The Business Exchange Swindon & Wiltshire Edition 31: June/July 2017 | Page 10

FINANCE Hear it from the experts… Ask AMS Advice for small businesses AMS Accountancy Ltd. 01793 818400 Personal insurances for business owners The biggest danger a small business faces is the risk of having to cease trading instantly. When a client sets up a new business one of the questions they ask is “What types of insurance should we get?” We talk about the need for public liability Insurance, employer’s liability insurance and professional indemnity Insurance – because these are statutory, contractual or just good business requirements. However, there is a whole area that is often ignored and that’s the area of personal insurance – specifically, life insurance and critical illness insurance. This is partly because it doesn’t seem relevant to a business, and often, for start- ups in particular, money is tight and such insurances seem an unaffordable luxury rather than a necessity. Then, as the business takes off, there is often little time to think about such ‘personal’ matters and it gets overlooked. However, I think accountants and clients need to reassess how they think about life insurance and critical illness insurance. The biggest danger a small business faces is the risk of having to cease trading instantly if the business owner dies or is out-of-action with an injury or illness for any length of time. A life insurance policy means that the right sort of expertise can be hired in an emergency – that may enable the business to survive until the business owner recovers or another solution can be worked out. On the other hand, the lack of the right insurance policy can have a devastating effect on the business owner and their family. On top of that, ‘relevant’ life insurance is a type of insurance that, when applied to a key company director, is a tax deductible expense in a company’s accounts (and not a taxable benefit in kind) so, effectively, it is discounted compared to normal life insurance policies. At the moment, I don’t believe there is an equivalent ‘relevant’ critical illness policy that HMRC accept as a tax deductible expense and not a taxable benefit in kind. So, on starting a business, it’s worth talking to a financial advisor about these matters, as well as to your accountant. Can you tell me about the 24 month rule – I’m a Director of my own Company? Principally site based, this rule applies to tax relief on Travel and Subsistence. If you work, or know you will work at a site for 40% plus of your working hours for over 24 months - you are caught by the 24 month rule and must stop claiming for travel and subsistence. You can restart the 24 months if: you take a long break from the site or move to another site. (See HMRC online booklet 490) Example: Jim has a Limited Company, he works in Andover 2 days per week (working elsewhere 3 days per week) and claims tax relief on his travel. If his 18 month contract is extended by 9 months, he must stop claiming for these expenses immediately. This is because he now knows he will work there over 40% of his work time for more than 24 months! (A 6 month extension would have allowed Jim to continue to claim travel expenses) Peter Bromiley ACA www.ask-ams.co.uk @AMSAccountancy Peter Bromiley ACA Partner www.ams-accountancy.co.uk NO NONSENSE TELECOMS... THERE’S A WORLD OF CHANGE... occurring across the telecoms industry right now. Technology is moving at such a pace that it’s tough for any busy business owner to keep up with – let alone fully understand it all. Fundamentally though, if you use landline telephones within your business, you’re going to want some basics in place. Reliability, cost efficiency, practicality, simplicity and no-nonsense, rapid, customer service when the unexpected happens- which of course it occasionally does. Fluid Network Solutions (Wessex) is the first franchised office of its successful head office namesake telecoms company, based in Shropshire. Fluid, founded in 2003 has developed a true specialism within the marketplace by offering telephony solutions to clients for whom reliability of service is an absolute must. With more competitive pricing alongside a personalised UK based customer service team, they have a proven history of maintaining long standing client relationships. Ethical business ethos Will Job, who has 20 years experience in the industry, along with his partner Carol, who together purchased the franchise covering Wiltshire and Somerset territories said, “I was very impressed by Fluid Network Solutions, particularly with the ethos of its founder, Rob Tolley. He has developed an honest and ethical company in a market sector where many of the operators often work to very low standards, tying clients up in punitive contracts, or with extortionate out of contract tariffs.” “We operate a far more relaxed approach to prospective clients, taking time to carry out a free, no obligation audit of their current telecoms spending in the first instance - simply to establish how or indeed if, we can help.” Great savings “On average, Fluid generates savings of around 30% on lines and calls when a client transfers. We supply directly through the BT network to ensure delivery of the highest quality products and simply avoid tying clients into long, unfair agreements. Our standard product is in fact just a 30 day rolling contract – such is our faith in what we offer. We’ve also passed on 11 tariff reductions in the last 3 years too.” Alongside a whole range of clients, from single- line users to large multi-sites companies, Fluid also works with over 100 NHS medical and dental surgeries across the UK providing critical resources and telephony solutions. Contact Will on 0333 222 0066 or email [email protected] for a chat or to arrange a visit and free audit. www.fluidnetworksolutions.co.uk | Follow us: @fluidnetwork_WS 10 THE BUSINESS EXCHANGE 2017