Newsletter - How to realise value & more

“95% of all owner managed businesses are exited for less than true value”. Statistics may lie but, there is a kernel of truth in the statement.

At MBS have developed a programme that enables business owners to plan their exit and optimise value generation. By building out the business and creating a self-sustaining business model, value is generated and can be realised. 

We call it the “Accelerator” programme. If you want to know more contact Andy. 

Choosing/changing your VAT scheme

Normally when registering for VAT businesses choose the Standard VAT Accounting Scheme, however, there are other options that may suit your business better:

• Standard Accounting Scheme: The one we all know and love; you charge 20% VAT on sales and reclaim VAT on purchases.

• Cash Scheme: You still charge 20% VAT on sales and reclaim VAT on purchases, however you only pay for the VAT on payment date. Good for businesses with extended debtor receipt terms.

• Flat Rate Accrual Scheme: This is a scheme designed for businesses with limited VAT expenses. You still charge the 20% VAT on sales, but you pay HMRC VAT on a percentage of your turnover determined by your industry. However, you don't reclaim VAT on purchases under £2,000.

Pensions regulator Compliance

Under the Pensions Act 2008, every employer in the UK must put certain staff into a workplace pension scheme and contribute towards it. This is called 'automatic enrolment'. If you employ at least one non-director you are an employer and you must start a pension and enrol your eligible employee. They can then opt out if they desire.

You must then declare your compliance within 5 months and then every 3years thereafter. 

Essentially if you have 1 employee you have to set up a workplace pension.