Privacy Policy Statement

This website is controlled and operated by ABC Accounting Services. All comments, queries and requests relating to our use of your information are welcomed and should be addressed to:

Marketing Dept

Flexadux House

Grange Road

Corringham Road Industrial Estate

Gainsborough

Lincolnshire,

DN21 1QB

We can be reached via e-mail at info@abc-accounting-services.co.uk or you can reach us by telephone at +44 1427 613613

Data Protection

We are committed to protecting the privacy and confidentiality of information provided by all users of our website. Accordingly we uphold the relevant data protection principles and process your personal data in accordance with the Data Protection Act 1998. Please read this privacy policy statement to understand how we use and protect the information that you provide to us.

By visiting this website, registering for an account or forum, purchasing goods or otherwise providing information to us via this website, you consent to the collection, use and transfer of your information under the terms of this policy.

Any changes to this privacy policy statement will be posted to this website. Please check regularly for updates.

Collection of Information

When you visit, register or make purchases on this website you may be asked to provide certain information about yourself including your name, company name, contact details including address(es), telephone number(s) and fax number(s), VAT number and date of birth. We may also collect information about your use of our website as well as information about you by the use of cookies (see below), and e-mails or letters you send to us.

Cookies

Cookies are small amounts of information which are stored on your computer. Using cookies enables us to monitor website traffic and to personalise the content of our site to your requirements. This maximises the benefits you gain in using our website and makes it easier for you to log on and use the site during any future visits.

We may use cookies to collect information about your use of our website whether you register on our site or not. As soon as you enter or register on our site, our system may issue cookies to your computer whenever you log on.

You may disable the use of cookies in your Internet browser but this may limit your access to our website or adversely affect your use of features or functions on certain web pages on it.

Web Beacons / Clear Gifs

A web beacon is a transparent image placed on an email or web page. It provides us with a simple record of users’ actions when they open an email containing a web beacon / clear gif. ABC Accounting Services use a web beacon to monitor email communications that are sent for marketing purposes. This is to personalise your marketing information and make your experience more user friendly. It allows us to make sure that subscribers are receiving our emails and are not missing out on any offers through emails being caught up in spam filters. If you do not wish to have your emails monitored for an improved customer experience please disable the automatic download of pictures in your email client or send an email informing us of your request to info@abc-accounting-services.co.uk. On receiving an email regarding this matter we will remove web beacons from emails that are sent to you.

Use of your Information

Your information will enable us to provide you with access to all parts of our website and/or forums, to administer accounts and/or orders and to provide you with other services and information. It will also enable us to process and complete orders, to process payments and/or to bill you and to contact you were necessary.

In particular, we may use your information to contact you for your views on our services and to notify you occasionally about important changes or developments to them or to the website. Where you have consented to us doing so, we might also use your information to let you know about other services which we offer which may be of interest to you including forthcoming events and we may contact you by post, telephone or fax, as well as by e-mail. If you no longer wish us to contact you, please let us know. Users have the right to ask us to stop processing their personal data for direct marketing purposes at any time.

We do not partner with or have special relationships with any ad server companies.

Disclosure of your Information

The information you provide to us will be held on our computers in the UK and may be accessed by or given to our staff and third parties within, and occasionally, (where necessary to fulfil and deliver orders) outside of, the EEA. Those parties process information, fulfil and deliver orders, process credit or debit card payments and provide support services on our behalf. We may also pass aggregate information on the usage of our site to third parties but this will not include information that can be used to identify you.

To help us make credit decisions about you, to prevent fraud, to check your identity and to prevent money laundering, we may search the files of credit reference agencies who will record any credit searches on your file and/or those of your principal directors/shareholders where relevant. We may also disclose details of how you conduct your account to such agencies. This information will be used by other credit grantors for making credit decisions about you and the people with whom you are financially associated, for fraud protection, money laundering prevention and occasionally for tracing debtors.

Unless required to do so by law, we will not otherwise share, sell or distribute any of the information you provide to us without your consent.

We employ security measures to protect your information from access by unauthorised persons and against unlawful processing, accidental loss, destruction and damage. We will retain your information for a reasonable period or as long as the law requires. Countries outside of the EEA do not always have strong data protection laws. However, we will always take steps to ensure that your information is used by third parties in accordance with this policy statement.

