Finance
In this section ACS provides advice on financial issues such as tax, VAT and using PAYE.
We also have a section on commercial finance. This is a new feature that, given the current economic conditions, could be very useful if you have a query about how to source funds for anything from the purchase of a new property to a shop refit.
Click to access the guides:
Commercial Finance
In the current economic conditions, sourcing any type of business finance can be difficult. Whether you are trying to raise funds to purchase a property or a new chiller, it will have become a lot harder to do so over the last twelve months.
So what can be done to maximize the chances of any application being successful?
Whatever type of finance you require, it is a good idea to use an experienced independent commercial finance broker. The key word being independent. This means they will not be tied to one bank or lender and will be able to access a wide variety of different types of lending. They should hopefully be able to match your finance requirements and individual circumstances.
Despite what you see on the news and read in the papers there are lenders around prepared to lend, so ask your broker to shop around.
Government Help
The Government has launched a package of financial measures that will help viable businesses with temporary cashflow difficulties. These supplement existing Government help already available.
Government Guaranteed Lending
The government has launched a package of financial measures that will help enable banks to continue or resume lending to viable businesses with temporary cashflow difficulties.
Be prepared to research all possible options, and to negotiate with the lender, to get the best deal for your business. Since these are commercial products, participating lenders will determine individual borrowing eligibility.
Enterprise Finance Guarantee
Government guaranteed lending through the new Enterprise Finance Guarantee (EFG) is open to businesses with an annual turnover of up to £25million who are currently not easily able to access the finance they need. This will enable businesses to secure loans of between £1,000 and £1million. Note: all lending decisions will be at the discretion of the bank supplying the loan.
Find out more information about the new Enterprise Finance Guarantee.
Working Capital Scheme
Working Capital Scheme (WCS) - government is also making available to banks guarantees of up to £10 billion, which will support bank lending of up to £20 billion. The purpose of this facility is to release capital which banks can redeploy in order to increase all types of lending above their current plans to businesses with a turnover of less than £500m.
Equity finance: capital investment
Equity funding is a way of raising share capital from external investors in return for handing over a share of the business. This may take many forms, including a share of future profits. The two main providers of equity finance for private investors are venture capitalists - also known as private equity firms - and business angels.
The £75 million Capital for Enterprise fund (CFE) with £50 million of Government funding will allow companies to fund business development by selling debt in exchange for an equity stake in their business. The fund will provide equity and quasi-equity of between £250,000 and £2million for companies with turnover of up to 50 million euros, who have viable business models and growth potential in need of long term capital.
Businesses who would like to explore whether the fund might benefit them should call the Capital for Enterprise Fund Helpline on Tel 0845 4533780.
HMRC Tax Guides
HMRC now provide the tool below which has some essential guides for retailers. Just drop down the arrows to read a guide or watch a video on subjects ranging from employing people to a useful tax calendar. Because the informaiton comes direct from HMRC, it means it is always current.
Taxes
For advice on the following taxes, we direct you to our LEGAL section which is regularly updated:
VAT Online
On current plans, virtually all VAT businesses will be required to file their VAT returns online and pay any VAT due electronically from April 2012.
HMRC issued a consultation document on 8 August on the next steps for moving VAT online and the deadline for contributions is 31 October 2011. This is an opportunity for HMRC to understand how digital services – including the move to online VAT filing – will affect our customers and how to improve assistance fro those who may have difficulty moving online.
We expect that compulsory online filing will go ahead as planned in April 2012 and our key communication message to businesses and agents is to act now and get online in 2011.
The following message can be sent to VAT businesses that haven’t yet made the move to online and are affected by the change next April.
All VAT business to file VAT returns online from April 2012
On current plans, virtually all VAT businesses will have to file their VAT returns online and pay any VAT due electronically from 1 April 2012.
Filing online is straightforward and almost 80% of all VAT businesses are now filing their VAT returns online. But if you need help to get started, there’s a lot available, both online and by phone. Look out for the special VAT Notes supplement going out in VAT returns for periods ending October to December 2011 to find out more about the help and support is available.
HMRC will write to all businesses affected by the change in February 2012 to explain what to do. But if you want to get started now – which HMRC strongly recommends that you do so that you are familiar with the online service well in advance of the April deadline – you can find some useful step by step guides on the HMRC website and also an online demonstrator which previews the screens you’ll expect to see within the online service:
• The beginner’s guide to signing up to VAT Online
• The beginners’ guide to filing a VAT return Online
• The online services demonstrator
You can also find out more information about paying HMRC including paying by online Direct Debit which currently gives you longer to pay and to file your return online.
If you can't find the answer here, give us a ring on 01252 515001 and we can put you in touch with an expert - this is just one of the benefits of being a member of ACS.