Everyday Entrepreneurs

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1Auto enrolment - pensions for your staff

What's it all about?

The law has changed and from 2018, every employer has to offer their staff a pension. You will have a “staging date” – this is D-Day and the day you need to have sorted this all out by. No ifs. No buts. 

As a boss, this means you need to choose a pension and set it up, if you haven’t already. You also need to tell your staff what this means for them. It's costing you - so sell it as a benefit!

Between your staging date and April 2018, you, the boss, will pay 1% of ‘qualifying’ earnings into a pension for your staff. This will be topped up by another 1%, which is siphoned off your staff’s wages with a smidge coming from the Government. So that’s 2% all-in. But this snowballs. After April 2019 you will be paying 3% of wages (or ‘qualifying earnings’ which may be less) into a pension with another 5% from a combo of your staff’s wages/ a Government top-up. If you pay a lot of bonuses or overtime talk to an accountant as it gets head-bangingly complicated.

Finally - don’t forget to factor these extra payroll costs into the Masterplan. They get chunkier by 2019….

Facts and Opinion

  • By 2019 staff will get 8% paid into a pension at work
  • NEST is the bog standard (and OK) Government option
  • No point in trying anything fancier if you've less than 5 staff
  • Qualifying earnings = wages between £6,032 and £46,350
  • Got a nanny? A Cleaner? Sorry, boss. You probably need to auto enrol them!

Choose

Bamboozled by choice? We'll tell you who we like and why. And show you how other employers rate them too. Check out our Best Buys.

Read

Read our Auto Enrolment Aspirin - a free 3-page guide with more tips and ideas. How much? How? And who?

Help us to help you get rid of that admin headache. 

 

Listen

Boring Money CEO Holly and broadcaster Georgie Frost take a walk through self employment. Packed with tips and advice for anyone setting up or running a small business.

Watch

In the 3rd video of our Auto Enrolment X Factor vlog series, Holly runs through our top rated providers - who would suit your company's needs?

2Finding funding, payroll software and accounts

What's it all about?

Most people who leave the world of paid employment to set up their own business soon realise something pretty quickly. We have to be the finance guy as well.  Deep joy. From VAT, to tax returns, payroll and now auto enrolment, if you don’t keep on top of it, you could be looking at a chunky fine.

Fortunately, there are several online software tools that can help. You can now get software to send invoices and chase people up if they don’t pay, ‘talk’ to your bank and HMRC, complete accounting and tax returns, while also looking after expenses, bills, sending estimates and producing reports. Magic, eh? But which is the right one? Check out paraplanner Richard Allum's reviews in this Quick Read

Our tips

  • Good payroll solutions include SageOne Payroll, Freeagent and XERO
  • We use Xero chez Boring and we love it - why did we ever muck about with Excel?
  • HMRC's free payroll software is limited in which other systems it can 'talk to'
  • Its 'free' - but depends how much you value your time. And sanity?

Read

Get the right support for payroll with our simple 2-page guide.

Read

Our straightforward, no-bollocks guide to finding funding for your business. 

3Business banking

What's it all about?

Unless you’re a sole trader, you obviously need a separate bank account for your business. Unlike a normal bank account, banks charge for pretty much everything on a business account – paying in cheques, paying out cheques, withdrawing cash, talking to you, and so on. There will also be lots of ancillary services on offer, from tax advice to business funding. The key is to work out what you are going to need, what’s extra fluff and pick your bank account accordingly.

We can't write a piece on business banking without a big fat phishing scam alert. These are on the rise. Make sure your accounts staff see email as a very unsafe communication tool and sharpen up your controls and sign-off procedures!

Decision factors

  • A cash-based business? You don’t want an account that charges for every transaction.
  • If you need to borrow, make sure the bank you choose has competitive rates. Ditto if you’re going to hold large amounts of cash in a linked savings account (say, for a tax bill).
  • Many banks offer a free intro period – Santander, RBS and HSBC for example.

Read

Read our 2-page guide to Business Banking for simple tips, who we like, and what it's likely to cost you.

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