Donovan

Challenges faced by start-ups in Central London

While London may have cultivated a reputation for being Europe’s foremost start-up hub, the statistics for business survival rates are less than encouraging. According to data from the Financial Times, as of late 2017, only 50.1% of new companies in London lasted beyond three years. Add this to the fact that 2018 marked the first time small business growth numbers in the UK saw a deficit since the year 2000 (-0.5% growth), as well as figures suggesting that there has also been an exodus of start-ups from the capital into surrounding areas and other cities, and it becomes clear that start-ups in Central London will face serious difficulties when it comes to establishing themselves and staying afloat this year.

Let TaxAgility, London’s local small business accountants take a look at some of the challenges commonly faced by start-ups in the Central London area, and the ways your venture might be able to navigate and survive them.

High costs

It goes without saying that London, and in particular Central London, has always been among the most expensive places to settle and do business – primarily due to its status as one of the world’s finance and business capitals. Following the city’s recent start-up boom, an increasing influx of budding entrepreneurs has resulted in London becoming a victim of its own success, with high rents, tough competition and prohibitive initial start-up costs meaning new businesses are finding it harder to survive here.

While there is capital to be found in Central London, it’s an investors’ market - and as such, it isn’t always easy for start-ups to source the necessary capital required for establishing their business and surviving. Typically, investors in the UK are risk-averse and wary of ensuring their investments reap the best tax benefits, so funding momentum in the UK has never really taken off.

In order to survive, consider bypassing the traditional sources of capital. There are crowdfunding platforms that can assist with the funding of a start-up throughout its development and early years. Moreover, making use of more affordable co-working spaces instead of renting an office is also an effective strategy for reducing costs until you are well established and can afford your own space. These suggestions represent but a few of the plethora of tactics available to start-ups looking to find their place in the London market, and our local, specialist accountants are here to advise you on how best to do so.

Time management

Poor time management can hinder a start-up’s growth, and there are many distractions for a new business owner that can detract from workplace efficiency. From emails and phone calls to meetings and miscellaneous tasks, even the supposedly helpful incubators, accelerators and start-up conference events can hinder your business’s operations. Sometimes these events are more of an excuse for like-minded people within the start-up ‘industry’ to get together and engage in banter, and although this networking could potentially prove beneficial somewhere down the line, it’s not always the best way for an entrepreneur to spend their time.

Another potential time-waster you should be wary of avoiding is the “Hesitant Investor.” These are individuals who feign serious interest in your company, asking for information over and over again despite having already decided not to invest.

The key to navigating the issue of time management then is to be disciplined when it comes to your allocated tasks, which can be implemented by the use of a regimented planner to track and categorise all of your activities. You should determine the percentage of time you spend on each activity, and assess their importance and contribution to the overall growth of the business. Moreover, if you’re finding yourself inundated with work, another solution is to delegate tasks to employees or to outsource functions such as accounting, recruitment and marketing if they are not your main strength.

Building the right team

Often success for a start-up or small business relies on the talent at its disposal. If you can’t recruit the best talent, your business mightn’t be able to compete with start-ups that can, meaning you aren’t as equipped as your competitors when it comes to surviving. The cost of living in Central London is one of the greatest challenges faced by start-ups operating in this area and can be prohibitive, with average rentals higher than most places in the UK. Competition for talent has also driven up salaries, with the average weekly wage in Central London currently looming around £690.81, which your business may not be able to afford. Some solutions include hiring interns and apprentices from local universities, hiring from other countries and remote work until you can afford to hire in London.

Eventually, the long-term solution is to hire well and have a willingness to train. You might also want to consider applying for the Government’s Enterprise Management Incentive Scheme (EMI), which allows small businesses and cash-tight start-ups to offer employees equity in their company as a way of incentivising employment in circumstances where they can’t afford large salary packages. For more information about the EMI scheme, you can read here.

