Financial Management Programme for Arts Creatives and Professionals

Slide Note

Explore the Mercury Creatives Professional Development Programme led by Kate Sarley, a seasoned Freelance Arts Consultant. Gain insights into financial management, self-employment, payroll, and company director invoicing. Learn about annual accounts, Excel vs. online accounting packages, and useful resources for small businesses. Enhance your financial acumen in the arts industry with practical guidance from an expert in the field.

sar_rud Follow

Uploaded on Dec 15, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

E N D

Presentation Transcript

Mercury Creatives Professional Development Programme Finance for Arts Creatives and Professionals Presentation from Kate Sarley- Freelance Arts Consultant

About Kate Trained in Technical and Stage Management at RADA. Freelance Stage Manager for over 10 years including contracts with RSC, Unicorn Kids Theatre and various West End productions. Worked on Capital Projects at Soho and Theatre Royal Stratford. General Manager at Colchester Arts Centre & Talawa Theatre Co. Freelance Arts Consultant since 2005 contracts included CEO Jacksons Lane, General Manager-Oval House, Hoxton Hall and Discover Children s Centre. Current contracts include Finance Management for tiata fahodzi and Culture&.

Agenda Annual Accounts Excel v Accounts packages including Sole traders, Limited Companies, VAT & PAYE COVID-19 Furloughed Employees Self-employment Government Business loans Delayed payment of taxes, including VAT, PAYE, Self Assessment Q & A

Self Employed Financial Records Purchased From Public Transport Accommodation Office Costs Bank Charges Hospitality Subscriptions R & DEquipment R & R Bank Charges Totals Date Item Travel Phones Premises 3-Mar-20 Tesco Octopus Energy fuel 53.79 53.79 6-Mar-20 utility bill 39.56 39.56 9-Mar-20 TV Licence 3.30 3.30 Bread & Roses Theatre theatre tickets 9-Mar-20 24.00 24.00 10-Mar-20 EE phone phone bill 70.26 70.26 10-Mar-20 Tesco fuel 56.58 56.58 16-Mar-20 EE broadband broadband 29.00 29.00 16-Mar-20 Anglian Water water bill 8.75 8.75 bank charges 30-Mar-20 13.00 13.00 110.37 0.00 0.00 0.00 70.26 77.31 0.00 0.00 0.0027.30 0.00 0.00 13.00 298.24 Excel vs. online accounts packages such as QuickBooks, Xero, FreeAgent, Kashflow & Sage

Payroll for small companies As a director the max you should be paying yourself through the payroll to avoid tax & national insurance but to ensure you are still eligible for state benefits is 790 per month The Basic Pay As You Earn (PAYE) Tools (BPT) is free software that you download onto your computer.. It s designed for employers who have 9 or fewer employees and has been updated so you can use it to work out payroll deductions and then report payroll information online in real time. Useful links https://www.gov.uk/government/publications/basic-paye-tools-first-time-users- download-and-install/first-time-users-download-and-install-basic-paye-tools

Company Directors invoicing As a company director if you are in receipt of regular income from the company you need to be on the payroll. You can only invoice if your duties are minimal, and are only those required under the relevant statute, constitution or trust deed you don t get a salary or any other form of regular payment for their services the only payment they get is a voluntary payment (honorarium), regardless of the work they do - tax and National Insurance are deducted by the appointing body https://www.gov.uk/employment-status/director

C19-Furloughed Employees Furloughed employees can get 80% of their monthly wage, up to 2500, paid by the Government until the end of July. Your employer can pay you more than 80% or 2,500. Tax, NI & Pension contributions will be deducted as normal. August to October, employers currently using the scheme will be able to bring furloughed employees back part-time. Full details by the end of May. Useful link https://www.acas.org.uk/coronavirus/furlough-closing-workplaces

C19- Self Employment You can claim Government support if you re a self-employed individual or a member of a partnership and: You traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year. You traded in the tax year 2019 to 2020. You intend to continue to trade in the tax year 2020 to 2021. Useful link https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment- income-support-scheme

C-19Bounce Back Loan The scheme helps small and medium-sized businesses to borrow between 2,000 and up to 25% of their turnover. The maximum loan available is 50,000. The government guarantees 100% of the loan and there won t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year. Useful links https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

Delay in payment of self employed tax The deadlines for paying your tax personal self employed bill are usually: 31 January - for any tax you owe for the previous tax year and your first payment on account 31 July for your second payment on account Because of coronavirus (COVID-19), you can delay making your second payment on account. If you choose to delay, you ll have until 31 January 2021 to pay it Useful links https://www.gov.uk/pay-self-assessment-tax-bill

VAT-Deferred Payments You must submit your VAT returns as normal. If you choose to defer your VAT payment as a result of coronavirus, you must pay the VAT due on or before 31 March 2021. You do not need to tell HMRC that you re deferring your VAT payment. If you normally pay by Direct Debit you should cancel your Direct Debit through your bank as soon as possible so that HMRC will not automatically collect any VAT due. You can cancel online if you re registered for online banking. Useful link https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid- 19#if-you-choose-to-defer-paying-your-vat

Deferring Payment of Other Taxes Including Corporation tax and PAYE Businesses facing difficulty making other tax payments may request a time to pay (TTP) arrangement with HMRC to defer payments which are due (or overdue). Taxpayers with a Customer Compliance Manager (CCM) should contact their CCM in order to make such an arrangement. Other taxpayers should contact HMRC via the dedicated Coronavirus helpline on 0800 024 1222 to make a request. Useful links https://home.kpmg/uk/en/home/insights/2020/04/tmd-deferral-of-tax- payments-to-hmrc.html