Tag: tax advice

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Business tips Gym

You use Xero in your gym business, so do you really need an accountant?

Do you really need an accountant for your gym business if you use Xero?

So, you have cloud accounting software in your gym business, your bank (or gym management software) feeds into the accounting software and the software makes suggestions for where to reconcile the bank. Therefore you feel like an accountant is a waste of money and confused about what they can offer to your business. 

Masses of information is available online via websites such as Xero guides and HMRC website, if you have the time, you think you can do it yourself. Why would you need an accountant then?

It is a fair question as when you are starting out, you will be looking to save money. Plus, you assume the software does all the work, so what is the accountant actually doing? Seeing the value might be a lot harder than seeing the value in a Facebook ad campaign or purchasing a new piece of equipment to dazzle the members.

If you ask other gym owners if you should have an accountant you will get a mixed bag of “No, it is easy, just a few clicks of a button” and “Yes, my accountant saved me hundreds in tax alone”.

So, as an accountant, I wanted to go through the reasons why your accounting software does not do everything you think it will and reasons why Xero alone is not the solution for you.

Why your gym business needs an accountant:

1.    Risk – you don’t know what you don’t know. Taxes are complicated and sometimes can appear a bit grey, so it takes years of learning and maintaining to do this well. Your mistakes are likely to be costly.

2.    Time – How much is your time worth to your business? For every hour that you are working on your accounts, you are not working on your business. 

3.    Stress – Do you enjoy keeping the accounts up to date and then worrying that you haven’t done it right? You may spend an hour a week completing the accounts but then spend an additional hour worrying that it isn’t quite right.

4.    Complication – Accountancy is still complex, whilst the software is always learning, it can learn the incorrect thing if you make a mistake. This can be complicated and costly to unravel. 

5.    Strategic advice – the accountant will be able to provide strategic advice on your future goals and identify opportunities to make more profit. Often when you are too close to the business it is difficult to see.

6.    Tax planning – with tax most of the benefits come from forward planning – how to extract funds from the business, how to reduce your tax bill, how to plan for the future with pensions and inheritance tax. It is impossible for you to do this, as you don’t know what you don’t know.

7.    Cost – an accountant is unlikely to sign off accounts that they have not prepared, so if you would like an accountant to submit your accounts, they will charge for the checking of the information.

I know an experienced gym owner who completed their own accounts and assumed as they had used an accounting system and that accounting system had suggested the entries that it was correct. When I questioned what stock they had, (as there were thousands of pounds on the balance sheet), they didn’t know how to respond, they said all they had was a few protein bars. The accounting system had made an assumption and the owner had agreed that assumption, it continued to make the same mistake. This led to a smaller loss being claimed than should have been.  

Reasons why you think you don’t need an accountant for your gym business:

·       Small gym – You have very basic transactions, only a few members and your bank feeds directly into your accounting system. Due to low member numbers you have the time to prepare the accounts with the help of the software guides. But even at low levels you can still make mistakes, do you know the difference between depreciation and capital allowances? Why does it matter where you code that drink you gave away to a member? 

·       Accounting background – you have either had some accounting training or held a junior accounting job – so you understand the basics of accounts. This will help you in the short term but did you really start your gym business to do accounts? Or did you start it for your love of fitness, weight lifting and helping people live longer lives?

·       New business – this will mean you don’t have the complications of inputting opening balances into the accounting system, uploading suppliers and client details. However, do you know how to set up the chart of accounts to capture the costs in the right place? Have you considered if going VAT registered could be beneficial to you? Getting the right foundations from the start will mean less stress and time wasted as you grow. 

·       Gym management software – your gym uses gym management software so you won’t need to register all your clients into your accounting software. You will still need to ensure the transactions are coded correctly in the accounting system. I took over the accounts for one business that wasn’t correctly accounting for VAT as they didn’t separate out the products/services at 20% from those at 5%. 

