Know your limits!

Over the next couple of years, businesses will have to start paying their taxes electronically but some banks have financial limits as to just how much you can process at any one time.  So, a little planning is needed to make sure that you are not caught out for late payment interest and penalties.

You may need to apply to your bank to increase the daily limits you are being allowed to pay to any one person / supplier.

AR Accountants play 'Dragons Den' with Year 1 pupils at Warmsworth Primary School!

Back in late June 2010 Doncaster Chamber threw down the gauntlet and asked for local businesses to help Warmsworth Primary School  pupils with their Summer Term ‘Enterprise’ project.

The Year 1 project was based on designing, making and selling gardening gifts at the Warmsworth Gala on Saturday 10th July.  Our job was to listen to the children’s ideas and decide whether or not we thought they were worthy of our investment and if so, to lend them £1.00 each which would be paid back after the Gala had taken place.

Alan and Amanda arrived at the school to be faced by 60 children aged 5 and 6, all very eager to explain, with help from their teachers what they had planned to do to make money at the Gala.  They had decided to sell plants from seeds they would grow in the school garden and then  plant into ‘unusual containers’  which they had decorated, such as wellington boots, buckets, mugs and bowls to name a few.  Any profit they made would be used to buy items of their choice for the school.

How could we refuse!  So we invested the requested £60 which they very carefully counted out and promised to pay us back after the Gala.

Later in the month we received an email from the school outlining the children’s success (which was spectacular) and we were invited back to the school to have our investment repaid to us – no interest was charged!  

Their enthusiasm, confidence, knowledge of profit and understanding of money was outstanding considering their age and they were all a credit to the school.  It was a privilege to help the young entrepreneurs of the future and we have pledged our further support in the years to come.

June Budget in Brief - A refresher

1. The personal allowance for 2011/12 will increase by £1,000 to £7,475 for those aged under 65 and if you are a basic rate tax payer it will save you £200 per year.  Higher rate tax payers will not benefit from this announcement at all and their allowance will be adjusted accordingly.
   
   
2. For businesses, the Employer National Insurance threshold will rise by £21 per week above indexation from 6 April 2011.
   
   
3. Anyone setting up a new business outside London, the South-East and the Eastern region of England will noy pay Employer National Insurance from up to £5,000 for each of the first ten employees they recruit.  This measure is to start almost immediately.
   
   
4. Capital Gains arising between 6 April 2010 and 22 June 2010 will be taxed at the rate of 18%.  Gains after that time will be taxed at either 18% or 28% depending on whether or not the taxpayer falls into higher rate tax.
    
5. Small Companies will enjoy a Corporation Tax rate on their profits of 20% from 1 April 2011.
    
6. VAT will rise to 20% from 4 January 2011.