Capital or debt?
What is the difference between capital and debt, and why is the distinction important?
One important distinction is that capital represents the amount of funds introduced by shareholders, partners or sole traders plus any retained profits that the business has created at any particular date. Debt
Claiming Self-Employed Income Support Scheme grants
Under the third Self-Employed Income Support Scheme (SEISS) grant, claimants received up to 80% of average trading profits for November and December 2020, and January 2021. This meant that a maximum grant for the three months of £7,500 was made available to those who met the eligibility
Emerging from lockdown
The Prime Minister has set out the government’s objectives for easing lockdown restrictions.
If the planned opening of schools, social interactions and businesses is achieved without significant increases in infection, after 21st June 2021, there will be no legal limits on social contact. Which
What is overtrading?
A reminder that traders who buy and sell goods – wholesalers or retailers – need to be wary of the financial consequences if, as expected, pent up consumer activity leads to a surge in demand for your products from July 2021 or earlier if you can trade before 21st June 2021.
What is
How much do your customers owe you?
Many business owners are buoyed by turnover; if it’s sold it’s as good as money in the bank, but is it?
What are your credit terms? How many days do you allow your customers to keep your money before insisting they pay you?
30 days is probably the most widely used credit term, which in real terms
Financial outcomes for your business
There are three possible financial outcomes for your business, each with their own challenges:
Make a profit
Breakeven, or
Make a loss
Making a profit
Clearly, this will be your goal. If you make profits – and taxation will never eat up all your profits – this will generate cash resources
Self-Employment Income Support Scheme
Claims for the third Self-Employed Income Support Scheme (SEISS) grant closed on 29 January 2021. Under this grant, the self-employed received up to 80% of average trading profits for November and December 2020 and January 2021. This meant that a maximum grant for the three months of £7,500 was made
Bounce Back Loans scheme changes
The Bounce Back Loans scheme was launched in May 2020 to provide financial support to businesses across the UK that were losing revenue and disrupted cashflow as a result of the COVID-19 pandemic. The scheme allows qualifying small businesses to borrow between £2,000 and £50,000 with no fees or
Present criteria for claiming via the furlough scheme
The detailed Furlough Scheme rules were last updated 4 February 2021.
People who are unable to work can receive up to 80% of their wages. This payment is subject to a monthly maximum amount of £2,500 per employee (for hours not worked). Employers have the discretion to top-up the payments if they
Can we supply the coming consumer bounce-back?
Will the Government’s endeavours to nail the COVID virus with the vaccine roll-out have the desired effect of opening up the UK economy, the easing of lock-down and a gradual return to “normality”?
Fingers crossed…
One thing is for sure, when the pubs can open, when we can start to