Links

We are not responsible for the privacy and data protection practices of other websites which may be reached through links contained in this website. Users should be aware when they leave this website and move into any linked website and should read the privacy and data protection policies and statements contained on any such linked website.

Accessing and Updating

You are entitled to see the information held about you and you may ask us to make any necessary changes to ensure that it is accurate and kept up to date. If you wish to do this, please contact us. We are entitled by law to charge a fee of £10 to meet our costs in providing you with details of the information we hold about you. You may also view some of the information held about you by logging into your account.

Cookie Policy

Google Analytics sets cookies to help us accurately estimate the number of visitors to the website and volumes of usage. This allows us to monitor our website and make sure you have the best experience when browsing. The data provided by Google is anonymous and only gives us insight into the browsing habits of visitors, so that we can see if pages aren’t functioning correctly or if a visitor is having navigation problems.

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For more information about Google Analytics visit Google Analytics website.

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This cookie is essential for maintaining the user’s session and is set upon your arrival to the ABC Accounting Services Website. This cookie is deleted when you close your browser.

Removing and disabling cookies

If you do not wish to accept cookies on to your machine you can disable them by adjusting the settings on your browser. However this will affect the functionality of the websites you visit.

Google Adwords Conversion Tracking

We use Google Adwords Conversion tracker which uses cookies to help us determine how many people who clicked on our Google Ads end up contacting us through the website. This tracking cookie is set on your browser only when you click on a Google Ad and these cookies help us increase the website’s effectiveness for our visitors. These cookies expire within 30 days and do not contain information that can identify you personally. Please refer to the Google Advertising Privacy Notice for more information about Google Conversion Tracking and the ability to opt out.

Google AdWords Remarketing

We use Google AdWords Remarketing which uses cookies to help us deliver targeted online adverts based on past visits to our website. Google uses this information to carefully display ABC Accounting Services adverts on various third party websites across the internet. These cookies are set to expire and do not contain information that can identify you personally. Please refer to the Google Advertising Privacy Notice for more information about the ability to opt out.

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As a business owner, it is crucial that your accountant has all the appropriate records, this allows them to efficiently execute their profession and legally minimise your tax bill!

Do you need to know what information your accountant requires to handle your finances? Below is a checklist of documents you should share with your accountant, following this list will significantly help your accountant prepare your accounts and tax returns;

Accounts records;

• You will need to send over ALL your bank statements for your business or businesses. This means statements for the whole period! Including statements from all relevant accounts too.
• Loan statements – despite only receiving calendar yearly statements, in order to benefit fully, you should request the closing balance from your year-end date from your bank. Interest built up is a tax-deductible expense!
• Business credit card statements – send these over too! If you occasionally, or regularly use your personal credit card for business expenses, send over these statements with highlighted relevant transactions.
• Finance agreements – if you have taken out any new finance agreements within the year, let your accountant know, again the interest on repayments is a tax-deductible expense. Your accountant will categorise these agreements under your business’s investment allowance. Avoid a BIG tax bill!
• If your accountant does not run your business payroll, they will require you to provide all your payroll records for the year. Specifically, your accountant will need print outs of each month’s pay run displaying your employee’s NI number.
• The year’s sales invoices – this includes unpaid ones too.
• To avoid increasing your tax bill make sure you provide all of your purchase invoices and expenses receipts!
• Petty cash receipts and balance at the year-end.
• An estimated stock value!

Tax return records;

• If you have any employment income, provide your P60, OR if at any point during the business year, that income ceased you will need to provide your accountant with your P45.
• If you received a P11d at any point this needs to be given to your accountant to avoid any misunderstandings with the HMRC!
• Details of any private pension payments made
• ALL bank interest received – send these figures and details over to your accountant, including any from your savings accounts. HMRC will be aware of these details already so don’t miss any out!
• All dividends received during the year – no matter how little or insignificant some may seem; they all need to be included.
• Your rental income – your accountant needs to have your property management expenses. Any rental net via an estate agent or mortgage interest, these details are important.
• ANY other income you may have received during the year. Another self-employment? Have you sold a property? Sold any shares?

