consider using automation such as Zapier to complete repetitive jobs. All these small 5 minute jobs add up and the more of these you can automate the more time you’ll get back to spend on areas of your business that need you most.
If you’re wanting to scale your business it’s important to overcome all of these challenges along the way. By surrounding yourself with positivity, developing a network of support around you, whether that be outsourcing tasks or just having someone there for you as a sounding board, can make all the difference to your growing business.
You don’t have to face these challenges alone. Business owners who ask for help, get to their goals much quicker, setting the stage for sustainable success and long-term growth.
Are you ready to make the changes you need for your growing business?
Book a call>>>
13 Jul 2024
When you think about planning a holiday, you probably picture setting a budget, researching destinations, and making sure every detail is covered to ensure a smooth trip. The same principles apply to budgeting for your business. However, just as you might hire a travel agent to take care of the intricate details of your trip, hiring a bookkeeper can streamline your financial planning process, giving you the peace of mind to actually enjoy that much-needed holiday.
Set Your Destination
Every great journey starts with a destination in mind. For your business, this means setting clear financial goals. Whether you aim to expand your operations, invest in new equipment, or build a cash reserve, having a target helps you chart your course. A professional bookkeeper can assist in defining these goals based on your financial health, market conditions, and long-term vision.
Determine Your Budget.
Just as you wouldn’t embark on a holiday without knowing your budget, you shouldn’t run your business without a clear financial plan. A bookkeeper helps you determine your budget by analysing your income sources and allocating funds to different areas of your business. [AT BUSINESS NAME] we ensure you cover all essentials whilst keeping some funds aside for unexpected expenses.
Research and Plan
In the same way you research hotels, flights, and activities for your holiday, a bookkeeper conducts thorough research to help you plan for business expenses. We will look into your business expenses and provide you with a detailed financial roadmap. We may even be able to help you save some money along the way!
Track Your Spending
On holiday, you keep track of your spending to avoid blowing your budget. Similarly, a bookkeeper monitors your business expenses, ensuring you stay on track. We provide regular financial reports, helping you understand where your money is going and making adjustments as necessary.
Review and adjust as needed
Just as you might adjust your holiday plans when new opportunities arise or costs change, your business budget needs to be flexible. A bookkeeper helps you adapt to these changes, reallocating funds based on actual performance and emerging opportunities, ensuring your business remains agile and responsive.
Enjoy the Journey
The ultimate goal of planning a holiday is to enjoy it. With a well-managed budget and the support of a bookkeeper, you can enjoy the journey of running your business. There will be no need for burying your head in the sand any longer when it comes to your business finances. Financial stability and accurate bookkeeping bring peace of mind, allowing you to focus on growth and innovation.
How Outsourcing Bookkeeping Frees Up Your Time.
Outsourcing your bookkeeping to InterTax not only ensures accuracy and compliance but also frees up valuable time. Time that you can use to plan your next business move or, even better, take a much-needed holiday without the constant worry of your business’s financial health. With a professional handling your books, you can relax, knowing that your financial affairs are in expert hands.
Budgeting is indeed like planning a holiday. It requires careful planning, tracking, and flexibility. By hiring a bookkeeper, you ensure that your business’s financial journey is as smooth and enjoyable as a well-planned trip. So, take the step to outsource your bookkeeping, gain true financial visibility, and most importantly, give yourself the freedom to enjoy that holiday you’ve been longing for. Your business and your well-being will thank you.
13 Jul 2024
As June rolls around, the anticipation of summer brings excitement for us at [YOUR BUSINESS NAME] but we also sense the touch of anxiety that business owners are feeling. Balancing the demands of your business with the desire to enjoy the sunshine can be challenging, and it makes sense. You have a lot going on. We’re here to help you enjoy the best summer you’ve ever had, and in this article, we’re pleased to share five ways to prepare for the summer, ensuring both your business and personal life run smoothly.
1. Organise Your Finances
Before diving into summer activities, take some time to organise your business finances. Review your cash flow, update your bookkeeping records, and ensure all invoices are up-to-date. Late payments can disrupt your cash flow and create unnecessary stress, so consider implementing a more efficient invoicing process. This will help you stay on top of your financial situation and avoid any surprises during the summer months.