Marketing strategy

An innovative business idea will not guarantee success on its own. You need to know the best way to market your products and services via print media, online and mobile platforms, advertising and so on. The goal for this is simple, you want to maximise the return on your marketing investment, which means an efficient, targeted marketing campaign that delivers quantifiable results. It is usually best practice to outsource this if you’re not experienced or qualified, however, you don’t necessarily need to employ the services of an expensive marketing firm. A freelance researcher who has experience in your field of business can conduct market research to ascertain the most effective strategies for your company and will create a report with suggested niches, backed by potential profit margins and a complete SWOT analysis: Strengths, Weaknesses, Opportunities and Threats.

Accounting and bookkeeping

Keeping track of legal and financial records can be a daunting task for a new entrepreneur, and it is best to engage professional help. There are numerous London accountancy firms such as TaxAgility that cater specifically to start-ups and small business enterprises. Whether you work in Information and Software Technology or have the next big idea for Courier Services, we can assess, advise, prepare and manage your company’s financial and bookkeeping needs, while recommending grants and reliefs that will save you money. With the Government’s ‘Making Tax Digital’ initiative coming into effect on 1 April 2019 for VAT-registered businesses with a taxable turnover above the £85,000 threshold, and for all sole traders, partnerships, landlords and trading companies by April 2020, we can help you to choose the best, most efficient method for keeping your accounts in order – as a gold partner of Xero, TaxAgility can assist your business’s adherence to the imminent legislative requirements.

Taxes your business will be liable for

As a new business, there are certain taxes you need to be aware of. A reputable local accountant can keep your finances up to date while advising you on the best avenues for limiting any exposure.

• Corporation tax is the tax levied on a company’s profits. UK resident companies are subject to Corporation Tax in the United Kingdom on their worldwide taxable profits.
• Income tax is generally deducted from an employee’s salary on a monthly basis, through an employer-run system known as “Pay As You Earn” (PAYE) - paid monthly to HMRC.
• Value Added Tax (VAT) is a consumption tax on goods and services in the UK and European Union, with different member states having different levels of VAT.
• National Insurance Contributions (NICs) is the UK’s social security mechanism. Both employers and employees contribute to NICs as a percentage of the gross salary paid to an employee.
• Exemptions and relief - New businesses benefit from a variety of tax allowances and reliefs which can reduce their tax liability. Start-up businesses setting up in certain zones may qualify for a tax exemption of up to 100 per cent for five years. There is also an assortment of reliefs, such as capital allowance and research and development (R&D) relief which your business might be eligible for. Consult your accountant to see if your business qualifies.

What TaxAgility offers

The financial and regulatory requirements of a new startup can seem daunting to a new entrepreneur. Passion may not be enough to get you through, but a competent and trustworthy accountant can help. As local London accountants for small businesses, TaxAgility can advise you on important issues and help you with accounting tasks such as:

• Assessment of your financial requirements, including advice on finance sources, introductions to banks and preparation of the necessary proposals
• Advice on the most suitable structure for your business – sole trader, partnership or limited company
• Advice on possible qualification for tax-efficient investment schemes such as the Enterprise Investment Scheme (“EIS”) and the Seed Enterprise Investment Scheme (“SEIS”)
• Preparation of your business plan, cash-flow projections, budgets, and trading forecasts
• Completion of registration with Companies House and HM Revenue and Customs
• Management of company secretarial services
• Advice on setting-up financial, management and record-keeping systems in compliance with statutory requirements

For more information or to get in touch regarding your start-up or small business, simply fill out our Online Form, or call us on 020 8108 0090.

This post is intended to provide information of general interest about current business/ accounting issues. It should not replace professional advice tailored to your specific circumstances.

If you liked this article, check out:

• Guide to setting up a medical practice in Central London
• Guide to setting up a gastropub in Central London
• Guide to setting up a retail outlet in Central London
• Top tips to being a successful start-up in Central London

by Donovan

Guide to setting up a retail outlet in Central London

London is one of the fashion and shopping capitals of the world, so it’s only natural that retail businesses represent a substantial cross-section of London's economic landscape.

The retail industry today contributes significantly to London's economy, with the sector accounting for about 40% of all money spent in London and providing approximately 400,000 jobs or 9% of all employment in the metropolitan area. In recent years the city has become much more accessible for small businesses and start-ups, which is why so many small retailers can thrive in the financial capital.

