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Crunchers Accountants

Crunchers Accountants

Autumn Statement Report

Archive for November, 2016

Autumn Statement Report

On 23rd November the Chancellor, Philip Hammond, delivered his first (and last) Autumn Statement.  We provide you with our summary of the most important announcements for small business.

Growth
Economic growth forecasts have been revised down from 2.1% to 1.4% in 2017 following the Brexit vote.

Corporation Tax
The Chancellor has re-iterated the intention to reduce Corporation Tax to 17% by 2020.

PAYE
One of the big announcements was a clamp down on Salary Sacrifice schemes whereby National Insurance is saved for employer and employee by provision on benefits in lieu of salary.  However pension contributions, cycle schemes, ultra low emission cars and child care will remain untaxed benefits.

Increases in the National Minimum Wage were also announced up from £7.20 to £7.50 per hour from April.
VAT
New rules will require businesses on the flat rate scheme to have expenditure on goods (not services) of under 2% of gross turnover to move to a 16.5% flat rate.  This will particularly affect personal service companies with little or no expenses.

Personal Tax
The Personal Tax Allowance will increase increase to £11,500 in 2017 and up to £12,000 by 2020.  The Higher Rate threshold will go up to £45,000 in 2017.

The ISA limit will increase from £15,240 to £20,ooo in April 2017

Tax Avoidance
The government’s campaign to tackle tax avoidance continues.  In particular new regulation is being introduced to remove a defence of having taken reasonable care in getting professional advise where the professional adviser stands to gain financially through whatever scheme that is being considered.

Business Finance
The Chancellor promised a further £400m in venture capital funds to be made available to business through British Business Bank.

 

Introducing Goal Driver

As some will know the intention behind Crunchers is to use the accounting process to improve the lives of business owners, providing insights and support in achieving their goals for their business and their lives.

Crunchers Head Office in Cornwall has been busy this year with an important new software to empower business owners – Goal Driver.

The software is a distillation of a years of research and thought into what makes a successful business.  As accountants we tend to be interested in the financials but of course the financials are merely a result.  In order to improve results you need to dig deeper and work on the actions and strategies that improve the numbers.  You need to understand what drives your business and focus on those aspects.

So Goal Driver allows you to model different business ideas using something called Canvases, log your vision, your strategy, record your plan, set milestones and KPIs (key performance indicators), share all the above with your team, and log team meetings.   We hope that it will become to your executive department what Xero is to your bookkeeping department – the essential tool.

As accountants it will be our tool to implement our approach to business development which is called Improving the Numbers and in a way calling Goal Driver a software misses the point.  It should be understood as part of a system, a whole approach to having a successful business.

We will be rolling it out to all clients from the month at our Annual Reviews and Management Meetings.  It is also available as a stand alone product to business owners from £45/month.

Having implemented a number of apps across our production and marketing processes we know the impact that this kind of software can have a particular function of a business.

For example how many of your team members know the vision, the strategy and the key metrics that the business is working to?  Just this one feature of the software could make a significant difference to the results your business achieves.