Creative Industry Tax Relief – Are You Missing Out?
Designed to encourage investment in the creative sector, a group of corporation tax reliefs are available to creative organisations in the UK.
These reliefs are not only aimed at charities or trading subsidiaries; private limited companies may also be able to claim for creative industry tax relief (CITR). At Berley, we encourage our clients to take advantage of this opportunity. Those who are eligible to claim can save a considerable amount of money, and in many cases, even claim a payable tax credit from HMRC when calculating their taxable profits.
Does my company qualify for creative sector tax relief?
When your company is liable to corporation tax and directly involved in the production or development of certain films, animation, children’s TV programmes, video games, theatrical productions, orchestral concerts and museum or gallery exhibitions, it may be eligible to claim creative industry tax relief. These are broken down into the following types:
- Film Tax Relief (FTR)
- Animation Tax Relief (ATR)
- High-end Television Tax Relief (HTR)
- Children’s Television Tax Relief (CTR)
- Video Games Tax Relief (VGTR)
- Theatre Tax Relief (TTR)
- Orchestra Tax Relief (OTR)
- Museums and Galleries Exhibition Tax Relief (MGETR)
If you operate in one of these areas you’ll need a formal qualification in order to claim the relief. This can be obtained by passing a cultural test, or if you’re part of an international co-production treaty, you may also be eligible. Read the government’s guide to find out if you qualify or get in touch with accountants specialised in the creative sector.
How to claim for creative sector tax relief
As a private limited company, you must prepare your annual accounts and a company tax return at the end of your financial year. This is also when you must make a claim for tax relief if you qualify. If you’re claiming based on a cultural test, you must wait until you have received the certificate from the issuing body, as the certificates must be filed together with your tax return. It’s also good to know that you’ll have the right to amend or withdraw a claim to any tax relief for up to one year after you’ve filed your taxes.
How can we help?
As specialist accountants for creative agencies, Berley Chartered Accountants can help you make sure you’re not paying too much tax. We’ll assess your business to determine whether or not you qualify for creative industries tax relief or any other tax relief, and ensure you are getting all the benefits you are entitled to. We’re not just accountants though, we’re also business growth advisors, and a big part of growing your business is knowing where you can save money and what tax breaks are available to you.
Talk to us today to find out more about what Berley can do for your creative agency. We’ll provide you with honest feedback and straightforward advice.
Five Tips to Grow Your Law Firm
London is right at the head of the UK’s thriving legal industry, but with Brexit, cyber security threats and new competition on the market, many small businesses operating in the sector are facing new challenges. Let’s take a look at some easily digestible steps solicitors and firms looking to expand their client base in the legal sector can take.
1. Hire unconventionally
As a growing law business, you may find it difficult to budget-in new hires. Despite monetary impediments, there are still some options for employing new team members. Offer hourly rates, advertise part-time work, or provide desk space for interns looking to gain experience beyond the classroom. These cheaper options can multiply staff to increase client numbers.
2. Outsource
Costs can be considerably reduced by outsourcing work to locations that offer lower wages, and there’s a growing trend towards this in the legal sector too. Routine work you’d ask an associate to carry out for higher charges can just as well be done by a foreign lawyer with the same qualifications. Think of extensive document review projects, for example. When outsourcing work and handing over clients’ private information, remember to be mindful of GDPR, the new data protection legislation.
3. Ask for referrals
Making the decision to grow shows you’ve been in the business for a long time. Enlist the friends and contacts you know in the profession and build your network of connections. Ask these professionals for referrals and to recommend your services. These people can potentially provide a great deal of new business, so maintain and tend to these relationships with care.
4. Cultivate a trusting image
Create a transparent online and in-person image. Clients entrust you with their money, their personal thoughts, and their future, so developing an honest, dependable impression is critical when adding to your client base. Did you, for example, know that most of a law firm’s website traffic goes to the solicitors’ bio pages? Make sure your bio is engaging and informative.
5. Bring in expertise
Growing your law firm can be an exciting challenge, and with the help of accountants for law firms, this process can see success. As specialist accountants for solicitors and law firms, Berley Chartered Accountants not only offers the accountancy and business services you’d expect to receive from an established accountancy firm in London, we also focus on business growth. Our aim is to help you maximise your income while also identifying ways you can save on taxes.
