Category: Sole Traders

Starting your own business after redundancy

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Facing redundancy can be incredibly challenging, but it could also be the perfect time to start a brand new career based on your interests, your lifestyle and your aspirations.
Does this sound too good to be true?
With these five steps, we can help you transform your redundancy package into your very own startup:

1) Take advantage of your notice period

Typically, you’ll need to work a notice period. Instead of worrying about what comes next, use this time to start planning your new venture!
Dive into research, enrol in training and network as much as possible. The sooner you can start, the better! After all, wouldn’t you prefer to plan for your future whilst you’re still on the payroll?

2) Develop a business plan

Success is all about strategy, so it is important to develop a business plan.
Every business plan will look slightly different, but the main areas you want to focus on are the:

  • Executive summary – create a brief overview of your business detailing what services you offer and what you intend to achieve.
  • Management bio – this is your opportunity to introduce yourself, your values and your professional experience.
  • Marketing plan – identify your target audience, USP and market competitors before explaining how you intend to attract your desired audience.
  • Financial plan – because you’re just starting out, your financial plan will be primarily made up of projections (sales projections, expensive projections, cash flow projections etc.). Make sure you’re thorough with your research if you intend to achieve accurate estimates.

Your business plan will become the blueprint for your company, so the more information you can include, the better – particularly if you want to attract investors!

3) Address any legalities

To establish a legitimate business, you need to fulfil certain legal requirements. Now, these requirements may vary depending on your business model and industry, so it’s always worth checking whether you need to obtain a specific type of permit or insurance.
You can find these answers by visiting the government website or checking with your relevant industry bodies.
It is also worth hiring an accountant early on to advise you on the financial aspect of your business.

4) Open a business bank account

This next point is directed specifically to our sole traders. Although you don’t have to open a business account, we strongly suggest you do. It will make your bookkeeping 10x easier! So unless you want to waste your time separating your expenses and risk receiving a penalty, you should seriously consider setting up a business bank account.
If you are starting a limited company this is also something you will need to do, however it is essential rather than it just being strongly advised.

5) Set yourself boundaries

Starting a business is an exciting endeavour. However, it can become all-consuming. So for our final point we wanted to discuss the importance of setting yourself boundaries and practising self-care.
Firstly, give yourself some grace. Redundancy is incredibly difficult to navigate, so try not to be too hard on yourself – especially during those early days.
And secondly, start as you mean to go on. Give yourself lunch breaks, take time off and allow yourself opportunities to relax. Only then can you avoid burnout and achieve sustainable growth.

When life hands you lemons, make lemonade


No one wants to be made redundant – but that doesn’t mean it has to be all doom and gloom. Instead, this could be the start of your exciting adventure into entrepreneurship! So take the chance, pursue your passion and totally transform your career. You may just find redundancy works in your favour.

Payments on account

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If you complete a tax return you may have to pay your tax twice a year. This sounds like it should be bad, but it can be a helpful way of spreading your payments throughout the year.

What are payments on account?

Payments on account are made twice a year and are payments that you make towards your next tax bill. It is a way of bringing the tax collection closer in line with those who pay their tax monthly through PAYE.

Who has to pay?

If the tax liability on your last submitted tax return was over £1000 then you will automatically be set up for payments on account.

When do I have to pay?

You pay twice a year with payment deadlines on January 31st and July 31st however you can pay before these deadlines.

How is it calculated?

HMRC will use your previous tax bill to estimate how much tax it thinks you will be paying next year. It will then half this amount and charge you this in January and July, so in the following January you only have to pay what is left over, if any, and potentially the next payment on account. If you have overpaid, you will receive a refund, or if completing your tax return close to the deadline it will be deducted from the next payment on account.

Can you reduce how much you pay?

If you think your taxable income will reduce for the following year you are able to apply to reduce your payments on account.  They can be reduced through your tax return or via an HMRC online account by either your agent or yourself.  Payments on account cannot be reduced by too much as if your tax liability is higher than the reduced amounts when your actual tax return for the year is complete HMRC will charge interest for the underpayments and potentially penalties.

If you have collated your information for the year prior to the July second payment on account deadline the filing of the actual tax return can replace the estimated tax due if the tax liability for the year is lower than the prior year.

