uk

Osome UK Blog contains information that helps to run a business in the UK more efficiently: save on taxes, prevent fines, and use the rules to your advantage

A collection of 63 posts

Hire Purchase

Hire purchase is an agreement that lets you buy expensive goods without paying the whole price right away. The difference from a purchase on credit is that you do not own the item

6 min read

2,000 Osome Clients

It took us 15 months to grow the first 1,000 clients. Now, only six months later, another 1,000 business owners joined us. Thank you for trusting Osome!

1 min read

Osome Becomes Xero’s Gold Partner

Osome has received the gold partner status from Xero, a cloud-based accounting software platform. With only 30 Singapore companies holding this title, Xero recognizes Osome expertise in bookkeeping, accounting, and taxation.

2 min read

Big Ben, Victoria Peak, and $3 Million

Osome announced a $3 million financing led by Target Global. The new investment will help expand its technology platform to the UK and Hong Kong, and already started testing these markets.

2 min read

Osome achieves Xero Platinum status in 3 months

Xero, the global small business platform, awarded Osome with a platinum partner status. This is the highest level of recognition that Xero offers to their counterparts, with only 3 other companies in Singapore holding the title.

2 min read

Book Value

2 min read

Return on Investment (ROI)

What is ROI?Return of Investment (ROI) is one of the basic metrics in financial analysis. It measures how much financial gain (or loss) an investment brings compared to the total cost of

5 min read

Bad debts

Bad debts of your business are the money that you are sure you will not collect. You only have to record the bad debts if your business sticks to the accrual accounting principle

2 min read

Chart of accounts

A chart of accounts (COA) is a list of all your company’s accounts in the general ledger, divided into subcategories, registered in a specific accounting period. For example, when your business has

2 min read

Deductible

The term “deductible” in accounting is usually applied to the expenses your company has  — “deductible expenses”. You can deduct these expenses from your profit before you report your taxable income to HMRC  — the

2 min read

Council Tax Break

What Is Council Tax & Council Tax Break? What Are Council Tax Bands? Who Pays Council Tax? How To Pay Council Tax Bill? What Is Council Tax & Council Tax Break?Council tax is

4 min read

Markup

Markup is the difference in the amount of money you paid for the product against what your customer paid for it. In other words, it is how much money you charge on top

3 min read

Liability

Liabilities are anything that your business owes to anyone — banks, suppliers, your own employees or even your clients if they launch a lawsuit against your business and the court obliges you to pay.

4 min read

Cash accounting

Cash accounting method or cash accounting basis is a way of recording your sales and purchases when you make a note about them in the ledger at the time money comes to your

2 min read

Closing balance

A closing balance is an amount of funds your business has at the end of a particular chosen accounting period — a day, a month, a quarter or a year. Once you calculate the

2 min read

Opening balance

An opening balance is the amount of funds your company has at the beginning of an accounting period you want to analyse or the one you report to the tax authority: a day,

1 min read

How Saying “No” Can Become Your Superpower in Every Negotiation

Compromise ruins negotiations. The win-win approach ruins negotiations. What doesn’t? Saying “no” whenever it needs to be said. This is the essence of Jim Camp’s theory. The rules he put forward 4 rules will help you feel confident and seize opportunities inside and outside the conference room.

10 min read

KPI

What is a Key Performance Indicator? Types of Key Performance Indicators What KPIs are important for my business? How do I identify relevant KPIs? Examples of KPI What is a Key Performance Indicator?

4 min read

Horizontal Merger

A horizontal merger is a merger of two companies that operate in the same industry. Let’s define how horizontal mergers work, discover why competitors could want to merge and compare a horizontal and a vertical merger.

3 min read

Ordinary Share

Ordinary shares allow shareholders to vote and to receive dividends. Let’s define the ordinary shareholders’ rights, discover ordinary shares advantage and compare them to preference shares.

3 min read

Liquidity

What are current assets and current liabilities? How to measure liquidity? How to increase liquidity? Liquidity vs solvency Liquidity is a touchstone of your company’s ability to pay its bills and debts

5 min read

Invoice

An invoice is a way to get payment from your client, for example, if you sell coffee beans to the coffee shops — you issue invoices for them to pay. Or if you have

2 min read

Billing

When you sell your goods and services, you want money for them — and bill your customers. Billing works like this: you provide a service, you issue an invoice, the customer makes the payment,

2 min read

Petty cash

Petty cash is a certain sum of money (obviously, in cash) that your business keeps at hand, in case you need to pay for some small and not expected expenses. It is better

2 min read

Ledger

A ledger, or general ledger, or general journal or just GL covers all the financial information about your company. The data on a ledger helps you guide your income and see quickly how

2 min read

Working capital

Working capital, also known as net working capital or NWC is the net liquid assets of your company — which is calculated by deducting current liabilities from the current assets. How much available working

4 min read

How to Regulate Your Relationship with a Business Partner under English Law

Whoever is becoming your partner, an old friend, your wife, or an investor, you'd better agree on how your partnership will work before you start doing business. We explain what to pay attention to and how legal documents can help.

