How to Change Your Company Name

Changing your company name is relatively simple in the UK but there are some strict guidelines. This guide will give you 3 easy ways to change it.

There are numerous reasons why you might want to change the name of your company. It’s not an uncommon thing to happen, even large corporations such as Google (Backrub) and Pepsi Cola (Brad’s Drink) used to be called something different.

5 Common Reasons to Change a Company Name

Your current name may not say everything you want to about your business.
You might want something easier to remember for your customers now that your company is starting to grow.
Your company name may be too long or too short.
It could be too closely related to a competitor.
You might even be trying to combat bad press associated with your existing name and looking to rebrand or head in a different direction.

Considerations before you change your company name

Changing your company name is relatively simple in the UK but there are some strict guidelines. The name you choose needs to comply with the normal naming rules for creating a limited company:

You can’t choose a name that is the same as an existing company on the register.
It can’t be too like another company name so that it causes confusion.
It can’t be offensive.
It can’t hint at a connection between government or local authority institutions unless that has been agreed.

Generally, you need to use ‘Limited’ in your name. The exceptions are if you are a registered charity, are a company limited by guarantee with agreement in the articles of association, or have a business name where you trade via an alternative to your registered name.

The 3 Easy Ways to Change a Company Name

You can pass a special resolution which needs to be agreed by the members of the company. These will either be guarantors or shareholders. Three quarters of the members have to agree to the change and it can either be voted on at a general meeting or through a written resolution. The split of the vote should consider the number of shares held by particular shareholders rather than just a count of interested parties.Once a vote is held, the directors are then required to send notification of the decision. A Form NMO1 needs to be completed within 15 days and submitted to Companies House.

Under certain circumstances, the directors of the company can decide to change the name of the company if they have this power set out in the articles of association. In this case, they don’t have to consult the shareholders. Again, once the decision has been made, a Form NMO1 has to be submitted to Companies House.
Our Company Secretarial team can take care of the entire procedure for you. Check out our post-incorporation services or contact our team today.

How Much Does It Cost to Change a Company Name?

The cost to change a company name is £10 or £50 if you are looking for a same day service. You swill need to submit the form along with a copy of the resolution for the change of name if this is needed.

What Happens Next?

You cannot start using the new name for your company until you have had confirmation back from Companies House. This comes in the form of a Certificate of Incorporation on Change of Name and will tell you the date when you can implement the change.

You need to keep a copy of this at your head office or SAIL address in case it needs to be inspected by relevant parties. All other aspects of your company will remain the same so you will also need to hang onto your original certificate of incorporation.

The next step is to ensure that your details match across all your current operational material and connections. Primary among these is making sure that any business accounts with your bank and financial arrangements are changed to comply with what is now on record at Companies House. For your bank, this generally involves filling in the relevant form and including a copy of the Certificate of Incorporation on Change of Name. Some may well allow you to do this online with a digital copy.

Once you have had approval from Companies House, the next step is to change all your signage, digital and hardcopy material. From the time that you have received notification of the name change from Companies House you have 14 days to do this. There’s often more work to do in this area than most people think, for instance:

You need to contact HMRC with updates to your bank account and name change details.
There will be numerous clients, suppliers and other interested parties that you will need to contact.
Any online presence including your domain name, visual material, stationary or audio advertising will have to be updated to reflect your new name.
You don’t have to change anything in the memorandum and articles of association.

While the process can happen quickly, it makes sense to have all the procedures in place once the change goes through so that you can update your relevant parties and promotional .

What is a Company Limited by Guarantee?

Companies who adopt a Limited by Guarantee (LBG) structure are charities, social enterprises, community projects, clubs and other such non-profit organisations. The structure of the company is designed to reinvest all of their business profits back in the company. Therefore, back into the social enterprise projects, the company aims to support and develop.

The first step on the ladder to launching a new business is deciding which legal structure you wish to adopt. There are several different types of legal structures but many startups opt for a structure that offers its members limited liability.

