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Choosing the Right Home Based Business
In the current financial situation a great many people are looking to start a home based business. Some are just looking to make a little extra money to supplement their salary or pension but others need a full time income, either because they have lost their job or maybe they just fancy a change of life-style.
There are a lot of different businesses which can be run from home but not every home based business appeals to everyone, so choosing one that is right for you is most important.
The first thing you need to do is decide how much time you can put into your business bearing in mind why it is that you want to start a home based business. Do you want a little bit of extra money towards a family holiday, or do you need to make
How To Succeed With a Home Business
Most people think that working from home is easy. They can roll out of bed whenever they want and don’t have to worry about getting ready to catch the bus or drive for miles to some office or other. They can just work when they feel like it and be around for their children.
Well in some ways they are right. You can do all of the above and you can even work at your computer and on the phone in your pyjamas (though video conferencing might mitigate against this) but the fact is that unless you manage your time and discipline your activities your business will fail.
So, here are some tips to point you in the right direction so that you will succeed in your home based business
Get a space in your home where you can set up an
Business Networking for Success
Networking refers to the practice of interacting with associates, fellow entrepreneurs, colleagues and other people to build a network of far-reaching contacts. Today, networking has become an integral element of conducting business as it helps to reach wider audiences and perhaps maximize client base in the process. A very famous entrepreneur Robert Kiyosaki once stated that the rich get where they are because they understand the value of creating strong networks.
An entrepreneur has to realize the benefits networking has to offer and subsequently take steps to create a strong and large network of contacts. A modern business thrives on networking to generate business referrals. These referrals, in turn, help the business to function
What is Affiliate Marketing?
If you have been searching the internet for methods to increase your income or maybe start up your own business from home you will probably have come across the term “Affiliate Marketing”, but do you really know what that means?
Affiliate marketing is one of the fastest growing industries on the Internet. Two of the prime reasons for its popularity are that you don’t need to have a lot of technical knowledge and you can get started with a minimal budget.
Affiliate marketing means selling products for merchants and getting paid a commission on your sales. Another way to describe it is to visualize your website as a promotion or advertising business. But there are a few ground rules to need to master if you want to be
Interns are Entitled to the Minimum Wage
Recently there has been a lot of negative comment in the press regarding the use of interns in the City of London and elsewhere.
Generally, an internship consists of an exchange of services for experience between the intern and an organisation. Interns can use an internship to determine if they have an interest in a particular career, create a network of contacts or gain worthwhile experience to put on their CV and whilst some interns find permanent, paid employment with the organisations for which they worked this is not guaranteed.
Used correctly an internship can be beneficial to both parties but all too often internees find that they get little or no real experience and are used as a form of cheap labour, particularly as many of
Tax Loophole Closed for Loans to Directors and Participators
For several years HM Revenue & Customs (HMRC) have been concerned that directors and shareholders of companies, referred to as “close companies”, have been able to avoid paying tax by abusing rules relating to loans made to directors, shareholders or other “participants” or indeed to their associates.
Typically this might involve a director or shareholder being given money against a “loan account” which later would be “paid back” by being reclassified as salary and/or dividend as appropriate.
But there was evidence of widespread abuse where a loan would be repaid one day and then a new loan granted the next - in effect providing tax-free income.
To prevent this form of tax avoidance, current rules state that
What Is a Close Company?
For the purposes of UK Taxation a close company is broadly defined as being one controlled, directly or indirectly, by five or fewer “participators” or by any number of directors who are participators.
HM Revenue & Customs (HMRC) defines a participator as a person who has a share or “interest” in a company. A participator is usually a shareholder or director but the term also includes any ”associate” – for example, spouse or civil partner, business partner, relative, trustee, or a loan creditor. A participator’s interest in a company can be in its shares or in the income of the company.
The majority of UK-based, private limited companies are close companies. They employ relatively few people and have a small
What Is a Captive Insurance Company?
Captive Insurance Companies have long been used by many prominent companies to manage their insurance risks. In its simplest form, a captive is a wholly owned subsidiary created to provide insurance to its non-insurance parent company and or other group companies.
They are essentially a form of self-insurance whereby the insurer is owned wholly by the insured and they operate like any commercial insurer by issuing policies, collecting premiums and paying claims.
However as captives do not offer insurance to the public they avoids the cost of advertising and marketing which a commercial insurer has, and all profits are retained within the group.
Typically, a captive has none or very few employees and all of the usual âinsurance
What is Corporation Tax?
Corporation tax is the tax paid by companies on their profits. Unincorporated organisations (such as clubs and societies) also pay corporation tax, if they have taxable income. Partners in both traditional and limited liability partnerships and sole traders pay income tax instead.
Companies are taxed on the profits made in an accounting period – normally their financial year. However the company going into liquidation or ceasing to trade can also trigger the end of an accounting period.
Tax rates are set for the tax year and where the company’s accounting period and the tax year do not coincide, the profits must be time-apportioned to decide which rate should apply. So, for example, if you made £365,000 profit you would have made
What is Capital Gains Tax?
Capital Gains Tax (CGT) is a levy which may need to be paid when you sell certain types of asset, such as residential or commercial property, stocks and shares or other investments such as antiques, artwork – paintings, sculptures – and cars.
Strictly speaking only individuals pay CGT but companies don’t escape as any gain they make is taxed within their corporation tax bill. Typically, a capital gain is generated when the asset or investment is sold, but it can also occur when you give an asset away.
The proceeds from selling property is normally liable if it was an investment property (one you rented out or intended to rent out) or if it was a second (or third or fourth etc) home. However if you purchase a property and
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