If you are ever unsure about what needs to be declared, you can always run it by your accountant first. They’re qualified to know what’s best in this field, you know! As well as caring for all of your paperwork and working to legally minimise your tax bill, accountants are advantageous professionals, through experience they can offer useful business advice and business problem solutions, so use them wisely.

The post What Your Accountant Needs To Know appeared first on ABC Accounting Services.

When should I register with HMRC?

As soon as your business starts operating and trading you must register with HMRC. As with any new business, there’s probably a few things you need to do before you officially launch your business. Such as buying stock, securing deals and arranging the finer details. We advise to register sooner rather than later on the HMRC website to avoid any misunderstandings with them. Costs for those tasks you did before officially launching you are able to claim for. Make sure you keep invoices and receipts and record how much you’ve spent in your businesses accounts. 

Sole trader or Limited Company?

This is a question we get asked a lot. We’ve even written a blog post on the pros and cons of becoming a limited company.

If you’re a sole trader you’re pretty much a self-employed individual working on your own. Setting up as a sole trader requires no formality as there’s no clear division between you and your business. However, as a sole trader, you are personally liable for the debts of your business. Therefore, if your business owes money to anybody they may try and recover it from your personal assets. This includes your house, cars and valuable personal property.

As a Limited Company you’ll be formally set up and registered at Companies House. The business and yourself have separate identities which means you must keep the financial activities of the company entirely separate from your personal finances. When you become the director of a Limited Company you have a legal duty to keep accounting records and file them legally.

The single biggest advantage of being a limited company is that if the company fails, the debts aren’t tied to you as an individual. 

What can I claim against tax?

If you have purchased something ‘wholly and exclusively’ for the purpose of your business then generally you can claim it back. Think things such as; stock, costs of websites and printed materials, advertisements, software, office supplies etc. 

However, there are a few things to be aware of. You can only claim for clothing if it’s uniform or protective clothing. Make sure you read up on the rules surrounding travel costs and entertaining clients too. If you work from home there are another set of rules – you can read more about this in our blog post.

What if I pay business expenses out of my own pocket?

You can claim back for things that you’ve personally paid for. However, we strongly advise setting up a business account and making all payments from there. There are lots of mobile apps where you can store your receipts to make it as easy as possible.

Should I register for VAT?

If your business is over the VAT threshold then you must register for VAT. If you’re under the threshold you can still voluntarily register. If your business incurs more VAT than it collects then a refund would be due. This basically means that if you sell to businesses who aren’t VAT registered then your price will be higher by the amount of VAT. This could have a huge impact on your business when comparing prices to your competitors. If you need more info on going VAT registered you can read more here.

My businesses income is small, do I still need to complete accounts?

If your income is under £1000 you don’t need to register for self-assessment. If it’s over £1000 then the amount is able to be offset against income rather than claiming all costs. Rules do apply and you can find the full details at https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income.

If you need more information about starting your journey freelancing, get in touch with the ABC team today!

The post Top Tips for First-Time Freelancers appeared first on ABC Accounting Services.

How much are you able to save?

So now you know that a minimum of 3 months salary should be in your emergency fund. Let’s take a look at how to achieve this goal. It’s time to dissect your monthly income with an extremely fine tooth comb:

• Make a list of everything coming in regularly
• Now do the same for your outgoings 
• Rent / Mortgage Payments
• Utility Bills
• Insurance
• Monthly Food Expenses
• Motor Expenses: Insurance, Tax, Repairs, MOT, Servicing, Fuel etc
• Debt Repayments
• Personal Expenses
• Is there anywhere that you can cut back to increase the amount that you’re able to save?

Possible Areas for Saving:

• Do you subscribe to any magazines that you don’t need?
• Can you change your plan at the gym to minimise the cost? Maybe even changing your gym could help.
• Changing the way you shop for food – batch cooking, buying fresh veg and making your own sauces rather than buying jars can save you lots. Even consider shopping at a different supermarket.
• Are you paying a huge phone bill? Look into different options and save money each month.
• Can you cut back on eating/drinking out?
• Look for discount vouchers for restaurants/days out.

Don’t struggle every month trying to save your set amount, make it manageable and allow yourself enough spare cash to comfortably make it through the month.

Be Prepared For It To Take Time

Don’t expect to save your emergency fund overnight. For you to stay motivated and not put yourself in financial trouble it will take several months or even years to build up. Don’t be put off by the time it takes – keep in mind that this lump sum will one day get you out of a tricky situation.