Is Central London right for your retail outlet?

As the focal point for the city’s tourism and a locus for energy and activity, Central London offers tremendous potential for shopping and retail. It is home to many offices, businesses and cultural attractions and well served by rail and Tube transport links. Central London has also been popularised for its distinctive shopping areas like Oxford Street, Soho, Covent Garden and Carnaby Street and is continuing to sprout vibrant new commercial districts. As London’s local accountants, we understand the need for the perfect location for your business and can provide advice on the potential of various locations around our city.

Start with a business plan

To begin with, a formal business plan helps to determine how much money you need to start your business. This should include realistic, well-researched calculations for start-up costs and the monthly operating expenses for your retail outlet.

The plan should also show financial forecasts, as well as how long it will take until your business breaks even. A 5-year Financial Projection of Income and Expenses should be included, detailing the forecasts for the first three years on a monthly basis and then annually in years four and five.

A comprehensive business plan should give you a realistic idea as to how much capital you will need for your business. It proves to the bank or any other lenders that you have considered all of the costs and risks of running the business, and that your start-up is worth the investment. For bespoke advice on the best options for lending capital to start your small business, consult TaxAgility, your local London accountants.

Estimate expenses for your retail outlet

One of the most challenging tasks when beginning a small business in Central London is making a fair, unbiased assessment of your future expenses. Underestimating these can be incredibly dangerous for your business and its long-term prospects, so it is always advisable to be conservative and overestimate rather than underestimate when forecasting your business’s costs.

Unforeseen costs are always likely to arise once the retail outlet opens for business, and no matter how big or small, these items need to be accounted for as they can eat into your revenue over time. Making room for these expenses is the best course of action, and pre-empting unexpected leaks by being as thorough, accurate, and realistic as possible in the planning stages is good practice. When preparing your business plan, you should include a 24-month cash flow budget, and some of the expenses you should include in this are:

• Basic Start-up Costs – This list should include everything that your retail store will need to open the doors and keep them open. Identify every single expense required for the business to run, right down to the toilet paper, then research how much each line item will cost. A typical list will include rent, license and permit fees, store fixtures, inventory, equipment and technology, web hosting, cleaning services, business insurance, advertising and professional services.
• Operating Expenses – These are expenses that maintain the business until it breaks even. Many of these will be included in your initial start-up costs. Most businesses do not make a profit in the first months and for some it can even take years.
• Borrowing Costs – For small business owners, the most likely source of financing comes in the form of a small business loan from a reputable bank or savings institution. These are accompanied by interest repayments which will need to be forecast and accounted for.

If you would like more information regarding the potential expenses your business may incur or require assistance with your plan, TaxAgility is more than capable of providing helpful guidance and insight.

Finding your small business’s niche

Finding your niche should be the first decision you make when starting a shop. Survival in the highly competitive retail industry depends on your business finding a niche in the market and catering to this. If you don’t have your own product to sell, then identifying your target market and selecting the right products for this market is of critical importance.

Ideally, you should be selling a product that you are passionate about, have made yourself, or understand well before committing to setting up a shop. You should also ensure that you’re able to make or order enough product to stock up your shop in order to keep up with sales. This will likely mean looking into outsourcing your production once you start generating enough business.

Store location

For a brick-and-mortar store, location is of the utmost importance and can make or break a new retailer. When looking for a commercial property, the retail entrepreneur should make sure that the local area has enough walk-in traffic to sustain the business, otherwise the store will need to make up for this in the form of advertising.

When researching the area, check out any potential competitors nearby, the amount of organic, pedestrian traffic, the cost of the area and whether the premises has sufficient available space. While there are risks when opening a physical storefront, the opportunity for success and profitability is also one of its biggest drawcards.

Having a physical store does not mean you cannot sell online too. If you’d like to know how to make your website work smarter for you, click on the link and have a quick read.

