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How Does Business Turnover Determine the Health of Your Business?

When it comes to understanding turnover, it can be much easier than understanding profit, with gross and net to contend with. Business turnover is the total revenue generated by a business in a given period, such as a year. It’s an important measure of a business’s financial health and can give you an idea of how well the business is performing and whether it’s growing or shrinking.

Factors that can affect business turnover

There are lots of things that can affect your turnover, from the overall economic climate to the industry you’re in as well as how effective your marketing and sales strategies are. A healthy business typically has a high turnover rate, indicating it’s attracting new customers and retaining existing ones.

A low turnover rate might not necessarily be a red flag, you may have just started out, gone part-time or been on maternity leave for much of the year. But if your business’s turnover rate is declining for no obvious reason, then it’s important to take a closer look at what may be making your turnover take a turn for the worse.

How to improve a business’s turnover rate

There’s no magic wand you can wave to boost your business’s turnover, but are some things you can do to give it the best chance of bouncing back or continuing to grow, including:

  • Invest in marketing and sales. A strong marketing and sales strategy helps you reach new customers and generate more revenue.
  • Build a strong brand. A strong brand helps you stand out from your competition and attract new customers.
  • Provide excellent customer service. Delivering excellent customer service helps you build relationships with customers and keep them coming back for more. 

By taking steps to improve the turnover rate, businesses can boost their financial health, and give them the best chance of long-term success.

Extra tips to improve business turnover

Here are a few more top tips for boosting your business’s turnover:

  • Focus on your target market. Ask yourself ‘Who are my ideal customers? What do they need or want?’ Then tailor your marketing and sales strategies to reach these customers and show them that your product or service can address their pain points. 
  • Make it easy for customers to buy from you. This might sound like a strange one but you’d be surprised how many websites make it hard for customers to find what they’re looking for at a few clicks of a button. Make sure your website is simple to use, and the checkout process is streamlined. Offer multiple payment options and make it easy for customers to get in touch if they’ve got a question.
  • Provide excellent customer service. Go above and beyond to meet the needs of your customers. Respond to enquiries as swiftly as you can, don’t keep customers waiting as they’ll soon turn to someone else. 
  • Keep your products and services up-to-date. Stay ahead of the competition by offering new, innovative products and services, and give existing ones a new lease of life. 
  • Invest in marketing and advertising. Tell people about your business! Some businesses spend 5% on marketing and advertising and others spend 20% and more. If your target market doesn’t know about you, they can’t buy from you. So, invest in marketing and advertising to reach new customers and generate more revenue.

Following these tips could give your businesses a little lift or a big boost and we’re here to help with money matters like tax whenever you need it. 

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Understanding the P11D and What to Include to Meet the July Deadline

Tax and filling in forms go hand in hand. If you’re an employer and your employees receive taxable benefits in kind, then you need to know about the P11D as it must be completed by the 6th of July each year.

The important P11D sections to complete

There are different sections in the P11D form to complete in full. The most important sections include:

  • Section 1: employee details. This section includes the employee’s name, address and National Insurance number.
  • Section 2: benefits in kind. This section lists all the benefits the employee has received during the tax year.
  • Section 3: calculation of taxable benefits. This section calculates the amount of tax due on the employee’s benefits.
  • Section 4: employer’s declaration. This section must be signed by the employer to confirm the information on the P11D is correct.

If you’re an employer, you must complete the P11D form correctly and on time. If not, you could be hit with a fine from the HMRC.

Tips for completing the P11D

Here are our top tips for completing the P11D form:

  • Start early. Don’t wait until the last minute to complete the P11D form. Give yourself plenty of time to gather all the information you need.
  • Use the right version. There are different versions of the P11D form depending on the type of business. So, make sure that you use the right version for your business.
  • Check your work. Once you’ve filled in the P11D form, check it then check it again.
  • Submit the form on time. Always submit the P11D form to HMRC by the 6th of July each year to avoid penalties.