If you acquire any large sums of cash over the year, such as bonuses or tax rebates, put those straight into your emergency fund. A great way to build your fund up quickly.

Key Aspects For A Savings Account For Your Emergency Fund

As previously mentioned it’s probably going to be an unexpected event that requires the use of your emergency fund. It’s important that you can:

1. Pay in additional money when you can/want to
2. Make withdrawals whenever you need to (this one requires self control to not make withdrawals other than in an emergency!)

Other aspects that can be beneficial in a savings account for this purpose are being able to manage them online and those than offer you a cash card for them too.

Some people keep their emergency fund in their usual current account. This is okay if you really need to, however, we’d recommend keeping your emergency fund away from your every-day cash flow.

Before You Start Saving

Building an emergency fund is a great start to healthy finances. If you currently have:

• Credit Card Debts
• Unauthorised Overdrafts
• Pay-Day Loans
• Debts from Door-to-Door Lenders or Home Credit
• Rent or Mortgage Arrears

Pay these off first – it will work out better financially. If you’re keeping up with your rent/mortgage payments and your debt/credit bills are under control you should start slowly building your emergency fund up.

The post Saving An Emergency Fund appeared first on ABC Accounting Services.

A successful salary negotiation will end in a positive employer as well as a positive employee. Reasoning has been discussed and both parties will agree upon a fair salary that reflects both the employer and employee.

If you’re struggling to negotiate or are looking for some guidance before the situation occurs, we’ve written our top tips for successful salary negotiation.

Salary Negotiation for the Employer

As your position is now, how much leeway have you got for salary negotiation and employment conditions? The answer to this can range from one end of the scale to the other. A primary factor is the discussion of salary, perks & benefits and working conditions discussed with candidates during interviews.

It’s likely that candidates have shared the current salary with you. However, it’s becoming increasingly illegal to ask for this information from candidates. It’s also likely that you have discussed the salary range for the open position with them too. This could have been within the job listing, further into the interview process or upon them asking you. It’s advisable that you do share the salary range as early as in the job listing as it prevents you from being bombarded with applications from over or under qualified people applying for every job that they see. By advertising the salary range, or exact figure, you’re more likely to attract candidates that are more suited to your position.

When we think about salary we usually think about the level of the position being advertised. It’s more than often the case that with higher level employees you’ll have more room to bargain and negotiate, as is the case with those in your business who are the sole person responsible for a certain role. These employees are also more likely to ask for particular benefits and perks if you won’t increase the salary – they really just see this as getting something else from the company without getting the salary total they wanted.

Finally, think about how badly you really need this employee for your organisation. Will you be able to find this particular skill set again? Will anybody else be able to replicate just what the candidate can bring to your team? You do also need to look at what other companies are offering to pay for the same position – if they can get the salary they want elsewhere then they probably will.

Market Factors to Consider

Use this quick checklist when considering salary negotiations and consider each with equal importance:

• The level of the position within your organisation
• How often you’ll come across somebody with the skill set and experience needed for the job
• The career progress and the experience of the individual
• The fair market value for the position
• The salary range for the job within your company
• The salary range for the job within your geographic location
• Current economic conditions within your job market
• Current economic conditions within your industry

There may also be company-specific factors which could impact on the salary for each position. These could be things such as; comparative jobs, the company culture, your pay philosophy and previous pay changes within the company, promotion practices and increases to pay in relation to training and/or experience.

As previously stated, it comes down to how much you want/need this person to be part of your organisation. If you display yourself as being ‘needy’ and showing that you cannot find anybody else to fill the position like this person could then salary negotiation will quickly turn into manipulation and you could end up agreeing to something that’s not feasible. If this happens it won’t bode well for yourself or the candidate. You’ll be constantly checking their work and scrutinising every aspect to ensure they really are worthy of the salary you’re paying them.

If other employees get wind of you paying the new candidate a large salary it will make it hard for them to integrate themselves into the team.  A successful salary negotiation leaves both the employer and the employee ready to start a successful relationship that will benefit the company as a whole.

A full-on and intense salary negotiation is a tiresome process for both parties. Mental and physical energy is taken up in the process and it can put a strain on the all-important employer/employee relationship before it’s really started.