New to self assessment? – watch out

If you are new to self assessment or have never paid payments on account before it’s worth putting money aside throughout the year so that you don’t get caught out.  This is because the first time you become part of the payment on account regime you could have to pay 150% of the tax liability in January.  This would be 100% of the tax from the prior tax return and 50% again for the following tax return. This first experience can feel like a shock, but it will make the next payment in the following January easier.  This is because you would have already paid 100% of the prior year’s tax to deduct from the total.

How to pay

Simply log in to your government gateway and follow the instructions. Alternatively you can pay by phone, bank transfer or a number of other different way. The details of this will be on the letter you receive from HMRC, or on the HMRC payment guidance online.

We hope this helps clear up some of the questions regarding payments on account. Your government gateway account will always show your upcoming payments so we really do recommend setting one up. If you have any other questions regarding payments on account just give us a call and we will be happy to help.

Why sole traders need a separate bank account

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If you are just about to become a sole trader, or have been one for a while, you might be wondering whether it is worth getting a separate bank account for your business. There is no legal requirement for sole traders to have a separate bank account for their business unlike Limited Companies which are required to do so. This is because HMRC views Limited Companies and the Directors as separate legal entities, whereas sole traders and their businesses are viewed as the same. Therefore a Limited Company is required to keep its bank accounts separate from the personal accounts of the directors. For more information about the differences between these two business structures read our blog.

We usually recommend that all of our sole trader clients get a separate bank account for their business. Here are some of our reasons:

1) It makes your accounts more accurate

Having a separate bank account for your business income and expenses has the obvious advantage of being able to keep any other income and private expenses separate. This will stop any chance that they could become mixed up or confused which will in turn ensure that your bookkeeping and accounts are accurate.

2) It stops you missing anything

Similarly, if all of your business expenses are in one account then you know you will not miss anything. It can be very time consuming to go through your personal account and pick out the transactions that relate to your business, so with a separate account you (or your bookkeeper) will not have to do this!

3) It helps to keep your numbers up to date

If you have your accounts separate and your bookkeeping up to date then you will have a better overview of how your business is performing.

With a personal account, you may not be able to get as clear a view of what your numbers are which could lead to making incorrect business decisions.

4) It makes HMRC inspections easier

In the event that you get an inspection from HMRC, the first thing they will look at is your business account. This means that you won’t have to hand over your personal bank statements to them in the first instance. This process is likely to be a lot more straightforward if HMRC only have one bank account to look through.

5) It makes bookkeeping in Xero easier

We can set your Xero up so that it has a bank feed running to your sole trade bank account. This will mean that we won’t see your personal transactions or need you to send in bank statements for any other account. This could also save you money as our bookkeeping service includes up to 50 transactions per month. Using a personal account is likely to put you over this!

We recommend…

Some banks may charge a monthly fee for a business bank account. You don’t necessarily need to have a specific business bank account set up, however some banks do specifiy in their terms and conditions that you cannot use a personal account for “business use”.

Some banks however do specific bank accounts for sole traders, and don’t charge a monthly fee! We particularly like this one from Starling Bank https://www.starlingbank.com/sole-trader-bank-account/

(We are not affiliated with Starling Bank)

As you can see, it makes so much sense to keep a separate bank account for your sole trade business. It will save you & your bookkeeper time and hassle and make sure that you don’t include or miss anything important from your accounts.

Sole Trader VS Limited Company: Which is better for you?

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Have you been thinking about switching to a limited company because of the upcoming changes due to Making Tax Digital? Has anyone told you that you could be paying less tax as the owner of a limited company instead? We will take you through what the differences are and ultimately help you make the right decision for you & your business.

Regardless of whether you stay a sole trader or become a limited company, if you make a profit in your business then you will have to pay some level of tax. Changing your company structure may change how you pay tax and may be beneficial for some, however there are other factors to consider as well as tax.

What is the difference between a sole trader and a limited company?

If you are a sole trader, then HMRC and the law view you & your business as the same thing. This doesn’t stop you from hiring staff or taking on premises, but what it does do is mean that you are personally liable for any losses or debts that your business makes. The good news is that as a sole trader you can keep all your business profits! Just remember that these business profits will then be taxed as part of your personal income.