P11D extra tips

  • Keep good records. Keep all the information needed to complete the P11D form, such as receipts, invoices and contracts.
  • Use a payroll software program. This helps you calculate the tax due on your employees’ benefits.
  • Get help from a professional. If you’re unsure how to complete the P11D form, always get help from a qualified accountant or tax adviser.
  • We’re here to help make sure you file your P11D right the first time, on time. So before the deadline rolls around again next year, get in touch to find out more.

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What to Do With an Inherited Property?

Aside from the emotional factors, there are two sides to inheriting a property; it’s a great opportunity but it can also be hard work. So, if you’ve inherited a property, what can you do with it? The best option for you depends on your circumstances, but we have some options for you to consider.

Inherited property: your options

Before you make a decision on an inherited property, think about the different options open to you, including:


● Living in the property. The simplest of all your options; move in and start enjoying your new home. If you’ve already got a property, decide whether to sell it or rent it out and earn extra income.
● Rent out the property. Instead of living in it yourself, let someone else live in it by renting it out to tenants. It’s a great way to generate an income but go in with your eyes open as it comes with certain responsibilities, like finding tenants, collecting rent, dealing with repairs and keeping up with the maintenance.
● Sell the property. If the above two options don’t appeal to you, sell the property. Yes, you’ll hopefully make money but bear in mind you’ll need to pay Capital Gains Tax (CGT) on any profit you earn.


Whatever you decide to do with your new property asset, you must get professional advice. There are two important people you’ll need, a solicitor to help you handle the legal aspects of your inheritance and an accountant to manage the tax implications.

Making a decision: what to think about

Before you jump in, here are some points to consider first:


● Your personal circumstances. Questions to ask yourself: do you need a place to live? Do you want to generate an income? Do you need to raise money?
● The condition of the property. Assess the property by asking: is the property in good condition? Will it need repairs or renovations?
● The location of the property. Consider: is the property in a desirable location? Will it be easy to find tenants?
● The value of the property. The six million dollar question: how much is the property worth? Will you have to pay CGT if you sell it?


Think about your answers to these questions, and others, before you make a decision that affects you and your family.

What to do with an inherited property: extra tips

Here are a few extra tips when it comes to what to do once you’ve inherited a property:


● Get a valuation. If you don’t know what it’s worth, how can you make an informed decision about what to do with your inherited property?
● Check the title deeds. Make sure you’ve got the property’s original title deeds which detail who owns the property and the rights they have.
● Check for any outstanding debts. Are there any outstanding debts on the property, like a mortgage or a loan?
● What are the tax implications? You may have to pay inheritance tax on the property but an experienced tax adviser will be able to tell you more.
● Make a plan. Now you’ve got the information you need, you’ll be able to see the bigger picture and avoid any problems in the future.


If you’ve inherited a property, you may need to consider the implications for you and your family. So, we’re here to help you work out what’s best for you and those around you. Get in touch today.

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The Difference Between Personal Accountants and Bookkeepers in the UK

If you’re a business owner in the UK it’s likely you know there are many different financial experts to turn to. Two of the most common are accountants and bookkeepers, but do you know the difference between the two?

What’s a bookkeeper’s role?

Bookkeepers keep your financial records in order. They’ll track your income and expenses, prepare financial statements and balance the books, like income statements and P&Ls. They can also help with invoicing, payroll and tax preparation.

What’s an accountant’s role?

An accountant provides more specialised financial accounting services, like tax planning, financial forecasting and business analysis. They’ll also represent you with tax authorities to fight your case.

In summary…

Bookkeepers look after the books on a day-to-day basis, dealing with the financial operations of a business.

An accountant looks after more strategic matters and provides long-term financial advice.

Which should you choose?

To answer a question with a question; it depends on your specific needs. For small business owners that are financially savvy, a bookkeeper to manage your books on a day-to-day basis is probably all you need. But for a larger business, or if you’re not that good with finances, or want specialist advice, an accountant will be a better option.


