The REALLY important stuff!
With the constant news surrounding the economy, interest rate uncertainty, and high inflation, it is difficult not to worry about these issues and lose sight of what’s really important – the health and welfare of you and your loved ones.
The issue we all face is a potent mix of inflation, recession, high debts, and the core reason for it all, a wartime energy shock. It is not the market driving the crisis; it is geopolitics, diplomacy, and conflict. On an individual level these events are not within our control, so what can we do to keep rational whilst this crisis unfolds?
It is worth remembering a quote from the singer Celine Dion: “Life imposes things on you that you can’t control, but you still have the choice of how you’re going to live through this”.
Firstly, know that you can only control your life and those close to you. Everything else going on is typically uncontrollable just now. So, take time to set some long-term goals to give yourself a sense of agency and control. Next, list the things that make you happy and safe; by doing this you can focus on the good things and not the other stuff. Thirdly, take time out to do things you enjoy. Doing something you are good at reinforces a sense of self-worth and purpose.
If you own a business, then:
- Take time to review your personal objectives – the business is there to provide you with what you want from life, not the other way round!
- Look at where the business is now: its strengths, weaknesses, opportunities, and threats. Get a clear understanding of its position in the marketplace, the competition, the systems, the way things are done, and the improvements that could be made.
- Focus on what the business is to look like when it is “complete” or running profitably and successfully. Then you can determine priorities – the big issues that need to be focused on.
It is also a good idea to look at where you are now and plan for a range of scenarios “good and bad” so that you can be flexible about the direction you should take.
If you need help during the next few months, then please call us – we are here to support you!
Managing your cash flow
With increasing supplier prices and economic uncertainty, managing your business’s cash and understanding its flow are now vital tools in maintaining resilience and being able to adopt flexible strategies for success.
Cash flows are a reflection of all the cash that is flowing in and out of a business. Owners can look at the direction of the cash flows for insights about the health of specific products or services and overall market patterns.
Some types of business are more likely to run into cash flow problems, while other types appear to be more resilient. If you are a business owner, you might be wondering which category your business falls into. No matter how inventive or simple your business model is, you can still have problems with cash flow. Here are our thoughts on managing the flow of cash in your business:
The first stage of understanding and predicting how funds flow is to perform a health check on your accounts. Look at your latest profit and loss statement and check that your income is sufficient to cover your expenses. If your profit is falling behind your expenses and cash flow is slowing down, you might need to take action. Prepare a funds flow statement so you know where the money goes.
Next, create a yearly budget and look at where cash could become tight, identifying months where you can save to cover off the quieter times. Look at those quieter months and think about flexible work scheduling, new products or services, or other activities to tide you over.
Finally, make sure you collect your money from those who owe you quickly. Reward customer loyalty by offering early bird discounts, set credit limits and payment terms to ensure customers follow the rules. If you take on new customers, make credit checks. Penalise late payers and request up front deposits or payment.
Talk to us about preparing a funds flow statement and annual budget so that you can work on your business for maximum success!
Business Finance Week 2023
From 6 to 10 November 2023, the British Business Bank, along with several partners from across the UK, will host Business Finance Week 2023.
With a host of free nationwide and regional in-person events and webinars, Business Finance Week 2023 aims to help smaller businesses learn about the different finance options available to them to support their individual needs.
Events coming up as part of the week include:
Making sense of start-up funding: Where do I start?
Monday 6 November 2023, 12:30pm to 1:30pm, online event
Unlocking potential for your business through diversity and sustainability
Tuesday 7 November 2023, 10am to 11:30am, online event
Growing your business: An interview with a founder
Tuesday 7 November 2023, 12:30pm to 1pm, online event
Maintaining healthy levels of working capital
Wednesday 8 November 2023, 10am to 11:30am, online event
Prepare your business for external finance
Wednesday 8 November 2023, 12:30pm to 1:20pm, online event
Exploring working capital in Northern Ireland
Wednesday 8 November 2023, 2pm to 3:30pm, online event
Investment for innovation
Thursday 9 November 2023, 9:30am to 11am, online event
Growing your business: An interview with a founder – 9 November
Thursday 9 November 2023, 12:30pm to 1pm, online event
What next? Finance as a journey
Friday 10 November 2023, 12:30pm to 1:30pm, online event
Inspiring inclusive entrepreneurship
Friday 10 November 2023, 10am to 12:30pm, The Duncairn, Belfast
See: Business Finance Week 2023 – British Business Bank (british-business-bank.co.uk)
First time tax return?
Taxpayers who are new to Self-Assessment for the 2022 to 2023 tax year may include:
- those who are newly self-employed and earned more than £1,000;
- a new partner in a business partnership;
- those who had a total taxable income of more than £100,000;
- those who have received any untaxed income such as tips, commission, money from renting out a property or income from savings, investments, and dividends; and
- those claiming Child Benefit but they or their partner have an income above £50,000.
Self-employed taxpayers must also register for Class 2 National Insurance contributions.
