All companies must pay corporation tax on the profits that they make. From April 2023, the corporation tax rate will rise from 19% to 25% (for companies that generate over £250,000). This means that instead of paying 19% of profits to HMRC, you now must pay one-quarter of profits if your profits are over the £250,000 threshold. However, the current rate of 19% will still apply if your company generates £50,000 profit or less.
So, the main rates are rising from 19% to 25%. Pretty straightforward…however, smaller companies will not have to pay the full rate. It will completely depend on your level of profits for the fiscal tax year. If your company profits are £50,000 or under, the old rate of 19% will still apply. Larger companies with profits of £250,000 or over will pay the 25% rate. Between these two rates, a system of marginal relief will apply.
This new system of ‘marginal relief’ is actually not entirely new, as it will work in the same way as the 2014/2015 tax year (the last time marginal relief was applied to corporation tax). With this in mind, you can use the following formula to calculate your corporate tax liability.
Let’s use the example that your annual profit figure is £100,000.
In this example, the corporate tax liability is £22,750. This represents a tax increase of £3750 and means the rate of corporation tax is 22.75%.
The changes implemented from 1st April 2023 impact the amount of relief that can be claimed, the types of activities that will qualify and the way in which businesses can claim relief. These changes have been introduced to ensure “the UK remains a competitive location for cutting edge research”, “the reliefs continue to be fit for purpose” and “taxpayer money is spent as effectively as possible”.
So, what are the numbers?
| Pre-April 2023 | Post-April 2023 | |
|---|---|---|
| Loss-making SME |
Enhanced deduction: 130% R&D credit: 14.5% Benefit: 33.35% |
Enhanced deduction: 86% R&D credit: 10% Benefit: 18.6% |
| Profit-making SME |
Enhanced deduction: 130% Corporation tax rate: 19% Benefit: (up to) 24.7% |
Enhanced deduction: 86% Corporation tax rate: 25% Benefit: (up to) 21.5% |
| RDEC Company | RDEC credit rate: 13%
Corporation tax rate: 19% Benefit (after tax): 10.53% |
RDEC credit rate: 20%
Corporation tax rate: 25% Benefit (after tax): 15% |
It’s important to remember that the rate of Corporation Tax will differ depending on the number of profits your business generates in a fiscal tax year.
Along with being a great place to meet like-minded creatives, We’ll be screening the brilliant short ‘Swiped’ by Luke Collins & hosting guest speaker, Tom Brereton Downs!
This is an exclusive opportunity to:
February’s guest speaker is Screenology‘s Tom Brereton Downs. Tom dares you to take more risks, make more mistakes, do less of what you’re “supposed” to do, and more of what works! All within his purpose-built talk, “Ten Dangerous Ideas for Filmmakers”.
Find out more info and sign up here!
Like many businesses, Stuff has been through a lot of changes over the last couple of years. And this has led us to carefully consider the best way forward for the agency.
We’ve seen a shift in the way clients work with creative agencies, with an increased demand for creative support and expertise and a reduced desire for account management.
That’s why we’ve restructured and gone back to our roots as a creatively owned and creatively led studio.
Our clients still get the great service they are used to, but they’ll be dealing directly with the people that ‘do’.
We believe this creates stronger relationships, which leads to better work and ultimately, better value.
Our ethos is simple – We get creative stuff done.
Our friendly team of hard working specialists use our creative and strategic skills to help brands shine brighter and make our clients’ lives easier.
We work across the three core areas behind all successful brand communications – strategy, development and delivery.
Whether we’re creating a new brand from scratch, refreshing an existing one or delivering tactical campaigns and assets, our pragmatic approach provides realistic solutions with minimum fuss.
You can find out more by visiting our new website – https://wearestuff.studio/
Cashflow is essentially the lifeblood of your business. When we talk about cashflow, we are referring to the money in and the money out of your business. By keeping a close eye on your cashflow, you’re able to ensure that you have funds available for unexpected expenses, or for investment in the future growth of your business. 82% of businesses that fail in the first 3 years of their life do not have a cashflow forecast – so you can see how important it is to understand your cashflow to protect your business’s future!
