1. If you're self-employed and drive a vehicle for your work, you can charge your Income Statement at 45p per business mile, not just the cost of the fuel.
2. Changing from self-employed to a Limited Company could mean you pay less tax and national insurance. As self-employed you pay income tax on all of your income, from the business and elsewhere. As a Director of a Limited Company, you could pay yourself a relatively low salary (paying income tax and national insurance) and leave profits in the business. You can then pay yourself a dividend out of these, which doesn't attract national insurance.
3. Look at a number of small changes in a number of areas of your business. The cumulative effect could make a large impact.
4. Use ratios and KPIs to help you do the "housekeeping" in your business. For example, how many days stock do you have? How long, on average, does it take your customers to pay? Measure them regularly.
5. Forecast your cash - it's King of your Profit & Loss - particularly if you are growing the business. The forecast profit might look good but what are the cash implications?
For more tips and insight, contact me or book your place onto my one day course, just click https://www.eventbrite.co.uk/e/how-knowing-your-numbers-will-help-your-business-thrive-tickets-15925696186
Member since: 27th October 2014
Accountancy support for small businesses
Self-assessment, Corporation Tax and Limited Company Accounts
VAT and Payroll