The next question then, is whether to register as a limited by shares (Ltd) or limited by guarantee (LBG) company. The key difference being that one supports a model of personal benefit, while the other supports public benefit.

So in easy terms: profit = shares, non-profit = guarantee.

What Does it Mean by Company Limited by Guarantee?

A company limited by guarantee differs from a limited by shares structure in that it doesn’t have shareholders, or share capital. Instead, it is made up of members who each act as guarantors. Depending on the organisation, guarantors may also be referred to as “members”, “trustees”, “governors” or “committee members”.

Guarantors have a number of key duties within the business, including:

Forming the company
Agreeing the goals and objectives of the business
Appointing or removing Directors – whose role is to handle the day-to-day running of the company (this can be the guarantor themselves)
Agreeing the remit of the Directors powers

Each guarantor agrees to contribute a, typically very small (as little as £1), amount in the event that the company is wound up but they are protected from the significantly larger impact of personal liability.

Companies operating under an LBG structure set themselves as an entirely separate legal entity from their members. This means that all property and assets are held in the company’s name and it is able to enter into contracts and employ staff. The company is therefore responsible for its own debts and its members don’t take the fall if the business fails.

LBG organisations raise their funds in a different way to limited by share businesses, because they don’t have share capital and, therefore, can’t raise money by issuing shares to equity subscribers.

Instead, they might seek capital by using donations, funding, i.e. government grants, or borrowing. Some membership organisations operating as a company limited by guarantee also choose to impose subscription fees, which help to cover some of the overheads of running the business.

Why do certain businesses opt to be limited by guarantee?

It really comes down to risk.

The difference between companies which use a LBG structure and those which are limited by shares is that, should the company go into liquidation, shareholders operating within the latter structure might be required to pay all amounts relating to the number of shares that they hold within the business.

For example, if they own 100 shares at £2 each, they would be liable for £200 worth of repayments whereas, as we’ve mentioned previously, the members of a LBG company would be responsible only for their pre-pledged sum, e.g £1.

This is particularly relevant when we remember that the structure does not pay dividends back to its members.

How do you form a limited by guarantee company?

It’s pretty straightforward actually. In order to qualify for limited by guarantee status, you need to tick the following boxes;

You must be registered with Companies House, the Registrar of Companies in the UK
You must have at least one director and one guarantor. A guarantor can play both roles, or you can choose to have several directors and guarantors
Required information about all directors and guarantors must be made available, on public record
During the company formation process, you must provide details of a registered office address. This official company address must then be displayed on public record. It must be a full postal address in the country where your company is registered (ie not a PO box)
You must complete a Memorandum of Association and adopt Articles of Association during the setup process

Should you decide that a limited by guarantee structure is the right one for your business, we can help get you started with our LBG Package.

How Does a Company Limited By Guarantee Work?

Ideal for non-profit organisations like charities, sports associations, social clubs, co-operatives and membership organisations. Can also be used by commercial businesses but a limited by shares structure is better.
As a Limited by guarantee organisations you are required to incorporate. YOur company will usually carry the “Ltd” status. There can be exemptions to the “Ltd” title however, if your company meets the following criteria;
- The company is a private company limited by guarantee.
- The company’s purpose is the promotion (or regulation) of charity, art, science, education, religion. This is not an exhaustive list.
- The Memorandum and Articles of Association must outline the following:
  - That any profits are placed back into the company’s purpose – i.e. its charitable cause and prohibit the payment of capital or benefits to members.
  - Requires each member to contribute their pre-agreed sum to any payment resulting from insolvency.
  - State that in the event of the business winding-up, any remaining assets will be transferred to another body with a similar purpose and not to the members.

As a Company limited by guarantee you will be required to submit accounts and an Annual Confirmation Statement at Companies House, just like a company limited by shares.

A Guide to Ltd Company Registration

Thinking about registering as an Ltd company? This guide tells you how to do it, from company registration specialists Blue Sky Formations.