In order to see the full picture of your business, you should track all sources of cash inflows and outflows. Inflows are things such as loans, investments, and sales. Outflows include operating expenses, investments, and debt repayments.
There are some amazing software options available for financial management that can help you track the cash in your business automatically. Using tools like these will allow you to spend less time chasing paperwork and going through transactions manually, making it easier for you to monitor and make informed decisions.
Alongside monitoring your current cashflow, make sure you create a forecast for the future. Add predictions based on what you usually spend and what is upcoming. This gives you a reference point to compare your reality to. From this, you can see if there are improvements to be made and how you could cut or increase spending if needed.
Developing a budget for your business is an important step in terms of monitoring the health of your finances. A budget will help you track your actual cashflow against a projected cashflow (what you predict to be your inflows and outflows). This allows you to identify any areas for discrepancies or areas for improvement.
Your pricing strategy will have a significant effect on your cashflow. By regularly evaluating your pricing strategy, and making adjustments as necessary, you can help to ensure you’re generating enough revenue to cover expenses and support the future growth of your business.
Almost all businesses will face difficulties in getting paid at some point. Having a credit control process in place is key. This could be anything from using software to send an automated payment reminder, to hiring someone to chase your cash for you. Even if the forecasting and pricing is perfect, if people don’t pay you, you’re in trouble.
Lodging & hospitality public relations specialist, Abode Worldwide, has appointed experienced agency leader and former Fleet Street journalist Neil Millard as Managing Director.
Millard joins the agency from Rhizome Media, where he spent nearly six years working across industries with a particular focus on property. Before that, he was a news journalist for some of the UK’s biggest titles, from the Evening Standard and MailOnline to the Sunday Mirror and The Sun.
His property experience — covering student accommodation, residential sales & development, offsite construction, fractional ownership, property investment, development finance, and mortgage lending — will dovetail with Abode’s six key lodging, living and hospitality pillars as the agency targets rapid growth over the next three years. Its focus will continue to be on technology solutions and enterprise level operators across short term rental, hotels, multifamily/Build to Rent (BTR), student lodging, coliving, and senior living.
Abode Worldwide was founded in 2017 by Jessica Gillingham and currently works with brands across North America and Europe. The company’s mission is to supercharge the authority and credibility of global tech pioneers and their customers as they transform the way we work, rest, and play. The team – which is hiring for new roles –does this by combining deep industry knowledge and extensive media and influencer relationships with continual fresh insight.
In the last year, for example, Abode Worldwide secured over 100 speaking opportunities for clients across podcasts, webinars, and conferences, in addition to hundreds more pieces of profile-raising proactive media coverage and thought leadership. To date, the agency has partnered with some of the biggest companies in the world of lodging, including ALTIDO, Bidroom, Breezeway, Boostly, Buoy, Guesty, Hostaway, Jetstream Hospitality Solutions, Key Data, Operto, PointCentral, Rentals United, Reside Worldwide, Revyoos, Safely, Uplisting, Xplorie and 3Sixty.
Jessica Gillingham, CEO & Founder of Abode Worldwide, said: “We’ve got big ambitions to be the premier global public relations specialist in the lodging, living and hospitality space, and Neil has been appointed to help us get there. He has a wealth of media know-how, fantastic leadership experience, and is a tremendous asset across the business and for our clients.
“He couldn’t join at a more important time, with the merging of the lodging, hospitality, hotel, short-term rental, and real estate sectors really picking up pace and we are excited to be at the forefront of this transformation for the technology solutions, operators, investors and their customers.”
Neil Millard, Managing Director of Abode Worldwide, commented: “The way we live is going to change dramatically over the next 20 years, and Abode Worldwide sits at an intersection where all these worlds collide. Whether it’s short-term rental technology, student accommodation, multifamily/Built To Rent, co-living or senior living — every one of these areas will see accelerating growth.
“This shift is happening globally, so it’s a magnificent opportunity for me to join an agency that looks beyond the horizon and already has more US than European clients. I’m really excited to join such a talented team. Jessica has massive ambitions for the company, and we’ll be winning business worldwide. A key immediate focus for me will driving our expansion and maintaining a laser focus on delivery for clients.”