Shop branding

Branding is the paradigm that consolidates your business’s identity. Integrating your shop’s name, the business’s logo, your merchandise, and the store’s aesthetic is an important strategy in any business. As effective branding is vital to the growth and profitability of your store, consider:

• Communicate your business’s personality. Whether your store is high-end or casual, the branding should convey the tone of your business and should make this apparent to your customer.
• Appeal to the tastes of your target audience and represent their values and preferences.
• Guarantee the quality of your product and promise a good shopping experience.

Equipment and utilities

More than likely, your shop will need to be equipped with the necessary equipment for displaying merchandise, as well as a counter, over which you can accept payments. You will also require a till, an Electronic Point of Sale (EPOS) system, and possibly some form of inventory management system, depending on the scale of your operation. These will all contribute to your initial start-up costs and should be included in your expenses and business plan.

Shop regulations

To satisfy certain legal requirements, the new shop owner needs to ensure that the business complies with various regulations. The Sale of Goods Act 1979, the Supply of Goods and Services Act 1982 and the Sale and Supply of Goods Act 1994 outline the requirements of retailers and they mainly cover the quality of goods for sale and the accuracy of their descriptions. Moreover, as a business, you will need to adhere to the tax and Value-added tax (VAT) regulations as dictated by HMRC.

Further to this, there are a number of health and safety regulations set out in the Health and Safety at Work Act (HSWA) 1974, Management of Health and Safety at Work Regulations (MHSWR) 1999 and The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 1995. UK businesses are also subject to the European-wide General Data Protection Regulation (GDPR), which limits what they can do with customers’ personal data. For any assistance with the tax regulations outlined here, our specialist start-up accountants can offer bespoke, helpful advice tailored to your business.

Licenses

Depending on the nature of your retail business, there may be various permits and licences you will need to:

• Sell alcohol or tobacco
• Run a pet shop
• Trade through a street market stall
• Prepare and sell food and drink on your premises

In order to apply for one of these licences, you will need to consult local council authorities to have your business verified and have your licence approved. Running a business without the applicable licence can incur large fines and sanctions for the proprietor.

Shop insurance

All businesses need to have insurance to cover various eventualities. For retailers, the most common ones required are:

• Public liability insurance provides coverage for the business in the event that a customer suffers injury, illness or damage as a result of your business and makes a claim against you.
• Product liability insurance provides coverage for the business in the event that a customer claims they have suffered a personal injury or property damage as a result of a product they purchased from your shop.
• Employers’ liability insurance is a legal requirement and covers claims from employees who suffer injury or illness as a result of working for you.
• Equipment cover is applicable for equipment like electronic tills and POS devices, which are expensive. Having them insured in case of damage or theft is a good practice.

Staffing

You may start by running the business on your own, but as you begin to grow, the business will require staff to share the workload. Further to this, you may need to employ someone with skillsets that can complement yours. For specific services like accounts and bookkeeping, as well as payroll, consider outsourcing them to a trusted local accountant.

How TaxAgility can assist your retail business in Central London

The financial and regulatory requirements of a new start-up can seem daunting to a new entrepreneur. While passion may not be enough to get you through, a competent and trustworthy accountant in London definitely can help.

At TaxAgility, we are trusted accountants for small businesses. We can advise you on important issues such as:

• Assessment of your financial requirements, including advice on finance sources, introductions to banks and helping with the necessary proposals.
• Advise on the most suitable structure for your business – sole trader, partnership or limited company.
• Advice on getting your capital through tax efficient investment structures such as the Enterprise Investment Scheme (“EIS”) and the Seed Enterprise Investment Scheme (“SEIS”).
• Preparation of your business plan, cash-flow projections, budgets, and trading forecasts.
• Completion of registration with Companies House and HMRC.
• Management of company secretarial services.
• Advice on setting-up financial, management and record-keeping systems in compliance with statutory requirements.

Call us today on 020 8108 0090 or use our Online Form to set-up a no-obligation meeting.

This post is intended to provide information of general interest about current business/ accounting issues. It should not replace professional advice tailored to your specific circumstances.