·       Below VAT threshold – you do not have the added complication of VAT rules and what VAT percentage you should be charging on the different products/services you offer. Registering for VAT is not a bad thing, it shows your business is growing, plus it may be beneficial to register for VAT even if you haven’t hit the threshold. Think of the 20% tax you pay on all that fancy equipment. 

·       Online help – Xero provides help guides and videos and HMRC have a whole host of information you can use. If you have the time to learn, then this could be a way of bootstrapping at the start. But bear in mind that Xero is not a person who is looking at your particular situation. They are leaving the decisions up to you. 

·       MTD – Xero is set-up for making tax digital and shows you a VAT report. VAT payments and refunds can be automated. However, as I mentioned above, mistakes can still be made. Xero will show you the VAT report with the information you have entered, but if that is not correct the VAT report will never be correct. 

·       Risk – You may pick the wrong accountant. Deciding which accountant to work with is a serious decision, that I know you won’t take lightly. It is important to speak to the accountant and see if you speak the “same language”, that you feel comfortable with them and that they have experience to help you. 

Here is why your gym business needs an accountant:

Not using an accountant can be likened to novice gym members going to your gym for the first time. They can work out the running machine on their own, they can copy the person before them, they can try to read the instructions provided. But unless they have an induction and on-going support they will not be able to do much more than that, at least not safely. 

There are lots of things they don’t know, so they attend their induction and your team offers advice and guidance during the day. The member may then pay for PT sessions to help build a plan and learn techniques. Sure, they could watch you-tube videos until the early hours and work out how to do it themselves, but they will probably never quite reach their goals. Their lifting technique will never be quite right as it’s hard to judge yourself.

For these reasons I recommend that you take a practical approach to your gym accounts:  do what you have TIME to do BEST and pay someone to do the REST.  If money is tight and time is plenty, then do more of the bookkeeping yourself.  Once your business reaches the point where your time is more profitably spent doing something (anything) other than bookkeeping then delegate that aspect as well.

 

Here are a few blogs that you can use now to start making decisions for your gym business:

Should you voluntarily register for VAT? https://debbiebaileymoney.co.uk//should-you-voluntarily-register-for-vat-for-your-fitness-center-gym/

 

5 common accounting mistakes that gym businesses make: https://debbiebaileymoney.co.uk//5-common-accounting-mistakes-that-could-hurt-your-gym-business/

 

7 signs that your business is leaking profit: https://debbiebaileymoney.co.uk//7-signs-that-your-business-is-leaking-profit/

 

A list of 32 ways to get value out of your business: https://debbiebaileymoney.co.uk//32-ways-to-maximise-extracting-value-from-your-business/

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Business tips Cash Finance Function Gym

5 common accounting mistakes that could hurt your gym business

5 common accounting mistakes that could hurt your gym business

Many gym and fitness centre owners – especially those just starting out – tend to handle their own accounting and bookkeeping. However, keeping track of the finance-side of the business– everything from income to expenses to tax compliance– can be overwhelming.

Mistakes can happen quite easily and can have costly consequences to your business, especially as the business grows. Below are five of the most common DIY accounting errors that you should avoid.

Unorganised Records

It takes excellent organisation skills to be able to do your bookkeeping and accounting right. You would need to keep a record of every transaction, keep receipts or digitise them for future reference, calculate taxes accurately, and more. If your records are not kept organised and updated, it is highly likely that you’ll miss something out, which could get you into trouble during the tax season.

To help with this using an accounting system such as Xero is really the way forward. You can access your records anywhere, you can connect it to your gym management software or upload CSV files to Xero, this will give you up-to-date information. Plus it means when you do seek support from an accountant/virtual finance department you will not be restricted by location.

No Accounting Schedule

As a business owner, there are surely a lot of other things that you need to attend to and accounting can easily be pushed to the bottom of your seemingly endless To-Do list. Yet, it is extremely important to set an accounting schedule to add your recent income and expenses into your records. If daily updating is not possible, at least dedicate some time once a week to do your accounting.

