Business owners see their costs grow

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Despite savings in business rates with effect from 1 April 2019, many owners are feeling aggrieved that the usual ‘give with one hand and take with the other’ modus operandi of the UK tax authority remains unchanged. VAT registered businesses have also been forced to comply with the requirements of the HMRC’s MTD (Making Tax Digital) programme from the same date.

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Less than a week after these two implementations, employers were hit with an increase in the auto-enrolment pension contributions they had to pay. It is small wonder that the size of the UK business community has reduced for the first time since 2010.

Blame it on Brexit

There is no doubt that we are living through some unprecedented uncertainties with regard to operational costs, especially for businesses relying on foreign labour and foreign raw materials; however, help is on hand. If your company is based in Cheltenham, there are Cheltenham accountants that offer advice on corporate finance, tax, accountancy and every aspect of your business financial needs. There is no reason for you to suffer through the crisis alone.

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Traditional concepts of business

Increasing sales and reducing costs to nudge up profit margins may still be the end result of many businesses. Cheltenham accountants could help you to see the bigger picture, such as expanding sales through acquisitions, joint ventures, licensing or even franchising, while joining an international association that specialises in your business sector could help to reduce buying costs due to bulk purchases. The advantage is that you maintain independence while being a member of a cooperative.

It is easy to take your eye off the ball, weighing the pros and cons of increasing turnover versus profit margins. These are not synonymous, as any accountant will know. Cheltenham accountants believe in taking clients one step at a time through the minefield of business growth.

At the end of the day, business costs do not have to be a headache. The key thing to remember is that being dragged into the 21st century is not a bad thing; for example, becoming digitally aware and investing in hardware to make this happen could free up endless hours of paperwork. Labour intensive processes tend to be more prone to mistakes and the last thing any business needs is the taxman knocking on the door.

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