On Monday I wrote about why cashflow is something you need to watch, however small your business may be. In fact, poor cashflow can kill an otherwise healthy business.
Since the recession hit us a few years back, all the talk has been about customers not spending enough. But if they do place orders and then don’t pay up on time, you still have a major problem. Continue reading “The answer to your biggest cashflow problems…or not?”
One of the great things about running a solo or micro business is that your accounts don’t have to be anything like as complex as they would be for a larger business. But it can be hard to know where you can sensibly take short cuts and where they could lead you into trouble later on.
So what about cashflow management? Continue reading “Cashflow management: Do ‘micro businesses’ really need to bother?”
Did you know that from next month UK employers will have to, by law, enrol most staff into a pension scheme? Even if you’re not employed at the moment, it’s well worth knowing about it in case you got back to employment, or your partner is employed or if you plan to employ staff yourself. Today’s guest post is from Brenda Vannan, Head of Employer Installation at the National Employment Savings Trust (NEST).
As a busy mum there are so many things to think about and do right now that it can be difficult to take time out to think about the future. We’re also often guilty of thinking about others first, putting their financial needs ahead of ours, particularly when it comes to our children. But one of the best ways to give your family peace of mind could be to make sure you will be ok as well. And that means taking responsibility for your long term financial security.
Next month a new law is coming into effect that should make this task far easier for millions of people, including around 5.5 million women. For the first time employers will have to automatically enrol most staff into a workplace pension scheme that meets or exceeds certain government standards and make a contribution. Continue reading “Tomorrow is worth saving for”
This post could could stop you from getting into trouble!
Last week I got into a debate with a self-employed friend: she was convinced that as a sole trader she could consider childcare to be a business expense. After all, she needed the childcare to be able to work.
On the other hand, I was almost certain that in the UK, HM Revenue and Customs (HMRC) don’t consider childcare to be a business expense.
I asked accountant Jonathan Freeman of Freeman and Co to answer our question for us. He said:
Unfortunately, childcare costs paid by a sole trader would not be considered wholly and exclusively for the purpose of the trade and therefore would not be tax deductible.
The only childcare costs I’m aware of which are allowable as a deduction are those where an employer provides childcare facilities to its staff. There is detailed guidance about this on HMRC’s website http://www.hmrc.gov.uk/paye/exb/a-z/c/childcare.htm
As a sole trader it may however be possible to claim Working Tax Credit, which does include a childcare element.
So I was right, but it’s not exactly good news. 🙁
Although this might be basic stuff for some people, there are many mums who aren’t making enough money to pay an accountant to advise them and could be totally unaware that childcare can’t be claimed as a business expense. And you could have problems (and a hefty repayment to make) if HMRC found that you’d added childcare to your business expenses in error and paid less tax as a result.
If you’re not sure just what is allowed as business expenses, take a look at this leaflet. You might be surprised!
If this post was helpful, let me keep you up to date with new posts by joining my mailing list! I’ll also send you a copy of my e-book Running a business around a family: 9 steps to success.
Image: FreeDigitalPhotos.net
Last night I listened to Liz Weston of Weston Communications talk about her visit to the businesses in Silicon Valley. She was speaking at The Likeminded Network women’s networking group in St Neots, Cambs.
The whole presentation was recorded on video (and yes, Liz did get me to do a piece in front of the camera too!) so I hope to be able to post a link to the presentation once it’s been edited and posted up on the internet.
There were a lot of ideas to take away and I’m still processing most of them the morning after. But I’ve recorded a two minute audio of one idea that really stood out: simplicity.
(That was recorded at about 11pm when I got home. I love Audioboo.)
Here’s what else really stood out. You’d expect senior people from Facebook, Google and LinkedIn to be talking about money and how to make plenty of it. But the message was that we should focus on our purpose, making lives better, simplifying. If we get those things right, the money will follow.
I also want to say a few words about networking and The Likeminded Network:
(By the way, you can hear my two year old telling me he’s had a wee in the background! Just to prove I’m an authentic business mum. :))
The Likeminded Network is a fabulous group of women, very supportive but also energetic, dynamic and full of ideas. Thanks ladies!
(The photo is one of Liz Weston winning the Future 100 Entrepreneur of the year in 2010. Photos of the night to follow!)
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