A limited company however is a separate legal entity. It will have its own finances and legal reporting requirements, and Its finances must be kept separate from the business owner’s personal finances. As your limited company is a separate legal entity this means that as the director of your limited company you will have limited liability on any losses or debts incurred by the business. However, it is important to point out that if your company takes on any borrowing then the lender may place a personal guarantee on the directors of the business. In other words, if the business is unable to pay back the loan then the directors will be personally liable to pay back the loan.

What are the advantages to being a sole trader vs a limited company?

Setting up as a sole trader is comparatively straight forward. You simply need to register with HMRC for income tax and national insurance to receive your Unique Taxpayer Reference (UTR) number and you can start your business straight away.

There is also relatively little paperwork or administration, although the changes being brought in by Making Tax Digital mean that sole traders will have a legal obligation to keep their accounting records digitally up to date. You will no longer be able to only keep paper records and hand your receipts to your accountant once a year. This makes it easier to understand your finances, your profitability, and how much tax you are likely to pay, and see it in real time. As there is less administration and filing responsibilities, it also means a smaller accountants bill compared to a limited company!

One of the little realised advantages of trading as a sole trader is your financial affairs are very private. They are between you, your accountant and HMRC. There is no requirement, such as with limited companies, to put your annual accounts into the public domain on Companies House.

In your first period of account, if you are likely to make a taxable loss this can be relieved against profit from the past, even if this is from a prior employment, whereas in a limited company this can only be carried forward until a profit is made.

And finally, as a sole trader you are in complete control of your business affairs. You don’t need to consult any shareholders or partners to make decisions.

What are the disadvantages of being a sole trader vs a limited company?

Banks and other investors tend to prefer working with limited companies. This means it can be harder to raise finance as a sole trader. Whilst it is still possible to grow without external funding it can be much slower. After all, most businesses need to buy some equipment, vehicles, stock, or tools to be able to start trading.

It’s not just banks and investors who can look down on sole traders. Many businesses and customers prefer to work with a limited company vs a sole trader as they believe, whether rightly or wrongly, that they will have more protection with a limited company. However most ‘Business to Consumer’ sole traders are unlikely to have this problem with credibility. For example, a householder is rarely concerned whether a plumber is a sole trader or a limited company, they just want a good job done.

Historically the tax rates on sole traders have been more punitive than owners of limited companies. However, over the last 5 years or so this tax gap has reduced significantly with the dividend tax relief being slashed. Currently sole traders pay 20-45% income tax, whereas limited companies pay from 19% corporation tax. However, directors of limited companies must still pay personal income tax between 20-45% on any income from the business via payroll. Dividends from the business are also taxed.

As a sole trader you cannot protect your business name. Anyone can decide to use your business name. This is not the same with a limited company.

What are the advantages of being a limited company vs a sole trader?

The biggest benefit of incorporating and becoming a limited company is the limited liability and the business being legally entirely separate from the people who own it. This means that your personal assets will be secure should your company get into debt or other trouble.

A limited company can also be more attractive to work with – depending on your clients. You can appear to have more credibility and trust as a limited company over being a sole trader and depending on your industry this could make a difference in who decides to work with you.

Another benefit is that you are more able to control your income as a limited company director. By splitting your income between salary and dividends you may be able to reduce your tax bill. Dividends are taxed at a lower rate than income and the first £2000 is tax free.

While you pay corporation tax on all the profit, there is no getting away from paying tax, it is possible to accumulate wealth within the company if you do not need to extract it all and save tax that would be assessable on you if you were a sole trade.

What are the disadvantages of being a limited company vs a sole trader?

Limited companies are more complex to set up and run. There is far more paperwork and administration involved with a limited company. For example:

  • Confirmation Statement with Companies’ House
  • Filing company year-end accounts
  • Corporation tax return
  • Registering with companies house
  • Legal documentation such as articles of incorporation, shareholder agreements
  • Minutes of board meetings and preparation of dividend vouchers

Therefore, having a limited company means it is really advisable to pay for an accountant.

Directors of limited companies still need to:

  • File a personal tax return (which will eventually come under the Making Tax Digital regime)
  • Pay personal income tax

Why change from being a sole trader to a limited company?