Launching and running your own company is no small challenge, but its rewards can be huge. A 2019 survey from SME Loans found that 64 percent of the UK workforce wants to set up their own business.

So, what are some of the key things to know before starting your own business? It certainly pays to think ahead about your aspirations. Starting out by registering as a limited company has its benefits. While your entrepreneurial efforts may start small, if you’re successful there will come a point when you need to decide whether or not to register your business formally with Companies House. The good news is that this is a lot simpler than many people think – gone are the days of waiting weeks to get your business approved, complicated paperwork and the off-putting cost.

1. Is it Time to Register as a Limited Company?

The first thing you need to do is decide if this is the right moment to take that next step and become a limited company. There are a number of advantages, such as limited liability. A limited company is considered its own legal entity therefore you will not be personally liable for the debts of the business. You will find it also offers a bit of prestige, many corporations will only trade with registered companies. It is easy to apply for business loans and investments as an Ltd company.

There is however some legal requirements that you have to abide by as a Limited company including the initial company registration process at Companies House. You will be required to provide certain details about the company structure and ownership which will appear on the public record. This is for corporate transparency purposes.

2. What Details are Required for Ltd Company Registration?

If you do decide that this is the right option, you will need to do a number of things to formally register your company, including:

Settling on a company name – which cannot be the same as another company name. You can use our handy free company name check tool
Deciding where your official registered office address is going to be – this is the address to which the government will send official mail.
Getting together details of directors and, if relevant, the company secretary. This includes a contact address known as a service address for them. We can provide a service address for you if you wish to keep their home address private.
Deciding on the details of what your business does including at least one SIC code
Consider information concerning share capital – if you are creating a company that is limited by shares, you must issue at least one share.
Providing details of the initial shareholder(s)
Detailing the persons of significant control (PSC). This is anyone (person or company) who has more than 25% of the shareholding and/or voting rights in the company.

3. Do you Require Special Memorandum and Articles of Association?

These provide the agreement and clauses that make up the new company. Including the rules which will govern how directors will run it for the benefit of the shareholders or members. In order to register, these need to be filed with Companies House as part of your incorporation application. If you use our company registration service we have a set of standard Mems and Arts that we submit for you. These are up to date and in accordance with Companies Act 2006. If you require special clauses, our company secretarial department can discuss that with you and draft special provisions. You might decide to do this if you after wanting a Special Purpose Vehicle, or SPV company. These are popular for property investment companies as your mortgage lender will require certain provisions in the company articles.

4. Decide on a Company Formation Agent

You might decide to register your company directly at Companies House and handle all the details yourself. Alternatively, you can use a specialist company formation agent. While registering directly can seem like a cost saving measure. It is advisable to use a professional service that provides experience and advice. This means you get things right first time and cover all the bases. It can be costly to change company details once registered. Our team have years of experience registering companies and check over every detail before they submit to companies house.

There are a lot of things to take into consideration when you are forming a limited company. If you don’t have any experience of drafting the memorandum and articles of association, for example, then it’s sensible to use someone who has the legal know-how you require. Companies House doesn’t do it for you. A formation agent will also be able to look at every aspect of your company registration and give you professional advice for your industry or sector.

The form for registering a company, the IN01, is quite a long document, 18 pages in all. It’s easy to get your submission wrong if you are not entirely clear about what you are doing. Of course, if you have a good amount of knowledge concerning the legal aspects of a company formation. You may be confident enough to complete and submit the form along with all the information required.

Companies House doesn’t provide you with all the information you need. Including, how to properly put together things like registers of directors and their details. Share allotments and capital allowances that you need to include in your application. A company formation service can help you do this and ensure you have the information submitted for your company.

4. Submit Your Company Registration to Companies House

Once you have submitted your application and paid the fee, Companies House will check your details and then, hopefully, confirm that your business has been registered. This can come through very quickly, in many cases on the same day, but you should realistically expect to wait 24-48 hours. Once you have your registration confirmed then the next step is to hold your first board meeting.

