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| How Safe Are My Savings With The FSCS Deposit Protection Scheme? | | |
In spite of major stimulus packages and obvious recovery attempts from the Central Bank and the Coalition Government, global economic activity is still slow. We are still plagued by unfavourable market sentiment and many businesses are struggling to stay afloat. If you have managed to accumulate some savings over the years, like many, you may be concerned about the previous crisis at Northern Rock in 2007 repeating itself and putting depositors funds at risk.
The Financial Services Compensation Scheme (FSCS) has been campaigning to highlight the new £85,000 limit on depositors funds. The FSCS deposit protection scheme covers small businesses. To be eligible, they have to satisfy at least 2 of these conditions:
1. Employees<50
2. Balance sheet total<£3.26 m
3. Annual turnover<£6.5 m
Larger businesses are excluded from this scheme, except regarding claims made under a compulsory insurance policy. Individual savers also get full compensation up to £85,000 per saver, per authourised institution.
On a general note, idle funds do not generate any income - avoid leaving significant amounts of cash sitting in a current account. To maximise your cash assets , speak to your financial adviser or contact us for help with cashflow management. |
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One Month To The Switch
Online Filing & iXBRL | | |
From the 1st of April 2011, all companies will have to file their Company Tax return online for any accounting period ending after 31 March 2010. In addition to this, companies will have to pay any Corporation Tax and related payments electronically.
Accounts prepared under the Companies Act 2006 must be filed in iXBRL format (Inline eXtensible Business Reporting Language). The HMRC site has a free online template which may be sufficient for companies with straight forward tax affairs. The software includes online templates for accounts and computations information and also includes a joint filing option. This template is however unsuitable for charities.Please visit the HMRC site to find out what charities are affected by this new process. Until HMRC provides a template that is suitable, smaller charities can choose to send their accounts to HMRC in iXBRL format (using commercial software) or in PDF.
If you are already using or intend to use commercial software to make submissions, please check with your provider that the product is compatible with the Corporation Tax online service. The maximum size when using the free HMRC software is 5MB (for combined attachments).
To avoid incurring fines, speak to your accountant as soon as possible or contact us for more information. You may send your queries to us at clientcare@efm.uk.com or reply to this newsletter.
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| PAYE Coding Notice | | |
In the months of January, February and March, HMRC may send a PAYE Coding Notice to you informing you of your new tax code for 2011-2012. This code will be used by your pension provider or employer from April 6 to ensure you pay the right tax code and get your tax entitlements .
This coding notice will not be sent to everyone so do not worry if you don't get one. Keep the notice safely, if you do get one, or several if you have more than two sources of PAYE income or pensions.
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The e-FM Network
Our Locations |  | |
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Quick Links...
Parent Website
Interim Management
or join us on twitter
You can visit the IMTB blog
or join us on twitter |
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Greetings!
Welcome to our March 2011 Newsletter. For many, it is the year of multitude trials. The year that the VAT rate is 2.5% higher- once again, budgetary cuts are harsher, online filing is compulsory, iXBRL accounts need to be prepared, new employment laws are in force and funding support still questionable in spite of the current lending agreement, 'Project Merlin' and the 'Retribution To Recovery' tactics. Amidst all of this, there are many success stories unfolding... |
 | Does Your Business Need Our Fresh Ideas? | |
Whether you are an employer considering various ways to maximise cashflow and maintain skill levels or an experienced finance professional looking to start a self-employed business, your search may end here.
e-FM's scalable financial management solution enables companies to access high levels of financial expertise on a cost-effective basis and we are taking our model to a whole new level.
Employers: To find out how we can help your business, please visit us at www.efm.uk.com or reply to this newsletter.
Prospective Entrepreneurs: To find out how we can help you start and run your business, please visit us at www.efm-network.com or reply to this newsletter. The next article has more information about our March discovery day.
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More Than The 'Boomerang Generation'
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The BBC Breakfast program, 'Degree Of Uncertainty' shown last year was particularly interesting, and relevant to more than the group it refers to as 'The Boomerang Generation'. These are the young people who fly the nest to go to university , get qualified, and then failing to find jobs, go back to their parents' homes.
According to the Office for National Statistics, UK unemployment rose to about 2.5 million in October 2010. Of this number, 965,000 are 16-24 year olds; this data obviously reveals the large number of older people out of work. Sadly, in 2011, the numbers are still rising...The labour market is becoming more complicated, almost impenetrable, even for experienced professionals. In addition to the tens of thousands of graduates set to confront the employment market this summer, thousands of public sector workers, businesses that depend on them and a huge number of professionals looking for a new direction are already aware of the apparent lack of job prospects as the future unfolds.
It's not just the youth suffering from the harsh economy. If you have been made redundant, or are seeking to venture into self-employment, or just want to find out options available for generating additional income, you may want to consider becoming a career interim, or buying a franchise or license. The markets may provide new opportunities in these areas as more full time jobs are withdrawn .
