Accountancy Blog

How is your business performing? – measures to use.

What are the best ways to assess your firm’s performance?

Changing market conditions make it more important than ever to measure your business’ performance on a regular basis.

The impact caused by recent events, such as the vote to leave the EU in June 2016 and the snap general election, have added to the uncertainty felt by business owners around the UK.

Knowing your business’ strengths and weaknesses will help you manage your business efficiently.

There are various tools and techniques out there to help you assess the performance of your market, but knowing where to start can be the trickiest obstacle of all. More…

Reducing corporation tax on patent income

Reducing corporation tax due on patent income.

The patent box regime applies a reduced rate of corporation tax to profits attributable to qualifying patents and similar intellectual property (IP). Unincorporated businesses can’t qualify for the patent box.

The patent box tax rate has gradually been reduced to 10% since the introduction of the regime in 2013 (see table).

To benefit from this reduced rate, your company must:

  • hold a qualifying patent or other qualifying IP
  • receive income relating to that patent or IP
  • elect into the regime.

More…

Apprenticeship levy – offsetting the cost

Almost a quarter (23%) of businesses paying the apprenticeship levy has no understanding of how it works – six months after its introduction.

56% of more than 1,400 firms surveyed by the British Chambers of Commerce (BCC) did not expect to recover their payment, despite receiving an annual allowance to offset against the bill.

As of 6 April 2017, employers with an annual wage bill of more than £3 million must pay the levy towards apprenticeship funding. This levy is charged at 0.5% of the annual wage bill. More…

Investment and Brexit

Businesses are in no rush to make investments amid the ongoing uncertainty of Brexit, according to the Institute of Chartered Accountants in England and Wales (ICAEW).

More than one in four businesses are delaying investment decisions as the government continues negotiations with the EU.

As a result of their collective cautiousness, 61% of those firms surveyed reported a cash surplus in 2016/17 with 64% anticipating similar results from 2017/18.

37% have no plans to invest their cash reserves in the next 12 months, with 49% of those wanting to remain flexible, 32% braced for further uncertainty and 30% citing no investment opportunities. More…

Late payments and cash flow

Two-thirds (66%) of small businesses are feeling the effects of clients who fail to pay their bills on time, research shows.

Banking group Close Brothers polled 900 small business owners and found the problem was particularly serious for 87% of SMEs in Northern Ireland, 73% in London and 72% in the South West.

Late payments have the potential to damage a business’ reputation and harm its credit ratings, which can affect a firm’s chance of securing future funding.

Government figures claim SMEs are collectively owed more than £26 billion in overdue payments. More…

National living wage – the under 25’s

Workers under the age of 25 are missing out on more than £6,000 a year because they are not entitled to the national living wage (NLW).

Charity group Young Women’s Trust polled 4,010 people aged between 18 and 30, finding the average young worker is paid £3.45 an hour less for doing the same work as older people.

Over the course of the year, younger workers are receiving £6,279 less than their older colleagues.

Apprentices under the age of 25 fall short of the current NLW rate of £7.50 an hour, leaving them £7,280 a year worse off than workers over 25.

83% currently support the idea of raising the minimum wage for apprentices and 79% suggest equal pay by extending the NLW to under-25s. More…