For more information on Abode Worldwide, please visit abodeworldwide.com.
Boxworks is a unique workspace in the heart of Bristol’s Temple Quarter. Twenty shipping containers have been re-imagined into stylish, affordable private studios perfect for small teams. The studios, or ‘Boxes’, are super-insulated, come with superfast fibre and 24/7 access. Tenants get access to facilities at Engine Shed too, including lounge access, a communal kitchen, showers and meeting rooms
To celebrate the entrepreneurial spirit of Bristol’s creative community, Forward Space has teamed up with Bristol Creative Industries (BCI) and Circus Journal to launch Startup at Boxworks, a competition to win three months tenancy at Boxworks.
Aimed squarely at new businesses, sole traders and freelancers, the competition will provide much-needed support for the early stages of a business by giving the fledgling enterprise the space to grow and explore ideas, without the pressure of workspace costs.
The competition is open to all businesses with a turnover of £150,000 or less. To apply, entrants simply need to outline why office space would help take their business to the next level by submitting either a written statement, a presentation or a short video.
Full entry criteria is here. Deadline for submissions is midnight on Friday 24th February 2023.
Gavin Eddy, CEO of Forward Space, said
“I’ve loved seeing the countless businesses we’ve worked with over the years grow and find success after using one of our spaces. Helping to nurture the next generation of entrepreneurial talent in the South West is something I’m very passionate about too, so I can’t wait to see what interesting proposals we see over the coming weeks.”
Alli Nicholas, membership manager, Bristol Creative Industries, said:
“Bristol Creative Industries is thrilled to be partnering with Forward Space on this initiative. A three month Boxworks residency is such a brilliant opportunity for one of our members, particularly fledgling startups who may currently be working entirely remotely. Finding the right office space is key to the success of any business. Right next door to Engine Shed, Boxworks is the perfect place to get immersed in Bristol’s thriving ‘createch’ community; making new connections and exploring opportunities for growth.”
Simon Tapscott, co-founder and publisher, Circus Journal said:
“Circus is all about celebrating creativity and community in the south-west, and with a third of our readers running their own businesses discovering workspaces that inspire people to come together and collaborate is an important and recurring theme
“We are delighted to be supporting this fantastic initiative to enable the next generation of creatives in Bristol.”
Enter the competition by 24 February here.
Built environment-focussed comms agency MPC has revealed an overhaul of its brand identity, name, website and values, as it launches as Meeting Place.
Established in 2006, the business is one of the sector’s most established agencies, working with clients across the built environment to deliver positive change for new developments through planning comms and public relations.
On the back of several recent client wins, the rebrand coincides with record revenues for Meeting Place across its regional offices, a 28% boost in like-for-like revenues over the last six months, and a headcount growth from 26 to 37 over the last year.
According to Meeting Place’s Managing Director, Nikki Davies, the changes underpin a new direction for the business as it sets its sight on growth across streamlined core services – planning communications and public relatio
Meeting Place’s new website outlines how its planning comms team will utilise public affairs, social value and digital campaign experience in an effort to bring communities together to recognise the potential of the built environment.
And combining its sector knowledge with an integrated approach to PR, its public relations team will shape client campaigns to build awareness and understanding
Nikki said: “We’re thrilled with the outcome of our new rebrand, which coincides nicely with a period of growth across our teams, as we start the year on a strong footing
“Our new values – insight, inclusivity and courage – dovetail with our clearly defined mission to use the built environment as a catalyst for positive change; whether that’s environmental, social or economic benefits.
“We believe our streamlined approach of planning comms and PR will serve as a key differentiator in the industry, and one which champions best-practice and delivers for communities, clients and the media alike
“Whether we’re gaining support for a new hospital in East Anglia, homes for first-time buyers in Devon, establishing a housebuilder’s ESG strategy, or driving awareness through PR – we’re on a mission to use the built environment as a force for good.”
Meeting Place’s client roster, which includes Legal & General and Places for People was recently strengthened following several client wins, including Regal London, Longfellow Real Estate and several solar energy providers. Headquartered in Bristol, Meeting Place has staff working remotely in locations across England and Wales following a move to a flexible working model.