Attend Our Free Discovery Day:
With over a decade of providing financial management services to clients, we are now expanding the network via our license model. The network has since last year, welcolmed six finance professionals to their own business using the e-FM model . We provide an entire business in a box and you get an incredibly flexible lifestyle with additional revenue generating opportunities from our partners. You may decide to work at any level from bookkeeping to Financial Director for as many days as you find appropriate. To find out more about our offer and the benefits of joining the network, please visit our new network site: www.efm-network.com
Our next discovery day:
9th of March
At ICAEW Moorgate Place, London.
From 9.30am - 1.30pm.
If you would like to attend this free discovery day, kindly contact us by replying to this newsletter or email james@efm.uk.com for bookings.
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| | The Extra 2.5 Percent | |
In January, most small businesses chose to absorb the additional cost of the VAT increase, rather than pass it on to their customers, and being the 3rd VAT rate change in less than 3 years, many have learnt to deal quickly with the administrative burden and any loss in income.There are a few common issues that some businesses are still struggling with though:
1. Pricing- With an extra 2.5% going to HMRC , some are wondering what to do with new orders supplied at the new VAT rate . The decision to continue absorbing the extra cost would be a commercial one based on competitors, supplier prices and client demand, so you may want to consider this mix before making a hasty decision.
2. Penalties: Wrongful declaration of output tax will incur a penalty from HMRC, so ensure your accounting is in order , to avoid fines resulting from this type of error.
3. Claims: If you are not currently registered for VAT, and most of your products are zero rated, you may want to consider registering to enable you to recover costs on suppliers' charges and improve your cash position.
4. Reclaiming: You might already be claiming VAT, but you might like to know that HMRC issued guidance in respect to overseas customers (this also includes overseas group company employees). The previous policy was that VAT incurred on hospitality for overseas customers was ineligible for recovery by normal business entertainment rules. However, in the new guidance HMRC now accept that VAT on hospitality (room hire, meals, potentially hotel costs) incurred by a UK company for training/meetings/seminars and similar events is recoverable. HMRC have not changed their policy for hospitality provided to UK customers. The good news is that potentially, claims can be made for the last 4 years.
5. Free Guide On How To Be VAT Savvy: Our friends at 'Computershare Vouchers' have been hunting for ways in which families can avoid VAT hikes or steer clear of VAT-able products all together and save a few more pennies. With April fast approaching, parents can start to make changes now or miss out on significant savings. One change the Government is making is to the level of tax relief on childcare vouchers for higher and additional rate tax-payers who sign up to the scheme after 6 April.
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| Funding Options For SMEs |
 The long-anticipated agreement with the largest banks on lending, pay and bonuses has finally been publicized. Banks will now lend about £190 billion to businesses in 2011 , including £76 billion to small firms under Project Merlin. HSBC, Barclays, Royal Bank of Scotland (RBS) and Lloyds Banking group have signed up to the Project Merlin agreement, while Santander has agreed to the lending parts of the deal.
For those seeking funding under government-backed schemes designed to help SMEs, they may use one of two major options:
1. Enterprise Finance Guarantee (EFG): In November 2010, the Coalition Government announced that the EFG scheme would continue for another four years, making about £2 billion available to about 6,000 SMEs every year. Companies with an annual turnover of up to £25 million may request for loans from £1,000 to £1,000,000 repayable over 10 years. This may be used to access new loans, refinance existing loans, convert overdrafts to loans, gain a new overdraft or extend an existing one, or just cover cash flow shortages.
2. Enterprise Capital Funds(ECF): These are government-backed venture capital funds for fast growing SMEs. The Coalition Goverment announced the addition of a further £200m to the previous investment of £150 million and this will be available over the next four financial years.
3. Funds are also available under 'The Regional Growth Fund', soon to be the 'Local Enterprise Partnerships'.
There are a few exceptions and partial restrictions to sectors and certain companies are ineligible. We can help you find out if you can access these funds, or introduce you possibly to other sources of funding. Kindly reply to this newsletter or call us on 01582 516300. |
| IMTB And The Interim Brands | |
Parental leave issues are under review again and even with current laws, finding appropriate and cost effective cover is difficult for many employers.
For professional maternity and sickness cover, or specialist project work, speak to us about your interim management needs and we will shortlist suitable candidates with relevant experience at short notice. All charities and 3rd sector clients get 15% off. We know that with the extra 2.5% to HMRC in VAT, charities are probably the hardest hit as they are not always able to claim back VAT on purchases.
To find out more about our solutions and how we may help your business, please reply to this newsletter or mail us at chinwe@babyinterims.com . You may also get some fantastic deals through our affiliate programme on www.babyinterims.com . We have a comprehensive list of relevant providers that offer almost everything you will need from before a baby arrives to when the baby grows -including advice, clothes, prams, toys, holidays, and items for parents too. Our affiliates include 'Toys R Us', 'Walt Disney Travel Company', 'Bounty', 'Kiddies Kingdom', 'Baby Monitors', 'Born Gifted', 'Crave Maternity', 'Stardust Kids', 'Babycurls', 'Bambino', 'Ist for Toys', 'Jojo Maman Bebe', 'Just Child's Play', 'Kids Stuff and Things'.
To purchase a product or find our more, please click here:
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| Staff Movements | |
Joanna Chillingsworth left us this year and we wish her the best in her endeavours.
Dori Radovcic-Smyth joined the team in the North Home Counties last month and we welcome her to e-FM. |
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