Issue 2July 2009 www.homebusinessnetwork.co.uk 23
NEED TO KNOW :: FINANCE SNFRANP CSHHIOSTE FOCUS :: COLOURFENCE
Home Business’s finance expert Colin
Davison, a partner at Cranleys Accountants in
Basingstoke, answers your questions.
“I’m thinking of going freelance as a “I’m in that transition stage where
graphic/web designer but I find the I’ve bought laptop, software and
idea of the paperwork a little daunting. office equipment to train myself, but
I’m pretty good with numbers but I haven’t started trading. Are there
have no accounting experience
any time limits to using the above
whatsoever. How hard would the
purchases/expenses, purchased
yearly tax return be to do or is it just
before my business actually starts,
something that your shouldn’t even
against future earnings?”
consider doing yourself?”
There are generous time limits.
The DIY approach has its advantages,
Provided they are used for the new
not least being that it is free. But it
business they will be treated as an
also has disadvantages. Overall, the
expense on the first day of trading. The
cost of getting something wrong will
hMrC allow seven years. Of course
be several times greater than the cost
purchases such as trading stock will not
of an annual professional fee. such
be a cost deduction as it will be held
fees need not be expensive and many
until an item is sold so care is needed
professionals have a range of fees
not to get carried away.
to help those who are a little hard up
now – but who may well flower into a
“I’ve heard about an FT survey
business that is worth waiting for!
which asked financial directors if
they are proactively finding ways
When choosing an accountant, get
to delay paying suppliers. Some
recommendations from someone
75% said yes. Tricks include finding
who has a similar business close to
minor and irrelevant problems on
yours. If it turns out you cannot work
invoices (such as there being too
Fencing firm looks to parry the downturn
with the accountant, change. also,
few or too many gaps in a post
be aware of the different types of
code!) Is this legal?”
By Russ Greenslade feather board fence but fencing comes to us
professionals. Chartered accountants it’s maintenance free and like a Meccano kit in
are the top of the tree while those
legal? You will have to ask a solicitor.
Charles simpson runs won’t blow over in high cardboard cartons and
listed as financial accountants have
From my angle it is not legal to pick
the Colourfence franchise winds. a wooden fence we assemble on site. I do
essentially done little more than pay
holes in the post code but I guess more
for suffolk from his home distorts and warps. Our 90% of the work myself.
a joining fee and passed a few exams.
serious holes could be present.
in Woodbridge – one best customers tend to be For big jobs I employ
But they may be more than adequate of the 15 Colourfence people about retirement people for the day.
for your needs. Whoever you use,
“A member of our staff recently
franchisees in the UK. “I’ve age looking for something “I’m into my third year,
make sure you get a fixed fee on
went on maternity leave having used
got a big old barn, so it’s low maintenance.” now. We are suffering a
routine work.
only a few days of her annual leave
easy to keep the stock. Colourfence is bit in this recession - it
entitlement (20 days plus Bank
You need a lot of space,” rolled steel with a zinc went quiet in the autumn
“If I employ an au pair or nanny to
Holidays), yet I have just written a
says the 53-year-old aluminium protective - but it’s ticking by.
look after our children while I am
cheque for several hundred pounds
former timber trade sales layer and three coats of “We have a central
working, can I pay that person a
in lieu of the balance even though
and marketing director. paint. “It comes in from marketing support but
salary from my home business or does
she has not attended work for half
The ‘stock’ is steel australia coiled and ready we basically do our own
it have to come from taxed income?”
the year. I am also led to believe
fencing. Colourfence is an painted then goes to a marketing, orders and
that part-timers are entitled to days
australian franchise that factory in Gloucester installation. I mainly get
Unless your nanny helps you out
off for Bank Holidays even though
arrived in the UK five years where it’s pressed into the the business by exhibiting
in your business you will need to
they do not work on the day on
ago. “Painted steel fencing shapes needed for fencing at garden and trade shows.
pay for them out of your personal
which the holiday falls. Surely, this
represents about 40% of – the posts and panels. I also do leaflet drops and
money. There will be some who
is madness.”
the domestic fencing in “It comes in four a little bit of advertising
carry out office duties after they australia,” he says. colours: green, brown, in The Daily Telegraph.
have taken the children to school
Under both these situations the law is
“It’s about the same cream and smoky blue,” Centrally, we are about to
and so some fair allocation should
with the individual. all periods should
price as a good quality says Charles. “The start a TV ad campaign.
be possible. Perhaps one good tax
be pro-rated so it is fair to both the
saving point is to set up a workplace
employee and employer.
nursery or you can pay for nursery
placements from the company
For information on accounting for small
to take advantage of child care
businesses, Cranleys offers a director’s
vouchers. There are a number of
guide which covers all key issues for
voucher providers out there but for
small companies.
a small business I would suggest the
employer contracts directly with the
www.cranleys.co.uk
nursery care provider.
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