New hope of antibody test success to help ease lockdown further

Swiss pharmaceutical giant Roche has developed a antibody test which is said to be 100% accurate in picking up antibodies in people who have had the Covid 19 virus when antibodies have developed.

This is to be available on the Free on the NHS and the UK are planning on buying 10m tests to first phase test the UK front line NHS staff.

If successful we feel this could speed up the easing of the lockdown which could help the economy recover at a better pace.

This will give some hope to business that currently cannot open.

We are working with a number of business to make sure they are ready to reopen and guiding them on any help available through the govemenent newly announced schemes to help troubling businesses through this difficult time.

MTD Phase 2 VAT - DELAYED, but are you ready...

The implementation of MTD phase 2 for VAT was due to be implemented in April 2020, however due to the unexpected turn of events this year, HMRC have delayed this until April 2021. So what does phase 2 actually mean and are you ready?

Phase 1 was introduced in April 2019 and HMRC called this its “soft landing” this meant that businesses where allowed to use basic bridging software to submit their returns. With Phase 2 coming in the use of this software seems to be ruled out. So, what does Phase 2 bring in addition to Phase 1.

Phase 2 in summary means 3 key elements in how we submit VAT returns.

1. Implementation of stringent new rules in regard to the digital links and how the return is uploaded.

2. The software used to submit the return must have permanent data on a transaction basis to support the return submitted with digital links between the two. Must be full end to end digital journey from source document to appearing on VAT return. This is the real key difference from Phase 1.

3. Implementation of penalties for any non-compliance will be introduced. These could be up to 15% of the VAT due, so clearly a sizeable penalty for any business!

The overriding aim for this change, according to HMRC is to eliminate the human error element of the VAT submission.

Many businesses have been using simple bridging software to successfully submit MTD VAT returns in the past year, this will need to be reviewed and look at the software used to submit the returns.

At In Financials Limited we have a complete offering of software packages that are fully MTD complaint and match any budget from sole trader to Limited company. So please get in touch today to find out more, we are more than happy to help.

Starting a new business - top 5, to get you on a good financial footing.

Given the current circumstances we find ourselves in and the times ahead we feel that a lot of people will be looking to strike out on their own post CV19 and start that new venture they have always longed to try.

We have given a very brief summary of the key issues in regards to financial management that you need to think about and have in place when making the first steps in business. These will give a solid footing to the financial management side of the business on which to build upon.

1. Produce a business plan.

The business plan will show if your ideas have a financial feasibility to be the basis for a successful business and give you what you need from this.

We would always recommend that business plan should cover

a. The market you are in and price analysis.

b. Structure of the business

c. Funding for the business

d. Detailed 12 month forecast / budget

e. Summary budget for between 2 – 5 years.

2. Monitor financial performance – Cash is key!

A number of solid businesses fail in the first few years due to lack of cashflow control. They can be showing a solid profit, but if the cash is not being collected the funds will not be available to pay supplier or yourself. We would recommend building a solid credit control system from day one of your business and build this into MI reporting.

3. Keep clear line between business and personal matters

No matter what legal entity you set up for your planned venture it is vital to keep business and personal expenditure separate from day one. This is even more important if you set up a limited company as this is a separate legal entity from you and as such the money is not yours, but the companies.

4. Keep money aside for tax liabilities

It is key to be aware of any tax liabilities and when they fall due for payment. We would always advise keeping track of what is due and ensuring funds are ready to settle these as they fall due. Depending on your business structure and the method used to take any funds from the business the amount of any tax due each year will vary.

5. Monitor and record all spending

This is important for a number of reasons. First and foremost you need to keep records for tax purposes, but we would suggest that a good system of logging expenses (either Excel or accounting software) will enable less stress at your year end and also reporting mid year to see if you are on track with your business plans.

The above is of course not a comprehensive list of the issues and factors you should be considering, but it does give what we fell are the key ones.

We of course are well placed to assist and advise on any of the above issues and offer a free initial meeting to discuss these, so get in contact today.

Most of all it enjoy it!