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Business Information
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| General Information
on Your Business |
Setting
up in practice for the first time isnt always
easy. Although there is a growing wealth of advice
and information available, it is often too technical
or not designed for professional practitioners.
The information contained
within the following links is however, only
a guide. We strongly recommend that you use the various
services offered by those professional bodies listed
in the Useful Contacts page.
To the best of our knowledge, all the information provided
is current and correct (as date of posting ). Some
information we have provided will be subject to change
as Laws are continually being modified.
Balance healthcare cannot be held responsible for
any loss suffered as a result of an inaccuracy or
omission in the information provided. The material
on these sites is not controlled by balance healthcare
and therefore we cannot guarantee their accuracy.
Types of businesses
Starting a business
Money Matters
Promoting your business
Your Tax Return
Useful Contacts
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| Types of
businesses |
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What type of business suits your needs? There are
three main different legal types of business organisation:
Sole Trader, Partnership, and Limited Company. The
first two are general favoured by practitioners starting
out. Limited Company status is more suited to larger
businesses – such as clinics - that either have
several owners, or shareholders.
Sole Trader
This is the least formal way of establishing a business.
A Sole Trader is a person who owns the business, and
who employs or hires others as necessary.
All of your income as a sole trader, would be treated
as personal income – from which business expenses
would be deducted to give a profit (which is then
subject to tax and NI)
In terms of making money, this status may be the most
rewarding to you personally if the business goes well.
However, if business does not go well, the onus is
on you - which means your house and other personal
assets could be at risk if the business folds and
you are left with unpaid debts. To set up as a sole
trader you need to do the following:
•
Inform your local Tax Office and Contributions Agency
(see tax return section)
• Obtain advice
on whether you need to be VAT registered.
•
Ensure that your workplace is suitable for its purposes.
• Your name on headed paper and other stationery
– if it is different to that name under which
you are trading.
Partnership
The advantages of entering a business with a partner
are obvious: it means another financial source to
help set the business up, and being able to diversify
the type and amount of treatments available to your
clients.
However, the disadvantages of entering a partnership
can be worrying – particularly if you fall out
with your partner. If the business collapses or gets
into debt because of your partner (even if you were
not aware of what is going on), you could have unlimited
personal liability.
For this reason you should have a legal document drawn
up by a solicitor, laying down arrangements concerning
such things as:
• How profits should
be spilt
• How the workload is split
• Who has managerial control of what
•
What happens if one of the partners should leave,
retire or die
Useful
contact: Business Link
Your local Link branch provides business advice and
support, on a one-to-one basis.
To obtain information on the various services (many
of which are free) look up Business Link in the business
section of your local telephone directory or call
directory enquires.
Web link: www.businesslink.org
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| Starting
a business |
Back to top of page |
Top tips:
1. Assess your skills. Are you ready to start up on
your own and do you have the necessary skills? If
not, think about what extra training you might need.
2. Research and write a detailed business plan. Do
your homework on the market, rivals, location, staff,
customers, laws and what marketing you will need.
3. Potential investors can be found amongst friends
and family, through your local business association,
a business angel, venture capital or bank.
4. Decide how much you need and for how long. Investors
will want to know how much they can make from the
deal - so convince them that you know what you are
doing and that you are capable of managing your finances
effectively.
5. Make sure you know your tax status. You will have
to deal with tax, National Insurance and VAT.
6. If you need staff, brush up on your knowledge of
employment regulations. You will have to comply with
health and safety, discrimination, tax, maternity
and working hours laws.
7. Register your chosen business name with Companies
House. Be careful not to use the name of another company
in the same field, or a name that is confusingly similar.
Check telephone directories, business guides and advertisements
for possible conflicts.
8. Make sure your business is adequately insured.
Get a business insurance package off-the-shelf or
one tailored to your company's needs.
9. Any sole trader, Partnership or limited company
must keep a record of their business transactions
for Value Added Tax (VAT) purposes. If the value of
your taxable supplies, in the last 12 months or less,
has exceeded the current VAT registration threshold
of £56,000, or the value of your taxable supplies
in the next 30 days alone is expected to exceed this
threshold, then you must register your activities
with Customs and Excise VAT unit. Taxable supplies
for the practitioner, is the provision of services
(consultations), and the supply of products (prescriptions).