6 min read

Invoice factoring

Invoice factoring can also be referred to as accounts receivable factoring, just factoring, or sometimes accounts receivable financing. This type of financial transaction allows a business to sell its accounts receivable (invoices) to

2 min read

National Insurance

National insurance or National insurance contributions (NIC) is a tax in the UK which both employees and employers pay. You must pay it if you fall under certain conditions, though, you can also

4 min read

Capital expenditure

Capital expenditure, or capital expense, or CAPEX is expenses your company incurs to generate benefit in the future. CAPEX goes in contrast with OPEX — which stands for the day-to-day costs of the company.

3 min read

Operating expenditure

Operating expenditure, operating expenses (OPEX) or manufacturing expenses are the costs that your company incurs while the main product of your business is being produced. OPEX include: MaterialsLabour costsMachineryThe energy needed to produce

2 min read

Non-executive Director

A non-executive director is a person in your company who is the one on the board of directors who does not have any executive powers. This person does not take part in the

4 min read

HMRC

Her Majesty’s Revenues and Customs (HMRC) is the main tax collecting authority in the UK. It is responsible for collecting: Income TaxCorporation TaxCapital Gains TaxInheritance TaxInsurance Premium TaxStamp DutyLand and Petroleum Revenue

4 min read

Exit strategy

4 min read

Break-even point

A break-even point (BEP) — in accounting and finance — is the term defining the stage of business development when the revenue you make equals the costs. Putting it another way, it is a point

3 min read

Balance sheet

A balance sheet (aka a statement of financial position) is a document showing the net worth of your company at a particular moment of time. It usually looks like a table with sections

6 min read

Minimum wage

A minimum wage (or national minimum wage, or NMW) is the lowest per hour wage that you can pay to an employee. The law defines this figure, and most of the countries in

3 min read

Turnover

Turnover, as an accounting term, is used in several spheres of business operations, helping to make estimations on your company. The basic meaning of turnover is sales turnover — standing for just the revenue

2 min read

SMEs

“SMEs” or small and medium-sized enterprises is a special category of companies that is defined by a certain level of revenues, assets or number of employees. The industry where a company operates might

3 min read

Overheads

Overheads, also known as indirect costs or burden, are those costs that are not involved in generating profit, but they ensure your company’s day-to-day operations. Overheads include, for example, accounting and legal

4 min read

Stakeholders

A stakeholder, generally viewed, is any party that has any interest in your business. Stakeholders can be individuals, any groups and even organisations. While the primary and typical types of stakeholders are your

4 min read

Fairtrade

Fairtrade notion applies to the trade between companies from developed countries and producers from the developing countries and aimed at helping the latter to function and grow more efficiently. The key difference from

3 min read

Operating profit

Operating profit — or operating income — is a profit your company gets from its core business activity. It is calculated before you deduct interest and the taxes you must pay. Operating profit is one

3 min read

Tools to Keep Track of Your Startup Finances: P&L and Cash Flow

Running out of cash is a Number 2 reason for startup failures. So how to avoid cash disappearing into the void? Even if you are bad with numbers and find mathematics exhausting, you can use two simple tools to organise your finances: P&L and Cash Flow statements.

10 min read

How Can a Foreigner Open a Business Bank Account in the UK?

Can a foreigner open a business bank account in the UK? Yes! Nothing stops UK banks from opening business accounts for non-residents. We look at your options if you don’t want to buy or rent property and compare the bank tariffs for you.

10 min read

Form P50: Get Your Money Back Before the End of the Tax Year

If you overpay your taxes and you don’t get any taxable income for 4 weeks, you can contact HMRC and claim your refund straight away. That is what P50 is for. We look into the process and give tips on how to make things happen.

3 min read

What is Business Mileage and Who Can Claim It?

If your employees drive back and forth for business purposes, it’s a business-related expense. Thus, employees can claim petrol money back, and the firm can deduct these reimbursements from its taxable income. In the article below, we break down the latter — the so-called business mileage claim.

4 min read

All Filing Requirements & Deadlines for a Small Business in the UK

As a limited company director, you have to keep 2 government agencies informed about your business: HMRC and Companies House. There are various forms and payments to take care of, and different filing timelines do not make it any easier. Let us glue all the pieces into a single picture, shall we?

6 min read

Selling Your Business? Entrepreneurs’ Relief Helps to Pay Less Tax

Entrepreneurs’ Relief (ER) allows you to pay less tax when you sell your company. ER is great for those unhappy with where their startup is going but unwilling to give up on their entrepreneurial career. ER can save some money and also bring enough funds to start a new business from scratch.

4 min read

How to legitimately reduce your corporation tax

You can take advantage of the legitimate ways to reduce your corporation tax, such as claiming expenses, paying yourself a salary, and spending profits. We explain each step with examples and show how you could reduce the tax you owe more than by half.

5 min read

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