I would like to wish each and every one of you a fantastic and profitable new year!!

My commitment to you is to try and keep up the flow of articles, videos and reports to help you make 2009 your best year yet!

~Ray

Traditionally, the quiet time between Christmas and the New Year is one of the few opportunities the busy entrepreneur has for reflection on the past year and planning for the new year about to start. I have been doing this myself even whilst out shopping with the family yesterday! I secreted myself away in the cafe at Bhs and drank some yukky lattes whilst putting notes into my notebook (remember that from the Recession Busting Tips Report?) about planning. Last night, whilst the family watched TV I half wrote the report and finished it this morning. My eldest son, Chris, proof read it and so it is available just over 24 hours from first thought to finished product. A new record for me!

Have you been thinking similar thoughts? Or like most, slumped in front of the TV?

Your business will appreciate you spending some quiet time on it and I hope the planning report will help you define your direction for 2009.

Don’t forget to let me know what plans you are making, and then we can look back this time next year and see how you have done. Are you confident enough to commit your goals to a comment right here for eternity? and then strong enough to compare your actual performance over the year back here in a years time?

Lets see…

~Ray

So I had to take it down right away.

I can’t believe it was exactly a month to the day since I finished the report that the 1,000th copy had been downloaded.

Congratulations to those who got their free copy! I sincerely hope it helps you and your business as we go into the new year.

For those who didn’t get a free copy, the report is now only for sale at £15.97+VAT.

I am currently working on a time management report and aim to give this away around 31st December 2008. I do not expect this will have the same appeal but it is a fact that managing the limited amount of time we have is one of the biggest challenges everyone faces today in our busy, busy world.

I hope everyone has had a good rest over the holiday and is raring to get back to work next week.

We will speak again very soon.

~Ray

I have put this down to the loss of the subscriber box on the sidebar. Although the new theme has various options to opt in, it seems that the box is very important in helping people decide.

So, I have installed a series of very clever little scripts that (hopefully) appear only until a visitor subscribes and then never appear again.

What this means though, is that they will appear for everyone until the name and email have been filled in and the button clicked on.

Even for those of you who have already subscribed.

So I am sorry if this change is annoying, but I hope the long term benefits will outweigh the short term hassles. If you do fill in the form, it doesn’t mean you will get several copies of the notices, I trust Aweber, who handles the list, will just send you an error message stating you are already subscribed.

The major difference with these new methods is that you are not taken away from the page you are on, whereas before you were taken through the Aweber system, now you stay exactly where you are. That in itself is a major help.

It also means the box on the sidebar will not be seen once you have used it. A really clever piece of coding. We will see just how clever - depending on the results over xmas!!

Please let me know if you experience anything odd or un-necessary when you fill in the box.

May I just apologize again for the hassle this change will cause.

~Ray

You will not be one of those who miss the deadline will you?

What are the options for filing between now and the deadline?  There are 3 at the moment:-

1. Using HMRC software on their own website.
2. Using a program you have bought yourself specially to file on-line this year.
3. Using an Accountant.

I am sure you know which one I prefer you use… that’s right, No.3.

Lots of people still insist on going their own way and that’s fine, as long as the implications of going it alone are fully understood.  The main problem is that, astute as most business people are, they don’t really have a clue about what they can properly claim against their income, and whether or not the figures they submit are just walking into a Tax Investigation.

The reason accountants are (mostly) very good at their jobs is because they specialize in certain types of businesses, and therefore build up a vast store of knowledge about their area of expertise; what is acceptable; what they can “get away with”; and what just doesn’t “look” right and needs altering. 

For example, I don’t audit companies.  I specialize in small businesses up to 15 employees.  My interest is in helping those businesses who want to grow, improve their profitability and yes, weirdly, watching them get too big for us to handle and see them go on to success and personal wealth. 

This is why accountants charge for their services. 

It isn’t because they are just out to be a leech on business.  They can actually add substantial value and are worth many times more than the annual fee to business owners who use them fully.

There are good and bad accountants out there - so how do you tell the difference when you are looking through the Yellow Pages - skipping through the search results on Google?

Obviously, other people’s opinions and recommendations count here.  As do whether or not you know the accountant’s name from things they have been doing locally; Round Table; Newspaper editorials; Radio interviews; advertisements; charity events etc.  I always tell new prospective clients that “chemistry” is important in the accountant/client relationship.  Does the chap make your skin crawl when you sit in the office? Is the office an untidy mess all year round?  Can they give you a couple of satisfied clients to talk to?  Can they give you an informative report on the area of business, marketing, cash-flow, employee management, VAT, Income Tax, Capital Gains Tax, selling your business? planning strategies? that you are struggling with, or do they fob you off with an answer you only half understand?

The choice of accountant is really important because, when the chips are down and you are sitting in front of the Tax Inspector, you both need to be sure that you can totally trust each other.  I need to know I can trust my clients not to open their mouths and totally contradict earlier statements (yes it does happen) or start blaming me as a scapegoat - trying to ruin my reputation, and the client needs to know that they have been fully briefed, expertly advised, and confident their accountant is performing at their peak when needed.

