Is there anything I need to do with my business before the end of the tax year on 5th April 2017? (UK)
Now this is the time of year accountants and financial advisersget very excited, they are also quite often busy.
It is all to do with Tax Allowances, which I know sounds really boring but it is essentially the government’s way of encouraging us to do things , like savings and pensions and other things like that.
So before you glaze over and switch off. I have made it as simple as possible. So you can start your journey of understanding these things, because they are important and will provide for your financial future.
Let’s face it, most of us don’t get up in the morning going yeah! Let’s sort out our savings and pensions and tax allowances, how exciting!
So simple, so clear, let’s go.
If you bring home to you, less than £11,000, from all your jobs and businesses. That’s £11,000.
Here are my suggestions to consider.
Putting some money in an emergency savings account – you know it is important, well now is the time to create or add to your emergency savings.
To check your eligibility for the state pension, before you go ‘nooo, not relevant’ and dismiss it.
You only need 30 years of national insurance now to be eligible and if you are self-employed, it is actually a really good investment.
One they are probably going to change in a few years, so worth looking at this year.
This is the one thing I recommend you do – get a statement from the government on where you are with your state pension. click here to apply
So check out your state pension as it is a very good investment particularly when you are self-employed.
Married Couples Allowance
I know it sounds archaic but was brought in by David Cameron and not of lot of people know about it.
It will give you £220 a year, so worth considering. You can just apply online.
You are eligible if one partner is earning less than £11,000 and one partner is earning over £11,000.
mainly I focus with Money Coaching on bringing money in,
so when someone brings up debt half way through a session, I know it is probably a little more serious than they are letting on,
so I recommend taking dramatic action.
My 2 steps are:
Firstly: Dramatically, drastically reduce all your expenses
This does involve having really horrible, embarrassing conversations with people, about getting out of things you have committed to, that are awkward and emotionally yuck.
Remember that yucky feeling is what will stop you going into debt again. Breathe.
I did say they were dramatic.
Secondly: Get a part time job
All my clients are in business and we try and get a quick win on their business or schedule a follow up session.
The reality is sometimes businesses go through peaks and troughs or they just take longer to make money that you expect so getting a part time job does at least bring in some income, which does make a difference.
Now these are quite dramatic solutions, and the reason is to try and shock people out of denial, into dealing with their debt.
Often there is someone in their life they can talk to but they haven’t because they are too embarrassed.
After a conversation with me! They are much more likely to do that and come up with a less embarrassing, less awkward situation.
So it is about getting out of denial and into action because once you are in action, the worry and the stress just calms down quite a lot.
It can be done and all my clients who have followed this advice have got out of debt and none of them have got back into debt.
So I know it is a difficult subject and I wish you the best with it.
I am doing…, so it is Dear Money and then say what you are doing. I am feeling…and say what you are feeling. Ask what can you do…what can you do? Dealing with buts, and’s and I want more’s… they will come up so have that as a topic. What can I do now? You don’t have to do it but ask the question. End with a Thank You, that is always a good way to end.
So that is my ‘get yourself unstuck’ little tool so thank you very much for watching.
Next week we are back to practical stuff and it is a Live Q & A on Facebook at 12 noon GMT on Friday 3rd February 2017.
We are talking about now you have done your books, or now you have done your accounts, what now? You can just stick them in a drawer but we are going to provide you with some other useful suggestions.
Thank you for watching.
The best method I have found over the years of motivating both myself and my clients is the method of rewards and consequences.
Little rewards when you complete your books, little consequences when you don’t. This has the effect of associating rewards with bookkeeping, which is a good thing, and also positive emotions.
So I think of bookkeeping as the business equivalent of laundry.
Yes I am talking washing your clothes here, which might seem a bit random! When you wash your clothes regularly, it means you can wear all your favourite things. If you leave your washing for too long, you end up wearing the things you like least, that are left at the bottom of the wardrobe.
Even buying new is only a short term solution.
Can you imagine doing a whole year’s worth of laundry in one go?
Should you have that many clothes. Yet that is what people do with their bookkeeping. Then they wonder why they avoid it, that sounds quite daunting to me.
So my recommendation, like your laundry, do it regularly, it lessens the chore and you might even start enjoying it. You will definitely get better at it.