< Previous East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FAMILY BUSINESS emotionally attached to the business and each other, you are very passionate, and passion sometimes means conflict. When family members don’t share the same views on a particular matter, issues might be more difficult to resolve and they can even spill over into family time and threaten family relationships that would otherwise stay undisturbed. It might be appropriate to set strict rules and boundaries, and commonly agree not to discuss any business-related topic outside business hours and especially during family time. Family members will be more motivated and willing to make sure the business stays successful and within the family, and partners of the business are more likely to have common long-term goals along with the same willingness to achieve those goals. Unfortunately, the willingness to keep the business alive out of devotion and attachment might also have the exact opposite effect and doom the business to fail. Family members, descendants who inherit the business, might not have the same drive and passion about the business as the previous generations, they might be sticking with the business only because they feel morally obliged to, but will not put any dedication into the job, which might mean the end of the business itself. Family members will also be more inclined to trust each other, making the © stock.adobe.com/ Kzenon 28-31.qxp_Layout 1 05/04/2022 11:30 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link FAMILY BUSINESS work environment much more relaxed and authentic, but also much more flexible and versatile. Family members will trust each other to carry out different tasks, even ones that are not part of the role they cover; most of the time, family businesses go back to several generations which means members of the family have been raised within the business and have a lifelong amount of experience. But if family run businesses are extremely dynamic and flexible, they might also lack an internal structure and inside rankings that other companies usually have. The inability to identify a precise leadership or a management strategy can lead the business to chaos; it might seem inappropriate to have someone in charge, or some people might emerge more than others and identify themselves as leading figures, however, this unstable dynamic will reflect on the quality of the business and will cause internal and external problems. When a business stays within the family for multiple generations, that business acquires value and insight; multigenerational means the younger generations will have different views and inputs that will help the business adapt to the changing times and grow even further. Sadly, older generations, parent and grandparents, might be reluctant to trust the younger generations and could, either deliberately or unconsciously, undermine the authority of their relatives creating great conflict between them. While hiring family members is at the core of a family business, when it comes to non-family hires business owners must be very careful not giving the prospect employees the wrong idea. Family hires might be seen as nepotism and create an unhealthy environment that can lead non-family employees to be reluctant to join the business. Finally, when it comes to family businesses, the biggest problems tend to be succession and exit plans. In the UK, 43% of all family businesses don’t have a succession plan and out of those only 12% are able to reach the third generation. A lack of a clear succession plan, in case of an exit from the business owner, can lead to serious internal arguments and fights within the family that can severely harm the business and lead it to failure. In most cases the business either ends up in the ownership of only one member or ended. A family business is a great resource and a wonderful source of revenue for not just families, but entire economies. However, it is extremely important to enter a family business with a clear plan, about internal dynamics, management, outlook, and succession; make sure all the members of the family are on the same page and your business will be ready to flourish. 28-31.qxp_Layout 1 05/04/2022 11:30 Page 4 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk HEALTHCARE H ealthcare insurance plans for businesses are a substantial investment and additional expenditure for business owners and employers and sometimes it might feel unnecessary. However, there are several benefits that come with providing employees with a business healthcare plan, and not just for the employees themselves, but for the employer as well. Even the most basic business healthcare plan offers employees a series of perks and advantages that are meant to make people’s lives easier and allow them to get easy access to the highest of standards of private healthcare without having to suffer NHS waiting lists and times. A business healthcare plan prevents absenteeism and boosts productivity. If ill employees are able to get treatment quickly, they will also be able to go back to work quickly once treated. Further, healthcare plans often allow employees to extend the coverage to their immediate family, like spouses and children; this feature too boosts productivity and allows employees to focus on working without having to worry An attractive perk There are several reasons why a business healthcare plan is extremely beneficial for both employers and employees, despite the initial investment. If you have never considered investing in a business healthcare plan, it might be time to start thinking about it. 34 Á 32-35.qxp_Layout 1 05/04/2022 11:32 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link HEALTHCARE © stock.adobe.com/Valeri Luzina 32-35.qxp_Layout 1 05/04/2022 11:32 Page 2 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk HEALTHCARE about the health and wellbeing of their loved ones. Healthcare insurance companies have been offering a lot of services that provide cover for cancer and related costs, like access to cutting edge technologies, treatments and drugs, the possibility to choose whether to do chemotherapy at home or in a clinical facility, coverage of costs of wigs and other prosthetics, coverage of scalp cooling treatments and access to home nursing or hospices. Because cancer unfortunately hits a large part of the population, this kind of offer represents an incredible asset for employees. Lately, healthcare insurance providers have also been focusing on mental health and have been offering not just access to services, councillors and practitioners, but to helplines and support services too, stressing the importance of mental wellbeing in the work environment. There is a series of add-on services insurance companies offer to make business healthcare plans more inclusive, like dental, physiotherapy, optical, along with access to scanning, faster diagnosis and prescription services. The number and quality of add-ons depend on the coverage the employer wants to provide the employees with and how much they are willing to spend for it; costs of insurance packages depend on several factors, like average age of the employees, occupation and type of work, where the business is based and where the employees