Are you fed up of becoming aware only too late for the full impact the UK budget report will have on your business? Of being unable to protect your company from damaging tax liabilities because legislation have changed without you realizing? You are not alone … Thousand of businesses every year enter into the new tax year oblivious to the full implications the budget report will have on their annual profitability.
However, this year you can change all that …
If you too would like to prepare for budget before it hits in April and ensure that you enter into 2010 will have a full knowledge of the ins and outs of the budget report 2010, then the below guide can help:
1. Print off the UK budget report 2009 and compare this to the pre-budget report published in November. The good thing about the government is that they tend to plan in advance, so any upcoming changes you need to be aware of for 2010 will most likely be listed in these 2 documents.
2. Familiarize yourself with the language. If you are a small business and can not afford the support of an accountancy firm then it is still able to manage your account and prepare for budget.
Familiarizing yourself with the terminology can be the first stepping stone to identifying which legislative changes will affect you most. I suggest utilizing an AZ Glossary of Accountancy Terms from a reputable accountancy firm. Simply search for any one of the top 50 accountancy firms in the UK and you are bound to find a glossary of this distinction.
3. Create a checklist. Using the UK budget report 2009 and pre-budget report check through the document and list which elements you think will affect your business.
4. Get industry know-how. After your best attempts, you are not a trained accountant, so understanding corporation tax, NICS, pension contributions and payrolls will be difficult. We suggest sitting down with your accountant and getting them to identify key points from the UK budget report that will influence your business.
5. Strategy, strategy, strategise! Even if tax rates will not affect your pension contributions for another year, there is no harm in planning. Take this scenario for instance. If for example you are a director to a company of 100+ employees, rate increases of 0.5% to NICS will affect your overall profitability. Why? Because you will be paying out more! However prepare for this change in advance, and you can ensure that your business is protected from profits and losses …
I suggest working alongside a chartered accountants firm in order to achieve this, as they can help you to confidently structure your tax planning and liabilities so your costs are minimized for the long term.
Tips & Warnings
Stay positive. Easier said than done we know, but as long as you implemented this guide you can feel confident that you are prepared for the budget report well in advance.
Always get a second opinion. An outsider's take on the budget report can help you to make sure that you do not overlook any important elements.