Call us on 020 7788 8261 to talk with specialist accountants for solicitors and law firms.
Time management tips for entrepreneurs
Everyone knows the phrase “time is money,” but only entrepreneurs know just how true that phrase is and how hard time management can be.
As a start-up business owner, it’s likely you’re the one in charge of every aspect of your business. Operations, sales, accounts and bookkeeping, marketing and more are all down to you. As small business accountants, Berley understands that certain tasks require more time than others and that as a result, time management may become difficult. We’ve compiled a list of time management tips to help you run your business smoothly.
Have a calendar
List a few bullet points on a calendar to help you visualise when tasks need to be done. This will also help you prioritise based on deadlines, such as the date to file your yearly report to HMRC. You may even want to colour code these so that you can see at a glance what needs to be done next. Keeping your calendar in a prominent place – for example, on the fridge or a bedroom or office wall – will also act as a constant reminder and encourage you to complete tasks. If you’re like most people and regularly check your phone, it may be a good idea to use its calendar feature to track your tasks and set yourself reminders. Remember though that different people have different needs, and there’s no shame in sticking to good old-fashioned pen and paper.
Take advantage of technology
We live in a world where technology is at our fingertips, so it’s best to make the most of it. All businesses – small and large – can take advantage of apps like Skype, Zoom or GoToMeeting for business calls and video meetings, calendar reminders and automatic syncing to make business life easier. Additionally, cloud accounting software like Xero makes it easier to manage your accounts. It allows you to work on them from anywhere at any time, and also allows multiple people to work on it at the same time. You can also look into installing a time management app. Rescuetime, for example, has a multitude of features to help you make the most out of your time. Read our Five Business Growth Boosting Apps for Entrepreneurs article for more ideas.
Start with the task you least want to start with
Instead of putting off a difficult task, start your day by taking the bull by its horns and completing the task first thing. That way it’ll be out of sight and out of mind, and you can spend the rest of your day breezing through work you enjoy without the dreaded task looming on the horizon.
Keep a diary
Did you know writing things down can make you feel better? Studies have shown a positive correlation between writing and health. Journaling is often even used in therapy sessions to tap into powers of free association. Having a physical diary helps you jot down ideas and keep track of them, and is also useful to keep appointment notes. Having a daily planner is better for those with a busy schedule full of meetings as it gives you space to write everything down and allows you to expand your notes with necessary details.
Break up your tasks
Where possible, give yourself small targets. This could be breaking down a writing task into 500 words an hour. This will prevent the feeling of being overwhelmed. Breaking up your tasks could also mean delegating them so that you can allow someone with more expertise in a specific field take over. If this means having to hire employees for the first time, read our article on ‘Hiring Dilemma’ for expert tips. The most important thing to remember when trying to stick to deadlines and growing your business is that it’s ok to get help from others when you need it.
Working with Berley
Delegate your finances to an accountant to save time. Berley Chartered Accountants can help London-based businesses like yours with well-rounded financial and business growth advice, leaving you the time to run your business successfully. We are here to make your job easier and to ensure that you are confident in your prospects for growth with our business growth specialists by your side.
Call us on 020 7636 9094 to discuss how our small business accountants can assist you. Having like-minded entrepreneurial accountants on your side is what helps a business grow.
Protecting your business accounts from fraud
Phishing email attacks, data breaches, credit card fraud, and ransomware infections targeting small businesses are becoming far too familiar. Cyber fraud is estimated to cost UK businesses £193 billion per year, with accounts payable understandably being one of the most targeted departments. In addition to external hackers taking advantage of your business, fraud can come from inside your organisation too. It’s therefore imperative to beef up your infrastructure and put systems in place that protect your business accounts.
Cloud technology
Choose a cloud provider and no one will lawfully have access to your business’ data without your permission. A two-step authentication process will make it incredibly difficult for anyone to hack into your account.
The automation capabilities of cloud servers add a barrier against internal fraud as well, since it takes control away from human hands. Not only is accounting faster and more efficient, but it also adds transparency to processes with details of every transaction tracked. The automated system informs users about modifications to documents, so any suspicious activity is immediately flagged.
