Is your business geared up for the challenges of 2021?
Jarrovian Wealth's advice on wrapping up 2020 and getting set for the New Year
It's been a tough year for everyone, whatever type of business they are in, just keeping everything ticking over has been a huge challenge alone.
While we've all been focused on the crisis and finding ways to get through lockdowns and adapt to new rules to ensure everything is operating safely, it's understandable that future plans may have been put on the back burner. However, now it's time to put some thought into planning for the new year ahead — not least ensuring businesses are ready for changes that Brexit may bring to the way they operate.
Adam Young, Director at Jarrovian Wealth, says: It's tough enough for many small firms simply focusing on the day-to-day here and now, let along thinking ahead a month or so. But, getting prepared, ensuring all the loose ends are tied up, and any pre-Brexit red tape and procedures are ready to go, will put you in the best shape for any challenges the new year may bring.
With just weeks before we hit the end of the year and head into a brave new Brexit world, Adam shares his tips to help small firms get everything wrapped up, so they can enjoy a well-earned break with their loved ones, recharge their batteries and begin the new year fully prepared and ready to hit the ground running.
• Make sure your books are up to date, so you know exactly where you stand. What have you made during the year and how much have you spent out? Are there any outstanding invoices you need to chase or any bills you need to get paid? Take a look at your tax situation, especially if you have received any Government grants or loans.
• Take a close look at your costs and pricing and ensure the figures add up. Are you charging the right prices? Are you paying too much for materials and services? Do you need to make changes, or can you reduce your costs?
• Go over your business plan to check you are on track and to see if there are any areas you need to focus on, adapt or change. Which products or services have sold well and are there any new ones you could add to give you more of an edge or to increase turnover?
• Be critical about your digital presence and decide if it needs an update or complete overhaul. Ensure you are making the most of online opportunities via your website and the reach of social media to promote your business.
The countdown is on and you need to ensure you are ready, have all the relevant certificates, processes and paperwork in place so you don't end up not able to trade in the new year. Here's some of the things you might need to consider and get sorted — swiftly. If you import goods from January 1:
• You must complete an import declaration for goods you bring in or receive into the UK or EU. It's a bit complex so you may want to make life simpler by getting someone to deal with this for you — such as a freight forwarder, customs agent or broker. They can help you to complete all the formalities and submit the required declarations to HMRCs customs systems. Or you can do it yourself. You'll need compatible software — most declarations are submitted electronically through the Customs Handling of Import and Export (CHIEF) system. You have to apply for access to the system and buy software so you can submit declarations. You may also need an EU intermediary or fiscal representative to carry out export and import formalities in the EU.
• You may also need import licences or certificates and pay an inspection fee for some goods before they are allowed into the UK.
• You will need an EORI (Operator Registration and Identification) number that starts with GB to move goods between Great Britain and the EU. You can apply for one via gov.uk.
• You will need to pay VAT and custom duty on all imports. The standard VAT rate is 20%, although some goods and services are charged at a reduced rate of 5% - such as children's car seats and home energy, or 0% on most food and children's clothes. Duty will apply to all goods you import, unless an exception applies such as importing goods from a developing country that pays less or no duty or goods are from a country that has a trade agreement with the UK.
• If you will be importing regularly setting up a Duty Deferment Account will mean you can pay customs duty, excise duty and import VAT once a month, instead of having to pay on each individual consignment.
If you are exporting from January 1:
• You will need to check if you need a licence or certificate to export your goods from the UK and if there are any restrictions or special rules in the country you want to export to.
• As with importing you will need an EORI number and make customs declarations for goods you are exporting from the UK.
About Jarrovian Wealth
JW was established in 2017. Our team of skilled and experienced financial planners does more than just look after the numbers for clients around pensions, investments and protection – both personal and business. We get to know and understand the deeper motivations and aspirations, so we can challenge people to think bigger. While knowing they are in a safe pair of hands building up a secure financial future. We may be one of the newer players, but we are packed with experience as our clients have been trusting our experts with their financial lives for over 30 years. We don't just focus on individuals we incubate businesses too helping entrepreneurs and those up and running to get ventures off the ground, stay on track and plan the perfect exit strategy, so owners can focus on the day job of running the show. JW's headquarters are in London.
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PAUL SMITH ASSOCIATES
14th December 2020