Next time you fancy a sandwich and need to buy a loaf of bread, think about the multitude of options available to you. The shop to buy the loaf from (supermarket, bakery, corner shop), the size of the loaf, the freshness, the ingredients or type of loaf, the shelf life, the brand, the abundance of choice we are blessed with is extensive. The abundance of choice is the same for loads of everyday items and services. We as a society are used to choice, options, variety, we like to buy based on our current budgets, lifestyle, requirements and perceived value. You may be wondering why this accountant is talking about lunch. I want to wake up the plumbing and heating industry when it comes to quoting for works. The majority of businesses will spend a few hours preparing a quote for a customer, filling it with information on all of the features of the job in hand then supply their potential customer with ONE price. That one price is the businesses price, not the customers price. Becau...

Let’s face it the P&H industry is a crowded sector. There are loads of firms all competing for business. This could lead some businesses to cut prices, slack on services and offer inferior boiler or part options just to win jobs and sadly complete on price. This could be an unfortunate race to the bottom, where business owners are squeezed on prices through cutting profit margins. Customers are left ‘unwooed’ by the experience and firms don’t fully engage with customers to form long-lasting relationships which complement repeat custom. Instead of promoting your business as a cheap, friendly local firm, let’s explore an alternative business model which can be built on a good reputation, backed up with clearly communicated warranties, guarantees and promises.   Warranties and guarantees are very important. You can use them to make you stand out from the crowd. Using them in your P&H business can help to establish you as a reputable, trustworthy choice for your customers...

Rishi Sunak released the Spring Statement earlier this week. Here is a summary of the key points. Fuel Duty cut Cutting fuel duty on petrol and diesel by 5p per litre for 12 months. The cut takes effect from 6pm on 23rd March 2022. Employment Allowance increase The Employment Allowance is a relief which allows eligible businesses to reduce their employer National Insurance contributions (NICs) bills each year. From April 2022 the Employment Allowance will increase from £4,000 to £5,000. Reforming Research & Development credits From April 2023, businesses will be able to claim Research & Development tax relief on the storage of their vital data and pure maths research. Draft legislation will be published this summer with a review to try to improve the Research & Development incentives. Greater Business Investment There will be a series of potential policy changes to the UK’s existing capital allowances regime, which the government will consider ahead of April 2023. The aim i...

It is often tax-efficient to trade as a limited company as opposed to a sole trader or partnership. This is because the tax rates on dividends and profit tends to be lower compared to national insurance and PAYE. A lot of people choose to trade as a limited company where they own a share of the limited company, i.e. be a shareholder* and they would be the director** of the limited company. This article is going to explore effective ways of paying a shareholder and director from a limited company. 1. Salary - The most common and obvious route is to pay yourself a salary. This is when you are employed by the limited company. Being employed by the limited company means you will have to set up a PAYE scheme so you can then produce periodic payslips, usually processed monthly. For the 22/23 tax year the tax efficient salary for a one director company is £758 per month (see other article link). By running this salary through the payroll, you will not pay any national insurance and you will r...

In brief, a business is made up of income and expenditure, assets and liabilities. Income is everything you receive, everything you sell and the money you get from your customers. The expenditure is everything that leaves the business. Expenses, payments etc. For a plumbing and heating business, there are loads of expenses or outgoings which are required to have a business that runs effectively. A lot of people choose to do their bookkeeping in-house, as opposed to using a skilled and experienced bookkeeper. If you choose to complete your bookkeeping yourself, it is very important that you categorise your expenditure correctly, are aware of the variety of VAT rules and have a lot of time that can be devoted to this side of the business. Having accurate bookkeeping will mean you can place reliance on management accounts which will paint a clear picture of your business's historical financial affairs, enabling you to pick out trends to be able to plan for the future. While workin...

What is the aim of the TFCS? To support eligible families with their childcare costs. What is the financial benefit of the TFCS? For every £8 paid into the scheme by you, the Government will add an extra £2 up to a maximum of £2,000 per child per year (£4,000 for a disabled child). Example Mary has two children aged 5 and 7. Mary pays £400 a month into each of the two TFCS account The Government top up each TCFS accounts by £100 per month. An annual saving for Mary of £2,400. What is the eligibility criteria? Your child must be 11 or under and usually live with you. They stop being eligible on 1st September after their 11th birthday. If your child is disabled then they must be 17 or under and usually live with you. Adopted children are eligible but foster kids are not. You must use an approved childcare provider who is set up to take payments through TFCS. You can be either employed or self-employed. You (or your partner, if you have one) must have a National Insurance number and at le...

Together We Count want to help your business thrive, so please let us know what is coming up in the next month, quarter or year. We feel that communication is key, therefore, so we can give you a proactive service please let us know about your up and coming personal and business financial plans. Often, if you tell us about something after the event has taken place it’s too late for us to give you advice. Over the coming months there may be developments in your business or personal affairs where, if you tell us about them in advance, we may be able to help you to: Save time or money Get a better solution Avoid the risks and pitfalls Receive the most favourable tax and accounting treatment Or in some other way get a better result On the other hand, if you tell us about them after the event it may be too late. We would therefore ask you to read this Appendix carefully and advise us immediately if any of the situations listed here become relevant to you. Property and investments Buying or...