George Osborne presented his third budget on Wednesday 21st March 2012.

To help you understand the budget proposals we have produced an e-brochure summarising all of the proposals and how thye may affect you. Please click this link to learn more about the 2012 Budget.

Summary of the proposals

• Another increase in the personal allowance but there is a reduction in the basic rate band from April 2013.
• An additional 1% cut in the main rate of corporation tax to 24% from April 2012.
• A reduction in the additional rate of income tax from 50% to 45% from April 2013.
• Details of how Child Benefit will be taxed on those with income in excess of £50,000.
• Proposals for tax simplification for smaller businesses.
• Consultation on the introduction of a general anti-abuse rule.
• Increased Stamp Duty Land Tax on high value residential properties.

Please click this link to learn more about the 2012 Budget.

Regulations covering minimum wages and statutory pay apply to almost every business.

It is illegal to pay less than the National Minimum Wage so you need to be clear about your responsibilities as an employer if you are going to minimise disruption to your business and prevent disputes arising.

In associaation with Studholme-Bell Ltd, we have produced a document that explains the national minimum wage in more detail. Please click <here> to download and read this free document.

The service is free and can be accessed via Companies House website.

Up to four e-mail addresses can be registered per company and each will receive timely reminders of the dates on which both the company’s accounts and its annual return are due to be filed. This will save costs at Companies House as it is cheaper than sending postal reminders and should also help companies to avoid fines for late filing of these documents.  The service is an alternative to having paper reminders sent to the company’s registered office address, which may not always be its trading premises address.

This is another step on the way to Companies House objective of becoming a fully electronic register when all filing will be done electronically by March 2013.

There are numerous ways in which you can speed up the receipt of cash coming into your business from those who are late or slow at paying you. We at Studholme-Bell find that  different business sectors will have different experiences of late payment. In general, however, the following ideas should help speed up the payment process:-

Early Settlement Discount

More and more companies are starting to offer a discount of between 5% and 10%. This discount is ONLY available if the invoice is paid fully within the payment terms of the inovice. You need to be strict on this to ensure that you only offer the discount if paid on time – start slipping and the customer will start to expect the discount whenever he/she pays.

Offering early settlement discount should not affect your turnover value as you should increase your original selling price to compensate.

Statutory late payment interest and/or surcharge

The use of statutory late payment interest can be applied to any late invoices that have been outstanding past the due date of payment. This is calculated at 8% above the Bank of England base rate and is prorated.

Outsource your credit control

There are numerous credit control businesses sprouting up. These work on your behalf and chase those invoices that are late, thus allowing you to concentrate on your day to day work. In addition, some agencies are proactive, in that they will contact customers before payment dates to make sure your invoicesa are in the next payment run.

Standing Order / Direct Debit originator

It may be possible to to work out a fixed fee for the year and apply a standing order system. This would ease the cash flow for both parties.

If your business is large enough, it may be a good idea to become a Direct Debit originator. Subject to the rules of Diorect Debit, you are able to control the amounts of money that are deducted from your cusomer’s bank account. There is a set up cost for this service, which is in the region of £4,000.

Keep in touch with your customers

A monthly statement is a consistent reminder of the amount of money that they owe to you and should always be on top of their list of payments to make.

Studholme-Bell often find that many businesses that they come into contact with are not claiming all of the tax relief that they are entitled to. To help ensure that such businesses are claiming the right things, Studholme-Bell are offering a Free Tax and Business Review.

The simple aim of this service is to ensure that businesses and thier owners understand what they are entitled to claim ad that they are actually doing this.

If you would like to take advantage of this FREE service, please contact Alex Bell on 01257 241 111 or email info@studholme-bell.com with your details.

This is compulsory for all employees and shall be phased in over a number of years with the largest businesses (over 800 employees) included first. This will be completed by 2016 so ensure you are fully aware of the consequences and impact on your business and employees now.