In-Depth Salary Negotiation

Following the recruitment process, you have probably found the candidate you really needed for your company. Somebody who brings a lot to the table and will benefit the company massively. A sophisticated individual with the skills and experience to carry out your advertised role well. This type of candidate will, almost without doubt, challenge your offer of employment. Expect it and you’ll be more prepared to negotiate effectively. It’s common for candidates to ask for between £1000 and £5000 more than your initial offer.

Another point to remember is that a lot of these candidates will be applying for multiple jobs across multiple companies. You have no control over what these companies offer. This can lead applicants to expect a lot (or a little) from you.

Salary Negotiation Tips to Remember

These tips will help you to conduct successful negotiations. Remember that each situation is unique, and you should consider everything we’ve spoken about up to this point:

• It’s not a competition. If either you or the candidate feels that they’ve capitulated rather than negotiated then both parties have lost.
• In every case identify the most recent salary (and benefits) that your candidate has received. A lot of organisations request information about salary within applications. Candidates sometimes offer proof of salary. However, asking for this seems intrusive to candidates so a simple question should be enough for you.
• Know what your limits are. Look at internally at salary ranges. What do you pay employees in similar positions with similar skillsets and experience? What is the economic climate?
• Remember that if your salary isn’t negotiable that superior candidates will usually negotiate on different areas. These usually occur as:
• Benefits
• Paid for training
• Paid holidays
• Signing bonuses
• Bonus pay
• Commission
• Car allowance
• Flexible working hours
• Working from home
• Company electronic devices
• Even if you’re dead set on this candidate and the benefits that they’ll bring to your company seem unbeatable, remember that you do have limits. You’ll come to regret exceeding these limits. It could mean beginning the recruitment process all over again you’ll save yourself years of stress and costs from exceeding limits for one candidate.
• If your offer upon advertisement is non-negotiable then it’s a good idea to make this know to candidates as early as possible. This way you know that your chosen applicant is happy with what’s being offered.

An example of an offer that shows a candidate that they’re valued:

“We’re offering you £45,000 in base salary plus the potential to make up to £10,000 in bonuses during your first year of employment. Other employees who have been with us for up to 10 years are within a couple of thousand pounds of that base. We hope this shows you how much we value you with this offer.

Additionally, as you build your accounts, some of our other business developers are making amounts exceeding £70,000.” – This organisation was trying to tell her that her base salary was non-negotiable but the potential of extra income from bonuses was high.

The post Top Tips For Negotiating Salaries With New Employees appeared first on ABC Accounting Services.

Most business owners first learn about Directors Loan Accounts is when they’re sat with their accountants to discuss their Ltd Company year-end accounts. It’s not something that is always discussed. If you’re unsure about them and need a little more information, hopefully, this article will answer some of your questions.

Directors Loan Account Simplified

Put simply, a Directors Loan Account is a record of how much money your limited company owes you or that you owe your company. It shows the amount left for you to withdraw free of tax from your company, or if you’ll need to reimburse if you’ve taken too much out.

How Does It Work?

Think about your bank account or your petty cash account; money gets paid in and comes out. You’re left with a balance so you can see the amount left once your income and outgoings are done.

A Directors Loan Account works the same way. Money goes in and comes out again. The balance is there too – only difference being that it’s not a real account. This is why you might not be aware of it as the year passes. If your bookkeeping isn’t done on a regular basis, it’s difficult to check. This is why you’re probably only aware of it when your bookkeeper has completed your bookkeeping or your year-end accounts are finalised.

What Goes In?

When your limited company is initially set up the money that goes into your Directors Loan Account will be any initial capital that you’ve paid in. This could be in the form of:

• Personal loans that you’ve taken out, personal savings that you’ve introduced to give the Ltd Company money to kick-start things.
• Equipment purchased by the company from yourself
• Goodwill

As your Ltd company begins trading, the money that goes into the account can be anything that you’ve paid for on the companies behalf. On the other hand, it could be money that the company owes to you. Examples of this could be:

• Director’s salary if you run the payroll and don’t take the money
• Divdends
• Mileage

What Goes Out?