Choosing the Right Company Formation Agent

As with many business services coming online over the last few years, there’s a lot of competition out there. Ideally you want a company formation agent that goes above and beyond. Providing you with all the tools you need to help you comply with the law and minimise your compliance burden. Our service includes handy email reminders to let you know when certain things are due.

Blue Sky Formations offers competitive company registration solutions and ongoing company compliance services.

There’s no doubt, that using a good company formation agent can give you peace of mind. We will also ensure you get your limited company up and running with the minimum of fuss and without any mistakes.

What is a Special Purpose Vehicle (SPV/SPE)

What is a special purpose vehicle company (SPV)?

An SPV/SPE company is a legal entity created for a limited purpose, it can be used for a number of purposes including the acquisition and/or financing of a property project. We have put together a small guide to help you understand your particular needs and whether an SPV company structure suits your needs.

Following the UK tax law changes that restricted personal tax relief on Mortgage Interest. There has been a significant increase in requests for Special Purpose Vehicles/ Entity (SPVs/SPE) companies as properties.

The government introduced a reduction in the amount of tax relief available for interest on buy-to-let mortgages. Since then, there has been an increase in the number of landlords purchasing buy-to-let investments in a limited company rather than in their personal name.

Limited Companies are usually preferred because of the different tax treatment. Instead of paying income tax as an individual, a limited company pays corporation tax, which currently sits at 19%.

What Does SPV Company Mean?

Special Purpose Vehicles are not a specific company type registered by Companies House. A limited company can either be formed as an SPV or become one with some redrafting of the company’s documentation. The special purpose is defined by statements in the Memorandum and Articles of Agreement of the company. It depends from case to case on what’s needed to make a company a special purpose vehicle.

An SPV Company For Property

For example, purely for the purpose of owning a property.

Mortgage lenders generally prefer to lend money to an SPV as the objects in the articles restrict the company from other areas of business.

Lenders tend to relax stress testing when it comes to rental calculations allowing the borrower to maximise the borrowing.

Limited companies are increasingly popular there are several things to consider as they are not suitable for everyone.

Speak to your lender while considering an SPV.

How Does A Special Purpose Vehicle Company Work?

An SPV/SPE, acts as an affiliate of a parent corporation which sells assets off of its own balance sheet.

They also create benefit by achieving off-balance sheet treatment for a tax and financial reporting purposes for a parent company.

Its best to know the requirements of your mortgage lender prior to setting up the company as they may have specific object requests.

Our team has experience drafting the special purpose articles to meet your mortgage lender requirements. We can then incorporate those into your SPV articles and register your company for you.

Give us a free call on 0800 988 3223, we offer support to help you get your company registered or Click here for all offers.

Local Marketing Tips for SMEs

There is a lot you can do online to promote your business to a local audience. Reaching potential customers in your area could be the difference between success and failure. They are likely to be your cheerleaders and regulars. During the strange period of lockdown a number of small businesses have done well with their local community. Nearly a quarter of Brits have used corner shops more frequently since the start of the coronavirus lockdown – the biggest increase for any type of store – according to a survey from pollsters YouGov.

If you are not located on someone’s corner how will your potential clients find you? A European survey found that 42% of SMEs changed their business model during the lockdown period. “Where before the crisis only half of the entrepreneurs made their products or services known online in one way or another,” the SNI said. “Today, eight out of ten entrepreneurs are now online in one way or another.”

There are several quick wins that anyone can do to help reach your local market through whilst they are browsing online.

Local Online Marketing Tips

There is a lot you can do online to promote your business to a local audience. Search engines, such as Google, tailor their results to reflect the area you are in. For example, if you want to find a painter and decorator nearby, a search will deliver those results. Making sure your digital marketing reflects your location is key if you want to take advantage of this.

The good news is that local SEO is simple to implement and can make sure you stand out from the crowd when it comes to these kinds of searches.