Unreconciled Accounts

Regularly check if your bank account reflects the same balance as you record your cash flow and other financial data into your books. If you find a gap, there is likely a mistake somewhere that you need to find or even a fraudulent transaction. Taking immediate action will help you prevent worse problems further down the line. Even if you use bank feeds into your accounting software, it is not guaranteed that transactions will not drop out or duplicate. So by checking your bank balance regularly against your accounting system you can feel comfort in knowing everything is being correctly captured.

Failing to Take Into Account Small Transactions

It can be easy to forget about minor transactions such as the office supplies that you picked up on your way to the office or the freebie that you sent a loyal customer. However, no matter how small you think the transaction is, it’s important to keep a record and get a receipt. In case of a tax audit, you will need to be able to present records of ALL business expenses, even these small ones. This is why I would recommend using a tool such as Hubdoc, Xero expenses or receipt bank, you can then quickly take a photo of the receipt, upload it and not have to worry about losing the receipt.

Not Backing Up Data and Using an Accounting Software

Imagine if the laptop where you store all your financial data was stolen, lost, or broken beyond repair and you don’t have a back up. You would need to redo everything from scratch, which could be a huge waste of time.

If you’re still using a spreadsheet or paper ledger to keep track of your business finances, you might want to consider upgrading into a cloud-based accounting software such as Xero. By migrating to the cloud, you will be able to easily back up your accounting data and even access them wherever and whenever you need to.

These cloud-based accounting systems also integrate well with your bank account and other powerful business apps. The results are streamlined processes, less manual work, enhanced efficiencies, and better overall business performance.

Spend Less Time on Your Books and More Time on Your Business

While being aware of these common accounting mistakes could help you avoid them, the most convenient and efficient approach to stay on top of your business finances is still to entrust your accounting to the experts. Our team of experienced accountants can integrate the most suitable cloud accounting software for your business and even train your in-house staff on its proper implementation.

Let us take charge of your books, while you focus on growing your business. Get in touch with us today.

 

 

1. Book a call with me: https://debbiebaileymoney.co.uk//contact-us/ 

2. Download our free guide on “7 mistakes to avoid – to stop your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/ 

3. Connect with me on social media: 

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Business tips Finance Function Gym Tax

Should you voluntarily register for VAT for your fitness center/gym?

Should you voluntarily register your fitness center / gym for VAT?

You are considering starting up a new fitness facility and the outgoings are racking up fast. You need to purchase the equipment up front, sign leases, pay consultants for gym design/layout etc, most of these businesses are likely to be VAT registered. You are currently not trading and therefore haven’t even considered being VAT registered.

But is there a case for voluntary registration prior to getting to the £85,000 compulsory limit? In other words, registering for VAT when you don’t actually have to? Seems a bit crazy but there may be good reasons for considering this and it all depends on individual circumstances.

Registering for VAT

You must register for VAT once your turnover passes £85,000 or at the point during the year when you expect your VAT taxable turnover to be more than £85,000 in the next 30 days.

Once you’ve registered, you must, charge VAT on top of your goods and services to the end users. In most cases this will be 20% (i.e. on gym memberships) but there will be some products which are rated at 5% VAT and others which are zero rated (i.e. frozen meals to be heated and eaten at home). In most cases however, it’s fair to say that you will have to charge 20% VAT on (almost everything).

When you sell something, you collect the 20% VAT you charge customers – this is your output VAT. The VAT you pay on your supplies is your input VAT. At the end of the VAT period, you add up all your output VAT, subtract the total input VAT you’ve paid and then you either pay HMRC the difference or they pay you it.

When you sell to the public (aka gym members), they will not be able to claim VAT back and all they’ll really see is that you’ve put your prices up by 20%.

So, in addition to the extra paperwork that being VAT registered involves, there are serious business considerations to think about too. So, what are the pros and cons?

Advantages of registering for VAT

Deciding whether to register for VAT voluntarily before the registration threshold is reach is a  big decision. It is vital therefore, that the matter is given careful consideration. There are several positive reasons supporting voluntary registration, including:

  • The number one reason we will consider in this article is that you can claim VAT on certain items that you purchased prior to the date of VAT registration. Talk to your accountant about the exact details.
  • If you are in a VAT reclaim situation then you will definitely be better off.
  • You’ll appear to be a bigger business if you’re charging VAT, as the current limit for compulsory registration is £85,000 on VATable turnover (2020/21).
  • Maintaining up to date records will provide better information for running your business.