If you don’t feel you can be totally honest with your accountant, and also don’t feel they are being completely open and frank with you, then change to one you do feel comfortable with.

An accountant is not for life!  You can change at any time.  The only thing to watch is changing constantly, because that signals to the Tax Office that you are perhaps being less than frank with each new accountant (remember each time you appoint a new accountant, a form goes to HMRC to advise them).

Lastly, if you are very happy with the service, the answers, the extra’s you get from your accountant all year round - do them a big favour and tell your friends.  I always reward existing clients with a cash windfall based on a % of their annual fee each time they recommend someone to me.  Perhaps your own accountant offers something similar - have you asked?

Finally, however you do it, make sure you get your 2008 Self Assessment filed before the 31st January 2009 or penalties and the wroth of the mighty HMRC will come tumbling down on you shortly after - and trust me - you don’t want that - ever.

As always, please feel free to ring me on 0800 047 0731 if you would like to discuss anything before the deadline hits - even if you just have a question - I won’t charge you, it will be my pleasure to help.

~Ray

Why was I angry?

I went to the seminar on sales in London to try and discover some new golden nuggets to pass onto you here over the next few weeks. But what did I find? that I spent the day being “sold” to. How I knew so very little about anything relevant to my business and that I needed to spend £497 on this course, £997 on that series, £1,997 on this software and unknown amounts on monthly masterclasses next year.

Did I actually learn anything?

One thing - yes. How easy it is to take money off people when they are keen (desperate) to learn how to steer their business through the hard conditions of a recession.

What a sad lesson.

There was around 60 people there on Saturday at £49 per person. A cool £3k for the organizers, plus no doubt a healthy commission on all sales made on the day - of which I saw a lot of the high price items I mentioned above being signed up for - Wow - a really excellent result for the organizer.

I felt used and really sad for the people who were convinced to spend up to £3,491+VAT each on these “must have” products. Sadly, I bet they never utilize the purchases fully and never obtain full value for money. That is the nature of human beings.

It got me thinking though…

After just a couple of weeks, my free download offer of the recession busting tips report has almost reached the limit of 1,000 downloads. The main critiscm has been that I haven’t gone into full and picturesque detail of each tactic. So, what about some REAL seminars??

Would you be interested if I were to run a series of seminars (no sales patter - guaranteed) giving step by step instructions on how to extract the best results from each of the proven tactics I put into the report??

Would you travel to the East Midlands to attend? What days of the week work best? What time of day is best? How much would you be prepared to pay for each 2 hour seminar?

If there is enough people to make hiring a venue worthwhile - I will do it. I will also try to attract relevant experts for certain aspects to make sure everyone gets massive, real, usable, tangible benefits from each seminar.

Let me know what you think??

~Ray

Make sure you have changed your website settings, ebay settings, bookkeeping settings, spreadsheet settings - even your calculator settings to reflect the new rate.

The new rate is 15%. When you are calculating the VAT amount in a total, such as a petrol receipt, you now need to use the fraction 3/23, or if you want the VAT exclusive amount the fraction you need is 20/23.

It remains to be seen if such a minute change will have any real effect on spending habits.

Good luck with your christmas campaigns.

Please feel free to email me if you want a little critique or help with your copy in the run up to christmas!

Seasons greetings to you all!

~Ray

VT Transaction + is now complete. I know it sounds unlikely but it was only this morning I was wondering about doing some more video tutorials now my recession report is finished and what happens - I get the upgrade available notice in my VT Transaction+ program and… there is this note saying it’s all finished and there is now a comprehensive user guide. So, no more need for planned tutorials…

Anyway, you can view the help file from within your program, or download it and print it from the VT Software website here.

I have looked through it and all credit to the team - it is clearly written and easily understandable. Well done chaps.

I presume this now signals the beginning of the end for the free web downloads so for all those people “testing” the program out there, it is time to stump up the cash to buy it officially. I think it has been free for download for at least 3 years so VT Software have been more than generous.

You can either buy it from me, or direct from VT Software at £125+VAT first year and then £100+VAT each year thereafter. For additional licences it is £75+VAT initially and each year thereafter per licence needed.

I cannot recommend this software highly enough. It is something we use here for all of our bookkeeping work all day every day. I keep checking other software as it comes out but nothing comes close (yet) for simplicity of use, ease of editing and formating of invoices.

Simply brilliant.

~Ray

I know our beloved chancellor said it will apply from 1st December but…

There is an issue you must consider here when you are invoicing for the supply of goods and services.

If you supplied goods and services before 17th November 2008 but invoice them on or after 1st December 2008, you MUST use the 17.5% rate.

If you normally invoice at, say, the end of the month following the supply of goods and services (yes, some people wait that long to bill), you will still need to charge 17.5% VAT.

The reason for this anomaly is that HMRC treat the Basic Tax Point as being when the goods/services are actually made available to the client/customer and it is the basic tax point that determines the rate of VAT you charge.

