Even the most profitable companies sometimes run into cash-flow problems. Here’s a few tips on freeing up cash in your business:

Review Your Expenses
Look at your current expenses such as wages, rent, insurance and communications. Ask your existing suppliers for a better deal, and get quotes from competitors to uncover potential savings. If you find a better offer that your existing supplier can’t or won’t match, then switch.

Early Payment Discount
You might encourage your customers to pay early by offering a discount for early payment. The level of the discount should depend on the profits you are making on orders. This can … Continue Reading

If you pay tax through PAYE (Pay As You Earn) you might have overpaid if, for example:

• your employer held the wrong tax code
• there was a delay in passing over your P45 after changing employers resulting in an emergency tax code
• you only worked for part of the year
• you made a mistake on your tax return
• HMRC made a mistake

If you think you’ve overpaid, call HMRC on 0845 300 0627 to find out if they are missing any paperwork – this will put you on the road to being on the right tax code.

If you correct any tax issues mid-year, you should automatically receive … Continue Reading

Data from the Insolvency Service reveals today that personal insolvencies in England and Wales have dropped to their lowest level since 2008, despite the tough economic conditions.

Between October and December 2011, there were 28,973 individual insolvencies in England and Wales, a 5.6% decrease on the same period the previous year, and down from 30,219 in the third quarter.

Personal insolvencies in 2011 totalled 119,850, a decrease of 11% from 2010. This included:

• 41,845 bankruptcies, which were down 29% on 2010,
• 49,056 Individual Voluntary Arrangements (IVAs) – down 3% on 2010 – and
• 28,949 Debt Relief Orders (DROs), a 15% rise on the previous year.

Respected Thinktank predicts economy will shrink by 0.1% and urges investment in infrastructure to create jobs.

Statistics from the National Institute of Economic and Social Research (NIESR), released earlier today, show that the UK economy is set to enter recession in the first half of the year, shrinking by 0.1% during 2012 (following its 0.2% contraction in the final quarter of 2011).

However, NIESR predicts that it is not all doom and gloom and that the economy should bounce back and grow by about 2.3% in 2013. Simon Kirby from NIESR, comments: “That the economy is in poor shape is obvious. The … Continue Reading

All tax returns must be filed online by 31st January following the end of the financial year.

If you missed the tax return deadline, you’ll be charged an automatic £100 penalty.

If you fail to pay any tax owed, you will pay further penalties:

• Thirty days late - 5% of the tax you owe at that date
• Six months late – an additional 5% of the tax you owe at that date.
• Twelve months late – an additional 5% of the tax unpaid at that date.

You will have to pay interest on anything you owe at a rate determined by HMRC.

Don’t delay…

If you would like more information on … Continue Reading