Create a Google My Business Account: When you do a local search for a service or business, you get search results but also a Google map of choices close by. Follow the link to learn how to claim your business on Google

Build Your Local Social Media Following: Being more focused on your social media engagement can also make a big difference. Encourage local people to follow you by including links on your promotional literature and in your shop or store. You should also join social media groups and engage with users. Not everyone will follow you but the more you can attract local fans and followers, the greater your reach will be
Create Content for a Local Audience: It depends on what your business is, but the more you can produce content that is specifically aimed at your local audience the better. This can be done, for instance, by producing a regular blog, something that can also improve your standing on search engine rankings
Keywords: If you have a website. First and foremost, creating a strong local online presence is including local areas in your website content. That can include your main site but also means developing specific landing pages for particular locations in and around your catchment area

Local Offline Marketing Ideas

While digital marketing certainly gets you noticed, so can those traditional offline methods of reaching an audience. This is particularly pertinent for those looking to create an impact locally and there are number of different approaches that have been shown to work.

Word of Mouth: It’s one of the most powerful marketing tools out there. If you do a good job, then people are going to recommend you. For example, if you’re a builder and have fixed someone’s roof, make sure you leave a couple of business cards or a flyer when you finally finish. People should be pleased to pass your details on if you have done a good job
Advertorials: You can do them online as well but they can also have an impact when used in hardcopy. Most local areas have their own newspaper and they’re read by a lot more people that you think. They’re also a lot cheaper nowadays to do – if you have a great news story you can often get it included for free
Sponsoring Local Events: A little time and effort can make a big difference and sponsoring is one such endeavour you should seriously consider. If you have a local football or cricket team, there’s a festival being planned or some other event, investing in sponsorship can get your company name in front of lots of local people
Print Media: We often forget about print media but it’s quite cheap to get nowadays particularly with many companies offering low-cost Print on Demand services. While you have to wait for people to come to your site online, you can improve visibility by printing out promotional literature and posting it through their letter boxes. This is no longer a prime marketing asset for other businesses and has been shown to produce a good response, especially if you target the right people
Networking: Another way that you can improve the visibility and reputation of your business is by networking with other business owners in your area. Most local communities have these kinds of events – they’re great for spreading the word but also learning new tricks and getting the support you need

Mix and Match Your Offline and Online

One thing that many businesses fail to do is make sure that they have an integrated marketing strategy. If you are producing hardcopy promotional literature, then including a link to your website and social media accounts is important. The more you can get these two sides of the marketing coin working together the better you’ll be able to attract a local audience.

We often spend too much time nowadays trying to get our online marketing on track without understanding that offline has its merits as well. Particularly in a local situation, it is just as powerful and can help you reach those people who might not own a computer or smartphone but who would still like to use your service or buy your product.

Do I Need an Accountant for My Small Business?

If accounting is such a significant part of managing a limited company, then hiring the right accountant for your new business is one of the most important decisions you’ll ever have to make as a business owner.

Finding the right accountant can be a minefield, especially if you don’t know who to trust and what accounting service will be the best and most appropriate fit for your new limited company.

We deal with new business founders every day as a company formations agent, so we know the struggles you face when looking for an accountant for your new limited company.

Here are 5 common mistakes that every limited company owner must try to avoid when considering the services of an accountant:

1 – Trying to manage your accounts on your own

Entrepreneurs are passionate about their business and it’s no wonder they tend to want to do everything themselves.

As a business owner, your time is valuable and your attention is best spent elsewhere, while you let somebody else take care of the financial side of things.

2 – Hiring an accountant who lacks qualifications and experience

Can the accountant explain technical financial matters with you? Can they ensure that your company complies to the necessary rules and regulations? That won’t end up with you getting your fingers burnt and costly fine in the future?

3 – Not using professional software or cloud-based technology

Many accountants swear by the efficiency and ease of Microsoft Excel. However, as good as Excel is, it is not as advanced and interactive as any good accounting software out there.

For example, it can be difficult to detect human error mistakes in Excel. Cloud-based accounting software employs a double-entry system that helps filter out such critical errors.