Tip: Consider using bookkeeping software to automate invoicing and payment reminders. This will save you time and reduce the chances of late payments.
2. Plan for Staff Holidays
Summer is a popular time for employees to take holidays. To ensure your business continues to operate smoothly, create a holiday schedule. Encourage your team to book their holidays in advance, allowing you to plan for any necessary cover. This will help prevent staffing shortages and ensure everyone can enjoy their time off without disrupting business operations.
Tip: Use a shared calendar or project management tool to keep track of holiday requests and ensure there’s always adequate cover.
3. Streamline Your Operations
Efficient operations are key to a stress-free summer. Evaluate your current processes and identify areas where you can improve efficiency. Implementing new software or tools can help automate repetitive tasks, freeing up your time to focus on more strategic activities. Streamlined operations will not only improve productivity but also make it easier to manage your business while enjoying the summer.
Tip: Look into tools like project management software, CRM systems, and bookkeeping software to help streamline your business processes.
4. Schedule Downtime
While it’s important to keep your business running smoothly, it’s equally important to schedule some downtime for yourself. Taking regular breaks and enjoying summer activities can boost your mental health and productivity. Plan your time off in advance and communicate it to your team and clients. This will allow you to recharge and return to work with renewed energy and focus.
Tip: Consider setting up an out-of-office email response to inform clients of your availability and ensure they know when to expect a response.
5. Let your Clients know
Summer is a great time to strengthen relationships with your clients. Send out a newsletter with updates on your business, share useful tips, and let them know about any special summer promotions. How about a summer drinks reception at your offices? It’s a great way to keep your business top-of-mind, even during the slower summer months.
Tip: Use social media to share behind-the-scenes glimpses of your summer activities, showcasing the human side of your business. This can help build rapport and trust with your clients.
Final Thoughts
Preparing for summer doesn’t have to be overwhelming. By organising your finances, planning for staff holidays, streamlining operations, scheduling downtime, and engaging with clients, you can enjoy a smooth and enjoyable summer season. Taking these steps will help you make the most of the summer months without sacrificing your business’s success.
Enjoy the season while keeping your business on track. With a little planning and preparation, you can achieve both. Reach out to book a free call with our team Here’s to a productive and enjoyable summer!
21 May 2024
If there’s one figure you know in your business, I expect it’s your bank balance. And it’s a pretty important one.
But alone it doesn’t give you any information about what’s happening in your business. At InterTax we regularly speak to our clients about their cash flow forecast because it’s such a crucial part of the financial picture. Cash flow hasn’t traditionally been part of the service business owners expect from their bookkeepers and accountants, but as technology has changed, it’s so simple for us to plug your accounts data into a forecasting tool and give you even deeper, real-time insights into what’s happening in your business. But why would you need that?
In this article, I’ll share what your cash flow can tell you about your business.
What do you mean by Cash Flow?
Cash flow is essentially the net amount of cash and cash equivalents moving into and out of your business. It’s a critical indicator of your business’s financial health. Understanding the nuances of your cash flow can help you make informed decisions, predict issues in the future, and run a more financially stable business. Here are some of the insights that your cash flow can provide about the overall health of your business:
Operational efficiency
If you have more money in than out, you have positive cash flow. This indicates that your business is generating more money than it is spending. This is often a sign that your business operations are running smoothly and efficiently. Conversely, a negative cash flow might indicate operational challenges, such as high costs, poor inventory management, or inefficient processes that could be draining your resources.
Financial solvency
If you haven’t got cash, you can’t meet your financial obligations – no matter how profitable you are on paper. A consistent positive cash flow suggests that your business is solvent and can comfortably pay its debts, salaries, and other operational expenses on time. If you find your business frequently struggling to cover these expenses, there’s a problem – and your bookkeeper or accountant is a great person to help.
Growth potential
This isn’t about how much money you have coming in, it’s about where your money is coming from. Analysing where your cash comes from can tell you a lot about your business’s growth potential. For instance, reinvestment of cash into business activities like marketing, product development, or expansion can indicate a strategy geared towards growth. If your cash flow is healthy, you’ll have more flexibility to invest in new opportunities, if it’s not, you won’t.
