Don’t Let The Sky Fall on your head
If you’re a fan of the Asterix comic books, you’ll remember the maxim of Vitalstatistix, chief of the village of indomitable Gauls: “The sky may fall on your head tomorrow, but tomorrow never comes.”
Unfortunately, in the world of business, tomorrow comes round all too quickly– and while the sky may not fall on your head, you need to be prepared if you want to keep your profits up and your tax bills down.
It’s always a temptation to work IN your business, rather than ON it, but as we enter the New Year and face significant changes to the corporate taxation regime, we thought that it would be helpful to devote this issue of Clarity to preparing for the challenges of tomorrow.
First, we take a look at the changes to taxation that will apply to Limited Companies.
In the Summer Budget, the Chancellor announced that only the first £5,000 of dividends will be tax-free; a significant drop which (if you are trading via a Limited Company) will have implications for your income and this may affect what you currently take out of your company. Depending on the size and turnover of your business, you may now be better off leaving more money in your company, setting up separate ventures for more risky projects, or even un-incorporating and becoming a sole trader. There are pros and cons to doing any of these, so we strongly recommend you ask us for a Tax & Income Planning Review to make sure you rearrange your affairs in the best way to help your business thrive and minimise your tax bills.
On a related theme, we look at perhaps the most vital measurements of your business’s success – Key Performance Indicators (KPIs). Often talked about, but less frequently put to work effectively, we help you look ahead and choose the right measurements for your business’s future success. Running a business without these is akin to a General conducting a battle without access to signals or communications –only a miracle can prevent him losing the war.
We also draw on over 40 years’experience of working with companies of all sizes to share our Top 10 Tips for Business Success. Whether you’re planning a new venture or want to improve your existing business, these tips are practical, informative and useful for anyone who wants their business to grow and flourish. If you have further tips of your own that you’d like to share, please let us know and we’ll include them in the next issue.
Finally, we meet another THP client with a business we’ve helped to nurture throughout the years. NeosCreative specialises in exhibition planning, design and logistics primarily for the global oil and gas industry. We’re sure you’ll find their story inspiring.
And remember, tomorrow is almost here. Make sure you’re prepared for it – read this issue of Clarity thoroughly today!