Back up your data
The best way to avoid ransomware infections is to back up your data so you can restore previous versions of your files in case you’re a victim of a scam and get locked out of your computers. In addition to backing up your data to the cloud, you may want to back up to a hard drive as well. Use an external hard drive that you disconnect after each backup, so even if your computer gets infected, your hard drive stays safe.
Stay informed
Cyber scams are evolving along with technology, so it’s essential to stay vigilant and informed about how not to get hacked in 2018. When you’re an entrepreneur running your own business, your reading material may focus on pitching, funding options, managing accounts or tax planning, but it’s a good idea to add cyber fraud to the list of topics to keep an eye on. Listen to industry bodies and their updates, and if you hear that a competitor has suffered a breach, find out what happened and look into how your team can defend against it. For example, are you aware that experts are predicting that cyber threats will thrive on mobile devices this year?
GDPR and data hacks
With GDPR at our heels, it’s important to remember that if you do get hacked and personal data gets in the hands of an unauthorised party, under the new data protection legislation, you are required to report the breach to authorities within 72 hours. Small businesses need to know how to recognise a data breach and develop a response plan if it does occur.
Pre-employment screening
If you are concerned about fraud from the inside, you may want to perform due-diligence on candidates to verify their qualifications and check for a criminal record. Pre-employment screening can help identify red flags when you are hiring for a position that will handle sensitive information.
Berley Entrepreneur Accountants
Cyber scams can have severe impacts on any business, but due to their size, small businesses are most vulnerable. One severe attack can considerably stunt a business’ growth. In fact, according to a Vocalink study, 71% of small businesses that have fallen victim to fraud in the UK, believe that it’s the biggest risk to their business.
As small business growth specialists, Berley Chartered Accountants cannot stress enough the importance of having appropriate security measures in place. When you choose us as your accountants for your small business needs, you can be sure that we will do everything to keep your financial accounts secure.
How tech SMEs can succeed in a high growth market
From internationally-adored Deliveroo to the revolutionary fitness app Fiit and the GP appointment app Babylon, the city of London has given rise to a plethora of successful tech ventures.
Indeed, the UK’s digital sector is a dynamic and productive environment. According to Tech City, a new tech business is born every single hour and they’re nearly twice as likely to be high growth companies than their non-digital counterparts. So the outlook is healthy, with talent and opportunities widely available. The rest then is up to tech entrepreneurs and their bright ideas. For those looking for inspiration, here are five ways small tech companies can succeed in a high growth market:
1. Artificial Intelligence
The UK wants to be at the forefront of the global AI industry by 2030. The commitment is no joke, with the launch of the new AI sector deal, the government has allocated more than £300 million to fund AI research and is backed by 50 global tech giants. “Artificial Intelligence is at the centre of our plans to make the UK the best place in the world to start and grow a digital business,” said Secretary of State for Digital, Culture, Media and Sport Matt Hancock. Growing businesses can take advantage of machine learning technology for lightning-quick analytics, chatbots, targeted consumer messaging, administration and more.
2. Diversity and inclusion
There have been growing efforts to diversify the tech industry, where men have been largely overrepresented. Progress is slow but inclusive hiring policies are key to driving growth in the sector. According to a study by McKinsey & Co, a business that has a balance of men and women are 15% more likely to outperform its competitors. Add a good mix of ethnic backgrounds and this increases to 35%.
3. Seek out universities
Many small businesses need venture capital which can be a challenge to access. Did you know leading UK universities can provide access to funding opportunities in addition to providing business support to their students/alumni? Check out Manchester Metropolitan University’s Innospace, University College London’s Hatchery, Sheffield University’s Campus Capital and Southampton University’s Future Worlds.
4. Be part of a tech ecosystem
Co-working spaces are amazing because they support collaboration, knowledge sharing and innovation. While its members help each other out in a variety of ways, the office space itself is built to be flexible and grows with the companies it hosts, providing them with flexible support that doesn’t just cover office stationery but includes pitch nights, meetups and hackathons. Check all the great stuff WeWork has to offer, for example.
5. Think global
There’s a visa scheme that allows talented digital professionals like senior system engineers, data scientists, graphics programmers and more from abroad to come and work in the digital tech sector. The Tech Nation Visa Scheme’s application process consists of an endorsement stage followed by a visa application, which if successful grants visa holders the right to work in the UK for up to five years, with the possibility to remain. For an overview of the application process visit Tech City UK’s dedicated site.
