The Bottom Line - Summer 2016

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T O P I C A L I N F O R M A T I O N F R O M M A G E E G A M M O N
Email: Website:
Henwood House, Henwood, Ashford, Kent TN24 8DH Phone: 01233 630000
Principals: Jon Gammon, Antony Tutt, Mark Britland, Abhi Jain, Roland Parry, Andy Childs
Managers: David Brookes, Julie Devine, Linda Hayward, Peter Horton, Barry Spokes
Magee Gammon is a trading style of Magee Gammon Partnership LLP and Magee Gammon Corporate Limited.
Registered to carry on audit work in the UK and Ireland, and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.
AUTO ENROLMENT REMINDER
Over the next 12 months the auto enrolment pension scheme will continue to be rolled out to smaller companies
(fewer than 30 employees). You can find out your individual staging date by visiting
If you have any questions about auto enrolment please contact Lee Trice: .
MG NEWS
Six simple steps to saving business costs
These days, most of us are comfortable with shopping around to get the best deal, but there are many other ways that
profits could be draining out of your business without you necessarily noticing. Here are six areas where making small
changes to the way you do things could result in significant cost savings.
1. Marketing
One of the simplest ways to save cash when marketing is to join forces
with complementary businesses operating in the same market as you.
That could mean splitting advertising and promotion costs for events, or
including others’ materials in a direct mailshot to help cover postage and
printing. Trade shows and publications, or even LinkedIn, can help you
identify non-competing businesses who might be willing to collaborate
with you. If you use direct mailshots regularly, spending time periodically
cleaning your lists could also save hundreds or even thousands of
pounds in production and postage costs over the course of the year.
2. Post and delivery
On the subject of postage, there are some elementary ways to save
money that can be easily overlooked. Making it a company policy to
fold correspondence into A5 envelopes rather than A4, and having two
post trays: one for first and one for second class, can lead to significant
savings. Franking machines can also save money – although you’ll
need to ensure the volume of your post covers the lease costs.
3. Meetings
Offsite meetings carry a number of costs in the form of travel,
expenses and venue hire, as well as taking key staff out of the office
for extended periods. Although face-to-face time is sometimes
essential, there will be other occasions when free video call facilities will
do just as well. You should still ensure that onsite and virtual meetings
remain concise and only involve the appropriate staff members.
4. Staff
Staff usually represent the single biggest cost for a business – but
you can often save money without laying people off. It’s critical for
any business, large or small, to keep hold of its best employees, as
recruiting skilled staff is much more expensive than retaining them.
If you do need to trim your staffing budget, you might consider
offering reduced hours. Employees may be reluctant to bring up the
subject themselves, but there may well be some who would like to
work part-time. If you make it generally known that you are open to
discussing this, you may find you can reduce your wage bill without
having to lose a good team member.
Meanwhile, if you need to recruit, there are plenty of options for
hiring low-cost labour even with the new National Living Wage rules,
such as using apprenticeship schemes and interns, or outsourcing
tasks to freelancers.
5. Cashflow
Poor cashflow management can cripple your business at worst, while
at best it means incurring unnecessary costs. There are numerous
ways to improve your cashflow, such as invoicing quickly, offering
early payment discounts, making payments easy for clients, and
agreeing clear payment terms.
6. Taxes
Taking advantage of the reliefs and tax incentives available
to businesses, such as capital allowances and Research and
Development (R&D) tax credits, can help to save you money. Contact
us for a review of your business tax arrangements to ensure you are
making the most of any tax-saving opportunities.
In the day-to-day running of a business, it’s all too easy
to get into set routines and not notice areas where your
business is leaking cash. Taking the time to review your
processes and make adjustments to the way you do
things could result in significant improvements to your
bottom line. We can help you with this process.
Summer 2016 inside this issue...
u u Highlights from the 2016 Budget
u u All change for ISAs – new tax-free ways to save
u u The rules governing holiday and pay
u u Business Round-Up
u u Web Watch
u u Reminders for your Summer Diary