When people start in business they often start as a sole trader. After all it is easy to set up and often has less administration or accountancy fees involved than a limited company. There often comes a time when it makes sense to switch over; either because of a desire to involve others in your business in a decision making capacity or pay less tax or become more attractive to potential clients or investors. In fact, when your sole trader profits (not just income) reach £30k it is worth considering changing to a limited company to reduce your tax liability.

Everyone’s circumstances are different and before you decide to make the change do take advice from your accountant. You may find that you are better off remaining as a sole trader.

If you would like more information or advice on whether you should remain a sole trader or become a limited company please get in touch now.

Why do we ask for your bank statements?

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Depending on which service you are on, you will find that you receive requests from members of our team asking for copies of your bank statements.  You may receive different emails from different team members depending on the work they are undertaking for you.  Whilst we try to eliminate asking for the same information on multiple jobs sometimes there are instances where information is requested more than once.  This may be sent as part of an auto request from our system, then again manually by an individual looking at your records in real-time.
We would like to clarify why you are asked for these and why it is so important they are provided to us when asked.

Why do we request copies of your bank statements?

We request copies of your bank statements to check the balances in your accounting software are correct and that all transactions have been correctly accounted for.  Many of you will have ‘bank feeds’ from your bank accounts which feed transactions directly into your accounting software.  Whilst bank feeds are usually reliable there can be instances where they drop out for security purposes or there are blips where transactions are missed or duplicated by the feed.  In order for us to spot these errors in a timely manner, and to ensure your records are always as accurate as possible, we will ask for copies of your bank statements for a given period or as at a given date to check.
If entering transactions from your bank account manually into your accounting software without bank feeds there is always a larger risk of errors – if you would like to discuss bank feeds with us or you need any help with this please get in touch.

When will we request copies of your bank statements?

Depending on your service levels with us or the nature of your business you will get asked for statements at different intervals.  This could be in relation to the following jobs:

  • Bookkeeping service (once a month)
  • Monthly Review (once a month)
  • Quarterly Review (once a quarter)
  • Year-end accounts – 3 months before your year end as a 9 month ‘Health Check’ and again once your year-end date has passed
  • Sole trader accounts and tax return – annually (unless you have our sole trader bookkeeping service)
  • Ad-hoc – if we (or you) notice there has been a problem with the bank transactions or feed we may ask for copies at unusual intervals

How do you upload your statements for us?

You will receive an email from us that looks something like the email on the right.
To upload your bank statements, you need to click on “manage checklist”. The next page will ask you to input your PIN. If this is the first time you have done this process then you will be asked to create one. If you have forgotten it, there is a link underneath to reset it.


You will then be taken to your checklist where you can upload your statements. You will also be able to see the due date, exactly what we need from you, and be able to send us a message using the comment function. There is no “submit” button, but once everything is uploaded we will be able to access it at our end and will be notified that you have uploaded your statements.
The system we use is called Karbon and it is completely cyber-secure and GDPR compliant so you do not need to worry about your information.

What happens if the bank balance in your software does not agree to your bank statements?

If we complete your bookkeeping we will identify and correct any bank issues as part of our service at no extra charge.
If you complete your own bookkeeping we will help you identify the difference.  We can complete any corrections for you for a fee (on request), or alternatively you can complete the corrections yourself. If you complete your own bookkeeping we would advise you check the bank balances in your software to the bank statements weekly ideally or monthly at the latest to make sure any error are picked up in good time. If you need any help with this or are struggling with your bookkeeping please get in touch.

quiz

The Self-Employment Quiz: Can You Make It Work?

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Self-employment can be a great option for people who want to spend more time with their family or want the freedom and independence that come with running their own business. But is it right for you?

To find out, take this quiz:

**Answer each question with a Yes or No

1) Are you confident in your skills and expertise?

2) Do you have skills and passion for the business you’re considering?

3) Do you enjoy working alone?

4) Do you have good time management skills? (E.g. can you juggle multiple tasks and responsibilities at the same time?)

5) Are you self-motivated and disciplined enough to work without someone telling you what to do? (E.g setting your own deadlines)

6) Are you confident in your ability to take on a variety of roles—marketing, business management, accounting, etc.?

7) Are you a quick learner and do you like to learn new skills?

8) Do you find yourself coming up with and pursuing new initiatives?