Tech company accountants
At Berley, we’re committed to helping you grow your tech business. As accountants for tech companies in London, we offer start-ups and small businesses tailored accounting and tax planning services as well as specialist business advice with a focus on solid business growth strategies. Companies we work with appreciate our proactive and flexible approach and the advantages of a fixed monthly fee.
For more information on how Berley can help your venture thrive, call us today on 020 7636 9094.
Is my SME exempt from a statutory audit?
Some companies in the UK are required to undergo an annual statutory audit, but depending on their turnover, size and the nature of their activities, many businesses can be exempt.
If you’re a business owner who’s unsure about whether or not you need an audit, or how to go about claiming an exemption, as small business accountants, Berley has the answers for you.
Here’s an overview of the statutory audit exemptions to get you started.
Do you need an audit?
Audits are a way to confirm that your annual accounts, as submitted to the Companies House, are accurate. It not only shows HMRC that you’re a credible company – it’s also a good way to demonstrate to your investors that your accounts are valid.
Small businesses (private limited companies) can opt out of an audit if at least two of the following criteria are met:
- their annual turnover is no more than £10.2 million (this is known as the audit threshold)
- their assets are worth no more than £5.1 million
- they have 50 or fewer employees
However, they’ll still need an audit if the company’s shareholders ask for one, or if the requirement is included in the limited company’s articles of association. It’s also important to note that the nature of your company further determines whether you need an audit or not. For example, small companies who need to comply with financial regulations (like insurance or brokerage companies) require a statutory audit to demonstrate their compliance. We therefore recommend that you talk to your accountant before claiming an exemption. It’s also important to note that the audit exemption threshold changes every few years, so it’s vital to review it to make sure you’re still exempt.
Claiming an audit exemption
Once you’ve established that you’re entitled to an audit exemption, you’ll need to submit a statement with your balance sheet. This statement must refer to the relevant legislation that makes your SME exempt and needs to be placed above the director’s name and signature. A template for the required statement is available on the government’s website but your accountant can easily help you put it together.
An audit as a health-check
If your company does need to conduct an audit, this shouldn’t be seen as a waste of time or a burden. Berley Chartered Accountants believes that a company audit is more than an obligation, it’s an opportunity to gain valuable insight into your business’ weaknesses and strengths and use the information to drive your growth strategies.
As accountants for small businesses, Berley can manage the audit process for you from start to finish. We’re also business growth experts who can help you understand how to use the data from your company audit to plan for the following year.
If you would like to know more about our company audit service or want to find out whether your company is exempt from a statutory audit, call us today on 020 7636 9094 or complete our online form.
GDPR – Is your small business ready for new EU data rules?
New research suggests that more than two-thirds of small businesses have not yet begun to ready themselves for the General Data Protection Regulation (GDPR), and only 8% have completed preparations.
As a small business owner, 25 May 2018 should be marked on your calendar – and then circled again. It’s the day EU-wide changes to the rules on the processing and storage of personal data are fully coming into force. Regardless of the sector, GDPR requirements will affect you if your business handles personal data of any kind.
Here are answers to the 5 top frequently asked questions about GDPR that every small business should know:
What’s the point of GDPR?
The European General Data Protection Regulation aims to give citizens more control over their personal data and simplify regulations across the European Union. As a small business owner, regardless of the size of your business, you must comply with this regulation or face hefty fines.
GDPR is not a burden – by bringing your data protection policies into shape, improving efficiency of the processes and procedures you have in place, you will add value to your business, gain trust and ultimately bring in more business. Think of GDPR compliance as an opportunity for growth.
What is GDPR compliance?
You’re GDPR compliant if you:
- Know everything about the data you own. You need to be aware of where it’s coming from, where it’s going and how it’s being used, and if it’s personal data it needs to rely on consent.
- Have asked your clients/staff for their consent to store personal data with terms and conditions that are explicit, transparent and easy to understand, so they know how their data is being used and stored.
- You have made it clear to them that they can withdraw consent at any time.
- If you have a security protocol in place for the event of a data breach. You will be required to notify authorities within 72 hours, so update your policies and procedures accordingly.