It’s worth noting that there is sometimes a crossover between the two roles. Some bookkeepers offer accounting services as well, albeit limited, and some accountants offer bookkeeping services. So, when choosing your financial professional, make sure you dig deep into their financial qualifications and experience.

Top tips for choosing a financial professional

Here are some top tips to help you make pick the right person to help with everything from balancing your books to keeping on top of your taxes:

● Ask friends, family or colleagues for their recommendations. You don’t have to take their advice, but it may help you decide.

● Don’t pick the first one you meet; shop around first.
● Find out about their qualifications and experience that is relatable to your business and industry. Don’t be afraid to ask questions.
● Get quotes and find out exactly what’s covered in their cost.

Choosing the right financial professional for your needs can be tricky. But follow these tips, and you’re in a much better position to make the right decision. There are lots of brilliant bookkeepers out there and impressive accountants, and we’re proud of what we think are some of the best in the business. So get in touch to find out how we can help.

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What IS Employer’s Liability Insurance?

What is employer’s liability insurance? ELI?

In the UK, employers must legally have employer’s liability insurance (ELI) if they employ one or more people. It’s a form of insurance that protects businesses from employee legal claims for things like work-related injuries and illnesses.


The minimum level of cover is £5 million, although many employers decide to increase this to a higher amount. ELI covers the cost of any claims for employers, including medical expenses, lost wages and legal fees.

Benefits of Employer’s Liability Insurance

There are several benefits to having Employer’s Liability Insurance, including:


● Peace of mind. Knowing you and your business are financially protected should one of your employees become ill or suffer an injury is worth its weight in gold.
● Covers the cost of claims. In most cases, if an employee makes a claim, your insurance will cover the cost of the claim, rather than having to pay out of your own pocket.
● Improved staff morale. With ELI in place, you’re showing your employees that you’re taking their safety seriously by providing a safe working environment. This can lead to a happier, more positive and more productive workplace for everyone. And happier staff makes for a better business.

How to get ELI?

You can buy Employer’s Liability Insurance from various insurance companies that offer this type of cover. Choose a policy that meets all your needs and provides the right level of cover.

Employers’ Liability Insurance: extra tips

Now you know what ELI is and why it’s important for all employers to have this insurance protection in place, here are some extra tips to help you get the best cover:


● Get quotes from multiple insurers. The cost of ELI can vary, depending on your needs and the insurer. So, get quotes from several providers before making your decision.
● Make sure the policy covers all your employees. Regardless of job title or location, your ELI insurance policy should cover every employee in your business, wherever they work from.
● Read the policy carefully before signing on the dotted line. Make sure you read through the policy thoroughly, particularly understanding the terms and conditions, before you put pen to paper.


Securing the best ELI policy for your business is not just a legal requirement, it’s an important way to protect your business, too.

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What Is Capital Gains Tax in the UK?

When you sell an asset that has increased in value, such as property, cars or even shares, you will have to pay a tax on the profit, called Capital Gains Tax (CGT). In the UK, the current CGT rates are 10% or 20% for individuals (not including residential property and carried interest).

Why do you need to pay CGT?

If you’ve sold an asset which had increased in value and the gain, or profit, is greater than your annual CGT allowance – this is currently £12,300 for the 2022/23 tax year – you will need to pay CGT on the difference. 

If the gain is less than your annual allowance, you don’t need to pay CGT but you will still need to report the gain on your next tax return. 

When don’t you need to pay CGT?

If you’ve sold an asset which had increased in value and the gain, or profit, is greater than your annual CGT allowance – which for the 2022/23 tax year is £12,300 but will drop to £6,000 for the 2023/24 tax year – and you will need to pay CGT on the difference between your annual personal CGT allowance and the sale price.

If the gain is less than your annual allowance, you don’t need to pay CGT but you will still need to report the gain on your next tax return.

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How to calculate your CGT bill

To calculate your CGT bill, you need to know how much your gain (profit) is by subtracting the original cost of your asset from the sale price.

For example, if you bought a share for £100 and then sold it for £150, your gain would be £50.

