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The Business JourneyNo. 9

12 May 2015

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The Business Journey

12 May 2015

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The Business Journey aims to act as a free, non-executive board to owner-managed

businesses operating in the West of Scotland SME

community.

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Event Programme

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The Business Journey Partners

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Event Programme

Business compliance and obligations

Object for today

• Awareness

• Consider and check all of your compliance requirements

• Plan for the future; don’t fall foul of regulations

Business compliance & obligations

• Not just for start-ups

• ‘Compliance’ – What does that mean?

• Conforming to a rule, policy, standard or law

• ‘Regulatory Compliance’ – Adherence to laws, guidelines, specifications

• “Red tape”

“Red Tape”

• Generally filling out paperwork, obtaining licence, permits, seeking approval or certification.

• Reporting requirements, procedures

• Inspection, investigation, enforcement

• Can have a negative impact on business – but vitally important to be adhered to

Statutory compliance

• Statutory or legal requirements can include:

• Legislation

• Anti- Money Laundering; High Value Dealer

• Companies Act; Director’s fiduciary duties

• Licence, IP rights

• By-laws

• Title deeds

• Town planning

Other considerations

• Insurances: Home insurance, PII

• Professional bodies

• Company Memo & Articles of Association

• Shareholders agreement

• Partnership agreement

• Contract for services

• Staffing and HR issues. NMW, H&S…

Other pitfalls – deadline dates

• Company filing requirements and deadlines: Co House, HMRC (easier now for ‘Micro entities’)

• A tax system riddled with statutory deadlines

• VAT returns

• PAYE returns

• Tax returns

• Payment of taxes on time

• Tax elections – one day late can deny an opportunity forever

• Plan in advance. Deal with all taxes in a timely manner

VAT

• According to .Gov research: 36% SMEs unaware of the rules

• 780,000 SMEs potentially open to fines by HMRC

• Compulsory registration threshold

• 9% of businesses intentionally stay below the threshold

• Penalties for late registration + the VAT payable

• VAT exempt, Zero-Rated or Standard Rated?

• Overseas trading causes no end of confusion

• MOSS: e-commerce B2C in the EU. Change to ‘place of supply’ rules

Books and records

• Must maintain proper books and records

• Must be retained for inspection

• Recommend keeping books for 5 years after filing deadline

• Keep a back-up copy (safe)

• Responsibility

• Accountability

• Culpability

Help!

• Stay calm and seek help

• Get advice and guidance before, not after

• Where?

• Professionals, FSB, ACAS, HMRC, peers, Business Gateway, etc.

• Advice is an investment, not a cost• Free up your time to concentrate on your business

Get ready for digital services

• Online filing

• Online payments

• Digital interface with .Gov for everything

• “Tax Returns abolished” – George Osborne

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Questions for Ian?

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Next eventTuesday 25 August 2015