- You have a protocol in place for when someone asks to access the personal data you are storing about them and how you have used it. Each request has a deadline of one month, so you need to know how to go about collecting the requested data to meet the time-frame.
- You have appointed a Data Protection Officer. This is necessary for small businesses whose activities include “regular and systematic monitoring of data subjects on a large scale.”
- Conduct due diligence on your suppliers to make sure they’re GDPR compliant.
- You’ve trained your employees on all of the above.
What happens if you breach GDPR?
GDPR fines and penalties will depend on the infringement but include:
- Warnings and reprimands
- Temporary or permanent ban on data processing
- Order to rectify, restrict or erase data
- Suspend data transfer to third countries
- Administrative fines imposed on a case-by-case basis of up to €20 million, or 4% annual global turnover
The Information Commissioner’s Office (ICO) will consider the nature, gravity and duration of the breach before imposing a fine.
What happens to GDPR after Brexit?
Although GDPR is an EU requirement, the UK’s decision to leave the EU will not affect GDPR compliance. The UK law to be introduced after Brexit will mirror the GDPR directly, according to the government.
Where can I get GDPR help?
The Information Commissioner’s Office (ICO) has a number of resources available on their website, including checklists, training videos, webinars and podcasts to get you started.
Berley chartered accountants for small businesses
GDPR affects all of us, including Berley Chartered Accountants. We specialise in working with small businesses in London, offering a blend of professional accounting services and sound business advice, tailored to your unique business opportunity. Our focus is on growing your business. Rest assured, your data is safe if you work with us as your small business accountants.
Three tips for business growth in healthcare
In continuation of our series of articles on small business growth hacks, we look at how medical professionals can improve their business operations in pursuit of business growth in 2018.
Whether you’re a locum, a GP with your own surgery or medical practice, whether you’re working in partnership with other doctors or at a hospital, here are three tips on achieving business growth in the healthcare industry:
1. Embrace digital healthcare
Technology is transforming the way we interact and it’s no different in healthcare. Digital solutions are important growth drivers for medical practitioners. Innovations create new options for diagnostics and treatment, increase practice’s efficiency and reduce costs. The NHS has set up a £45 million fund to help practices purchase online consultation systems. Patients can now book an appointment in seconds and consult with an NHS doctor at any time of day by using apps like GP at Hand.
Artificial intelligence is also exploding into healthcare – the health AI market is expected to see a growth rate of 40% by 2021, with robot-assisted surgery and virtual assistants becoming more and more common.
2. Find new allies
Turn your competitors into allies. You can join forces in various ways such as through joint marketing agreements, mergers and acquisitions or other forms of collaboration. Consider the study published by the University of East Anglia, for example, which found that e-cigarettes are the most popular way to quit smoking. Vape shops provide former smokers behavioural support that could help them remain smoke-free. According to the study, health professionals should consider working in partnership with vape shops to capitalise on their success and help patients.
3. Focus on customer service
This idea is far from being new and has always been a growth-driver for businesses that offer services. However, in the healthcare industry patients haven’t always been thought of as customers. Today, there’s a growing movement in medicine focusing on developing a customer satisfaction mentality, and even a debate about ditching the term “patients” altogether as many healthcare organisations feel it’s now obsolete. It suggests an unequal relationship between the service provider and the service user.
Regardless of the term, your entire practice needs to be on board if you want to provide excellent customer service. Your behaviour as a medical professional might be top-notch, but if your staff is providing poor services, the bad customer experience will linger. Many people nowadays “shop” for healthcare, and negative reviews impact their choice of where to seek medical assistance.
How can Berley help?
Our specialist accountants at Berley can provide financial advice specific to your medical career. From maximising your GP income to making your surgery tax efficient, we work with doctors across London and provide them with sound financial, accountancy, and tax planning advice.
If you have a growing healthcare business, call us on 020 7788 8261 to discuss your business growth strategies with our specialist healthcare accountants in London.
Business Growth in 2018: Expert Advice for Small Businesses
Are you a small business owner looking for advice on how to grow your business in 2018? You’ll be needing more than that—you will need a strategy, and we’re here to help.