You should register with HMRC by 5 October 2023 here: Register for Self Assessment – GOV.UK (www.gov.uk)
Paper tax return deadline
The tax return deadline for the 2022 to 2023 tax year is Tuesday 31 October 2023 for those completed on paper forms.
Online tax return deadline
The tax return deadline for the 2022 to 2023 tax year is Wednesday 31 January 2024 for online returns and to pay any tax owed.
See: Self Assessment tax returns: Who must send a tax return – GOV.UK (www.gov.uk)
New training places available for retrofitting, heat networks, and heat pump installations
A new wave of low-carbon heating and insulation installers will be created through thousands of heavily discounted training spaces in a boost to the green jobs sector.
Up to 8,000 people – including current installers and those who are new to the industry – will be able to develop the skills and expert knowledge needed to retrofit homes and install insulation through a host of training providers thanks to the Home Decarbonisation Skills Training scheme.
A further 4,000 people will also be able to get £500 towards training to install and maintain heat networks through the Heat Training Grant.
The Low Carbon Heating Technician Apprenticeship, the first of its kind, will provide people with the chance to learn how to install low-carbon heating systems on the job, supporting delivery of the expanded Boiler Upgrade Scheme which gives hard-working families the opportunity to make the switch away from fossil fuel heating.
See: Thousands of low-cost training spaces available in boost to green jobs sector – GOV.UK (www.gov.uk)
UK signs sixth US state deal with Washington State
The UK and the US state of Washington signed a new Memorandum of Understanding (MoU) on trade and investment last week.
Washington State is home to major US business including Amazon, Starbucks, Microsoft and Boeing, and has a GDP roughly equivalent to Poland. The MoU marks the sixth delivered as part of the UK’s state-level strategy to increase trade with the US and means that the combined GDP of states the UK has MoUs with now totals £2.2 trillion.
The UK has signed MoUs with Indiana, North Carolina, South Carolina, Oklahoma, Utah, and now Washington. Collectively these states imported £5.1 billion of UK goods in 2022.
The Government is actively engaging with further states including Florida, Texas, California, Colorado, and Illinois.
See: UK signs sixth US state deal with Washington State – GOV.UK (www.gov.uk)
World’s first fully digitalised goods shipment sent from Burnley
The first ever fully digitalised goods shipment landed in Singapore from Burnley after the UK introduced legislation to digitise trade documents to make importing and exporting easier for businesses.
A valve produced by Burnley-based manufacturer Fort Vale set off from Manchester Airport on Thursday, facilitated by UK and Singapore based tech company LogChain, and arrived in Singapore. For the first time ever, the shipment was processed entirely digitally, rather than via physical customs documents.
The news comes following the UK’s digital trade agreement with Singapore, which facilitated electronic trade, as well as the introduction of the UK’s Electronic Trade Documents Act (ETDA) which came into force last week.
The Act made the UK the first G7 country to place electronic trade documents on the same legal footing as paper documents. It is estimated the move could generate £1.14 billion for the UK economy over the next decade.
South Wales Small Business Conference 2023
The Federation of Small Businesses (FSB) annual small business south Wales conference takes place on 26 October 2023 at the Village Hotel, Cardiff. Subsidised tickets are available at £10 per person and ticket sales close on Thursday 19 October 2023.
The morning conference sessions are designed to add value to your businesss, covering topics such as mental toughness, business continuity, ensuring a positive customer experience, and ‘doing the right thing’ in business. In the afternoon, sessions will include finding out about emerging trends in social media for business and how to improve digital marketing activity.
Also in attendance will be business support trade stands and lots of opportunities for networking and one-to-one meetings.
See: South Wales Small Business Conference | FSB, The Federation of Small Businesses
Plans for Major North Wales Offshore Wind Farm Given go Ahead
Secretary of State for Energy Security and Net Zero, Claire Coutinho has granted consent to Wales’ largest renewable energy investment this decade, RWE’s Awel y Môr Offshore Wind Farm, representing a major step forward for the north Wales project.
The project will be located alongside the operational 576 megawatt (MW) Gwynt y Môr Offshore Wind Farm and will create hundreds of skilled jobs during construction and operation, both directly and throughout the supply chain.
The development is being led by RWE, the UK’s leading power producer, which also operates north Wales’ other offshore wind farms, Gwynt y Môr, North Hoyle, and Rhyl Flats. Awel y Môr is planned to be operational before 2030 with a maximum of 50 turbines at a maximum height of 332 metres. It will become Wales’ largest renewable energy project.
The awarding of the Development Consent Order by the Secretary of State is the culmination of more than five years work. The team is now awaiting the granting of the necessary marine licence from Natural Resources Wales, in order to progress the project into construction.
See: Plans for Major North Wales Offshore Wind Farm Given go Ahead (businessnewswales.com)
Enforcing bans and restrictions on certain single-use plastic products
The Welsh Government are seeking views on a new proposal that emerged from the responses to their consultation earlier this year on enforcing bans and restrictions on certain single-use plastic products.
The consultation ends on the 4 October.
See: Enforcing bans and restrictions on certain single-use plastic products | GOV.WALES