Now you know your gain, apply the relevant tax rate to calculate how much CGT you will need to pay. For the 2022/23 tax year, Gov.uk outlines the CGT rates as:


● 10% and 20% tax rates for individuals (excluding residential property and carried interest)
● 18% and 28% tax rates for individuals for residential property and carried interest
● 20% for trustees or for personal representatives of someone who has died (excluding residential property)
● 28% for trustees or for personal representatives of someone who has died for the disposal of residential property
● 10% for gains qualifying for Business Asset Disposal Relief (previously known as Entrepreneurs Relief)
● 28% for Capital Gains Tax on a property where the Annual Tax on Enveloped Dwellings is paid, the annual exempt amount is not applicable
● 20% for companies (non-resident Capital Gains Tax on the disposal of a UK residential property)

As you can see the rates vary depending on whether you’re an individual or a business and what it is that CGT may apply to. If you’re unsure what rate your gain is subject to, we’re always here to help.

How to pay CGT

How you report and pay your Capital Gains Tax depends on whether you sold a residential property in a residential property in the UK on or after 6 April 2020 or any other asset that’s increased in value in the time between purchasing and selling it.


To report your gain you’ll need to know:


● how much you bought and sold the asset for.
● when you bought and sold the asset.
● any other relevant details, like any costs associated with the purchase, improving the asset and any tax reliefs you’re entitled to.

Here to help

CGT can be a complex and confusing tax but to make sure you’re paying the right amount, it’s important to understand how the tax works. That way you will avoid paying more tax than you need to.


If you’re planning on selling an asset that has increased in value but are unsure whether you need to pay CGT, or how much CGT you owe, our experienced, professional tax advisers at Norwich Accountancy are on hand to help you.

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How Long Should You Keep Your Tax Records in the UK?

There are a few factors that determine how long you should be keeping tax records, from your income to your employment status and the type of records you have. Let’s look at the what, when and for how long in more detail.

Individuals

For individuals, it is recommended you keep your tax records for a minimum of 22 months after the end of the relevant tax year. For example, if you file your 2022/23 tax return by the filing date, you should keep your records until 2025.


However, in case you find yourself chasing a tax refund or are tackling a tax dispute, it’s a good idea to keep your records for even longer.

Businesses

For businesses, it’s recommended you keep your tax records for a minimum of five years following the end of the relevant accounting period. For example, if your accounting period ends on 31 December 2022, you should keep your records until 31 December 2027.


Like individuals, in case you should be faced with a tax dispute or want to claw back some tax through a refund, keep your records for longer.

What records should you keep?

The types of records you should be keeping to support your tax return include:


● Sales and income.
● Eligible business expenses.
● If you’re registered for VAT, then your VAT records.
● If you employ people, your PAYE records.
● Details about your personal income.
● Details of any grants you’ve claimed, such as COVID-19 business grant schemes.

If you’re self-employed, as well as the above, you should also keep records like:


● Travel expenses.
● Eligible meals and entertainment expenses.
● Business equipment expenses.
● Professional fees.
● Details of any grants you’ve claimed, such as the Self-Employment Income Support Scheme.

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Where should you keep your records?

Make sure you keep your records in a safe and secure place, whether that’s a safe deposit box, at home or even with your accountant in their office. (We’d advise against shoe boxes under the bed). It’s also a good idea to keep them organised to make it easy to find any evidence you may need in the future for tax purposes.

What if I lose my tax records?

If you lose your tax records, get in touch with HMRC as soon as possible. They may be able to help you reconstruct them for you.


You may also be able to get a copy of your tax records from your employer, bank or other financial institutions.

Work smarter, not harder

Keeping your tax records for the recommended length of time will help you avoid any penalties and interest if HMRC decides to audit your tax return. You can also make sure you’re claiming all the relevant tax reliefs and deductions you’re entitled to, as well as resolve any disputes if they arise.

Need somewhere safe and secure to keep your tax records? Get in touch with Norwich Accountancy today.

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