Yearly Archive:2015

ByNick Bonnaud

The most important business activities are…

Just in case you were in any doubt what is important in business then here is some clarification:

  1. Nothing is more important than sales.
  2. Your ability to create any kind of a business rests on your ability to sell.
  3. If you are in business, then you are a sales person.
  4. Nothing will wreck a business more quickly than a lack of sales.
  5. Everything else is fixable but If there are no sales then you have no business.

Clear? Good.

If you are think of starting a business and would like to talk to a qualified accountant in Birmingham who actually knows what it’s like to start a run a business then please call me – 07754 51532

Nick Bonnaud ACMA

ByNick Bonnaud

Don’t go to University – Start a Business!

Don’t go to university – start a business instead!

217969-20150722(1)Recent estimates put the average debt that university graduates will suffer at around forty four thousand pounds. This is an extraordinary sum, and has prompted me to question why there is no debate or even discussion about whether or not young bright people should start their own businesses instead of going to university.

I recognise that university can have such enormous value for those pursuing specific professional career paths. There is simply no way to advance in subjects such as medicine, geology or advanced sciences unless you have an appropriate and strong educational background. However, I also believe that there is a strong minority whose aspiration is to start a business of their own, and in a context in which graduates are likely to be paying debts into their fifties I feel it is about time that there was some debate as to whether entrepreneurialism could provide a genuine alternative for those motivated in that direction.

I was recently approached by two schools to speak about entrepreneurialism to fourteen and fifteen year olds as the subject now does appear on their curricula, and made it clear that I would be encouraging students to think about starting their own businesses – and both schools were immediately horrified.

The posh school said that all of their students were very bright and wouldn’t want anyone to dissuade them from going to university. The poor school said their students often struggled and they didn’t want anyone denting their (already fragile) aspirations to go into higher education.

Following this experience I followed up and I spoke to many parents, teachers and school administrators and it has become extremely clear that the educational system is wholly geared towards pushing students towards further education and other career aspirations, particularly entrepreneurialism, are discounted and even discouraged.

I recognise that starting a business represents a large degree of risk and is certainly not for everyone but my purpose in writing is to at least question why the status quo is so completely geared towards huge debts and further education when much more modest investment in a business could lead, for those who want it, to a much more rewarding business and life experience.

What do you think?

Nick Bonnaud


ByNick Bonnaud

Tax changes to hit business owners

After the budget are you feeling hard done by?

At least you won’t be taxed twice – unless you run a business.

In amongst the winners and losers from yesterday’s budget one group seemed to have slipped under the media’s radar.

Hundreds of thousands of small business owners will now be taxed twice on the same profits.

For many years the logic has held that small business profits should only be taxed once – through corporation tax and not taxed again if dividends are paid out. The chancellor changed the rules yesterday and from April any shareholder that receives more than £5000 in dividends will find that the same profits will be taxed again at a starting rate of 7.5%.

The government has offered some explanation pointing to ‘Tax Motivated Incorporation’ as the target. This means that they want to stop the practice of setting up limited companies specifically to avoid tax. It is currently common practice for contractors, care workers and others to set up companies in which they are the only employee in order to pay less.

Several years ago legislation known as IR35 was brought in specifically to address this issue and the announcement yesterday signals the complete failure of HMRC to implement and police IR35 over recent years.

By proceeding as the government has, it has tarred the genuine small business community with the same brush and punished them for maintaining investments in their own business. The proposed cuts in corporation tax will not offset these changes and will not occur until 2017 and 2018.

Let’s hope the pain felt by small business owners has not damaged growth by then.

Nick Bonnaud ACMA

Quest Chartered Management Accountants