If you liked this article, check out:

• Challenges faced by start-ups in Central London
• Guide to setting up a medical practice in Central London
• Guide to setting up a gastropub in Central London
• Top tips to being a successful start-up in Central London

by Donovan

Guide to setting up a gastropub in Central London

If you consider yourself to have the temperament required to be both a pub owner and a restauranteur, then the life of a gastropub owner may appeal to you. The term gastropub entered the culinary vocabulary in the 1990s to describe a bar cum restaurant that elegantly balances a classic pub aesthetic with high-end food and drink – one of the many reasons as to why gastropubs have become a worldwide phenomenon. London’s accountant TaxAgility provides some tips to consider before opening your very own gastropub in Central London.

Why Central London

London leads the charge as the gastropub capital of the world. Home to many cultural attractions, shopping districts, as well as a vibrant nightlife scene and decorated dining establishments, Central London is a bustling hive of activity – and the perfect setting for a quaint gastropub. While the city has cultivated a reputation as a hub for finance and business, it is rapidly becoming the place-to-be for independent start-ups and budding small businesses like gastropubs too.

Choosing a business model

There are typically a few traditional routes into the pub trade, with varying degrees of freedom and financial cost for the proprietor. These are:

• Pub tenancy: The pub operator takes on a tenancy, which is a short-term lease of two to five years from a pub company or brewery. In this case, the pub company offers support by way of maintaining the property. Often there is a requirement to sell the lessor’s beers. This is the lowest cost avenue for new pub operators, albeit with the least freedom.
• Tied or free-of-tie leasehold: This is a longer lease, usually around 20 years, with the licensee enjoying some degree of support from the lessor. Under a tied leasehold, the licensee is required to purchase a large portion of the pub company or brewery’s drinks, though this mightn’t be a constraint if your gastropub focuses on food. A free-of-tie leasehold has no such restriction, meaning you’re able to tailor your drink selection specifically for your food, however, this is more expensive.
• Freehold: This is the most expensive route to acquiring a pub, but the operator owns the property outright and has complete control over the business and its operation.

For a gastropub, a tenancy is usually not ideal as they are not assignable, meaning the agreement cannot be sold for a profit later to another party despite any improvement you have made to the pub and its business. Likewise, good quality freehold options can be hard to find, as not all of them are suitable for conversion into food-based establishments or conducive to fine dining. Tied and free-of-tie leases are becoming increasingly popular for new pub owners due to their greater freedom and flexibility, however, it is recommended that you have some experience in the industry before committing to such a substantial agreement. Whichever option you choose, the pros and cons of each arrangement will need to be weighed.

Capital and business plan

A gastropub start-up incurs considerable initial costs, whichever business model you choose. Operating costs like mortgage, utilities, wages, food and beverages, rent and property upkeep will also take up a hefty portion of your cash-flow. Moreover, a refurbishment or refit might be required to convert your property into a functioning gastropub, which could demand considerable investment, not to mention the task of marketing your new venue and building the pub’s brand. To secure financing for the business, the gastropub owner will need to outline projected costs and revenues realistically, and then write a business plan. Typically, any necessary start-up capital can be borrowed from a reputable bank, however, you should always consult a specialist lawyer or accountant before borrowing or investing.

Pub start-up costs: What does it cost to start a gastropub?

Your costs will vary according to the specific business model you choose, but as a rule, they can be broken down into the following:

• Premises: These include but are not limited to, rent or lease costs, service charges, business rates, waste management, pest control, buildings insurance, not to mention the initial purchase investment for a freehold.
• Food and drink costs: As a general rule of thumb, the cost of food is 35% of the sale price and 15-20% on drink prices.
• Staff wages: Staff costs are fixed and likely to be the largest part of your business’s overheads. You should try and keep this to less than 50% of the total overheads.
• Legal and compliance: As the licensee and proprietor of the business, you will be responsible for public and employee liability insurance, stock insurance, as well as buildings and contents insurance. On top of this, there will also be alcohol licenses and an A3 planning licence in order to serve hot food on the premises.
• Refurbishment and refit: For a gastropub, your priority should be the front of house, including the façade and dining area, as well as toilet facilities and back of house, which includes the kitchen, arguably the most important aspect of a gastropub, and any equipment required.

