Why accepting help is a sign of wisdom, not weakness

It is more common than you think for people to consider that accepting help is a sign of weakness.

Actually, it’s a sign of wisdom!

While it may sound simple enough, accepting help is something that can be extremely challenging for all of us at one time or another.

It can be especially hard for those of us that believe that seeking help undermines our independence and our ability to cope. 

However the truth is that by refusing to accept help, we ignore the fact that we are social beings who need to co-operate with one another in order to ensure that we thrive.

Seeing seeking help from others as a weakness is often a very ingrained pattern of thinking and may therefore be hard to overcome. 

Why accepting help is a sign of wisdom, not weakness:

• Is this affecting you or your business?
• Consider exactly why you think that asking for help is a sign of weakness
• Work through how not wanting to ever seek help is reinforced by unrealistic ideals and wishful thinking
• Look to reality instead of relying on wishful thinking

Whatever your challenges or issues, why not seek support? It may just be what you need to do right now.

Omni Chartered Accountants specialise in offering free, impartial advice to prospective clients and existing ones - If you have a problem and feel we could help, why not request a free of charge call back from our website or enquire online today!

Getting good SME business start-up advice

A survey that was carried out by AVIVA earlier this year has revealed that many small and medium-sized employers fail to seek expert advice when starting up their businesses, with 85%of employers not understanding their legal obligations.

It was also revealed in the same SME start-up survey that

• 40% of business owners said they relied on advice from friends and family when starting up
• 13% used financial advisors
• Only 9% of business owners had consulted legal advisers

The research also suggested that 75% of the respondents knew very little about sales, marketing and bookkeeping, with over 30% finding financial administration the biggest challenge in the first 12 to 18 months of starting up.

Over a third of employers also didn’t think they were affected by auto-enrolment.

Getting good SME business start-up advice

At Omni Chartered Accountants, Wolverhampton, we are dedicated to helping new start businesses and pride ourselves in our personable and honest approach. Our fees are highly competitive and we are always there to offer advice and guidance to our valued clients.

Why not request a free or charge call-back from our website today or call 01902 837 408 – alternatively click here to make an online enquiry and we will come straight back to you!

Top 5 tips for productive business meetings

Business meetings are a great way to put a face to a voice or name, and to build relationships with suppliers and clients.

But are your business meetings productive? Poor planning or meetings for meetings’ sake could all be a waste of your valuable time and end up being counter-productive in the worst-case scenario.

Here are our top 5 tips for productive business meetings:

1. Be prepared for your meeting

Always have an agenda outlined and have copies for any attendees to hand – it also helps to email them over to anyone who is coming to the meeting beforehand in case they would like to add something, or if there is something you have missed or would like to research prior to the meeting date.

2. Be certain about your objectives

Do you want to solve problems, build a relationship, sign off a deal or project, sell a company service or network?

3. Time costs money

Once you have identified your meeting objective clearly, you can set about allocating a time slot. Time is money, so have a think about how long your meeting should last and try and stick to it if you can – we all know that meetings can often over-run unnecessarily!

4. Get involved

Be aware of your involvement and contribute and lead wherever possible – at the same time, try and give attendees the chance to participate!

5. Be a host

Of course, it goes without saying that tea, coffee or soft drinks should be offered but remember that small snacks are also usually very welcome; even small acts of kindness like offering biscuits usually help forge relationships.

We speak to many small business owners who don’t value their time nearly enough – an afternoon or day away from the office can be costly and often also involve plenty of stressful catching up!

If the meeting is unproductive, this can only lead to frustration.

Follow us on Twitter @OmnitasTax to keep up to date with our latest blogs specially written with the UK SME in mind – and remember, we are always here to help advice and guide with business matters as well as offering cost-effective, professional accountancy solutions!

You can request a free of charge call-back from our website or call 01902 837 408 today!

Self-employment tips – part one

One of the main benefits of becoming self-employed is the ease with which you can start up and run your new business.

In part one of our special feature, we take a look at some of the important things that you may wish to consider before taking the plunge.

You can even become a sole trader (another term for self-employed) whilst working as an employee for someone else, so you can test the water and see if you’re suited to working for yourself.

Here are first top tips for when you decide to go self-employed:

How to register as self-employed with HMRC

Once you set up as a sole trader (or work as a partner in a partnership if there’s more than one of you), you will be responsible for paying your own income tax and National Insurance (NICs).

You must register as self-employed with HMRC within three months of starting trading, even if you already pay tax via the self-assessment process each year. You can register online or call HMRC on 0845 915 4515 if you’d prefer to speak to someone.

If you are unsure whether or not you need to register with HMRC, here is some help to establish whether you are employed or self-employed.

Once you start operating as self-employed, you will need to pay your own National Insurance contributions (NICs).

