Work out a budget – and stick to it. It’s all too easy to overspend at Christmas. We all want to give our loved ones the best that we can, and to be taken in by all those tempting adverts and offers.
George Osborne’s Summer Budget was not great news for businesses. Certainly there was some good news – reduced corporation tax, increased income tax allowances, raising the higher rate of income tax threshold and the increase in the national insurance employment allowance are all to be welcomed.
You may be a little surprised to see us commenting on the Chancellor’s recent Budget. After all, we don’t advise on tax issues. However, deep in the small print of the Chancellor’s announcements was one piece of bad news … really bad news.
A business may need insolvency advice or be considered insolvent if it doesn’t have sufficient assets to cover its debts, or it is unable to pay its debts as and when they are due. If you monitor your businesses actual performance against your budget and the cashflow forecast regularly, this will give you an early warning of potential problems. You can then take action to avoid insolvency.