Rules and regulations of the pub business

Under the 2003 Licensing Act, the responsibility for issuing personal and premises licences rests with local authorities, typically the local council, and is overseen by the Home Office. Businesses such as pubs and gastropubs that sell alcohol are required by law to hold a premises licence. In addition, the owner of the business authorising the sale of alcohol must also apply for a personal licence, alongside the premises licence. This is where the term ‘licensee’ comes from.

A licenced pub must meet the four objectives set out in the Licensing Act 2003: to prevent crime and disorder, protect children, ensure public safety, and prevent public nuisance.

In order to apply for a premises licence your business will need to meet certain requirements. Upon application, you will need to provide: your details, details of the premises supervisor, a comprehensive plan of the premises as well as an operating schedule documenting the licensable activities of the business, opening hours and how your business will meet the aforementioned licensing objectives.

Likewise, when applying for a personal licence, the following conditions must be met: you must be at least 18 years old, complete an accredited training course on licensing laws and the service of alcohol, apply for a DBS check and also have the right to work in the UK.

As well as submitting your application to the local council, you will be required to provide copies to ‘responsible bodies’ for approving your applications. Apart from the local police, these can include:

• Local fire and rescue services
• The primary care trust (PCT) or local health board (LHB)
• The environmental health authority
• The health and safety authority
• The local planning authority
• Local trading standards officers
• Any other licensing authority in whose area part of the premises is located.

A qualified chartered accountant for start-ups such as TaxAgility can advise you on all the regulations you will need to meet when starting your gastropub in London.

Revenue and cash-flow

When it comes to your initial start-up, restauranteurs advise having enough cash to cover the initial cash-flow, as this is the major challenge for most licensees. While operators on a leasehold enjoy a level of security with a longer agreement, there is a risk further down the road with reassignment. This is because many leases hold the original lessee responsible if the replacement licensee fails and breaks the lease, even if they are no longer involved and/ or have sold the lease.

While many gastropub operators thrive when it comes to providing an outstanding food and drink service, they can often fall short at managing the financial aspect which could result in unnecessarily high costs and poor cash flow. As it’s essential to at least break even in the first year of business, it’s vital to have a qualified accountant for start-ups like us to assist.

How TaxAgility can help your gastropub in Central London

As an experienced London-based chartered accountant for restaurants, TaxAgility can offer the new gastropub operator these essential services:

• Assessment of your financial requirements, including advice on finance sources, introductions to banks and helping with the necessary proposals.
• Advice on the most suitable structure for your business – sole trader, partnership or limited company.
• Advice on getting your capital through tax efficient investment structures such as the Enterprise Investment Scheme (“EIS”) and the Seed Enterprise Investment Scheme (“SEIS”).
• Preparation of your business plan, cash-flow projections, budgets, and trading forecasts.
• Completion of registration with Companies House and HMRC.
• Management of company secretarial services.
• Advice on setting-up financial, management and record-keeping systems in compliance with statutory requirements.

Call us today on 020 8108 0090 or use our Online Form to set up a no-obligation meeting.

This post is intended to provide information of general interest about current business/ accounting issues. It should not replace professional advice tailored to your specific circumstances.

If you liked this article, check out:

• Challenges faced by start-ups in Central London
• Guide to setting up a retail outlet in Central London
• Guide to setting up a medical practice in Central London
• Top tips to being a successful start-up in Central London

by Donovan

Guide to setting up a medical practice in Central London

London is one of the world’s leading commercial and financial centres, and has historically attracted a high concentration of medical practices. Harley Street in Central London for instance, has been a notable area for medicine and surgery since the 19th century. Today, quality care can be found beyond Harley Street and throughout London, including around Cavendish Square Gardens, a stone’s throw away from the Royal Society of Medicine.