The total needs to be measured on a rolling twelve
month period.
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| Money Matters |
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to top of page |
Can I use my personal account for my business?
If you are a sole trader and already have a personal
bank account there is no reason why you can't use
it to process your business costs and payments. But
if you dealing with a large volume of transactions
or have several people working with you it can be
very difficult to keep track of your company's finances.
Opening a separate business bank account is the simplest
way to achieve accountability and transparency for
the Inland Revenue, creditors and auditors to accurately
assess your business. A business account will also
give you credibility as your bank will have, to a
degree, assessed and accepted your business proposal.
If you want to open a separate business account don't
assume your current account provider will offer the
best deal. Shop around and compare charges beforehand.
Reports into the small business sector have found
banks routinely overcharge their customers. The government
has said it will impose controls on charges for current
accounts, following the publication a report into
small business banking from the Competition Commission.
As a result, hard-pressed small businesses could win
some relief from bank charges.
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| Promoting your business |
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to top of page |
Few businesses succeed for long relying just on ‘word
of mouth’ promotion. For long term success you
need to plan ahead so that you don’t miss out
on opportunities available.
Review your qualifications. Do you need to increase
your skills? The more qualifications you have the
more services you can offer – the larger your
market.
For example, Ear Candling (see our external remedies
section) is becoming very popular – why not
book yourself onto a course?
Your
customers
Ask yourself some fundamental questions:
•
Who are your clients going to be? (Male/female/young/old/athletic/married
with children etc)
• Where do they socialise/live/work?
• What do they read?
Targeting your customers
Advertising
When you have answered the questions about your client
group, you will notice that some publications are
more suitable than others to your particular group.
For example, there would be no point in advertising
on the internet if your client group are unlikely
to use, or even own a PC.
It is hard to know where to start ,when it comes
to deciding on placing advertisements for your business.
Ask yourself - if you were looking for a business
like yours - where would you start looking?
Here are our suggestions:
• Yellow
pages or on www.yell.com - remember your advert will
last for a year
• Local newspapers
• Postcard adverts in shop windows that
regularly carry adverts (like newsagents)
• Local free magazines
It is often more cost-effective to advertise on a
regular basis (i.e. every month for 6 months). Sometimes
it is possible to achieve a discount for a long-term
booking.
Don’t spend too much too soon. Try out a couple
of adverts and see what response you get. Always ask
your clients where they heard of you. Over time you
will learn what advertising works best for you.
Membership of a professional
body
Being accredited to a professional body can result
in a real competitive advantage for you. Potential
customers value professionalism.
Leaflets and posters
Where possible, use the same logo on each of your
adverts, leaflets, posters and business cards. People
will very often recognise a symbol, even if they can’t
remember a name.
First impressions last – make sure your get
someone else to check your work for spelling and grammar
and overall impression. Also check your contact details
very carefully - many people have gone to print with
the wrong phone number!
Work out how many leaflets or posters you need. For
example, you may want to place them in specially selected
areas (such as fitness centres).
Visit our Professional Tools section on our website,
click on Patient Tools and you will find some ready-made
promotional tools for you to start using straight
away!
Talks and
Demonstrations
Once you know your clients you can offer to give a
free talk/demonstration where they frequent (for example,
‘Reducing Stress through Acupuncture’
at a leisure centre or local group). This can be a
very good way of gaining those all-important first
clients. Why not use our Patient Tools leaflets as
handouts - with your contact details on the back?
Competition
Be aware of local competition. You need to know how
many other practitioners and clinics are offering
the same services as you and how successful they are.
The best way of finding out your competition does
is visiting them for an appointment as a ‘normal
customer’! This way you can borrow some good
ideas and note down things to avoid.
Guaranteeing a return visit
You also need to promote your business from within.
Take a look at your treatment room – is it inviting,
comfortable and clean? Make sure you contact your
clients a few days after treatment to ensure they
were happy with their experience.
Keep an up-to-date list of your clients. Send them
occasional mail-shots, giving them details of new
treatments or special offers you are running.