Year-end studies have revealed optimism and confidence among SME business owners across the UK, and they’re expecting rising revenues and business growth for 2018. These will, in turn, introduce innovations, create more jobs and help the UK economy. In short, 2018 is shaping up to be a great year for business.
Business growth support tailored to your small business’ needs
As a business owner, you know that having a positive attitude is essential – it gives you the push you need to pursue businesses growth. Equally important is having a solid business growth strategy – one that highlights the business objectives for the year, lists down the steps to achieve them, spots potential risks and measures your progress.
Run your business plan through us – a team of entrepreneurially-minded specialist chartered accountants in London – and we’ll provide extensive insights into how you can find the best strategy for your business no matter which direction you’re thinking of heading. As specialists in small business growth, we know what it takes to avoid pitfalls and get small businesses on the path to success. So are you ready to take the plunge and swim with the big fish?
4 signs you're ready to grow your business
- Your competitors are expanding and there is a proven market for your business.
- Your company has a strong existing cash flow, your business’s assets are increasing, and you’re able to provide a buffer against any future financial challenges.
- Your company has shown organic growth with increased revenues, output and new customers coming to you without the help of new investors and mergers.
- Your results have shown that there is an active call for your products or services in a wide geographic area.
Make your growth plan as robust as 2018 is looking to be
A robust business growth plan, supported by an effective and affordable marketing plan, is your blueprint for success. Translating the plan into action may require you to look closely at a few areas such as:
- Capability development - what systems or skillsets are required.
- Operation efficiency - comparing your actual production level against the predetermined best-case scenario.
- Reaching targets - keeping track of each small goal, before meeting the overarching objective.
You should also stay on top of trends this year. 2018 will be an exciting year of innovation.
- WhatsApp is planning to introduce a free business app for SMEs, changing the way businesses communicate with their customers.
- Companies around the world are introducing processes to improve efficiency and productivity with many companies embracing the idea of deep work, focusing on meaningful work without distractions.
- Remote work is still on the rise thanks to new conferencing and collaboration software.
- As a small business owner, you should also keep an eye on the Fintech industry as new platforms using AI will mean better access to financing for small businesses.
Contact Berley today!
As specialist chartered accountants focused on supporting small businesses, we recognise that planning is a difficult task. We have over 30 years of experience in business growth, and we have the insights you’re looking for to help you establish a solid foundation and strategy for growth in 2018 and beyond.
Call us on 020 7636 9094 to talk with someone from the Berley team to discuss how we can assist you in growing your business.
Is Insolvency Looming On The Horizon?
What to do if you are facing insolvency
If you run a business and are in a position where you cannot pay your debts, staff or company directors are not being paid, or if the business has debts worth more than the assets you hold, your business is deemed to be insolvent.
While this may be an extremely worrying time, you need to be aware of what this situation means to you and your business. One of the first things that may happen is compulsory liquidation. This is where the court orders insolvency through a winding-up order, which usually starts when one of your creditors applies to the court to say that your company is unable to pay money owed to them and that they want to commence wind-up procedures.
If you owe your creditors money and you cannot pay, they can commence wind-up procedures even if you have no assets or if you do not agree with the amount you owe. If your business is insolvent and you are liable for your business debts, there is a likelihood that you may be at risk of becoming personally insolvent. To protect your personal assets, you should discuss your options with a specialist chartered accountant like Berley to see what options are open to you.
Incorporation
You may be able to incorporate your business into a Limited Liability Partnership (LLP) or Limited Liability Company (LLC), which will restrict your exposure and prevent you from becoming insolvent.
Credit Controls
Taking steps to adopt better credit control will help to improve your cash flow and mean that you have money in the bank to cover any debts you have. Many businesses have money owed to them, but become insolvent due to bad debts and poor payers. You could also try to sell any stock or assets that you own in order to improve your cash flow.
Investment
You could try to secure a loan or convince investors to put money into the business short term until your cash flow stabilises. If you act quickly, before you are put in a position where your business is put into compulsory liquidation, your business has a far better chance of surviving.
Talk through your options with Berley
Dealing with insolvency alone can be scary. Berley are licensed insolvency practitioners who understand businesses. We can work with you to assess your situation and offer tailored advice and support to help you through this tough and stressful time.
For more information on insolvency and how we can help you to minimise the impact, call our insolvency team on 020 7636 9094 today.