Here’s an example of how being VAT registered can help:

Sandra is starting a new gym and has on order £120,000 (£100,000 + 20% VAT) of strength and cardio equipment. Being a non-VAT registered business, Sandra will have to accept this amount as a full cost to the business and set this against her business profits for corporation tax. However, if the business was VAT registered, Sandra would claim the output VAT (£20,000) back from HMRC, as she is still in start-up mode and hasn’t received any income yet. This would be a saving of £20,000 cash and give Sandra a better cash position. 

Disadvantages of registering for VAT

As we mentioned earlier, registering for VAT could put you at a price disadvantage over non-VAT-registered competitors because you have to add 20% to everything you sell. There is more paperwork and administration involved too.

  • There can be increased admin and bookkeeping costs.
  • If your customers are not VAT registered themselves then you will immediately appear 20% more expensive when you add VAT onto your price.

·       You will also have to make VAT payments to HMRC once a quarter/month/year if your input VAT is lower than your output VAT. This will need to be factored into your cashflow forecasting.

·       You could end up paying penalties if you do not file and pay the VAT on time. HMRC give you a month and seven days to file your VAT and pay anything you owe over.

VAT Is non-registration preferable?

VAT registered businesses supplying goods and services to private individuals often feel dis-advantaged compared with their non-registered counterparts because they have to charge an additional 20% to their members. 

 

It is important to consider your business plans and forecasts, if you believe you will be above the VAT threshold in the near future then it may be worth registering early to reclaim your output VAT (VAT on supplies). You will also want to set your price at the start and not have to suddenly increase it by 20%. 

 

Purchases made before registration
There is a time limit for backdating claims for VAT before registration. From your date of registration the time limit is:

·       4 years for goods you still have, or that were used to make other goods you still have

·       6 months for services

 

You can only reclaim VAT on purchases for the business now registered for VAT. They must relate to your “business purpose”. This means they must relate to VAT taxable goods or services that you supply. As a gym your taxable service is gym membership, so you will be able to re-claim VAT on items such as gym equipment, flooring, advertisement etc. 

 

In summary, every gym owner will need to consider their own circumstances and future plans before deciding if to voluntarily register for VAT. If you would like more help in deciding if to register then please contact me to discuss. 

 

 

  1. Book a call with me: https://debbiebaileymoney.co.uk//contact-us/ 

2. Download our free guide on “7 mistakes to avoid – to stop your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/ 

3. Connect with me on social media: 

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Business tips Finance Function Gym

Why is our tax service different and how does this benefit you?

Why our tax service is different and how does it benefit you?

There are 3 ways that we deliver over tax service to you as a client. 

The 1st is vitally important, its tax compliance, its how we help you account for the tax
that is due and therefore we help you fulfil your compliance obligations and
give you peace of mind. It’s box ticked, brilliant, that’s really important and
a key part of the service we offer to you.

However, what we really like to do as an accountancy firm is to focus on two additional areas, that in the market place don’t tend to get delivered in a consistent way to clients. What we are about as a business is delivering services in a consistent
and optimized way to clients.

So the way that we do that with tax services, is that as well as offering tax compliance we also deliver tax advice and tax consultancy to you.

Tax advice is delivered to you in a singular area of tax where we will charge you a fee
and you will usually benefit to a greater degree from the work that is delivered
via tax savings that will dwarf the fee that is charged in that area.

We are usually able to spot that piece of tax advice really in 1 of 3 ways.

ONE: you come to us and tell us you are doing something, sometimes if we leave it to
that point, it can be too late for us to do anything, because maybe you have already done it, or taken it too far and we cannot do some planning that can help you better your position.

Two: sometimes the nature of the area is that we can do a surface level spot. In other words, if you are a new start up fitness center and incurring large equipment costs and you walk into my office, I would say to you, you should look at getting VAT registered. It is a surface level spot.