When there’s money coming in there’s money going out too. During the year you’ll likely take money out of your Directors Loan Account. This is typically outgoings such as:

• Personal expenses. For example; fuel, insurance for cars, food and drink
• Small withdrawals of cash
• Regular direct debits that aren’t used as salaries or dividend amounts
• Donations made in your name

When The Company Owes You Money

Money owed to you by the Limited Company is classified as a loan.

It’s your money and you can withdraw it at whatever time you like. No tax needs to be paid on it as it’s seen as the company repaying a loan from you.

When You Owe The Company Money

Simply put, you should avoid owing your company money.

HMRC see you being able to borrow money from your company as huge perk, so as you can imagine they don’t like it all that much.

Try and pay it back as quickly as you can. If you, the director, are a shareholder then look into taking more dividends. To do this, you’ll need to have the profit in the limited company. These dividends are taxed as additional income to you.

If you owe the company anything over £10k and you can’t pay it back within 9 months of the financial year-end it will become subject to a corporation tax charge known as S455 tax. It will be repaid by HMRC when you’re able to prove the loan has been fully repaid.

If you need more information on this, or any other business finance issues don’t hesitate to get in touch with the team today!

Call us on 01427 613613

Email us on info@abc-accounting-services.co.uk

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The post What You Need To Know About Directors Loan Accounts appeared first on ABC Accounting Services.

The way that HMRC look upon it is that if you’re selling goods on the Internet, you’re using it solely as a tool for communication and distribution as well as receiving payment from the customers buying your products.

The same rule applies as it would for a physical store, you are only able to charge VAT if your business is registered to do so.

Should your eCommerce business be registered for VAT

You’re legally obliged to register for VAT if your VAT taxable turnover is £85,000+. If your turnover doesn’t reach or exceed £85,000 you have no requirement to register and you do not need to charge VAT on any products or services that you sell.

Charging the Correct VAT rate.

Depending on the products or services you’re selling the VAT rate charged will differ. Here’s a quick guide on VAT rates in the UK – screenshot this if you need to!

Check with HMRC for different goods and services VAT rates.

Zero-Rated and VAT Exempt – What’s the difference?

Zero-rated and VAT exempt are not the same thing and it’s important that you understand the difference between the two.

A zero-rated item is still VAT taxable – you just charge your customers 0%. Despite charging 0% VAT you must still record the sale and report it when you do your VAT returns. Sales of zero-rated products/services count towards your 12-month VAT threshold (the £85,000 we mentioned previously).

Items which are VAT exempt do not count towards your threshold so therefore you’re not required to record these sales.

If you are VAT registered always make this clear to your customers on your site.

International VAT Charges for eCommerce Retailers

If you’re based in the UK and you have customers in the EU, you simply charge the UK VAT rate. If a customer is VAT registered (another business maybe) then you could possibly zero-rate the good. Selling goods to a customer outside the EU, you can’t charge VAT. Exceptions are possible though so make sure you consult HRMC.

VAT and Delivery Costs for eCommerce Stores

VAT does apply to delivery charges at the exact same rate as the product being delivered. So 20% for a product that carries 20% VAT and 0% for a product carrying 0%.

If you’re VAT registered, you must register for VAT. On your e-commerce site, you must make customers aware of VAT. You can display your prices as VAT inclusive – there’s no need to list the VAT separately.

The post What You Need To Know About VAT on Ecommerce Sales appeared first on ABC Accounting Services.

We have developed a quick list of things that we suggest taking on board when it comes to making your next big decision! From gaining experience from more senior employees to using your team in the process.

