Be prepared for Brexit no deal

Be prepared for Brexit no deal, it is no long to go now. The Brexit date and time is 31 October 2019 at 2300, UK will be officially not part of the EU. This would not change no matter what, according to Prime Minister Boris Johnson. So the only outcome we are waiting for is, whether there is deal or no deal.

While we wait for the Brexit outcome, UK government has created an online checker tool to help UK businesses to get ready for Brexit on 31 October 2019. The checker tool is very easy to use. You just need to answer the questions and the checker tool will retrieve the relevant information and also recommendations on what to do.

Work permit or Visa for your staff

For example, if you have staff from EU countries working in your UK business, you may need to check if your staff need a work permit or visa to continue to work in your UK business after Brexit. Generally, EU nationals want to continue living in the UK after Brexit, they must either apply for a settled status under the EU settlement scheme or apply to become a British Citizen. The EU settlement application is free. There is an one time application fee for British citizenship application.

Business travel to Europe after Brexit

Besides, if you frequently travel to EU for business purposes, you must follow the travel to Europe after Brexit rules. For example, make sure your passport has at least six months before expiry.

Another thing, if you travel to Europe by car. You must put a GB sticker on the back of your car, even if your number plate already shows GB with a Euro symbol. You could get a fine if you do not have a GB sticker when you need one. Read more about driving in the EU after Brexit and GB sticker here.

The checker tool make your life very easy to know what you need to do to be prepared for Brexit no deal. Use it, it is a free tool.

Global recession

Recently, the media published many articles centered around the global recession is coming. Is this true? If it is, what can you do to keep your business thriving during recession?

Streamline your business operations

It is time to audit your business operations costs, to see if you can get cheaper provider elsewhere with the same quality of service.

Generally, the UK electricity supplier always put their prices up on renewal. Usually, even their cheapest contract price for renewal would be higher than your current contract price. For this reason, It may be worth for you to shop around for cheaper electricity suppliers available in the market nearer to your contract renewal period.

If the office building belong to your business, is it possible for you to install solar panel so you produce your own electricity and if there is any excess, you can sell it back to electricity companies.

Do not be put off by the changing supplier and paperwork stuff to swift supplier. The amount of time you spent on sorting out the paperwork would save you a chunk of money which you can save it or use it on something else.

The same goes with renting your office space. Can you get an office space for lower rent somewhere else? Take into consideration of your staff travelling to work time. Preferably, your location not going to be resulting in your staff have to pay more for travelling. Otherwise, you either increase their salary or you give travelling allowance or you take the risk that they are willing to absorb the extra travelling time and cost. Just be fair.

Encourage your customers to pay

During recession, people usually hoard on to their money and want to spend less. You may like to offer your customers an attractive discount to make them pay you upfront or early settlement. By doing this, you avoid bad debts. So why not?

Similarly, if you must also be mindful before you increase price with your existing customers. Passing on your increasing business costs to your existing customers may not be a good move. You risk them to swift to other provider whom can offer more affordable products and services similar to yours.

If your existing customers come to you with cash flow issues, help them to pay you. Devise an installment payment plan for them. For instance, say, they owe you £5000. You allow them to pay you in equal installment of £1000 per month and they will settle their invoice on the 5th month. With this, zero bad debts for your business.

Companies House and HMRC

In some cases, Companies House and HMRC allow installment payments. However, you must write to them with your proposed payment plan and explained why you cannot pay your late filing penalty and/or your company taxes on due date. Your proposed installment payment plan would not be automatically approved, Companies House and HMRC will review your proposal and get back to you in writing.

For example, you incur late filing penalty of £1500 because your company accounts were late for more than 6 months. Ask your accountant to write to Companies House with a proposed installment plan that what your business can pay. Say you can pay £500 per month,then state that in your proposal. After you settle your late filing penalty invoice, make sure you file your company accounts and confirmation statement on time every time.

Contact our London accountants if you have any questions about your UK company.

Kindness out of Thomas Cook collapse

The act of kindness out of Thomas Cook collapse is touching, after the travel company declared bankrupt after serving in holidays industry for 178 years.

Let take a few moment to recognize the kindness of people stepping in to help Thomas Cook staff and customers.

A Thomas Cook staff even after she received the news that she is officially unemployed, she still turn up to work to help Thomas Cook customers. You are a star, Lucky Beatrice. I salute your kindness.

Passengers raised £5000 for Thomas Cook staff after the they become aware of the news that the staff would not get paid and this was their last flight. Another story a woman raised £650 for Thomas Cook staff. These passengers have a heart of gold. Thank you for your kindness out of Thomas Cook collapse.

It is also very kind of other airlines like easyjet, flybe, Tui, British Airway and Virgin to offer jobs to Thomas Cook staff. Kudos for your kindness.

Sir Richard Branson said declare it in website that their wonderful teams at Virgin Atlantic will do all they can do to find people jobs and bring stranded people home. He is such a kind person to encourage his organisation to help people in need during this time. Bravo Sir Richard Branson.

Another way to help sole breadwinners of Thomas Cook Staff

Another way you can help Thomas Cook staff especially is that if you know they are single parents or sole breadwinners for their family with school age children consider paying for their children school meals. This would help the parents not worry about their children go hungry at school.

I know for primary school meal per day is about £2 for secondary school, the school meal spending is capped at £5 per day for state school.

For private school children, their school fees significantly higher. Hope more generous donors would help this group of parents too.

Children also require school uniforms and stationery. If you can somehow help in this area would be great for the sole breadwinners Thomas Cook staff.

You can be anonymous donors if you do not want your names be revealed.

According to Guardian, directors could face inquiry with regard to their previous bonuses. You may also be interested to learn people who are bankrupt would be disqualified as UK company director for a long time.