The reality with tax advice though is that there are over 1000 tax reliefs, incentives, allowances and planning opportunities, that can apply to any client and we cannot leave delivery of these services to just surface level spots. 

So instead of waiting for you to come to us, we need proactively get on the front foot
with you and consult with you on the areas that could apply to you, as you move through your evolution as a business. And the way we do that is with tax consultancy, where we get under the skin of your business and really understand what the tax reliefs, allowances, incentives and planning opportunities are that at this point in your evolution specifically apply to you.

 

So (a) you are fully aware of what those areas and (b) we give you the full opportunity at implementing those areas with us. At every different point we will come to you and suggest to you an appropriate level of service and that level of service will be contingent on what you need. It will always comprise of the different tax areas; always tax compliance, often tax advice that we can initially identify you will need and we provide a level of tax consultancy that you need proportionate to where your business is up to.

If you think of your business as an iceberg, tax compliance is the tip, tax advice is the bit above the water (surface level) and tax consultancy is the majority of your business below the water. How we help you the most is by tailoring the package we offer to you with these three things in mind.

 

So how do we deliver to you as a client the different tax
consultancy levels I will go through this in the next article. (To be released shortly).

Until then take a look at the 32 ways you can extract value from you business: https://debbiebaileymoney.co.uk//32-ways-to-maximise-extracting-value-from-your-business/

Here is an example of how the tax consultancy service could benefit you: https://debbiebaileymoney.co.uk//prime-example-of-maximising-extracting-value/

 

2. Download our free guide on “7 mistakes to avoid – to stop your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/ 

3. Connect with me on social media: 

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Business tips Finance Function Gym

Independent Gyms Partnership

lady with weights

Independent Gyms Partnership announcement

The wait is finally over – we’re really excited to let you all know that the brand new Independent Gyms Platform is live!
Head over to www.independentgyms.co.uk for a closer look. There are some great features on the platform from downloadable documents, to preferred partners with discounts, to events/workshops and webinars, to a variety of giveaways and goodies.

Southbourne Accountancy is pleased to have been asked to feature as a partner on the Independent Gyms website, thanks to referrals from current clients. The web page is here (though you do need access, so sign up – it is free in January). https://independentgyms.co.uk/brands/accounting-insurance/

Independent Gyms was created to support independent fitness facilities across the UK and Ireland to grow. They want to make a difference to their members’ business and lives and in doing so improve the industry as a whole for gyms and the end consumer.

We really believe this platform will make this a huge benefit for independents across the UK and it will only get better as we move forward.
There are 3 membership tiers: with a free Basic Membership, an accessibly priced Standard Membership and a Premium Membership (that will come in to it’s own once Covid restrictions are eased).
Given the particularly tough time the industry is going through right now, Independent Gyms have opened this up so all gym owners get their FIRST MONTH FREE when they become a member in January.

It is worth signing up for the free month and looking at what is on offer. 

Also, do not forget to sign up for to be featured on the single biggest map of independently owned fitness facilities in the UK. 

Starting January the Independent Gyms membership will start to run free bitesize webinars for independent gym owners, with the support of their partners.

The sessions cover all aspects of running a fitness business, ranging from remote fitness training with Myzone, cash management with Southbourne Accountancy, to customer Retention with GG FIT. All with the aim of helping independents run their businesses more effectively.
Gym owners can find out more and book on to the webinars via our new platform https://lnkd.in/eKi3pWG

I decided to partner with Independent Gyms as they provide a supportive and inclusive environment to help independent fitness owners. I personally enjoy working with gyms and fitness facilities as I strongly believe in the benefits of exercise to our physical and mental health. I have been on a long journey myself with fitness and have enjoyed learning over the years different types of fitness. By working with business owners who have the same passion as me, we can work together well to understand the pains the business owner is experiencing and how these can be resolved. 

Let me know what you think, I am very excited for 2021 and what this collaboration could mean for us all. 

