Kevin Beare & Co Home
  • Twitter
  • Linked In
  • Home
  • Contact Us

Posts Tagged ‘tax credits’

Newer Entries »

Buying a Business

Thursday, December 10th, 2009

Buying an established business that someone else wishes to sell provides a path that many follow to fulfil the desire to enter into business or expand existing operations. Like buying a second hand car or house the need for care and due diligence is essential as this could represent the opportunity to achieve ambitions, but could also be the route to financial disaster, as Lloyds Banking Group discovered after they had acquired HBOS – seemingly with little attention to the financial situation of their acquisition.

Advantages of buying a business
One of the main reasons for buying an existing business is the partial elimination of the time and stress in establishing and growing a business. While the initial outlay may be greater this is almost certain to be represented by underlying assets. Any deficiency in asset value is normally represented by what is known as ‘goodwill’ – the difference between the price of the business and the underlying value of the net assets. That is the price of being able to operate an existing business and generate cash flow and profits. It may also be easier to secure financing for an existing business, provided there is a positive track record and the purchaser is considered a suitable person or company for running the business successfully. 

A new business may be acquired through a franchise. Other business types include internet or mail order businesses. 

Disadvantages of buying a business
Often the biggest hurdle to buying a small business outright is the initial purchasing cost. As the business concept, customer base, brands and other fundamental work are already established the financial costs of acquiring an existing business are usually greater than starting one from nothing. Other possible disadvantages include hidden problems associated with the debtors or stock that may not be worth what they are valued at. Good research and professional advice are essential ingredients on the path to acquiring a business.

Other disadvantages of buying an existing business include:

(more…)

Tags: Anti money laundering checks, Bank account, Corporate ID fraud, Due diligence, KYC, National Insurance Contributions, tax credits, tax relief, UK VAT
Posted in Australia, Canada, France, New Zealand, UK accounting, USA | Comments Off

Budget 2009 – a personal view

Thursday, November 5th, 2009

Another year, another budget, another waste of time.

All the big decisions have already been taken bailing out profligate banks. And therefore nurturing growth should have been the cornerstone for this one.

Instead we have punitive personal taxes including marginal rates of up to 61.5%; a reduction in tax relief on personal pension contributions – and, hidden in the small print, company pension contributions will be treated as a taxable benefit. This will be the final nail in the coffin of the final . Gordon Brown – having started the process with the abolition of the pension tax credit some years ago.  So, stifled net income, and stifling company contributions. Welcome to the nanny state.

For a summary of the main points, these can be found on our website. (you will need to be registered in order to view certain content)

nil desperandum

Kevin Beare FCA

Tags: Gordon Brown, Kevin Beare, tax credits, tax relief
Posted in A Personal View, UK accounting | Comments Off

Newer Entries »

International

  • Australia
  • Canada
  • France
  • New Zealand
  • USA

Who we are

  • The Answer
  • The Team
  • Company news
  • Case Studies
  • Free Guides

Where we are

  • Bracknell
  • London

Your Needs

  • Formations
  • UK start up advice
  • Accounting
  • Outsourced UK Payroll
  • Human Resources
  • Taxation

Our thoughts

  • Culture
  • Legal Structures in the UK
  • FAQs
  • Blog

email paul.beare@kevinbeare.com

email kevin.beare@kevinbeare.com

  • Terms and conditions
  • Copyright
  • Accessibility statement

Kevin Beare & Co blog is proudly powered by WordPress
Entries (RSS) and Comments (RSS).