Our thoughts and musings

There is no doubt that since its creation by Mike Michalowicz, Profit First has become a phenomenal success, playing an integral role in the success of companies around the world. The methodology, which is designed to help you build your business in a sustainable way for long-term profit and success, is an excellent way to help you achieve your financial ambitions. 

Do I need to register for VAT? In short, no, unless your company has reached the UK’s VAT threshold of £85,000. However, we’re not competing for the title of “world’s shortest blog” so we’ll explain in more detail why you might want to wait until you’re at this level – especially if you’re a start-up.

Picture this. It’s payday, you’ve been waiting all month to see your bank account go up and the time is finally here. No feeling quite like it is there? Except for, of course, when you check  that payslip and realise money has been deducted; it leaves you looking at the number we all dread, questioning “why has the tax on my payslip changed this month?”

Whenever you’re working with VAT, it’s essential that you have a clear understanding of what partial exemption is. Failure to account for VAT properly can lead to penalties of up to 100% of the tax underpaid plus interest, so getting it right is key.

Ah, budgeting. The bane of everybody’s life, unless you’re a Premier League footballer drawing in a cool £250,000 a week. For those of us who live in the real world, it’s a crucial way of managing your finances and analysing what areas of your business – and your life – are soaking up your hard-earned cash. When done correctly, it can be an invaluable tool and one our accounting experts at Cloud Accountant.com highly recommend.

It’s Friday night and you’re in the pub after work for a drink (remember those?). Your friend is on about their brand-spanking new BMW 3 Series with the heated seats and fancy alloys. “Yeah it’s part of the perks of becoming Operations Director”, they say. Meanwhile, you’re thinking of your old, tired-looking motor parked on the drive at home that has been slowly destroyed inside by the kids. Lo and behold, the motoring Gods answer your prayers and later that month you’re offered your own business vehicle. You think, “fantastic, but should I get a company car? IS it actually

Now comes the annoying answer – it depends. So allow us to take you through our process when pricing for an engagement.

It doesn’t matter whether you’re a seasoned employee or a fresh-faced apprentice; it’s always crushing to see how much tax has been taken from your monthly payslip. The looming spectre of the Taxman has even made it into popular culture, with both The Beatles and The Kinks once taking a swipe (although with the size of their bank accounts, they probably don’t miss the money as much!).