 

2. Download our free guide on “7 mistakes to avoid – to stop your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/ 

3. Connect with me on social media: 

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Business tips Cash Finance Function

Trivial Benefits – what are they?

business journey

What are trivial benefits? Should you care?

What are trivial Benefits?

Trivial benefits are best described as small ‘token gifts’, given by management to their employees. This can come in any shape or form but generally speaking, they are typified by gestures such as bottles of wine, chocolates, beer for the office, or team lunches. Essentially little everyday sweeteners that keep the morale of the company up.

Tax on trivial benefits

 

A benefit can be “trivial” and mean you don’t have to pay tax on the benefit for your employee if all of the following apply:

·     it cost you £50 or less to provide

·     it isn’t cash or a cash voucher

·     it isn’t a reward for their work or performance

·     it isn’t in the terms of their contract

You don’t need to pay tax or National Insurance or let HM Revenue and Customs (HMRC) know.

You have to pay tax on any benefits that don’t meet all these criteria.

Salary sacrifice arrangements 

If you provide trivial benefits as part of a salary sacrifice arrangement they won’t be exempt. You’ll need to report on form P11D whichever amount is higher:

·     the salary given up

·     how much you paid for the trivial benefits

What kind of trivial benefit can be provided?

The benefits can include anything except for cash or vouchers that can be redeemed for cash. Examples of benefits provided by clients include:-

  1. Christmas Turkey
  2. Tickets for the theatre/sporting events
  3. A tennis lesson
  4. Retail gift vouchers

Is there a limit on the amount of trivial benefits?

For employees there are no limits to the number of times they can receive a trivial benefit in the tax year.

However for Directors of ‘close’ companies

You can’t receive trivial benefits worth more than £300 in a tax year if you’re the director of a ‘close’ company.

A close company is a limited company that’s run by 5 or fewer shareholders.

The key distinction when defining trivial benefits is that they are not intended to add financial value to an employee’s pay-check. Nor can they be given in lieu of payment. They are trivial in the traditional sense of the word; having little actual value. 

 

4 facts about Trivial Benefits:

1. Price cap

You must bear in mind that any ‘gift’ given as a trivial benefit cannot have cost you more than £50. This is irrespective of how much has been paid for it but rather its market value.

 

2. Non-cash

It has to be a material offering, you cannot simply hand someone a crisp fifty. This also includes any voucher that can be redeemed for cash. This is just too close to being a form of payment and so as a blanket rule, all cash gifts must be recorded and incorporated into the tax.

 

3. It is not a bonus

It cannot replace a bonus. So if someone’s landed you a contract and you give them a voucher, that isn’t a trivial benefit.

 

4.      It is not in their contract

Trivial benefits have to be one-offs or random acts of kindness. There cannot be a formal agreement between employee and employer about their supply and frequency. Again this resembles a type of payment.

 

 

1. Book a call with me: https://debbiebaileymoney.co.uk//contact-us/ 

2. Download our free guide on “7 mistakes to avoid – to stop your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/ 

3. Connect with me on social media: 

https://www.linkedin.com/in/southbourneaccountancy/ 

https://www.facebook.com/debbie.hancockSA 

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Business tips Cash Finance Function

32 ways to get the maximum value out of your business

32 ways to get the maximum value out of your business

A question I get asked all the time is: ‘What can I take out of my business?’ and ‘how do I save more tax?’ Well, the quick answer is, ‘there’s up to 32 ways to get value out of your business, tax efficiently.’ Yep, that’s a lot of ways ⬇️ (checkout out the full infographic here). 

But the truth is, not all these 32 ways will be relevant to you and your business, and it’s likely that you’ll already be doing a few of them. But how do you know if you’re maximising every opportunity you could be, to improve your life, your families and your employees?

Value Extracting Tax Diagnostic Review

Well, we have a tax diagnostic review service that will do exactly that for you.

In our Value Extracting Tax Diagnostic review we will analyse your business and personal circumstances against the 32 ways, to identify all the ways you can tax efficiently put things through the business, or take value out of the business, benefitting you, your family and even your employees.