Do you need to register for VAT?

As of April 2015, if your business has an annual turnover of £82,000 or more, you must register for VAT.

At any stage of the business cycle, if you look like you’re going to hit this annual VAT threshold over the coming 12 months, you must also register. The threshold usually rises by a few thousand each year. Make sure you let HMRC know within 30 days, or risk paying a fine.

In many cases, you might decide to register for VAT even if you don’t need to. You may gain more credibility by having a VAT number, and you’ll be able to claim the VAT back on eligible purchases you make.

You might also consider the flat rate VAT scheme, which makes accounting for VAT much simpler. Your accountant will be able to advise you if you’d be better off on the Flat Rate or standard VAT scheme.

Need advice?

If you need advice about becoming self-employed, we are here to help – request a free of charge call back from our website or click here and we will contact you to discuss your situation.

Women beat men in ICAEW examinations for first time in history

Women beat men in ICAEW examinations for first time in history

Interestingly, after our recent blog exploring the gender wage gap, it seems that the ladies are steaming ahead when it comes to the ICAEW examinations.

And this is for the first time in the institute's history.

In November 2014, 77 percent of top scorers in the ICAEW's Advanced Level results were women – 100% were female and will win the prizes.

PwC boasted the best performing students with others coming from KPMG, Hagen Streiff Newton, Deloitte & Oshiro Accountants.

Modern female accountancy careers

It is hoped by the institute that these latest figures will encourage more females to choose accountancy as their career – hopefully, it will mean the end of the age-old gender wage gap as the younger professionals start their careers.

At present, ladies entering into accountancy stands at around 35% of students, according to latest figures from accounting watchdog FRC.

Executive director for learning and professional development at ICAEW, Mark Protherough, said;

"Women are demonstrating real excellence when it comes to chartered accountancy exams. At this stage of entering the profession, it's women who are dominating the top scores and they are role models for all women thinking about taking up chartered accountancy.

“Our qualification is known for creating business leaders, and I hope these scores mean we see a stream of female business leaders in the future.

"I'd like to congratulate all our students as these results were phenomenal. We had consistently high pass rates across the papers. It's important to celebrate these results - our students are showing us and employers that we have a bright future of ICAEW chartered accountants coming through. It's not just about passing these exams, it's about taking that next step in their career."

Do you think that this new wave of success could help with the gender wage gap problem as the new generations embark on their chosen career path? Let us know your thoughts @Omnitastax or of course, join in the conversation on Facebook! 

When should we put a share agreement in place?

Usually, it is best to put a shareholders’ agreement in place when you form the company and issue the first shares. In fact, it can be a positive exercise to ensure there is common understanding of shareholders’ expectations of the business.

At that point, the shareholders should, as far as is possible, be of a similar mind about what they expect to offer and get from the company. Indeed if the differences of opinion between you at this stage are too strong to form a shareholders’ agreement, it is likely to ring warning bells about the nature of your future working relationship.

When should we put a share agreement in place?

You may choose to defer discussing a shareholders’ agreement in order to get on with the important task of establishing the business. While you may have every intention of return to it at a later date when there is more time, the appropriate opportunity may not arise and something else always takes priority.

Even if you do pick it up later, by then the shareholders’ expectations and feelings towards the business may have diverged, making it more difficult for them to agree to the terms that should be included in the shareholders’ agreement.

What should I ask to be included in a shareholders’ agreement?

This, as described above, will depend on your level of shareholding and the number of your fellow shareholders.  The key provisions, however, that you should consider including in a shareholders’ agreement are those relating to:

• Issuing and transferring shares – including provisions to prevent unwanted third parties acquiring shares and how a shareholder can sell shares.
• Providing some protection to holders of less than 50% of the shares – including requiring certain decisions to be agreed by all shareholders.
• Running the company – including appointing, removing and paying directors, deciding on the company’s business, making large capital outlays, providing management information to shareholders, banking arrangements and financing the company.
• Paying dividends
• Competition restrictions
• Dispute resolution procedures

We will look at these and other things you might want to include in a shareholders’ agreement in a forthcoming article.

It is possible that the contents of the shareholders’ agreement may overlap with other company documents, particularly the articles of association. The articles will, for example, contain provisions relating to decision making and transfers of shares and in another article we explored what investors should look for in a company’s articles of association.

Consider seeking legal advice if you are not sure which provisions to include in which documents, but overall do ensure that the shareholders’ agreement and articles of association are consistent with one another.

To find out more, feel free to request a free of charge call back from our website or click here and we will contact you by return.

What is a shareholders’ agreement?

A shareholders’ agreement is, as you might expect, an agreement between the shareholders of a company.
It can be between all or, in some cases, only some of the shareholders (like, for instance, the holders of a particular class of share).