• Experience in different roles: Having experience in a range of different roles that require organization and management means that your exposure is broadened. In turn, this means that your knowledge and understanding improves in order to make informed decisions.
• Learning from others: If you have the opportunity to pick the brains and learn from senior leaders that can give you insight into decision making then take it! There’s no better way of learning than learning from others.
• Shadow others: As well as asking questions when they pop into your head, physically shadowing people in different roles is a great way to learn. Understanding different roles means that you’ll be more informed when making decisions that impact others.
• Take on complex projects: Although they may seem daunting, projects that require a complex level of decision making are a valuable way of developing the skill.
• Learning: When you learn, either formally or informally, you’re building on your decision-making skills. The more knowledge you have the easier you’ll find it to make decisions.
• Space: Once you’ve made a choice, give yourself some distance from the situation before formally confirming your decision. Emotion can play a huge part in how we make decisions and it shouldn’t be the reason you’re making choices. Resist the rush to decide immediately and step back to look at the problem objectively.
• Use your colleagues: Each member of your team has a unique set of skills and knowledge, they all bring something different to the company and they’re there for you to use. If you need input then ask them as many questions as you need to, even if you can’t tell them about the problem you’re facing. Gaining perspective underpinned by knowledge and skills is an asset you need to start using.
• Find people who aren’t there to please you 24/7: Involve people who aren’t scared to disagree with you in your decisions. Maybe there’s a member of the team who shares their opinions and thoughts with you openly. These are the people who should be on board with the process. It allows you to see the issue from a different perspective and think outside of the box too.
• Think about the worst-case scenario: When you make any decision it’s important that you consider the worst case scenario and what you can do to soften the blow if it arises.
• Think past your gut instinct – Evidence-Based Management (EBM) uses scientific evidence in the process of decision making. Most of us use personal judgement and how we think we should manage a situation when we make choices. Consider performance data, objective evidence, business strategies and whether your evidence is relevant and current.
• Sharpen your eye for risk: Ask around for information if you think there are risks, look at past data and reviews.
• Learn from previous decisions: Keep a log of all of the decisions you’ve made. Its great practice to look back on them and see the thought processes behind them. Look for any faults that you can improve on and also for things that went well.

Hopefully, this was useful in your journey to becoming a more successful decision maker at work. As accountants we often see companies make huge decisions and we’re a key part of that process. For business support, you can get in touch with us!

The post How Leaders Can Make Better Business Decisions appeared first on ABC Accounting Services.

Create a Budget

When you’re self-employed it means you’ve not got a guaranteed income that you can rely on being around the same amount each month. This can make budgeting trickier. Creating a budget for expenses allows you to have a clear idea of where your money is going and where you could save some too. You’ll see if you’re being realistic with your outgoings and if you can afford to be taking on any extra outgoings.

For example, if you’re a builder, you’ll be able to see if you’ve got enough spare to have your van branded with your logo or whether you need to save a little longer for it.

Make Sure You’re Clued Up on Expenses

You’ve maybe completed your self-assessment already – to make sure that you receive as many deductions as possible on your upcoming tax bill you should be thinking about it all year round. As we always say, keep detailed records of allowable expenses so you don’t miss anything.

Educate Yourself on Tax & National Insurance

When you begin self-employment you need to inform HMRC and pay tax and national insurance on your earnings. Make sure you’re recording all of the information on your earnings and staying on top of it all.

For accurate tax calculations, you will need records of both incomings and outgoings. Keep these records as you go rather than doing them all at once. Lots of apps now can help you with this and mean you can do it digitally. When using an accountant, they will need your records too, much easier when they can be accessed digitally!

Talk to your accountant about how much tax you should be putting aside and move it to a different account so you know you’ve got your tax bills covered.

Get Your Bills Prioritised

When you’re self-employed, some months can be a little tighter than others. We suggest listing all of your bills and splitting them into 2 lists – priority and non-priority debts.

Priority:

• Mortgage
• Income tax
• Council tax
• Energy bills

Don’t forget that your energy bills can vary depending on how often you’re at home.

Pay Yourself

We’ve spoken about this before on our blog, and we honestly cannot emphasise enough how important this is. Paying yourself a salary means that you know what you can spend and won’t be tempted into spending extra from your business account. Don’t forget, you’ll need to set aside some money for tax too. If you have a month where you earn more than normal, put the excess away in a separate account so that it’s almost an ‘emergency fund’ or saved for a rainy day. This will help you out on months where income is a little lower than normal. Aim to have at least 6 months worth of expenses in your emergency fund to cover yourself.

Plan for Later Life

When you’re self-employed there’s no company pension scheme and nobody to tell you about your options for retirement. Starting a pension fund and sticking to the payments can be a hard habit to develop and maintain as somebody who is self-employed. The earlier you can start the better. You’ve got more time to contribute to your fund before you retire and more time to benefit from tax relief.

Holidays, Illness and Injury

It’s a good idea to work out you’re average net income over 3 years. Divide the figure by 12 and use this number to create a monthly budget. If you work out that this figure doesn’t allow you to pay all of your monthly bills then you’ll need to find a way of cutting back on your spending or increasing your income.

