tax and national insurance

A Guide to Tax and National Insurance for Small Businesses

A Guide to Tax and National Insurance for Small Businesses

If you’re starting a business, it is essential that you at least know the basics of tax and national insurance and your tax obligations. Tax inspectors will pay just as much attention to the profits and accounts of a small business or sole-trader as they would a large firm. What are the different taxes businesses should be aware of? There are a range of different taxes which depend on the type of business, business formation and how your business operates. Income tax and corporation tax: Income tax applies if you are self-employed or an employee of a business. If you are a limited company then you must pay corporation tax. National Insurance: National Insurance (NI) is a form of tax paid by both employers and individuals. Value Added Tax: Value Added Tax (VAT) is tax on the supplies and sa... »

Managing Cashflow in Your Small Business

Managing Cashflow in Your Small Business

It is no exaggeration to say that cashflow is the lifeblood of your business. You can be as profitable as you like, but without ready cash in the bank to fulfil your obligations, your business could run into serious trouble. In this article, we cover the basics of cashflow management for businesses. You will learn about the main elements which affect cashflow, and how to use them to draw up a cashflow forecast, which you can use to deal with problems before they occur. Finally, we look at how you can use credit control, cost control and sales to improve cashflow, and the various external finance options available to boost your financial health. What makes up my business’ cashflow? Essentially, your cashflow refers to your actual cash balance at any one time. When looking at cashflow, you a... »