the business of life richmond & kingston area board ba/cl launch meeting september 2015

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Richmond & Kingston Area Board

BA/CL Launch Meeting

September 2015

YE Resources /Support

• Volunteer Business Advisers• Centre Leads• YE Manager (Anna Jakubcova)• YE RK Board (Fazl Hasnain)• YE Online

YE Online Resources

• (https://yeonline.y-e.org.uk)• Getting Started• Business Planning• Running the Business• Company Profile• Company Accounts• Company Documents

YE Online Resources (continued)

•Social Enterprise/Community Interest Company

•Donations to Charities

•Company Finances

•VAT

•Insurance (including Prohibited Products)

•YE Online Accounting Software

Social Enterprise/Community Interest Company

• Separate Memorandum and Articles of Association (Company Information Company Documents)

• Social or Environmental impact objective• Dividend Cap• Asset Lock• Charitable Giving

• General Guidance Getting started Types of YE Companies Social Enterprise Company

Donations to Charities

Charitable giving (Name of charity or percentage of profit to be donated) can NOT be included in • Sales & Marketing activities or materials• Trade Stand display

• Social enterprise company can make a general statement of its social aim

• All companies can donate to charities at liquidation (General Guidance Getting Started Legal matters Charitable Giving)

Company Finances

•Nominal value of each share - £1. Each team member must buy, at least, 1 share

•Maximum issued share capital - £500 (500 shares) for company programme and £1,000 for start-up. YE Support Centre (info@y-e.org.uk) approval required for exceeding limit

•Maximum individual shareholding - £25 for company programme. No cap for start-up

•Same rules for Crowd Funding investment

Company Finances (continued)

Financial support, Grants or Donations allowed for:

• Registration Fee • National or International trade fairs

• Home Company Information Company documents legal & Insurance Responsibilities Company Finances

VAT

•VAT is payable on all sales and miscellaneous income including fund raising activities (receipts). Only exception – Prize money at trade fairs

•VAT is recoverable (receivable) on all purchases, and expenses (payments) but not on salaries or wages to team members and YE registration fee

•YE online receipts & payments spreadsheets show items subject to VAT

VAT (continued)

•VAT is an internal calculation – not to be shown separately on invoices to outside customers so no registration with HMRC

• Software automatically calculates net VAT amount shown on the balance sheet

•VAT rate is 20% on net sales or costs or 1/6th of gross sales or costs

Insurance

Products and Public Liability Insurance cover - up to £10 million but excludes:

• trading with Canada or USA • Mechanically propelled vehicles• Explosive gases, helium balloons and fireworks• Cosmetics and beauty preparations including Henna products and face paints. (Resale of proprietary branded products in original packaging of perfumes. soaps & bath salts are allowed)• Products plugged into mains electric supply

Insurance (continued)

•Alcohol or tobacco products

•Unbranded or refrigerated foodstuffs or branded products in original packaging with sell by date of less than 3 months

•Travel agency, taxi service or gambling activities

•Home company Information Company documents Insurance & Legal Responsibilities

YE Online Accounting Software

•Receipts, Payments, Debtors and Creditors pages

•Enter amounts only on Receipts or Payments (or Debtors or Creditors) sheet

• Software automatically updates Summary Extended Trial Balance, Profit & Loss Account and Balance Sheet

•YE Accounts Step-by-Step Guide (General Guidance Business Planning Accounts Accounts Step-by-Step Guide 2015-16)

YE Corporation Tax

•Computed automatically in the Profit & Loss Account and Balance Sheet

•YE Corporation tax rate is 10%

Need help?

•Contact YE Support centre info@y-e.org.uk

•Or me: hasnain@blueyonder.co.uk