Archive for July, 2013

What Kind Of Cars Are Best For Business Trips?

If you have a job that means you need to spend a lot of time commuting up and down the motorways, you might find sooner or later your vehicle is starting to experience some problems. The fact of the matter is that cars can’t last forever without any upkeep. The engines are easily worn out, so are clutches, brakes, tyres and all other changeable components within a car.

Not to mention the age of your car having an effect on your fuel consumption, which as a long-trip driver you will know costs you more money.

Instead of driving your vehicle into a value-less pit, why not save yourself a lot of mechanical trouble (and a lot of money) by using business car leasing instead?

The benefits of business car leasing is a huge list that includes:

1)      Lower monthly repayments

2)      Further reduced payments for business leasing

3)      No more fixing up your car

4)      A new car every few years

5)      Saving money

6)      Improve your carbon footprint

That’s right, because you are hiring the car for business use and not personal, the monthly cost will be cheaper.

You wont have to worry about getting your car fixed up every time something goes wrong because the risk of the car malfunctioning is greatly reduced. Why? Because newer cars work more fluidly!

The contracts typically last between 2-4 years, which means that you’ll be able to change your vehicle quickly and easily when your contract has run out.

Business car leasing will save you money because you won’t be wasting as much fuel on long trips, helping the environment. You also won’t need to pay as much upkeep for a car that you don’t own.

It’s simple and easy to lease a car, all you need to do is realise how much more you could benefit from hiring as opposed to buying.

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Managing Your Cash Flow to Pay Corporation Tax on Time

shutterstock_106178708.downloadCorporate Taxes are an important component of revenue for the Government. Most companies which derive profit from their operations are supposed to pay corporate taxes. Paying corporate taxes on time is a very important thing for a business. For a small business, it indicates credibility and trustworthiness. Paying corporate taxes on time improves credit-worthiness and may reduce cost of borrowing. Companies which pay corporate taxes regularly are usually given preference for any potential subsidies and reliefs provided by the government. For large companies listed on stock exchanges, paying corporate taxes on time improves the overall image of the company and helps in maintaining better relationship with shareholders. This also improves the reputation of the company among other stake-holders such as suppliers, customers, employees etc. Please consult the HRMC Department Contact for more information on corporate taxes in UK.

Cash-flow management is very important to ensure timely payment of corporate taxes. Sound cash-flow management will ensure that a company pays its corporate taxes on time and avoids hassles and penalties associated with payment of corporate taxes. Cash-flow management essentially involves managing cash and maintaining a balance between payable and receivable. Payable are aspects which are to be paid to stake-holders such as employees, suppliers, etc. Receivable are usually associated with cash to be received from customers, government etc. A company which manages payable and receivable is usually less likely to run into cash-flow problems. Hence such a company is more likely to pay taxes on time and avoid unnecessary trouble.

Working capital management is also a component of cash-flow management. Working capital is the capital required by the business to manage day-to-day operations. Working capital is defined as the difference between current assets and current liabilities. Cash and cash-equivalents, Inventory etc. are part of current assets. Current liabilities include liabilities which are to be fulfilled in less than 1 year. A company with more debt usually has higher cash-flow commitments in terms of interest payments. A debt-free company on the other hand usually has lesser problems with cash-flow. Hence it is important to manage cash-flows considering any interest or principal payments which are due in the near future. It is also important to keep debt or borrowings at manageable levels. Since the corporate taxes are applied on the net profit, this may not be a major aspect of concern for most companies. However, if the management thinks that there could be an improvement in cash-flow management by debt restructuring, they can approach the lenders and check their options.

Companies have many things under their control. In case of public companies, they may choose to skip a dividend payment if they foresee any major problems with cash flows. Companies may also reduce capital expenditure and other administrative costs if they think that their cash-flow management is not accurate. Hence, the most important thing is appropriate planning and earmarking funds for tax payment. It is always advised to pay corporate taxes on time and never try to evade taxes.

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