9) Can you handle making decisions on your own when things get tough?

10) When things go wrong, are you able to pick yourself up and problem-solve?

11) Do you have the knowledge and skills to make your own product or service?

12) Do you know how to promote yourself so that others will buy from you?

13) Would you be comfortable reaching out to a network of peers or contacts to establish meaningful and lasting relationships?

14) Are you able and willing to forego your paycheck in the early years, in order to earn income from offering your own products and services? (E.g. Can you live without an income until your business reaches breakeven?)

15) Are you willing and prepared to work long hours in the beginning?

16) Are people in your life aware of the effect a drastic change in your lifestyle, career path, or financial stability may have?

17) Can you live with high levels of uncertainty?

18) Are you resilient? (E.g mentally and emotionally)

19) Are you resourceful?

20) Do you regularly set and accomplish personal goals?

Give yourself a point for every Yes answer and give yourself a mark out of 20. If you scored 16-20, you have the best chance of success if you choose to become self-employed!

If you answered “no” or “maybe” to a lot of the questions, self-employment might not be the right path for you or you might have some work to do before it’s the right time.

By no means is this self-employment quiz the decider for whether you choose to run your own business or not. However, it is based on the qualities, skills, and traits you will need to become a successful entrepreneur!

If you want to go for it and become self-employed, look at where your ‘No’ answers are. If you know you’re not good at managing money, consider getting an accountant or bookkeeper for your small business as early as possible. If you’re not comfortable with networking or sales, take some online courses and start practising little and often.

Even if these are not qualities or skills you have a natural proclivity for, you can plan to cultivate them over time.

surprised face

7 Ways an Accountant Can Save You Money

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In today’s competitive business world, it is not uncommon for people to do their own bookkeeping and accounting. There are many reasons why this is done – the most common being that you can save money doing so. Of course, saving a couple of hundred pounds is an enticing prospect, but there are actually many more ways in which hiring the services of one will help you make money instead. Here are 7 ways an accountant can save you money:

1) They free up your time

Time IS money, so the more time you free up doing your bookkeeping, taxes, and financial statements, the more time you can dedicate to the tasks that will actually generate money for your business.

Not to mention that it will take you a lot longer to do all your finances than a professional anyway. Why would you waste your time when you could be doing what you do best and what you actually enjoy?

2) They help you be more tax-efficient

Accountants can help you save money by being more tax-efficient. This means claiming what you can, obtaining loans if you are entitled to financial support, and maximising the tax deductions you are entitled to.

3) They help you avoid fines and penalties

You need to file your taxes correctly and you need to do this on time. With legislation changing all the time, this isn’t easy, and you could be leaving yourself vulnerable to penalties and charges, simply because you didn’t know.

By hiring an accountant, you can always be reassured that you’re filing on time and that your taxes are correct. You can have peace of mind that you won’t get a surprise letter from HMRC and you don’t even have to deal with them at all if you don’t want to.

4) They identify opportunities for growth

Accountants keep your records up-to-date so you will always know the figures of your business. At a glance, you’ll be able to see how you’re performing, what’s coming in and what’s going out, and also your liquidity.

There is power in data! For example, your accountant can help you ascertain how long you could survive if there was a recession, where you can cut down expenses to save money, and where you should be delegating most of your budget if you want to grow.

5) They assist in gaining funding

It takes a lot of time to secure financing from banks and as we said previously, time is money. Your accountant can help you secure loans and financing really easily from creating a business plan and helping you budget to applying and assisting you in the loan process.

6) They advise on investments

If you’re interested in investing, an accountant can help you understand different investment options. From stocks and money markets to real estate and investment vehicles, they can show you how you can grow your money and which opportunities are the best for you and your business.

7) They offer invaluable business advice

As well as accountancy, accountants can offer business guidance to help you increase your chances of success. They can help you build a business from the ground up; they can help you with goal setting and planning, budgeting and forecasting, and pricing to increase your profit margin. This isn’t even everything that’s included in their advisory services so make sure to take advantage of their knowledge.

Spend money to make money

While you can save a couple of hundred pounds doing your own books, you won’t save as much with an accountant and you could actually end up losing a lot more. With an accountant on your team, you can save both time and money while having the reassurance and peace of mind that you’re making sound business decisions for your future.

piggy bank

10 tactics to make sure your invoices get paid.