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| Your Tax
Return |
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to top of page |
Avoiding Tax problems top tips:
1. Keep all receipts relating to your spending and
income until you compile your tax return at the end
of the year.
2. Remember to get hold of a tax return in good time.
If you get your return back by the end of September,
the Revenue will calculate your tax bill for you.
3. At the very latest, don't forget to get your return
in by the end of January together with any tax payment
due, as failure will cost you an automatic £100 penalty
plus interest.
4. It is your responsibility to fill in the tax return,
so if you think you should fill one in make sure you
ask the Revenue to send you a form (if they haven't
done so already).
5. You should declare all income in your tax return.
Remember that employers also send their records to
the taxman and these are cross-checked for discrepancies.
6. If you have a question about your tax affairs,
ask your local tax office. Details can be found in
the telephone director or via the Inland Revenue's
website.
7. If the Revenue wants to inquire into your return,
it will write and tell you what questions it has.
It will give you several weeks to reply. Do not ignore
any letters you are sent.
8. If your tax affairs are complicated, you may find
it useful to hire a qualified tax adviser or accountant
who specialises in dealing with returns.
9. Tax avoidance is the legitimate use of tax loopholes
and legislation to avoid having to pay tax. Your adviser
may employ these tactics to minimise your tax bill.
10. The Revenue is unlikely to prosecute anyone who
tries to declare all their untaxed income, but fines
or surcharges could be levied on top of a tax bill
if you do not submit a correct tax return by the deadline
for the tax year concerned.
|
Where
can I find an accountant to do my books?
The best way to choose an accountant is by recommendation
from your business friends and contacts.
If you can't find anyone to offer some advice, you
can contact one of the UK's accountancy organisations.
They can put you in touch with local members. Try
the Association of Chartered Certified Accountants
or the Institute of Chartered Accountants in England
& Wales.
Members of the Chartered Institute of Management Accountancy
most often work in companies, but some work for accountancy
firms and others are set up in private practice. Members
of the Chartered Institute of Public Finance and Accountancy
mostly work in the public sector.
All these organisations' members are fully qualified
and if you are unhappy with their service you will
be able to complain to their relevant professional
body. Remember, you don't have to employ the first
accountant you see - shop around until you find someone
you feel happy with and who understands your business
needs.
Useful Contacts
Employers`/Self Employed Helpline
A government run initiative, offering advice for employers
and the self-employed concerning tax, National Insurance,
and VAT contributions. Calls charged at local rate.
Call: 08457 143143.
Inland Revenue
For answers to your Tax and National Insurance queries,
contact your local Inland Revenue Office.
Web link: www.inlandrevenue.gov.uk/home.htm
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| Useful Contacts
|
Back
to top of page |
Business Link
Your local Link branch provides business advice and
support, on a one-to-one basis. They offer Personal
Business Advisors, and very reasonably priced short
courses for people starting up or taking over a small
business.
To obtain information on the various services (many
of which are free) look up Business Link in the business
section of your local telephone directory or call
directory enquires.
Web link: www.businesslink.org
Citizens Advice Bureau (CAB)
Free and confidential advice and guidance on literally
any issue,. Your nearest CAB office will be listed
in the business section of your local telephone directory
or call directory enquires.
Web link: www.nacab.org.uk
Chambers of Commerce
For a small annual subscription, it is possible to
be a member of your Local Chamber of Commerce, where
valuable business advice is readily available.
Membership allows you to keep up-to-date with the
latest legislation affecting your particular line
of work. To find our details of your nearest office
call: 0247 669 4484.
Web link: www.britishchambers.org.uk
Department of Trade and Industry (DTI)
DTI produce a range of free publications that are
designed specifically for starting a business. To
order any booklets call: 0870 150 2500.
Web link : www.dti.gov.uk
Employers`/Self Employed Helpline
A government run initiative, offering advice for employers
and the self-employed concerning tax, National Insurance,
and VAT contributions. Calls charged at local rate.
Call: 08457 143143.
Inland Revenue
For answers to your Tax and National Insurance queries,
contact your local Inland Revenue Office.
Web link: www.inlandrevenue.gov.uk/home.htm
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