Hidden costs can be found lurking all over a business but can most easily be hunted down by looking at people and property costs.
Let's take people: Salary – yes, got that. Recruitment cost? - yes, got that. National Insurance costs? - That just gets deducted from the employee, right? Well, yes and no. The employer has to pay some too. In the tax year 15/16 it's nil for the first £156 per week they earn but 13.8% for every £1 per week above that. Ah ok, got that now. Yes but;
Don't forget that if any employees have a benefit in kind – like a company car, or health care, for example, not only do you, the employer, have the cost of those benefits but you have to pay another National Insurance cost – called class 1a - of 13.8% on the value of that benefit. Sneaky huh?
If you occupy a property for your business, don't forget things like cleaning, window cleaning, maintaining or repairing the property, Health & safety considerations will you – and make sure you cost in employee related costs like, a computer, telephone, desk, chair etc – it all adds up.
Now, I'm not saying don't do any of this but just think and plan beforehand – forewarned is forearmed!
If you'd like to know more, you can contact me on any of the ways below;
Telephone: 01922 430997
Mobile: 07985 645087
Member since: 27th October 2014
Accountancy support for small businesses
Self-assessment, Corporation Tax and Limited Company Accounts
VAT and Payroll