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Wouldn’t life be simple if you could guarantee that your invoice would get paid on time every time? Sadly, this isn’t always the reality. With the economy coming out of recession, there is a very clear and present danger that your business invoices may not get paid in a timely fashion. Here are our best tips for getting your invoices paid:

1 . Invoice promptly

The longer you take to invoice someone, the more likely the bill won’t get paid. Of course, no invoice normally means no payment… Do you remember the early days of running your business? When you were amazed that some business owners got lax with their billing? Then, you get busy servicing your customers and clients and the admin slips. Before you know it, you become that business owner who has become slow to invoice.

If you are finding that you are getting behind on your admin, then give us a call. We can take care of your bookkeeping and other financial processes to leave you free to run your business.

Cloud accounting software such as Xero, include the feature to do recurring invoices. So, where you have a regular repeating invoice for the same amount with a customer, use this recurring invoice feature to cut down the chance of missing an invoice.

2 .No billing surprises

The more unexpected a bill, the more likely it won’t get paid. If a project is going to occur some extra expense or cost, always talk to the client or customer promptly about it. If you just crack on with it and don’t tell the customer about the unexpected cost coming their way, you risk getting into a payment dispute.

Before you bill someone, always make sure that:

  • They are aware and expecting the bill
  • They have agreed to pay the bill

3. Set up a Direct Debit or payment mandate for your customers and clients

If you have regular customers, getting a direct debit mandate signed from them is a great way to be more in control of when they pay you. GoCardless is an inexpensive direct debit solution that integrates well with the likes of Xero. Our team can help you set up Direct Debit for your customers.

4. Make it easy to pay your invoice

This is such a simple one but easily missed. Make sure you are removing any barriers to pay your bill. Such as:

  • Including a ‘pay now’ button linked to a payment gateway on your invoices. For example, Xero will do this for you with your Stripe account. Some customers may be happy for you to type in their card details over the phone using this option.
  • If you visit the customer on-site, then have the means to take payment whilst you are on site. E.g. with a card machine. Technology is such that you can easily connect a gadget or download an app to your phone to take card payments. No need for an expensive and bulky card terminal.
  • Including your bank details on the invoice. (You will be surprised how many businesses and tradespeople don’t do this).
  • Offer your customers the option to do a bank transfer, set up a direct debit or pay by credit card. If possible, try to avoid offering the option to pay by cheque as getting to the bank can take time.

5. Ask for payment before you start working for the customer or client

There is no rule saying you can only invoice after you start work for a client. In fact, we will ask for payment upfront for some of our services, such as a client wanting a one-off tax return. If you (or your customers) are not happy with a 100% upfront payment, why not ask for a deposit to get the work started?

6. Build a relationship with the accounts payable team at your customer

It always helps to be nice to the person at your customer’s business who actually pays your bill. The stronger the relationship you have with them, the more chance your invoice gets paid promptly and without being ‘delayed’. This may not be your direct contact. It could be someone in their finance or accounts payable team. So, who in the customer’s organisation is responsible for accounts payable? Can you get their name and contact details to help ‘ease the way for your invoice to be paid’?

7. Understand your customers’ accounts payable process

Do you need a PO number on your invoice? How does the invoice need to be addressed and who too? What needs to be on the invoice for it to be paid promptly? Who at your customer’s organisation needs to sign off the invoice before it will be paid? Who in the customer’s organisation is responsible for accounts payable? And can you get their name and contact details to help ‘ease the way for your invoice to be paid’?

When a finance department is preserving cash for a business, they will reject an invoice for payment for the smallest reason.

8. Put in place a process for unpaid invoices

For example, this could include a series of communications when the invoice is issued. Then a call or email the day before the invoice is due to see when it is going to be paid. Then a series of calls or emails a number of days and weeks after the invoice is due to be paid.

Most accounting systems such as Xero will have a feature for automated reminders for invoices. If you need more than the basic invoice chasing that this software will provide, consider using a more sophisticated credit control tool such as Chaser.

9. Consider offering a payment plan for customers who have built up a large unpaid debt

Most customers want to pay your bill. But sometimes stuff gets in the way. So consider offering a payment plan. Getting paid over 6 months in instalments is better than not getting paid at all.