Its purpose is to protect the shareholders’ investment in the company, to establish a fair relationship between the shareholders and govern how the company is run.

A shareholders’ agreement will:

• Set out the shareholders’ rights and obligations
• Regulate the sale of shares in the company
• Describe how the company is going to be run
• Provide an element of protection for minority shareholders and the company
• Define how important decisions are to be made

The shareholders’ agreement will contain specific, important and practical rules relating to the company and the relationship between the shareholders.

How will a shareholders’ agreement help me if I am a minority shareholder?

Without a shareholders’ agreement, a minority shareholder (one owning less than 50% of the shares) will on their own have little control or say in the running of the company. Indeed, the control will often rest with one or two shareholders.

Companies are generally run by majority decision and even if the articles of association include provisions that protect the minority, these can be changed via special resolution by holders of 75% of the shares.  There are laws that provide limited protection to minority shareholders but these can be costly to enforce and may not achieve the required redress.

Protecting your rights as a minority shareholder

Being a minority shareholder and having a shareholders’ agreement that includes the requirement for all shareholders to approve certain decisions ensures that you have a say in the important decisions that impact the company.

This could be decisions on the issue of new shares, appointment or removal of directors, taking on new borrowings or changing the main trade.  However, if the shareholders’ agreement requires all decision to be unanimous this could cause problems and ultimately prevent your company carrying out its business.

As a minority shareholder, you may want a provision included that if someone is willing to buy the shares of a majority shareholder, that shareholder can only sell the shares if the same offer is made to all shareholders including you as a minority shareholder. This is often referred to as a “tag along” provision. This should then ensure that you receive the same return on your investment as the other shareholders.

How will a shareholders’ agreement help a majority shareholder?

If, as the majority shareholder, you want to sell your shares but a minority shareholder is unwilling to agree then including a provision forcing that shareholder to sell their shares is important.

This is often referred to as a “drag along” provision.  This will then allow you to realise your investment at a time and price that you feel is appropriate.  Obviously the price and other payments for the sale will need to be fair for all shareholders, including the minority shareholders.

In addition you would want to prevent minority shareholders passing on confidential company information to competitors or setting up rival businesses, each of which can be included as a provision within a shareholders’ agreement.

Another concern is where one of your fellow shareholders could transfer their shares to anyone.  This could cause problems for you and the other shareholders, especially if the sale is to a competitor or someone else you do not want involved with the company.

Conversely, however, to force an unhappy shareholder to stay may cause more problems than having a new unknown shareholder who is interested in the company being successful.  You and your fellow shareholders need to get on with each other for the business to thrive.  To overcome these problems, shareholders’ agreements will often include rules around share sales and transfers – who shares can be transferred to, on what terms and at what price.

In our blog tomorrow, we will discuss when the best time is to put a share agreement in place. In the meantime, if you have any queries or would like to discuss your situation in more detail, request a free of charge call back from our website or click here and we will contact you by return.

Do you need a shareholder agreement?

When setting up a company with family or friends it is easy to assume that nothing can go wrong in the future.

You might assume that - as you trust one another - you do not need to put in place something like a shareholders’ agreement. 

In fact, you might think that asking for a shareholders’ agreement will make it sound like you don’t trust or respect your new business partners.

Hopefully, nothing will go wrong in the future – after all, nobody sets out expecting it to! However, even family members and best friends fall out and, unforeseen circumstances can occur.

If the worst should happen, you could then end up with nothing. Or you might face the breakdown of a friendship alongside a costly and acrimonious legal dispute related to the business.

Why do you need a shareholders’ agreement?

Although the company’s articles of association will help to some extent, a fully considered and well drafted shareholders’ agreement can act as a safeguard and give you and your fellow shareholders more protection against these types of scenario.

Although some people with a shareholders’ agreement will never need to rely on its terms, there will be many more cases where shareholders wish they had taken the time to put a proper agreement in place.

If you are going into business with others and are looking for confidence about your future relationships with them, you should carefully consider putting a shareholders’ agreement in place to protect both the business enterprise and your own investment in the company.

Our next blog will explain what a shareholder agreement is – in the meantime, if you have any queries or would like to discuss your situation in more detail, request a free of charge call back from our website or click here and we will contact you by return.

What to do if you have had a letter from HMRC

What to do if you have had a letter from HMRC

Had a letter from HMRC?

If you have received a letter from HMRC and are stressed out by it, what should you do?

What to do if you have had a letter from HMRC

1. Read it thoroughly

2. Digest and consider what is about

3. Is it asking you questions or is it stating facts?

Whatever the contents of the letter, it will certainly include advice and action needed.

DO NOT IGNORE HMRC CORRESPONDENCE

The best thing to do is to seek advice; many accountants will give you some free advice and some direction.