Every business owner can extract loads of value from their business, you just need to know what is relevant for you. 

Find out more about our tax diagnostic service here.

Let’s have a chat

If you’d like to review how much value you’re getting from your business, we’d love to speak to you, book in a
call & let’s have a chat: 

 

 

Book a call

2. Download our free guide on “7 mistakes to avoid – to stop your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/ 

3. Connect with me on social media: 

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Business tips Cash Finance Function R&D

Work Hard, Play Hard….Protect Your Success

Work Hard, Play Hard….Protect Your Success

As a business owner I’m driven by two things: working hard to protect my future and success for my family and delivering the proper
finance function small businesses need.

And like all my clients, I’ve worked my butt off to get where I am today. However, setting up my business was the best move I ever made,
and I haven’t looked back once. Each day I work hard for me and for my clients but most of all so I can play hard with my little boy. My goal is to build as
comfortable life for when I get into my later years. I want to ensure
everything that I have worked for is protected, so I can pass on that success
to my family.

I know this is something I have in common with a lot my clients.

One of the ways I do this is through completing a tax diagnostic review. This
is an enhanced level of tax consultancy service that makes sure I am aware of
all the tax saving opportunities available to me and my business. Without a tax
diagnostic review, I simply wouldn’t have the peace of mind and certainty that I am doing everything possible to protect my success.

I recently completed a Growth Tax Diagnostic for my business, and an Individual Tax Diagnostic focused on me, and I wanted to share with you what I found and how this will impact me.

The review pulled out lots of things for me to look into, but I’ve selected 3 areas
that are really important to me right now because they tie into everything I am
working towards. These are:

·      Business restructure

·      Pensions

·      Inheritance tax

Time to say bye to solo?

My business is growing, but I want to ensure that the growth is controlled. Why? The same two reasons really; for my clients, I want to make sure I continue to serve every client and I want to ensure a secure and balanced lifestyle for me.

For me this means exploring the optimum time to go from a sole trader to a Ltd
company, which can be different for every growing business dependent on the circumstances. Beyond this, it is about looking at alternative ways to
structure the business to aid tax efficient growth.

Retirement target….it’s on!

Sadly, I’ve witnessed first-hand the difficulties faced when insufficient provisions are made for retirement. It’s because of this experience, I want to make sure I’m creating a comfortable future. I also want to make sure that my pension matches up to my partner… because at this rate he’s likely to retire much early than me…..and we can’t be having that!

I’m lucky to have a very good pension from the time when I was employed but like most new business owners, I’m guilty of not keeping up those contributions. I’ve changed this now but it’s important for me to maximise contributions wherever possible by ensuring l explore all options. 

I’m doing it for you kid!

This one has cropped up because I have a property that is nearing the IHT threshold. Alarm bells! I want my hard work and graft to end up in the hands of my son – he’s only 5  so a little too young for his ACMA! Jokes aside, I feel super proud of what I have achieved, and I want him to benefit from it. This means the world to me. 

Unless I proactively address my IHT position, I risk 40% of my hard work slipping through my fingers and taken away from my legacy for my son.

That would be heart breaking.

The other option would be getting the other-half to “pop the question”……

To The future

The future for me is family. Yes, there’s everything I want to do to protect my position, but it’s not just about me. I want to explore an investment which will benefit my family, as well as build more wealth to be passed onto my son in the future.

 

I’m also going to do the next level of individual tax diagnostic, as I want to ensure that I am as tax efficient as possible!

Protect your success with a Tax Diagnostic Review!

If you’re interested in an enhanced level of tax consultancy service, book a call to find out more about our tax diagnostic review services. You’ve put in the graft to get your business to where it is today, you deserve to protect your success. Book a call

Also, why not grab a copy of “32 ways to extract value from your business” – save tax

1. Book a call with me: https://debbiebaileymoney.co.uk//contact-us/ 

2. Download our free guide on “7 mistakes to avoid – to stop your fitness business running out of cash” https://debbiebaileymoney.co.uk//fitness-ebook/ 

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