9 things you should be doing now… | Business checklist

Get ready for the Domestic Reverse Charge VAT rules, which goes live on 1^st March.

The new rules mean sub-contractors in a CIS applicable chain of supply will cease to collect VAT from their contractors. In short it means if you have been subcontracted construction work then your customer, if they are a building contractor, will not pay you the VAT on your invoice but will pay it direct to HMRC on your behalf.

This is a major change impacting not only your admin, but your cash flow. You could lose 20% of your cash flow overnight.

We can help alleviate the impacts and make the process smooth for you. For everything you need to know about DRC and how to reduce the impact, and our free toolkit, head to our website.

Download your free DRC toolkit and book a free discovery meeting

Get it done before the budget on the 3^rd March.

There are rumours circulating of an increase in Capital Gains Tax (charged on profits made when certain assets are sold or transferred) which will mean you will pay more pay on the gains made over your annual tax-free CGT allowance. While these may not become fact it may not be something you want to take a gamble on.

Prepare for the end of tax year now.

The 5^th of April is fast approaching and it’s very important you take the time to review your finances and make the most of your money and tax efficiencies available.

We shared a checklist last week of things to consider including using your pension allowance, making the most of your ISA allowance and gifting to reduce your Inheritance Tax bill.

Read the full checklist here

Opt-in to the new VAT deferral payment scheme, which is open from the 23^rd February to 21^st June 2021.  

You can choose to spread payments of your deferred VAT liability from 2020 over a period of months, from 2 to 11 monthly instalments, depending on when you join the payment scheme.

If you are struggling to pay your VAT, or any debts to HMRC, the best advice is to contact HMRC for further help to pay.

Currently HMRC are still trying to support business relating to the pandemic but this leniency won’t last for ever.

For full details of how to defer your VAT, read our full article

How to defer your VAT

Review whether applying for one of the Government backed loans – CBILS or Bounce Back – will help support your business through the pandemic.

You only have until the 31^st March to apply. Don’t miss out on this opportunity to help your business survive through and past the pandemic. For details on whether you’re eligible and how to apply visit our website.

Find out if you’re eligible and how to apply

Ensure your policies and contracts are up to date, know your responsibility as an employer and encourage them to have the vaccine

As an employer, you should be encouraging your employees to work from home, where possible. Where staff are required to be at work, social distancing rules must be adhered to and safety measures put in place, e.g., regular hand washing / sanitising stations.

You must also ensure your policies and contracts are updated for your staff, which clearly set out what is expected of them and of you. If you need support in writing your policies and contracts, please contact our HR specialist, Donna by emailing hr@a4g-llp.co.uk.

Whilst you cannot enforce your employees to have the vaccine, there is nothing wrong with encouraging them to do so or use the Health and Safety Act to make reasonable management request that employees be vaccinated as a way to protect workplace health and safety (e.g., those working in a care home).

We produced a HR factsheet back at the beginning of the first lockdown, which we update regularly, which goes into further detail surrounding these and what to do if an employee refuses to come to work etc.

Download HR factsheet here

Make it your priority.

You need to ensure you understand exactly what money you need over the coming months and year; why you need it, when you need it and here you will need to get it from. Use our 5-minute cash flow forecast tool (which you can download by filling in your details on this page here) to easily keep a track of your cash flow.

Planning ahead can avoid significant problems in the future.

How to effective management your cash flow

Calculate it now.

If you want to drive your business to survive and make a profit, you’re going to need to know and understand your break-even point. This is the point at which your revenue equals your costs. Once you reach this point, any additional income generated each month is profit.

You need to do an analysis to determine the level of sales you need to achieve in order to cover your costs. It is the businesses that have a good understanding of what they need to achieve in sales every day that survive economic downturns and go from strength to strength.

Learn how to calculate and understand your break-even

Review it now.

We have an article here on how to review and revive your Marketing strategy.

It’s also more important than ever that you engage with your customers – email them, call them, write to them… As Malcolm wrote in his article ‘seek first to understand, then be understood’, it is more important than ever now that we listen to our customers and think about what they want from us right now.

Utilise apps such as Zoom to stay in contact and connected with your clients and ‘virtually meet’ potential clients. Communication and human connection are key during this time.

Review your marketing strategy