Investor and lender attractiveness
If you’re looking for debt, investment, or even to sell your business in the future, your cash flow is vitally important in making your business attractive to investors and lenders. They often look for businesses with positive cash flow as it suggests a lower risk of investment.
Market conditions and consumer demand
Your cash flow can also reflect broader market conditions and demand for your products and services. For example, seasonal variations in cash flow might be normal in your industry but variations out of the norm could indicate a need for better cash management or a need for a change to your business model to accommodate changes in the market.
Conclusion
At InterTax the reason we care so much about your cash flow is that it shows the long-term viability of your business. Patterns of steady, positive cash flow over a long period are a good indicator that your business model is sustainable. On the other hand, if cash flow problems persist, it might be a sign that you need to make fundamental changes.
And if you’re anything like our clients, you’d like to have foresight of problems ahead as soon as you possibly can.
We regularly review our clients’ cash flow to equip them with the knowledge to make proactive adjustments when they’re needed. We want your business to be robust and responsive to internal and external pressures. If you’d like to talk more about your cash flow, book a call with us today, here.
1 Mar 2024
Running a business can be tough. There are so many things to think about, and it can be easy to get into bad habits or resort to short-sighted measures in order to earn or save a quick buck. In this blog post, we will discuss four bad business habits that you need to break today.
1.The pricing trap
Especially when you first start out in business, it’s tempting to offer discounts and deals left, right and centre in order to win over new customers. However, this can actually be very damaging in the long run.
When you underprice your services or products, you are trapping yourself into a cycle in which you can never increase your prices without losing customers. You also devalue your work in the eyes of your clients or customers.
The best way to break this habit is to start by charging a fair price for your services and products, and then gradually increase your rates over time. This will help you to build a strong reputation as a business that provides good value for money, and it will also make it easier to attract new clients. Focus on your brand positioning and reputation so that you’re not always forced to compete on price.
2.The DIY approach
When you’re starting out in business, it can be tempting to try and do everything yourself. After all, you’re the boss and you want to save money wherever possible. However, this can actually be very damaging to your business in the long run. By trying to do everything yourself, you’ll quickly become overwhelmed and bogged down with work, which prevents you from focusing on the most important tasks and from growing your business.
The best way to break this habit is to realise the value of your time. As the business owner, only you can take your business to the next level, whereas you could most definitely outsource admin, accounting or copywriting.
Learn how to delegate tasks to other people in your team and realise that outsourcing is more about saving money than spending it. This will free up your time so that you can focus on the most important things, and it will also help you to grow your business more quickly.
3.Always looking for the lowest price
When you’re starting out in business, it’s natural to want to find the best deals and the lowest prices. However, this can be very damaging to your business in the long run.
By always looking for the lowest price, you’ll find yourself skimping on quality, whether that means employing under-qualified staff, buying cheap materials or cutting corners in other ways. This can lead to poor customer service and a negative reputation for your business, which in turn traps you in a cycle of competing on price.
Of course, you don’t want to waste money, but when it comes to products, services, supplies and staff, remember to focus on value rather than price.
4.Not seeking financial advice
It’s easy to get into the habit of not seeking financial advice, especially when you’re starting out in business. After all, you’re the boss and you should be able to make all the decisions yourself, right?
Wrong. In reality, this is a very risky approach.
By not seeking financial advice, you’re putting your business at risk and you’re not taking advantage of all the resources that are available to you.
The best way to break this habit is to find a great accountant or financial advisor who can help you to make sound financial decisions for your business. This will help you to avoid costly mistakes, protect your business from risks and take advantage of opportunities as they arise.
Summary
The four bad business habits you need to break today are trapping yourself by undercharging, trying to do everything yourself, always looking for the lowest price and failing to seek financial life. These mistakes cause you to miss out on key opportunities that will help your business grow faster and in a more sustainable way.
The good news is that by breaking these bad habits today, you can watch your business grow and flourish for years to come.
Book a free call with us by visiting our website here.