4 – Hiring the first accountant you meet

Finding the right accountant can be a challenge. Not only is it time consuming, but it draws you away from doing what you do best – running your business!

There are numerous accountants who are willing to provide their services. It’s important that you do the research and find the best accountant who’s the right fit for your business.

5 – Hiring the cheapest accountant you find

Another mistake business owners make when hiring an accountant is going with the cheapest option available.

While it makes perfect business sense to cut costs and save money. Scrimping on accounting services is not the way to do it. Hiring an accountant should be viewed as an investment rather than an expense.

Not only can an accountant help save you money, but they can advise you in tax, PAYE, laws etc.

To help you avoid any of these mistakes with your own limited company. We have partnered up with Cobia accounting who can provide you with professional and expert advice on your accounting needs, and all from as little as just £49 per month.

Click here to find out more

PS – Register your company here today and receive your first month’s accounting service FREE (£49 value for the Annual Returns Service – £99 value for the All Inclusive Service).

What is a Company Registration Number and Where Can I Find it?

When you form either a limited company or limited liability partnership (LLP) you will be assigned a company registration number or CRN. This is provided by Companies House when you initially register and remains the same for as long as your company is in operation, even if you elect to change the name.

The CRN consists of either a unique sequence of 8 numbers or two letters followed by six numbers. The number is created sequentially by Companies House and depends on where you are incorporating your business:

If you have registered a limited company in England or Wales, your company registration number will begin with a number
The CRN for companies in Scotland is slightly different as it begins with SC
If you are registering a limited liability partnership, your number will start with OC in England and Wales, and SO in Scotland
There are also several other prefixes for different types of entity and for other jurisdictions

Your CRN is included on your incorporation certificate when you get the paperwork from Companies House after successful registration. If you don’t have it to hand you can go onto the Companies House website and search for it by entering your company name.

What Do I Use the CRN For?

There are numerous times when you will need to have your company registration number handy, for instance, any time you want to make changes to the information you hold at Companies House. This can include when you want to change the name of your company, if you have new directors or members leaving, or want to alter your company office or SAIL address. Other times you will need it are:

When you register for business taxes with HMRC, fill in tax returns or need to pay corporation tax
Applying for a business bank account
When you file your annual confirmation statement and accounts
When you change your Accounting Refence Date (ARD)
Any transactions associated with your company such as filling resolutions or issuing share certificates

Once you become a limited company or LLP you will need to ensure that all your official letters, compliment slips, ordering stationary, invoices and receipts and even your website have the number clearly shown.

FAQs on Company Registration Numbers

What is the Point of a CRN?

It identifies your company and legally verifies its existence as an incorporated entity.

Is the CRN the same as the VAT number?

No. They are two separate numbers. VAT numbers are issued only by HMRC when you register for VAT with them. Neither is your CRN your company tax number. Again this is a unique number produced by HMRC called your UTR.

Do You Need a CRN as a Sole Trader?

No. You only get a CRN if you are a limited company or limited liability partnership. You will register with HMRC separately as a sole trader and carry out a self-assessment to pay your taxes.

I Can’t Find My CRN?

There are several places where you’ll find your CRN. The first is on the Certificate of Incorporation that you received from Companies House when you registered. Look for a heading saying ‘company number’. You will from time to time receive correspondence from Companies House and your CRN will always be found on this. If you are out of the office or can’t find the CRN, then you can always visit the Companies House website and search for your business. This will give you your CRN in just a few seconds.

Can I Check if a Company has a CRN?

If a company is registered in the UK, then it will have a CRN on its literature. If you want to check if this is valid, then all you need to do is a search. The Companies House website has some 170 million records which are free to access. Simply enter the CRN or the company name to find out if it is valid or not.

What Are the Benefits of Having a CRN?

This is more a question about the benefits of setting up as a limited company. The company has its own legal identity so the contract of any third party is with this rather than individual directors and shareholders who have limited liability. Setting up a limited company can also improve your standing and prestige in comparison to a sole trading position which means you may be more likely to get certain clients and attract potential financing for expansion. There are also some tax benefits that sole traders don’t get.