The agency’s Regional Director for Midlands, Western & the North, Helen Goral, said: “Having bolstered our public relations, digital and design offering, our expanded teams will be central to the company’s growth targets this year. Across the region, we have seen a significant increase in demand for planning communications expertise and we are working on numerous high-profile projects which have contributed to a 20% like-for-like revenue increase year on year.
“The range and calibre of our recent wins underpin our ability to deliver return on investment and impactful comms for clients. Despite the recent economic situation, we’re still seeing a lot of confidence across the built environment, with our breadth of services allowing us to take a holistic, integrated view of client needs
“It’s incredibly exciting to be starting the year on a high, with record revenues, project wins and a vibrant new brand. We believe the built environment has so much potential as a force for good and we can’t wait to see what 2023 brings.”
For more information on Meeting Place, please visit: www.meeting-place.uk
There are lots of brilliant events and other opportunities for creative businesses this February and March. See the full list below.
Events are either free or discounted for Bristol Creative Industries members. Some other opportunities are exclusive to members. Not a member? Join today.
However big or small your business, nothing has more commercial impact than fame. Join us in Bristol to hear Pete Bracegirdle share the incredible story of ‘Fearless Girl’ and what she can teach us about how to make your brand more famous. Book your ticket here.
Join Inkwell founder Chris Goodfellow for advice on how to create your own high-quality videos.
Wake Up Call is an online event exclusive to BCI members. Book your ticket here.
Join Rebecca Steer, Steer & Co’s award-winning lawyer, for this talk at Watershed in Bristol on data privacy laws in the UK and Europe and how they affect creative, digital and tech businesses. Book your ticket here.
Join Mette Davis for top tips on how to deliver a great workshop experience for your team and clients.
Wake Up Call is an online event exclusive to BCI members. Book your ticket here.
BCI members can book a free 30 minute call with Rebecca Steer, an award winning business lawyer. Book your call here.
The free BCI members’ lunch at The Square Club in Bristol is an opportunity for members to build connections while enjoy a delicious buffet lunch. Book your ticket here.
A networking event with a difference! A great opportunity for BCI members to make some new creative industry connections whilst exploring the countryside. Book your ticket here.
Come along to our freelancer networking drinks at The Square Club in Bristol to widen your networks, make new connections, discuss common problems, and discover potential opportunities for collaboration. Free for BCI members. Book your ticket here.
Ruth Clarke discusses six new big trends and ideas for how we look after our people.
Wake Up Call is an online event exclusive to BCI members. Book your ticket here.
The free BCI members’ lunch at The Square Club in Bristol is an opportunity for members to build connections while enjoy a delicious buffet lunch. Book your ticket here.
BCI members can book a free 30 minute call with Rebecca Steer, an award winning business lawyer. Book your call here.
Forward Space is offering BCI members with turnover below £150,000 the chance to win a free office for three months in Bristol’s Boxworks. Find out more.
Our friends at The Wow Company have launched BenchPress 2023, the largest survey of independent agency owners in the UK.
It’s the perfect opportunity for Bristol Creative Industries members to benchmark themselves against their peers and build a picture of the latest trends impacting agencies across the country. Find out more.
Event: The CMO’s Guide to Customer Acquisition
Microsoft will join a select panel of senior marketing professionals in Bristol this March to discuss how businesses can best drive more online customers through digital marketing.
Hosted by South West performance agency Launch, the breakfast event will be held on March 22nd at the Showcase Cinema de Lux in Bristol from 8:30 – 11am.
The CMO’s Guide to Customer Acquisition will provide a vital opportunity for like-minded marketers and brands to listen and debate with other CMOs about their successes, challenges and their strategies around data, conversion optimisation and paid media.
Marion Gould, Client Partner Lead at Microsoft, will be speaking on ‘Marketing with purpose: how to create a strong brand in digital marketing.’ Also on the schedule is the managing director of Launch, Jaye Cowle, who will chair a panel debate with senior marketing leaders to open the event, discussing the evolution of performance marketing.
Jaye Cowle says: “This is set to be a really insightful event for marketers, brands, and business owners. Together with our brilliant guests, and media partner Microsoft, you can learn how brands like yours are getting the most from their performance marketing activity.”
