Business Basics: Finance

Business Launchpad

The course handouts for your Business Launchpad workshop can be downloaded below.

You can also download this handy page with some key business jargon:

 

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Tax highlights:

  • microbeBecause of the coronavirus pandemic, if you delayed paying VAT normally due before June 2020, it now has to be paid by March 2022.
  • Class 2 NI contributions are £3.05 per week for 2020-21. (£3.00 per week, 2019-20.)
    The proposed abolition of Class 2 has now been abandoned.
  • Class 4 NI will stay at 9% for the moment, but the Chancellor might try to increase it in 2022.
  • For the years 2019-20, 2020-21 the personal allowance (i.e. free of income tax) is £12,500. From April 2021 it will be £12,570
  • The higher income tax rate of 40% kicks in after £50,000 (2020-21) and £50,270 (2021-22) for England, Wales and NI. The income tax bands for residents of Scotland are now very different. Check help sheet 3.
  • VAT threshold is £85,000 from 1 April 2017. So you have to be VAT registered if your turnover in any 12 months hits that level. This threshold has been frozen until 2023.
  • The Annual Investment Allowance (to buy kit and machinery) is £1m per year in 2019, 2020 and 2021.
  • Corporation Tax is 19% for all Limited Company profits since April 2017. From April 2023 the rate will be 19% for companies with £50,000 profits or less. Over £250,000 profits corporation tax will be 25%.

Change to HMRC phone numbers

  • microbeWorried about paying tax as a result of coronavirus pandemic? Phone: 08000 241222

  • HMRC Helplines (opens in new window)

Grants and loans for new businesses

Coronavirus Bounce Back Loans are the most likely place to borrow money because of the pandemic.

Here are some tips for more normal times:

The most important thing is to keep a sharp eye on your cash and don't throw money around. You might also be able to get a loan or grant from some of these places:

Useful sites to deal with late payers

  • www.payontime.co.uk includes an interest calculator
  • www.gov.uk info about the legislation
    Late Payment Legislation was introduced across all EU countries from March 2013.
[/toggle] [toggle title=”Click to reveal your tip sheets”] [/toggle] [toggle title=”Click to reveal your templates”]

For Microsoft Office (Excel and Word) users...

If you need these templates in other formats, please email us at: training@davidthomasmedia.com

Zip logoDownload all MS Office templates together (Zip file)

...

Or individually:

Budgeting sheets to control spending
Spreadsheet - for personal (not business) spending

NEWSpreadsheet - Monthly budgeting sheet for freelancers

Cash flow planners
Spreadsheet - Cash flow for sole trader/Ltd

Spreadsheet - Cash flow planner incl. household and PAYE income

Business income record sheets
for Sole Traders, Partnerships, or Ltd Companies
Spreadsheet - Income and Expense (Profit and Loss) account for businesses

UPDATEDSpreadsheet - Pay Slip record for PAYE freelancers

Getting paid properly
Template 7 - Invoice. (Or here for a pdf example with notes.)

Handout 13 - Blank project proposal form - with notes


For media freelancers (including payroll freelancers)Simple "Confirmation of Booking" letter - downloads Word doc in new window

...

For Apple format (Numbers and Pages) users...

Zip logoDownload all Apple format templates together (Zip file)

...

Or individually:

Budgeting sheets to control spending
Spreadsheet - Personal (non-business) spending

NEWSpreadsheet - Monthly budgeting sheet for freelancers

Cash flow planning sheets
Spreadsheet - Cash flow planning for sole trader/Ltd Company

Spreadsheet - Freelancer cash flow planner with household costs

Business income record sheets
Spreadsheet - Income & Expense (Profit & Loss)

UPDATEDSpreadsheet - Pay slip record for PAYE freelancers

Getting paid
Invoice template

[/toggle] [toggle title=”Working internationally? Click to reveal more”]

We often meet trainees who are working in the UK but have moved to the UK from another country.

To check how much tax you might have to pay, have a look at the guidance on the HMRC website. Specifically, it's worth looking at the definitions of:

VAT registered, and selling overseas?

If you're VAT registered in the UK you need to be sure whether or not to account for VAT yourself, or whether your client has to account for it.

The rules vary, broadly based on

  • whether the client is based within the EU or not
  • whether they are VAT registered in their own country or not

This is not the place to go into detail - especially as we don't yet know what will happen with Brexit - but you can find out more on GOV.uk: HMRC - VAT and Supply of Services

You may well need professional advice from an accountant who is used to working with international clients.

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Please note:

Although every effort has been made to provide accurate tips and information, David Thomas Media Ltd accepts no responsibility for any errors, omissions or out-of-date facts. Trainees are advised to seek up-to-date professional advice on all financial and tax matters before making decisions relating to these subjects. Nothing in our notes, courses, webinars, downloads or social media should be considered as financial advice.
We believe our tips are useful - but they are only tips!

 

What our clients say:

David’s explanations of “Sole Trading” were put forth in a clear, concise and helpful way that I found invaluable ~ the handouts and access to material on the website, fantastic.
Heather Casali, new freelancer

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