A company registration number or CRN is only available for limited companies or limited liability partnerships. The 8 letter/digit combination is unique to that business and is retained for the time that it is in operation and only becomes redundant when the business is dissolved. You need it for numerous things including filing returns and when you come to put in your tax assessment for the year.

VAT for Construction Companies and Builders

Reverse Charge VAT for Construction Services

An agreement by the government in September 2019 was reached to delay reverse charge VAT for construction services by a year until October 2020.

A major change to the way VAT is collected in the building and construction sector comes into effect on 1 October 2020. The change is called the VAT domestic reverse charge (or the reverse charge) and means the customer receiving the service will have to pay the VAT due to HMRC instead of including it as part of the payment to the supplier when settling the invoice.

The main aim of the new regulation is to tackle missing trader fraud, where VAT charged to a customer is not reported and paid over to HMRC. It is hoped that this will stop fraud worth over £100 million per annum.

What Type of Building Work Requires Reverse Charge VAT

The type of work which will fall within the reverse charge includes construction, alteration, repair, extension and demolition of buildings. It also applies to works that form part of the land, like roads, railways, sewers and coastal defences. It will also cover the installation of systems for heating, ventilation, drainage and preparatory services. Services that will not be affected include architect services and the manufacture of building components, materials and plant.

The VAT reverse charges do not mean that construction subcontractors can avoid being VAT registered where they do not meet the threshold.

There is an additional responsibility to those in the construction industry to ensure they do not pay VAT to a subcontractor in circumstances where they should be reverse charging. This responsibly should be taken seriously as the financial implications of paying this VAT over to HMRC at a later date would be significant. Other responsibilities falling on the construction contractor includes needing to know whether they are dealing with the final customer. The reverse charge only applies between businesses in the construction supply chain and not to the end/final consumer.

If you are unsure about any of the changes, please speak to a tax advisor or accountant to clarify your situation.

Our preferred accounting partner is Cobia accountants. We have a special introductory offer for our clients of a free accountant callback to answer your questions. And a free month of their services, so you can try before you buy! Simply check the box when you form your company and they will contact you. Alternatively, call or email our customer support and they can arrange the callback for you:

Call us free on 0800 988 3223 or email us at info@blueskyformations.com

VAT Essentials for Construction:

Should a builder be VAT registered?

The rules regarding VAT registration remain the same as any other sector (currently £85,000 turnover per annum). You must still issue a VAT invoice stating they are subject to the reverse charge.

How much VAT should be charged for Construction Services?

VAT charge for construction services for most work on houses and flats by builders and similar trades like plumbers, plasterers and carpenters. VAT is chargeable at the standard rate of 20%.

Except if it meets certain conditions:

Zero rate VAT

building a new house or flat,
working on the homes of disabled people.

Reduced rate VAT

You may be able to charge the reduced rate of 5% for some types of construction work including:

installing energy saving products and certain work for people over 60
converting a building into a house or flats or from one residential use to another
renovating an empty house or flat

A good accountant will be able to advise you on VAT charges and the new scheme. We offer a VAT registration service when you form your company for only £30. We also have a special accountancy offer for our clients. One free month of accountancy services from our preferred partner. So you can try before you buy! Simply check the box when you form your company and they will contact you. Alternatively, call or email our customer support and they can arrange the call-back for you:

Call us free on 0800 988 3223 or email us at info@blueskyformations.com

Don’t understand Making Tax Digital?

April this year saw HMRC introduce the much talked about Making Tax Digital. Making Tax Digital (MTD) for VAT makes it mandatory for VAT registered businesses above the £85k threshold to keep records and submit VAT returns digitally through compatible software.

This doesn’t have to be overwhelming though and Blue Sky Formations have partnered with Cobia Accounting to take the stress away from you.

Cobia have partnered with Xero as their software provider who are listed by HMRC as providing software that is compatible with MTD for VAT to ensure that all MTD obligations are met and much much more!

