Hidden costs
30th September 2015
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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

e-mail: nic@taofinancial.com

website: www.taofinancial.com

twitter: @taofinancial

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About the Author

Nic C

Member since: 27th October 2014

Accountancy support for small businesses
Self-assessment, Corporation Tax and Limited Company Accounts
Monthly bookkeeping
VAT and Payroll


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