Unfortunately, most of us are ill or injured at some point during our working life. When you’re self-employed there’s no sick pay. Look into income protection insurance – you’ll probably need it if you’re self-employed with no sick pay to rely on.

If you need any more information on managing your finances as somebody who is self-employed, don’t hesitate to get in touch with our friendly team today!

The post The Basics For The Self-Employed appeared first on ABC Accounting Services.

Easyjet reported paying women 51.7% less and HSBC declared a pay gap of 59%!

[Source: Telegraph]

Despite these worrying statistics, in some (although a minority) cases the gender pay gap was either minute or non-existent. In a number of businesses women were actually paid more than men. Companies such as Unilever UK, women earn almost 10% more than men. As well as this, more than half of management positions are filled by women. The British Museum pays their staff completely equally.

After the BBC pay gap shock, it’s refreshing to find that Channel 5 the gender pay gap is 2.85% in favour of women. Let’s get deeper into how Channel 5 are closer to achieving equal pay than any other broadcaster in the UK. The gender pay gap is different to equal pay and is often look at as how many women are in high level positions and how often they are outnumbered by male colleagues in higher positions. Channel 5 is owned by a company with just a 2% pay gap and there’s a better balance of male and female workers within the senior roles at the broadcaster.

Viacom, the company that owns Channel 5 has a relatively equal senior management team with 9 men and 7 women. Down the hierarchy, the top and middle roles come in at 46% women. Where there is still a slight imbalance, it’s a big difference to a lot of large companies that are dominated by men in all roles.

“Our performance compares well with the national average, but we still areas of marked imbalance, particularly on bonuses. We are evolving our employment practices with a view to eradicating our gender pay gap over time”

James Currell, President For UK Operations at  Viacom

Steps To Take For a Positive Gender Pay Gap

After looking into what companies like Viacom are doing to achieve these positive pay gaps we’re going to give you some top tips. Whether you’re a large organisation of a SME, it’s always a positive step to be aware of your gender pay gap and how to improve it to create a workplace that champions equality across the board.

Recruitment
Companies that are achieving a good pay gap percentage have candidate pools that are balanced well in terms of gender. This happens for every role, from Managing Directors to Admin Assistants. As well as this they focus on a transparent recruitment processes internally, creating interview panels that are an equal mix of male and female interviewers and delivering all training equally. It’s also apparent that those members of staff who are carrying out interviews for companies who are ranking well in terms of the gender pay gap receive training on achieving an unconscious bias.

Discrimination
As we previously mentioned, The British Museum achieved a gender pay gap of an incredible 0%. Completely equal for both men and women. They say that this is partly down to their lack of discrimination in all aspects of employment, from recruitment to promotions and pay.

There’s a lot of discourse around women leaving work to have children and never making up the lost ground. It’s important that all businesses don’t stunt progression for those employees who take time out of work to have children. They should be able to come back to work and have access the same opportunities as their co-workers. Interventions like shared parental leave are a step towards eradicating this as well as things like flexible working. However, these interventions will only make a difference if people choose to make use of them. The number of men taking shared parental leave is still relatively low and it’s mainly women who engage in flexible working. It is possibly down to financial reasons, where by law men are only entitled to share up to 37 weeks of statutory shared parental pay. However, progressive companies are taking a stand and paying men the same parental leave as women.

“As little as 2% of eligible families take shared parental leave”

Internal Promotions
The discussion surrounding the gender pay gap emphasises the issues around promotion equality in terms of gender. Whether it be a small jump up the hierarchy or a big promotion into a senior role, they’re usually in favour of male employees. With the publication of gender pay gaps, companies should be forward thinking and ensuring that the same opportunities are available to all employees.

Review Salaries
You must be aware of where pay gaps are occurring to be able to combat them. Analyse pay and bonuses by gender so you can identify and address gaps. In terms of employees, be clear about which factors of their performance drive pay rises and bonuses.

We hope you’ve found this useful in your efforts to create fair pay and roles in your company. Whether you’re big or small it’s a great practice to begin in your business.

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Email us on info@abc-accounting-services.co.uk

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The post The Gender Pay Gap: What The Companies Getting It Right Are Doing appeared first on ABC Accounting Services.