Mumpreneurs – Tax and Finance

Buss Murton solicitors15 September 2010

Alastair Wood FCCA

Qualifications Set up Mar 09 Work from home School run Wife’s businesses However not Mum!

Idea to Business

Starbucks business

Hobby Make money Profit incentive

Thought to plan

Business Plan What How SWOT Finance Marketing Long term

Cashflow – does it stack up

Income less expenditure

Monthly All expenses

Monthly Annual One-off

Example cashflow

Break-even

Gross profit Overhead Contain overheads Danger zone

What sort of company

Sole trader Simple for smaller businesses

Partnership Split profits between

partners, flexible Limited company

More complicated, expensive but tax efficient

My blog: http://awaccs.co.uk/

uncategorized/how-should-i-set-up-sole-trader-or-company

Sole trader and partnership

You and business are the same

Responsible for debts Self assessment return Tax/NI based on profits Tax 31 January Payment on account + Balancing payment

Self employment and tax

National Insurance Class 2 £2.30pw

(limit £5075) Class 4: 8% profits

over £5715 then 1% over

£43,875

Tax £6475 tax free Next £37,400 @

20% Then 40%

Limited company

You and company are different

Registration Company responsible for

debts Corporation tax return Tax payable - 9 months Filing accounts Annual Return

Limited company and tax

All small co profits taxed @ 21%

Profit > £300k then 28% Associated companies Basic salary £475pm, tax & NI

efficient Dividends deemed basic rate

tax paid Higher rate tax 1/3 of divis >

£37k

Registering your company

Simple Pays to take advice Forms to Revenue Payroll for

company Also web address Trademark

Record keeping

Record of all income and expenditure

Electronic sales invoices acceptable

Purchase originals Manual book Spreadsheet Computer

TAS/Quickbooks Sage

Growing Business

Employees Register Payroll and tax Contracts

Raising finance Business plan Cashflow

Summary

See if it is viable Find out your breakeven

sales More turnover → more

profits Decide on company type Register company Go for it!

Any questions, please ask?Contact details

Email: alastair@AWaccs.co.uk Phone: 01474 833169 Mobile: 07590 849826 Twitter: @alastairwood Website: www.AWaccs.co.uk