Features of the Xero software include a VAT overview, extra reports, the ability to post VAT adjustments and submit in real time to HMRC and all of this is included when you become a client through Cobia Accounting.

You will even receive your own personal accountant to help guide you through this, in addition to supporting you through all of your accounting needs.

To find out more about the range of accounting packages Cobia can offer you contact us today at info.accounting@cobia-uk.com or call 01582 390100.

Digital vs Bricks and Mortar: Which Works for Your Business?

Digital v’s Bricks and Mortar, what’s the best solution for your business?

In the end, it all comes down to cost and the return on investment that you will get from opening a bricks and mortar operation.

There’s no doubt that over the last decade or so we’ve dramatically changed the way we shop. Bricks and mortar high street shops have been usurped in many ways by online stores with people buying on the go on their mobile devices fuelled by increasing access to shopping on a global scale.

It’s easy to believe that bricks and mortar stores have had their day. Why invest all that money in a high-street store when you can reach out to far more people online and sell just as many products? The doyen of online selling, Amazon, continues to invest in traditional selling, opening a real store in Seattle in 2017, and with its purchase of Whole Foods retail stores. While this is a lot easier for big corporations, the notion of delivering an omni-channel approach has not been lost on smaller companies.

The Benefits of a Digital Presence

No one in business would dispute the power of having your own online store, engaging on social media and using digital marketing to promote your brand. It’s a very low-cost way to do business, after all, and flexible as well. You can start small, build up gradually without the massive overheads you generally get when running a real store such as rental costs, staff and utility bills. Add in the fact that you can reach a much wider audience with much less effort and you might be forgiven for thinking this is all you need.

For many businesses, including eCommerce entrepreneurs, it may be the right answer. At least for the moment.

The problem is, because it’s so easy, the online world is now extremely crowded. Competition is high and certain advertising such as pay per click (PPC) is becoming less attractive as the price rises for those profitable keywords. Many brands are starting to look at other ways to engage with customers and that means an omni-channel approach.

According to The Guardian:

“…for purveyors of tactile and personal products like clothing, eyewear and jewellery, selling stuff in person has an obvious appeal.”

The Future of Bricks and Mortar

Amazon’s store in Seattle isn’t just a one off. They’re testing the water to see how it works and, if it does, they’ll be opening more flagship stores around the US and perhaps in other parts of the world.

To succeed, of course, the store has to be economically successful on its own and attract customers from around the local area. But bricks and mortar can also act as a strong marketing tool for an already secure online provision. They can create greater awareness of the brand which adds value in a cluttered online marketplace and helps nurture customers to become loyal advocates and fans. To a smaller extent, it can attract those potential customers who don’t avail themselves of the online marketplace.

There is also the issue of people wanting to see and try products in person, which you can’t get online. While some bricks and mortar stores follow the traditional see and buy format, others are being developed as showrooms – you go, pick up and use a product, try on an outfit and then order it online. This works well for certain products, including jewellery. In America, Blue Nile opened up a showroom for their range and found local sales rose significantly once the store was opened.

For UK businesses, mixing digital with bricks and mortar has been easier for the businesses that grew out of traditional high street stores. Argos and Curry’s both offer the ability to shop online and pick up in store or vice versa. Supermarkets such as Tesco and Asda allow similar provisions that improves their bottom lines.

For SMEs, the option to go bricks and mortar, of course, involves a serious cost question. Until you reach a certain size and your brand becomes recognisable, it often isn’t cost effective to open a store. For bigger companies, merging online and offline is becoming the way to build a seamless customer experience that really counts, particularly in the world of retail.

According to many experts, customers value flexibility and that means being able to use a particular brand or service how and when they want, whether that’s shopping instore locally, going online or even over the telephone. This holistic approach to your brand’s availability is not easy to achieve without a good deal of thought, integration and financial ability.

It is, however, the path that many large stores are now starting to tread and one which emerging businesses need to be aware of and try to fit into their future growth plans.