10. Stop work if your invoices don’t get paid

We see this regularly. Where a business owner carries on working for a customer in the hope that the invoices will get paid eventually. The debts pile up and may never get paid. You’ll be surprised how quickly your unpaid invoices may get paid if you stop working for a client.

how to build your business

How to build your business (not your workload)

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If you want to build your business (not your workload) and you want to spend time on doing the things that will actually grow your business, you need to stop being a ‘busy fool.’ This means no more firefighting through the days and spending most of your time doing things that don’t contribute to your overall goal.

To build your business, you need to take control of your time and use it wisely. Here’s how.

Invest in the right workflow tools

There are bound to be inefficiencies in your existing processes, so identify them. Where are the bottlenecks in your processes? Can you automate any manual tasks?

One of the best ways to start working slicker is to invest in the right workflow tools. They can make management, collaboration, tracking progress, and daily operations so much more efficient.

Prioritise high-value work

To stop spending so much time on unnecessary tasks, start prioritising effectively. Use the Urgent Important Matrix to do this.

Group your tasks into 4 quadrants:

  • Q1: Urgent and important – these are emergencies that arise (e.g. missed deadlines, complaints, technical failures, pressing problems etc).
  • Q2: Important but not urgent – these are the tasks you need to do to grow your business (e.g. goal setting, growth planning, networking, self-development, business development etc).
  • Q3: Urgent but not important – these tend to be interruptions that take up the majority of your time (e.g. phones, texts, emails, unproductive meetings and reports etc).
  • Q4: Not urgent and not important – these are distractions that cause you to procrastinate and have no value to your business (e.g. personal phone calls, social media, excessive or irrelevant emails etc).

Once you’ve grouped your tasks, you will know what you need to focus on and what you need to avoid.

Delegate low-value work

Now you have identified tasks that need to be done, delegate the low-value work to your team so that you can focus on the ones that require your level of skill.

If you delegate effectively (i.e. delegating authority as well as tasks), you can be reassured that the day-to-running is ticking along while you’re focusing on the tasks that will grow the business.

Schedule time in the diary for business development activities

You need to invest more time in quadrant 2, doing the planning and budgeting and development activities that will grow your business. You know this, but if you don’t schedule it into your diary, it won’t get done.

If you prioritise these tasks and delegate the rest, you will have time to sit down and focus on them. You just need to find the best days and times where you can work productively and without any interruptions.

Build your business

It really is as simple as that. To build your business, not your workload, you need to follow these 4 steps. When you do these consistently, you’ll find that each day follows a much calmer formula:

  1. DO – those important tasks that need to be done today.
  2. SCHEDULE – the important but not so urgent tasks, so that they will get done.
  3. DELEGATE – the urgent but not so important tasks.
  4. AVOID – the non-urgent, non-important tasks.
Yellow and pink zig zag

Can anyone get a tax enquiry?

Posted on | by admin

Each year HM Revenue & Customs (HMRC) undertake an enormous number of tax enquiries into individuals and businesses to check they have paid the right amount of tax. Since 2010 HMRC have strengthened their approach to enquiry work by using wider powers and sophisticated software and consequently a record £36.9 billion of additional tax revenue in 2019/20 up £2.4 billion on the previous year.

Moving forwards we expect to see an even greater increase in the number of tax enquiries as HMRC look to revoke the enormous £350bn government spend through the Covid-19 pandemic, as well as ensuring that measures put in place to support the economy through this period have been utilised correctly by taxpayers.

Tax enquiries can last for months, even years and defending you against HMRC’s detailed questions requires specific expertise and can be time consuming and costly. Indeed the cost of dealing with an enquiry can amount to thousands of pounds, even if no extra tax is payable.

But no need to panic…. 

All of our 1 Accounts monthly fixed fee services cover the additional professional costs of handling tax enquiries and compliance checks this is through our Tax Fee Protection Service. This is so our clients never have to worry that they will get a huge unexpected bill if HMRC decide to investigate.

As an additional benefit this protection also provides our clients with complementary telephone access to employment, health & safety and general legal advisors, including support from employers with any adjustments made in response to the Covid-19 pandemic.