In addition to Microsoft, there will be panel discussion with Barney Bell, Head of Marketing for David Salisbury; Piers Tincknell from Atomic Smash and Harriet Barter, Account Director at Launch, on ‘Why channel diversification is key to converting and finding new audiences.’
Data Strategist, Michael Patten, will discuss the countdown to GA4 in ‘Leverage your data to target new customers.’ In addition, Launch’s Conversion Director Joe Johnston will be joined by Account Manager Josh Marinaro to discuss the customer experience: ‘How incremental website changes can bring big results.’
Find out more about the schedule and book a place at this event
Picture: Marion Gould, Client Partner Lead at Microsoft, will be speaking on Marketing with Purpose.
There are plenty of exciting elements to running your own business – or any business! Many enjoy the freedom of being their own boss and delegating their own tasks (and where they work from). The thought of being paid to do what you love is an exciting and encouraging commodity.
Knowing what numbers are important when it comes to managing the finances of your business can be daunting, to say the least! We’re here to help with this handy video, to give you a quick rundown of what you should be tracking – dependant on your business goals.
Before we begin, it’s important to understand what your business goals are. The information you will need will change depending on these goals. For example, if you are in a growth stage, you’re going to be tracking different numbers to if you are simply in ‘survival mode’. This video will cover the ‘must have’ numbers to start with.
Arguably this is the number that most businesses will focus on, yet many will only look at how they did the month previously. It’s super important to have an overview of your turnover as a whole. Keeping an eye on the trends can show you quickly whether your numbers are up or down. If you can determine why your sales are fluctuating, you can implement strategies to ensure those numbers stay on an upwards incline. Without this, you may not even realise your revenue travelling on a downward slope.
These are the costs that directly relate to being able to provide your business’s goods and/or services. Having an account of these costs helps you also understand your gross profit. Make sure you routinely assess this number as it is one you have a lot of control over! How can you add value to your business? And how can you ensure that you get the most value out of these costs?
These are the expenses that are for running the business. You need to spend money to earn money, so it makes sense to ensure that you are keeping an accurate record of these expenses. Operating expenses include things such as wages and administration costs. When costs need to be reduced, this is the first place you should look. If you have an accurate record of what you’re spending to operate your business, you can evaluate whether you really need that subscription service anymore, or even if there are licenses you can afford to boot if you no longer need them.
This is a sneaky one! Corporation Tax is the tax you pay on any profits you make from successfully doing business, selling assets or investments. You won’t get a bill for corp tax but you will be expected to pay by your deadline (which is usually 9 months after your year-end/accounting period). There are certain things you must do to work out how much corporation tax you owe and must pay to HMRC. Corp tax is currently 19% of profits within a financial year…however, this goes up on 1st April 2023 to 25% for companies that make over £250,000. Posting a provision based on monthly profit will help take away that end-of-year scare. Top Tip: This is something that we do monthly for our clients here at FD Works, helping to reduce any big shocks at the end of the year!
This is the main figure that it all comes down to…how much money did your business make or lose? Obviously, a big one to keep track of! In other words, operating profit is the total income a company generates after paying off all operating expenses. The operating profit figure excludes gains or losses from interest, taxes and investments. This number is a highly effective way to distinguish the health of your business.
An extra number to keep an eye on is cash flow. Cashflow is the amount of money being transferred in and out of the business. Generally, if your outgoings are consistently greater than your ingoings then your business isn’t sustainable and you need to look at what can be done to solve this. However, it’s not quite that simple! You may spend £10k on sales in order to make £100k. Yet, if that money isn’t paid on time to you, you can’t reinvest another £10k into your next batch of sales. If you’ve been keeping track of the other metrics mentioned previously, you have the tools in place to troubleshoot your issue and react accordingly:
…And there you have it! In this article, we have broken down the metrics that we think are important to keep track of and understand. Now, this isn’t a comprehensive list, so make sure you get in touch with us or check out our website if you are ready to take control of your finances and work with our incredible team. We really believe that numbers reveal the opportunities for shaping any business.
You need to load content from reCAPTCHA to submit the form. Please note that doing so will share data with third-party providers.
More InformationNotifications