A resounding Good bye awful 2020 and a cautiously optimistic hello to 2021. We’re all more relieved than excited to make our way into a new year. Cheers to you all, we made it!
There are still the twin unknowns of our COVID-19 economic recovery and the impact of leaving the European Union. But there’s a psychological boost to a new start. Whatever these outcomes will be, being financially stable is the concern of every business.
Here’s six ideas that can help save you and your business money right from the start of 2021. None of them are particularly time consuming to consider, so gets you a couple of quick wins before you plunge back into your deeper work.
Tax codes aren’t always right
Check that your tax code is correct. We say this every year, because it’s so important. If your tax code is wrong, then you’re not paying the right amount of tax. And who wants a surprise extra tax bill to sort out paying too little? Best case scenario is that you’ve paid too much and are due a tax rebate.
They do usually change every new tax year in April. This is to incorporate the new Personal Allowance, which is represented by the numbers in your tax code. But you still need to check that the letters of your code accurately represent your circumstances. Our Tax Code Guide decrypts them all for you.
Phone a friend
Your staff, especially experienced ones, know their job inside out. Better than you. Ask them for their ideas. Direct them to address specific issues. For example, saving time means saving money. What’s one thing we can do to save you time doing your job? Or, how can we make your department more efficient? The answer to this one might be as simple as changing suppliers.
As a boss, everything is on your shoulders. And that pressure can turn into the feeling that you have to provide all the solutions. But you’re missing out on the expertise of your trusted employees. You don’t have to generate all the good ideas yourself.
It’s how we’ve always done it…
As this is a traditional time for reflection and a quiet time for many businesses, have a think through your processes. Again, this is focused on the ‘saving time is saving money’ concept.
For example, asking ‘Does this really need to be a meeting?’ is never a bad question. Many of us being forced to work from home and find alternatives to face-to-face meetings has helped people see the benefits of online meetings. This might be something you prefer to use from now on, especially if you’re spread over more than one site. Saves time on travel and doesn’t cost anything more in tech.
Just encouraging your staff to ask this question of themselves removes the expectation that all decisions must be taken in the meeting room. Maybe they just need to phone and talk to one other person. Perhaps they just need to email the heads of departments. And they are reassured that all of this is fine with you.
Make the most of your online presence
Lots of businesses expanded their online presence because of the COVID-19 pandemic some for the first time. Depending on where you are with it, it might be worth getting and SEO audit done, especially if you pay for online advertising. We don’t mean get on the first page of Google.
But just make best use of the money you’ve already invested by making sure your website is doing everything it’s supposed to. You don’t have to hire someone, lots of SEO agencies work on a project basis defined by the needs of their clients.
Outsource to get expertise
This leads on well from the last point. You don’t have to formally hire everyone you need, especially when they’re an SME. Get in a freelancer or contractor to tackle all kinds of jobs like: SEO optimisation, administration, website updates, contracts, bid writing, graphic design, blog writing…literally anything you need. Often those jobs you’re putting off and aren’t really sure how to price.
Just like tax advisers, lawyers and accountants, most professionals will listen to what you need and then give you a quote. It’s up to you if you want to spend that much, or look for someone with different pricing.
Considering the amount of time they save you, and the amount of value they add with their specialist knowledge, it might be worth planning in some time to investigate your options. List those jobs you don’t want to do or can’t do yourself. Prioritise that list. Then allocate time to research that field. You could even do one per month, so you’re not overloading yourself.
Nothing ventured, nothing gained. At worst, you still have to do it yourself. At best, you get a new expert member of your team that’s invested in the success of your business and can work with you long term.
Claim your tax relief
The obvious one to flag up here is working from home tax relief. Lots of fortunate businesses managed to continue trading last year by switching to working from home.
The first thing to note is that you have to be required to work from home, not personally choose to. COVID-19 restrictions are considered a requirement by HMRC. Working from home tax relief includes costs like, business phone calls, extra heating and water bills, home contents insurance and some equipment. It doesn’t apply to any costs that are the same whether you work at home or elsewhere, like rent, mortgage interest and council tax.
There’s a flat rate of £6.00 per week from April 6th 2020. Or, if you have the correct evidence, you can claim for your actual costs and get tax relief at the highest rate of income tax you pay. This means that, if you claim the £6.00 flat rate as a Basic Rate taxpayer, you get 20% of £6.00 tax relief = £1.20 per week.
There are many other work expenses tax reliefs and allowances. Start your research with our free guides. We’ll help you find the ones that apply to you and get you the tax rebate you’re entitled to.
Thank you to all of you, new and long term clients alike, for your support during 2020. Here’s to a happy, healthy and prosperous 2021 for us all.
