Thursday, April 27th, 2023
At Copia Wealth & Tax, we recognise that times are currently tough for a lot of our clients and contacts across a variety of sectors – so our team of team of business advisers are exploring what you as a business owner can do to ease the pain and what we can do to help with that.
There are plenty of businesses and households that are struggling with their energy costs, alongside recent increases in general taxation, rates/council tax, and employment costs.
Rather than just sitting there and soaking it all up, you can plan forward and adjust your business to better cope with these changes.
Over the years we have found that whilst most business owners are resilient, the more proactive ones are flexible in their planning.
In our experience, we recommend that you should:
There is some good advice available in The British Business Bank’s Guide to building business resilience – go to https://www.british-business-bank.co.uk/finance-hub/guide-to-building-business-resilience/ to find out more.
Alternatively, talk to us to discover more about planning and resilience because we have considerable experience helping our clients with their strategy and sustainability.
Providing equity to employees is quite a common occurrence in the large corporate world, but there is no reason why this type of incentive cannot be considered by smaller businesses. It provides employees with an added incentive to work with business owners to help them improve profitability in that they will then have a personal stake in the success of that business.
Where companies give shares to their employees, the employees will be taxed on the difference between the market value of those shares and the amount paid, if any. The transaction also needs to be reported to HMRC by 7 July following the end of the tax year in which the shares were issued.
It is more tax efficient for the employee if the company awards shares under a tax-advantaged share incentive scheme, e.g., the Enterprise Management Incentive (EMI) scheme or a Share Incentive Plan (SIP). Alternatively, there are other tax effective options such as growth shares.
Before going down this route it is advisable to take proper advice as there are potential pitfalls that could result in unexpected tax charges – please feel free to contact us to get more information if this is an area you would like to explore.
Working capital finance solutions can be used to help improve business cash flow, which can be helpful when times are tough, and money is tight. There are a myriad of commercial finance and asset-based lending (ABL) products in the market, many of which can be complex and expensive. As products, terminology, and contractual interpretation vary from lender to lender, it can also be extremely confusing.
Some of the benefits of financing working capital are:
The most common forms of finance are:
Usually, to access this type of funding, you will need to ensure your management accounts, debtors and creditors ledgers are up to date, and you may need to provide cash flow projections to potential lenders.
If this is of specific interest, please contact us as we can introduce you to working capital finance experts who have many years of experience and success in advising businesses across a wide range of sectors and provide straightforward explanations on how these products can work for your business.
We want to see our clients not just survive but thrive too!
With all that in mind, if any of the above information has piqued your interest, just call 01902 783172 to speak with one of the friendly tax team here at Copia Wealth & Tax Limited, Wolverhampton in complete confidence, or alternatively, please contact us by using our online enquiry form HERE.
We very much look forward to hearing from you.