Regardless of whether you are an individual, a sole trader or a limited company, the letter will have been sent for a reason and it will require action to clarify, resolve or just inform.

It needn’t be stressful and you are not alone, take simple steps to understand and talk to the experts. The HMRC website contains many useful links and FAQ’s - it is a great source for getting a greater understanding and knowing what to do and when to do it.

Just don’t ignore or put off dealing with it.

Omni Chartered Accountants are here to help if you are seeking advice - request a free of charge call back from our website, call 01902 837 408 or click here and we will contact you for a free of charge informal chat.

What abolishing the  tax return means for your business

Digital tax accounts taxpayer easy guide 2015

It is nothing new for taxpayers or their agents who already use HMRC’s services to manage their tax affairs online. In fact, over 85 per cent of Self Assessment tax returns are already completed this way.

Digital tax returns to replace tax returns announced in 2015 Budget

The Government has announced their plans to update the tax system, by replacing traditional tax returns with digital tax accounts for millions of UK individuals and businesses.

From early 2016, around five million SMEs and ten million individuals will have access to their own digital tax account and by the end of the next Parliament, every individual and SME in the country will have one. But what does this mean  to you and your business?

At the moment, there is still some uncertainty as to the finer details and many sole traders and small businesses are concerned about the changes and how it will affect them.

Later this year, the government intends to publish its roadmap and further consult on the changes; some of these changes will require investment in new systems and changes to legislation.

What abolishing the  tax return means for your business

Digital tax accounts taxpayer easy guide 2015

• Businesses and individuals will be able to view and manage their tax information online
• Taxpayers will be able to see how their tax is calculated
• There will be options for paying securely online
• Taxpayers will be able to check how much tax they owe or need to be repaid online
• Businesses with more than one tax affair - like corporation tax, VAT and Pay-As-You-Earn (PAYE) - will be able to view their total liabilities across the board
• HMRC will already hold information on file along with third party data
• Those who pay tax through PAYE will have their National Insurance contributions, income tax, and pension position shown in their digital tax accounts, including any interest from banks and building societies

Although it is not exactly clear yet as to the timing or the implications, we will keep you informed with all of the latest news and developments. Losing the paper does not mean that you will no longer need an accountant – looking ahead and adapting your business to deal with any changes will be the key to making the transition smoothly. 

HMRC will be in receipt of real time data and information, it is going to be vital to ensure that all information entered is clear, correct and validated prior to updating your digital account.

In the meantime, if you would like to contact us please click here, or request a free of charge call back from our website. We are also available for online chat via @OmnitasTax or you can join in the conversation on Facebook.

EU accounting directive could be threat to UK economy

A radical new accounting regime set to shake-up the UK's small business reporting landscape could pose a risk to the British economy as an unplanned by-product of an attempt to slash red tape.

That's the stark warning from Nigel Sleigh-Johnson, the ICAEW's Financial Reporting Faculty head, as the government publishes its final recommendations on how the new EU Accounting Directive will be implemented in the UK.

Sleigh-Johnson said;

"Only time will tell whether the reduction in the information required in small company accounts is a sensible reduction in red tape or a source of risk to the UK economy.

“ICAEW for one has persistently warned against the potential risk that over-simplifying reporting requirements can have on the ability of small companies to secure credit."

What are EU Accounting Directive recommendations?

Under the BIS proposals, set to be enshrined in company law by July 2015 and become effective for financial years beginning on or after 1 January 2016, the most profound changes relate to small businesses.

A legal restriction will be placed on the amount of information required in small company accounts, while small businesses will be denied the option to file so-called abbreviated accounts at Companies House. But they may be allowed to both prepare and file a new simplified form of ‘abridged' 

accounts.

Accounting thresholds for SMEs due to rise

Accounting thresholds for small companies are also due to rise, meaning more businesses will have access to the simplified reporting regime.

Sleigh Johnson said he was encouraged that BIS had listened to some of its key concerns, especially that access to the proposed abridged accounts regime for small companies will be restricted to companies that have secured shareholder buy-in first.

But he expressed disappointment that the introduction of the new accounting regime for small companies, especially at an EU level "has overall been an exercise in damage limitation rather than one of well-considered, proportionate simplification, and that subsequently the time available for debate about UK implementation has been so restricted".

Small businesses, their advisers and lenders would be well advised to prepare for implementation of the new accounting regime, irrespective of the outcome, he added.

The Financial Reporting Council is expected to consult shortly on detailed proposals for revised accounting standards for small and micro companies, also due to come into force on 1 January 2016.

Have your say about the EU Accounting Directive proposals on Twitter @OmnitasTax or Facebook. Omni Chartered Accountants are here to help guide you and provide affordable accounting solutions for your company – contact us now or of course, you can request a free of charge call back.