Sharing costs

Independence is a cultivated concern. We all want to be self-sufficient.

In a business environment this might manifest as having a separate Wi-Fi source even though it may be possible to share Wi-Fi with a number of business neighbours and divide the cost between you?

There will always be what-ifs to this type of co-operative effort but if the cost sharing made a joint contribution to cost savings wouldn’t it be worth exploring your options?

Retail outlets in a common location could club together to promote their mall or street.

Could you share a group-branded delivery van?

Practically, it may be necessary to form an umbrella management company to deal with the costs and recharge members for their share of costs. But as long as there are overall cash savings to be had why not at least consider this as an option?

Disruption in 2020 has taught us that flexibility is a key element if you want to stay afloat. For many businesses, the stresses and strains have proved too much and cherished family businesses have been forced to close. But those businesses that have survived are leaner and better able to cope.

It may well be that co-operation of this sort may not be an option for your business, but you have nothing to lose by considering your options to cost share. 

Just as we have all at some time in 2020 directed staff to work at home – an unlikely option in normal times – surprise, surprise the strategy has worked. In fact, many staff now prefer working from home.

Sharing costs may be one of a number of strategies that you could consider. If your business has survived thus far we should not only count our blessings but constantly be on the lookout for options to make our continued success more likely.

Source: Other Thu, 17 Dec 2020 00:00:00 +0100

Latest articles

Notifying cessation of self-employment

Any taxpayers that have ceased to be self-employed must notify HMRC of their change in status. There are a number of steps that must be followed if a taxpayer ceases trading as a sole trader or if they are ending or leaving a business

Submitting CIS nil monthly returns

The Construction Industry Scheme (CIS) is a set of special rules for tax and National Insurance for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘subcontractors’ and should be

Check employment status for tax

The Check Employment Status for Tax (CEST) tool can be used to help ascertain if a worker should be classified as employed or self-employed for tax purposes in both the private and public sector.

The service provides HMRC’s view if IR35 legislation

Class 1A payment deadline

Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees such as a company car. There is no employee contribution payable. If you provided taxable benefits to staff or directors your business is likely to have a