Scopulus Business Newsletter - 26-11-08
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In this issue we have:
Pre-budget Heads Up
Articles - watch
Pre-budget Heads Up
I guess you have been reading and hearing a lot about the
pre-budget report the other day. As there are so many articles on the subject
I'm only going to deal with one aspect which is the most imminent ie the change
in the vat rate that takes effect on the 1st of December 2008. That's not long
for the administration and accounting staff to make the changes; they should at
least know what needs to be changed on that date.
The first thing is the accounting system and in particular the sales ledger.
Thatís invoices going out, money coming in. Your accounting system should have
global settings which can be changed that will make the changes throughout the
system. This will need to be set after the last invoice issued on the 30th of
The purchase ledger should be easier as global changes should have been made and
a check should be made by staff that they have not been over charged. If this is
the case then there may be cause for a delay in payment as they will have to
re-issue a new invoice.
Sales receipts issued by tills will also have to be changed if they currently
state the vat rate of 17.5%.
All these changes will have to be made at the end of the last day of November
and before any sales on the 1st of December 2008.
OK, lets talk about the effect of this change. For a lot of businesses that sell
to other businesses there should be a reduction in price as the vat is just
added on to the real price charged. This should be a reduction in both sales and
For the retail trade, they don't need to reduce their prices, just make an
administration adjustment. They may find however they have to reduce their
prices in the current climate as there is so much competition for the Christmas
pound, but this will be a twist of fate rather than because they need to comply
with the chancellors wishes that this reduction is passed on to the consumer.
This can have a deflationary effect on the economy as a whole if most prices and
costs fall. The main point of the exercise is to increase the movement in money
and thus stimulate the multiplier effect as wages will not be falling and there
should be more money in peoples pockets to spend. Letís hope this works. It is
timed well as retail spending is known to be at its highest in December and
January. You can read more about the changes
Business / Productivity Tip
Every now and then, you and your staff should take a break.
This is law and improves productivity. A change is said to be as good as a rest
and we have a few puzzles to keep your mind ticking over for five, ten minuets
and may even improve your IQ. Useful
Always, always get it in writing if money is involved. There
is no exception to the rule and you give the image of a professional and trust
will prevail if you do so. e.g. yes we can do that and yes we will charge this
for that. Please check your email as we will send you our standard contract.
There is a good selection of agreement and contracts
A New Body to Represent the Music Industry was introduced in
October called "UK Music". Its chief executive, Feargal Sharkey, said the new
body would mark "a bold new chapter for the UK's commercial music industry". Its
aims are to fight against piracy and act for the industry at all levels
including lobby Westminster and Brussels.
More details here.
Articles - watch
We have these articles which cover all or most of the budget
Pre-Budget Report Nov 2008 - Speech
Pre-Budget Report Nov 2008 - Supporting people through difficult times
Pre-Budget Report Nov 2008 - Tax
Pre-Budget Report Nov 2008 - Ensuring fairness for all taxpayers
You can set up a company for as little as £24.99 - should go
live on Friday in the company formations section. As an information site we will
try and provide most if not all the options.
The Scopulus Articles Team
Online Business Resources, News Portal, Company Formation, Legal Documents,
Accounting software, Books, Business jargon explained, Tax, Articles, Government
links, etc. All from trusted experts in their field of expertise.
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Article Published/Sorted/Amended on Scopulus 2008-11-27 12:22:12 in Newsletter