live and obviously what type of services the employer wants to get covered. The size of the group that is meant to be covered by the plan is also influential on the price. Smaller groups can be less affordable to cover than larger, and small business owners might be reluctant to invest in business healthcare insurance or, if they have just a handful of employees, might prefer to provide them with individual insurance. Group healthcare plans however tend to be more convenient and able to provide business owners with a more comprehensive plan. The presence of healthcare plans and insurance in a remunerative package is an incredible asset for employers and an extremely attractive feature for potential applicants. Healthcare plans show interest, show the business cares about its staff and is willing to spend money to take care of it. This kind of care and interest will promote job satisfaction and will not only attract new hires but help 32-35.qxp_Layout 1 05/04/2022 11:32 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link HEALTHCARE boost retention of current staff. Hiring and training new employees is expensive and time consuming, but a crucial element like a healthcare plan can make the difference in the life of employees who will be reluctant to leave the healthcare benefits. Healthcare plans and insurance are not always tax-free, and employers can be taxed and be subject to national insurance charges on their premiums. But employers might also benefit from some degrees of tax relief as long as healthcare plans and insurance classify as business expenses. Overall, a healthcare plan is a demanding investment for a business, but although it is not necessary, it can improve business productivity. By offering employees high quality healthcare services that will make their lives easier, employers can increase job satisfaction and boost their own company’s success. © stock.adobe.com/sepy 32-35.qxp_Layout 1 05/04/2022 11:32 Page 4 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX Making Tax Digital applies to all VAT registered businesses from April 2022. Are you ready? Michael Ball, tax director at Streets Chartered Accountants, dives into Making Tax Digital. S ince April 2019 most VAT registered businesses with a turnover over £85,000 have been within Making Tax Digital (MTD) for VAT. This means that they have had to keep digital records and submit their tax returns via MTD compatible software. From April 2022 MTD for VAT is being extended to all VAT registered businesses. In practical terms this means that they will no longer be able to submit their VAT returns via the old HMRC portal. What are the requirements? As already referenced, under MTD a business must keep digital records, but what does that mean? As the name suggests your business records need to be kept in a digital format, so manual records will no longer be allowed and the records must include the following details: * your business name, address, and VAT registration number * any VAT accounting schemes you use * the VAT on goods and services you supply * the VAT on goods and services you receive * any adjustments you make to a return * the ‘time of supply’ and ‘value of supply’ for everything you buy and sell * the rate of VAT charged on goods and services you supply * reverse charge transactions - where you record the VAT on both the sale price and the purchase price of goods and services you buy * your total daily gross takings if you use a retail scheme * items you can reclaim VAT on if you use the Flat Rate Scheme A further requirement is that there is a fully digital journey from the records to the submission of the VAT return. The simplest way to achieve this is to keep your records in ‘Functional compatible software’, that is software that can not only keep your records but also can provide and receive information to HMRC directly. If your records are not kept in such software, for example if you use a spreadsheet, then bridging software can be used to make the submission but there must be a digital link between the software. Similarly, if a set of programs are used, there must be a digital link between the pieces of software. There are a number of options available for software solutions and a list of compatible software is provided on the HMRC website at https://www.gov.uk/guidance/find-software-thats- compatible-with-making-tax-digital-for-vat However, if you have any questions or concerns regarding MTD for VAT or would like to talk over your business and the software options that might work for you then please do get in touch by emailing mtd@streetsweb.co.uk 36-37.qxp_Layout 1 05/04/2022 11:32 Page 136-37.qxp_Layout 1 05/04/2022 11:33 Page 2 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk OFFICE SOLUTIONS In the wake of the pandemic, the question has arisen over the purpose of offices. T wo years ago employees were rushed out of offices into their houses as a result of the COVID- 19 pandemic, seeing a huge shift in what we perceive to be the ideal environment for work. Though the outbreak showed that people can work from home effectively to a certain extent, with tools like Microsoft Teams and Zoom helping bridge communication gaps, it has also illustrated that not everything can happen from bedrooms and dining tables, and of course not everyone has the space at home to be able to work successfully. With restrictions lifted, the return to the office is firmly on the agenda, but with a novel view on how these should look and function, existing spaces are being repurposed to become more efficient and effective for new ways of working, especially hybrid working. Traditional workplaces have been designed to hold the majority of staff at one time, however this is no longer the Rethinking the office Rethinking the office 38-41.qxp_Layout 1 05/04/2022 11:34 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link OFFICE SOLUTIONS © stock.adobe.com/DigitalGenetics case, leading to smarter office design. Speaking to Chloe Sproston, creative and commercial director at Blueprint Interiors, about the future of the office, she explained to us: “It’s really now the case of answering the question: what is my office for? Generally the consensus is that hybrid working is here to stay, but the major trend we are seeing is a focus on activity. So moving forwards, rather than people just being allocated a desk in the office where they can come and sit and do similar things that could be done anywhere else, the office needs to provide a whole range of different settings for different tasks to take place.” Chloe continued: “What underpins everything is culture change, a shift from ‘you will be in the office from 9-5’ to ‘you are a knowledge worker and we trust you to meet your objectives how you want to get there’.” Offices full of desks are being repopulated with activity-based working, with a plethora of spaces that can accommodate how people work today, suit varying styles, and empower employees. Providing dedicated collaboration areas is of particular importance, with video calls less capable of recreating an effective environment for the melding of minds, and face to face interactions critical for ideas and innovation to happen. These might be 40 Á 38-41.qxp_Layout 1 05/04/2022 11:34 Page 2Next >