Watch out. Most of us Directors don't work from 9 to 5. We all work absurd hours of the day and midnight. We are often told to be disciplined and have fixed working times, especially if you have a family. That's true, so when you've learnt how to do that please respond to this article and let me know.
Back to the topic at hand. If you work from home and have set up an office and use it exclusively for this reason 24/7 then you may be subject to Capital Gains Tax (CGT) when you sell your house. Whilst it may be a good way for your company to increase the deduction for house hold costs for the business, it can mean an expensive CGT bill when you sell your property. Usually when you sell your property, any profits are protected by the PPR Exemption. That's the Principle Private Residence Exemption. When you use part of your "private residence" exclusively for business, then when you sell your house, part of the profit WILL be subject to CGT. For example, if you bought your house in the year 2000 for £100k and sold it in the year 2010 for £200k you have made a profit of £100k and under normal circumstances are covered by the PPR exemption. That profit is tax free. If however you used 1/4 of the house exclusively for business, ie a quarter of the house, then the tax man may visit your profit and ask that CGT applies to £25k of the profit as well, at what ever rate it is at the time of sale.
Now this has happened to a number of people and YES the tax man has a right to it. Its very common these days for us to work from home and apportion part of our house for this purpose.
SOLUTION - Draw up a legal agreement with your company stating the hours of use. That is make it part time use and not exclusive use. For example - State that the space, room, etc, is only used for business from 10am to 4pm only. that way you protect your Principle Private Residence Exemption. Simple.
Sunday, 8 April 2012
RBSS Business and Management Consultants: Marketing - Words are important. 13 words that mak...
RBSS Business and Management Consultants: Marketing - Words are important. 13 words that mak...: The words you use to communicate with your customers are very important, whether in brochures letters, advertisements email, on websites or ...
RBSS Business and Management Consultants: The Workfare Proposal and Small Businesses
RBSS Business and Management Consultants: The Workfare Proposal and Small Businesses: YES! Should small and medium size businesses get involved in the recent work scheme to get our youth back on the road to work. Absolutely....
Sunday, 25 March 2012
Copyright Vs Trademark Vs Patents
To Small and Medium Size Businesses
This is an area that small businesses get confused with. Some useful business advice is - read on. I read this article on copyrights, patents and trademarks recently and would recommend that you read it as well. Follow the link. http://www.lawmart.com/searches/difference.htm. Its from the Lawmart.com website. Hope it helps.
Best
This is an area that small businesses get confused with. Some useful business advice is - read on. I read this article on copyrights, patents and trademarks recently and would recommend that you read it as well. Follow the link. http://www.lawmart.com/searches/difference.htm. Its from the Lawmart.com website. Hope it helps.
Best
Remi Okeshola
Managing Director
RBSS Consulting Ltd
www.rbssconsulting.com
RBSS Business and Management Consultants: Marketing - Words are important. 13 words that mak...
RBSS Business and Management Consultants: Marketing - Words are important. 13 words that mak...: The words you use to communicate with your customers are very important, whether in brochures letters, advertisements email, on websites or ...
RBSS Business and Management Consultants: The Workfare Proposal and Small Businesses
RBSS Business and Management Consultants: The Workfare Proposal and Small Businesses: YES! Should small and medium size businesses get involved in the recent work scheme to get our youth back on the road to work. Absolutely....
Sunday, 11 March 2012
The Workfare Proposal and Small Businesses
YES!
Should small and medium size businesses get involved in the recent work scheme to get our youth back on the road to work. Absolutely.
Forget about the campaign of the workless. I am apolitical. Any work experience is good for the youth of today. In an economy where 3 out of 5 youth between the ages of 16-24 are not in employment, education or training (NEET) its outrageous when people kick against schemes like this. The current jobless rate is 2.67m predicted to rise to 3m according to the chartered institute of personnel development. Even if the government are doing it for the wrong reasons, the benefits are many. It's good business advice to get involved. It's not slave labour. In fact the people who use that word for this, abuse the word slave
Micro and small businesses are giving something back to their community under this youth scheme. It's called an opportunity to experience the world of the work place. For some, this will be a first in their life. Learning good interpersonal skills, good vocational skills and the discipline of turning up on time, things you and I take for granted. The experience of being managed, taking instructions, using your own initiative, being trusted, having your confidence built, learning new admin skills, marketing skills, etc. There is a pride that comes with work and along with it an honour. Speak to any business connector and they will tell you how invaluable their mentees have found work placements.
Yes small businesses have a thing or two to gain from the young person. An extra hand, increased capacity to deliver - depending on the existing skill set of the individual. It's not a bed of roses though managing and supervising this client group. In fact in the main, it’s tough. We should be glad if the likes of M&S, Tesco, HP, BA, etc. have joined employers in taking on clients.
Small firms should also join the ranks. This client group has great ideas that they can bring to your work place. Innovation and creativity, smartness, a different approach to problem solving, etc. you just need to spend a little time with them. Give them time and real work and you will get the best out of them. So don't join the nay Sayers out there. There is a great benefit in the proposal for all of us.
The negative comments only make it difficult for local businesses to support this client group. Gone are the days of near full employment. In those days you could say businesses were taking advantage of people, but today, it's an employer’s market. There is more supply than there is demand. Having said all of this, at best what needs to be done is provide safeguards to abuse by businesses. Of course some negative person will say this is naive and yes I know some business or two will want to abuse the advantage, but they do so at their own peril. I wouldn’t let the bad eggs spoil it for the good ones.
Forget about the campaign of the workless. I am apolitical. Any work experience is good for the youth of today. In an economy where 3 out of 5 youth between the ages of 16-24 are not in employment, education or training (NEET) its outrageous when people kick against schemes like this. The current jobless rate is 2.67m predicted to rise to 3m according to the chartered institute of personnel development. Even if the government are doing it for the wrong reasons, the benefits are many. It's good business advice to get involved. It's not slave labour. In fact the people who use that word for this, abuse the word slave
Micro and small businesses are giving something back to their community under this youth scheme. It's called an opportunity to experience the world of the work place. For some, this will be a first in their life. Learning good interpersonal skills, good vocational skills and the discipline of turning up on time, things you and I take for granted. The experience of being managed, taking instructions, using your own initiative, being trusted, having your confidence built, learning new admin skills, marketing skills, etc. There is a pride that comes with work and along with it an honour. Speak to any business connector and they will tell you how invaluable their mentees have found work placements.
Yes small businesses have a thing or two to gain from the young person. An extra hand, increased capacity to deliver - depending on the existing skill set of the individual. It's not a bed of roses though managing and supervising this client group. In fact in the main, it’s tough. We should be glad if the likes of M&S, Tesco, HP, BA, etc. have joined employers in taking on clients.
Small firms should also join the ranks. This client group has great ideas that they can bring to your work place. Innovation and creativity, smartness, a different approach to problem solving, etc. you just need to spend a little time with them. Give them time and real work and you will get the best out of them. So don't join the nay Sayers out there. There is a great benefit in the proposal for all of us.
The negative comments only make it difficult for local businesses to support this client group. Gone are the days of near full employment. In those days you could say businesses were taking advantage of people, but today, it's an employer’s market. There is more supply than there is demand. Having said all of this, at best what needs to be done is provide safeguards to abuse by businesses. Of course some negative person will say this is naive and yes I know some business or two will want to abuse the advantage, but they do so at their own peril. I wouldn’t let the bad eggs spoil it for the good ones.
That's sound Business Advice
Remi Okeshola
Managing Director
RBSS Consulting Ltd
www.rbssconsulting.com
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