There is, as with most things, a work around.

Why did I use the 17th November above and not the 1st December? It is because VAT has a little known 14 day rule that can overide the the basic tax point.

If you raise an invoice within 14 days of the supply, the invoice date will be the actual tax point. There is a possibility to extend this 14 day rule to 30 days, but you have to write to HMRC at your local VAT Business Centre and explain why you need an extension and if they agree, nearly all your invoicing can be done at 15% after 1st December 2008.

As ever, a VAT inspection is usually the only time this sort of anomaly crops up but when it does, guess what happens??? You get 2 choices.

1. you go back to your customer and say sorry, I should have charged you 17.5% not 15% can you stump up the difference please? What if they have gone out of business or just say no….
2. you pay the difference with no ability to reclaim it.

I have said it before but VAT is the most mis-understood of the taxes and when you get it wrong - it makes more than your eyes water!

But was the chancellor right to do what he has done?

Was it formal budget in all but name just so that this government can force these changes through without discussion and all party approval? The sceptic in me says YES.

Little has been made of the total debt the government are running up overall. We hear snippets that suggest borrowing this year of £78bn and then another £118bn next year. I haven’t seen much reference to the total the country will be in debt by in a couple of years… a staggering £1,000 billion.

All this tinkering about is just to make the government look good before a general election.

We all know that the repayment pain of this staggering pile of debt will start just after the next election. NI is going to rise, VAT will be back at its current rate again, higher rate tax will be 45%, road tax will have significant changes (most likely upwards) with 6 new bands of vehicle excise duty etc..

As far as business owners are concerned, they now have to reprice everything in their stores, websites, brochures, tills, menus etc all by Sunday evening . Any compensation for this - no.   Oh, and don’t forget we have to put it all back again next christmas when VAT goes back up.

Already hardpressed hauliers are going to suffer another cost blow because the VAT they currently reclaim in fuel is being reduced and replaced with fuel tax they cannot reclaim. Thanks mate!

All this fuss about we will give businesses time to pay their tax bills is a smoke screen. This has been going on for years now ever since self assessment introduced the creditcard like statement for the tax owing. Maybe the penalties will be suspended for a bit - we will see how that works in practice because VAT is a funny tax and there is not yet any provisions in the law for this to work and interest to be paid. Perhaps we will see the magic wand at work again on this and law mysteriously changed overnight.

The recession will be over next year he says. Wasn’t it just a few weeks ago the government denied any prospect of a recession? Get real mate. No recession runs its course in less than a year - and the £20bn being dropped in the ocean now (sorry, over the next few months) is not going to make a jot of difference.

I bet there will be retailers, already offering big sales discounts, who will say thank you and use the VAT reduction and keep it to boost their margins rather than pass it on - partly to soak up the recent rises in minimum wage. I would. I very much doubt though that it will stir anyone to start buying no-essentials again just yet - certainly not houses.

A big thing has been made about the loss relief businesses are being given. The fact is that these reliefs have been around since before my day (and that’s a very long time ago). All he has done is extend them slightly. But as he expects the recession to be over next year, why has he made loss relief now available for 3 years and limited the extra relief to a mere £50k?

Oh yes.. We mustn’t forget, he has also promised £15m to offer debt advice. I wonder if he has taken any himself?

Why couldn’t he do something more constructive like bring back mortgage tax relief, give some sort of council tax relief, force the banks that have taken billions of our money to start lending again to businesses and house buyers??

This government is seriously dangerous to our financial health. I used to be a conservative in years gone by, but then they had a long run in government with a large majority and power definitely corrupted the way they conducted themselves. This led to Maggies downfall and John Major losing all credibility and thus opening the door to new labour. I was pleased when there was a change, a new breath of life - but not for long.

Once again, we now have a government of 11 years or so and they are becoming desperate to hold onto power. We should have had an election when Tony went but they knew they couldn’t win it so we didn’t. We should have had an election last year when all the hints and spin made us think one was imminent and then Gordy bottled it because he knew he couldn’t win it.

So here we are. The country is in trouble. We have an unelected Prime Minister leading us. The government are throwing money around as if they can stop the dike bursting (like the little dutch boy with his finger). They panic supported Northern Rock with about £100bn. They recently “invested” how much was it into banks - about £200bn.

To get that bank figure I looked at some Treasury websites and had to laugh. I found this quote when they announced £37bn for HBOS, Lloyds and RBS on the 14th October 2008:-

And of course, that came to pass didn’t it!

The problem is if labour are kicked out (which I doubt at the next election because of these give aways) who would replace them?

I don’t think the conservatives are acting much like a government in waiting at the moment and the Lib Dems don’t seem to have much chance - so who?

And whoever wins… they are going to catch the economic fallout of all this gambling and we are going to be taxed until the pips squeak - no doubt back to the old labour ways - just to get this gargantuan £1,000 billion debt pile reduced a bit.

And very quietly, they are planning to sell off at least the Royal Mint and the Met Office to raise a bit of cash to help.

Anybody else got any views??

~Ray