There are both benefits and drawbacks to opening a medical practice in Central London. On one hand, it represents a large, growing market and possesses a convenient central location, easy access to transport, a deep talent pool for recruitment and well-developed infrastructure. On the other hand, London is renowned for high property prices and high wages. Let TaxAgility, the London Accountants for start-ups walk you through some of the considerations for setting up a medical practice in Central London.

Funding options

There are a number of costs to consider when setting up a medical practice, such as utilities, wages and stock purchase, as well as rent or mortgage payments. While it is commonplace to borrow the necessary capital from a reputable bank and spread the cost over a longer term, there are now other lenders that also can cater to small businesses.

In addition, you may qualify for the Enterprise Investment Scheme (EIS) or the Seed Enterprise Investment Scheme (SEIS) - two UK government initiatives that encourage innovation by granting private investors significant tax breaks when investing in companies.‍ Our accountants are happy to discuss funding options available to set up your medical practice.

Choice of business structure

You need to decide on the most suitable structure to incorporate your practice, with Partnership, Limited Liability Partnership (LLP) or Private Limited Company being the popular choices.

The suitability of the structure depends on the type of practice you will be running. These have an impact on the ways you manage your liability, pay your tax and how profits are distributed. It is best to engage our specialist accountants in discussing the best structure for your medical practice.

Business plan, cash-flow projections, budgets, and trading forecasts

Initially, you should draw up a business plan that stipulates your operation plans, your team, customer analysis, competitive analysis, marketing plan and financial plan. Ideally, the financial section should comprehensively outline the costs from setting-up to on-going, as well as how your medical practice plan to generate revenues and your goals.

Consider setting financial Key Performance Indicators (KPIs) and use the data to help spot short-term problems and long-term trends. While there are no rules for which KPIs to use, a few worth considering include net profit margin, current ratio, working capital and debt ratio. At TaxAgility, we have been helping small businesses across London setting up their financial KPIs and we would be happy to work with you too.

Once you get the business going, cash-flow is key and keep a look out for cash-flow gap (when your cash inflows and outflows don’t line up). Again, this is an area which we’re happy to assist in.

Buying or leasing your premises

Unlike most other commercial properties, medical practice premises have to comply with a number of strict regulations. They are categorised as “D1” properties under the Town & Country Planning Act 1987, with some being purpose-built clinic and healthcare spaces that can be immediately set up for practice. These are usually available for lease, however, can also be purchased outright. Our local Accountants can advise on the best strategy for your practice, as well as any rental reimbursements that you may be entitled to.

Register with private health insurance companies

While the National Health Service (NHS) covers the majority of the healthcare sector in the UK, there is now a growing trend for private healthcare. There are quite a few top private medical insurance providers that are responsible for covering in-patient and day-patient costs - provided that your practice is registered with them.

Legal checks

Your medical practice will need to comply with numerous registration and licensing requirements, including the General Medical Council, Companies House and HM Revenue & Customs, Care Quality Commission (CQC), Data Protection Act and Disclosure and Barring Service.

Practice Insurance

Practice insurance is a necessity for all medical practitioners as it protects the physical building and the contents within; as well as your revenue in the event of a material damage claim. In addition, a policy covers your liabilities to the public and your employees as part of meeting your legal obligations as an employer. An all-encompassing practice insurance policy is recommended and provides peace of mind.

Setting-up financial, management and record-keeping systems

Once the practice is established and running, you will need a system of checks for accountability. Our accountants for start-ups, located in Cavendish Square, have the experience to monitor medical practices and review your operations.

How TaxAgility can help your medical practice in Central London

Private medical practice in the UK is ever evolving, and changes in regulations and the insurance market can also affect the industry. For a start-up practice like yours, our experienced start-up accountants in London can be a source of trusted financial and legal advice.

Simply call us today on 020 8108 0090 or use our Online Form for more information on how we can help you.

This post is intended to provide information of general interest about current business/ accounting issues. It should not replace professional advice tailored to your specific circumstances.

If you liked this article, check out:

• Challenges faced by start-ups in Central London
• Guide to setting up a retail outlet in Central London
• Guide to setting up a gastropub in Central London
• Top tips to being a successful start-up in Central London

by Donovan