How to pitch your business to the press

Press releases

• Don't write advertising copy. Unlike a commercial, a press release must deliver actual news or interesting information — something that's newsworthy. It should read like a news story with a catchy headline. The article should answer the big five questions — who, what, when, where, and why. Then weave in quotations, testimonials, statistics and an anecdote or two. Ideally, a well-written press release should instill in readers a desire for more information.

• Send it to the right person. Publications often have many departments, each of which may be inundated with press releases from governments, businesses, and other organizations. Don't send your carefully crafted press release about construction trends to the fashion editor.

• Keep it simple. A standard press release usually runs from 400 to 500 words — just enough words to pique a reader's interest. Use standard language and avoid jargon. Remember, if your readers can't understand your buzz words, they'll quickly lose interest. Keep your sentences short and to the point.

Interviews

• Be prepared. Anticipate your interviewer's questions by creating a brief fact sheet about your firm that can be referenced during the interview and given to the reporter when he or she leaves. Try to recall human interest stories that relate to the history of your business, its staff, or its customers. Come to the interview with a few fleshed-out story ideas, complete with statistics and pertinent facts. If you want your story published, make the reporter smile.

• Don't fuss. If the reporter (who, after all, knows a lot more about the publication's readers than you do) wants to take the story in a different direction, be flexible.

• Be available. Remember, journalists have deadlines. A wise business owner will consider those restraints and provide access at any reasonable time.

Following a few simple guidelines can help ensure that your business is recognized in the press and discovered by potential customers.

*****

VAT Returns Online - Register Now!

From April 2010, all VAT registered businesses with a turnover of more than £100,000 and all newly registered businesses of any size, will be required to submit their VAT returns online and pay any VAT due electronically. If you are not yet set up to submit online you should consider doing so as soon as possible to ensure that you and your systems are ready for the new requirements next year. For more information, contact us now.

Tax Free Subsistence Payments

Companies with mobile workforces could gain from HMRC’s new scale rates for subsistence payments.

How much can be paid to employees tax free for subsistence? Up until now there has not be any satisfactory answer. However, HMRC issued a brief (24/2009) on 3 April regarding new changes from 6 April. A new scale of fixed allowances is now available for employees’ subsistence. As long as the employee has incurred subsistence expenses while travelling on an allowable business journey the employer will be able to pay the following amounts tax free:

Breakfast rate - £5.00 if the worker leaves before 6am and buys a meal away from home. This can only cover irregular occasions. If they usually leave for work early then nothing can be claimed.

One Meal Rate - £5.00 as long as the worker is away from home/usual workplace for at least 5 hours and has bought a meal.

Two Meal Rate - £10.00 as long as the worker is away from home/usual workplace for at least 10 hours and has bought a meal.

Late evening meal rate - £15.00 if the worker has to work later than 8pm having worked their usual hours and buys a meal away from home. If they usually work late then nothing can be claimed.

These allowances can be combined. For instance, the ten hours and evening meal allowance could both apply.

To be able to use the new system employer needs to keep accurate records as usual and to apply for a dispensation. To do so you need to complete a form P11DX by ticking the appropriate box. None of this effects current agreements until they are reviewed. However, it is always possible for you to reapply to change the agreement that you have.

Travel and subsistence is always a favourite area for PAYE Auditors to check, and we have seen many examples of employers facing large tax demands after compliance checks on their procedures. A simple, compliant system, coupled with a detailed dispensation is a valuable insurance policy against such demands.

*****

Improve Your Debt Collections

Do you find that despite your best efforts to charge customers up front and to plan for the worst, bad debts still cause major problems for your business?

Many business owners find that continual late payments - and the ability of large customers to decide to pay as and when they want to - can contribute to negative cash flow. We look at ways to improve your debt collections and, hopefully, to ease your cash flow difficulties.

1. Choose the right customers

Be selective about the organisations with which you intend to do business. This can be difficult if you are dependent on a few large customers or if your customer base is dwindling, but once your business has reached a manageable level of stability it is a good idea to research all prospective clients. You should:

• obtain credit references on potential customers
• avoid doing business with companies with poor credit ratings
• ensure that the prospective customer knows your payment terms from the outset

2. Implement a debt collection policy

Establish a policy to ensure that you keep control of debt collection. Develop a set routine, such as the one outlined below. This will prevent the build-up of a pile of unsorted, unorganised bad debts.

A typical debt collection policy

If your terms state that payment must be received 30 days after invoicing, you should…

• Invoice at the earliest opportunity, stating the payment terms clearly on the invoice
• 15 days after invoicing, telephone the customer. Thank them for their business and ask if they are satisfied with your work or product
• If no payment has been received after 31 days, send a reminder and call the customer to inform them that you are initiating collection efforts.
• Telephone the customer every two or three days. Bad debtors rely on the negligence of their creditors. Continual calling will let them know you are aware of the debt and show them that you are willing to take action.
• If there is a query or payment problem, arrange a new settlement date by telephone. Confirm this date in writing and state clearly that if payment is not made by this date, the matter will be referred to either:
  • A debt collection agency
  • A firm of solicitors, or
  • The county court small claims department
• If the debt is still due after this, keep your word and take action.

3. Hire the right staff

Involve all of your staff in the invoicing and collections procedure. An aggressive debt-collections manager, backed by a helpful support team is essential for a successful company. Ensure that your sales team and project managers are aware of late-paying customers to establish a widespread and knowledgeable defence against bad debtors.

4. Rotate the debt collection staff

If you have several employees responsible for collecting debts, it can be effective to rotate them for difficult customers. This disorientates bad debtors and reminds them that they are dealing not just with one person but an entire company. It will also allow your staff to become more knowledgeable and flexible.

5. Make use of payment plans

Payment plans become necessary when the customer cannot pay the entire amount due in one instalment. To avoid future misunderstanding, commit an agreed plan to paper and ensure that both parties sign the document. For help with structuring a suitable payment plan, we will be happy to help you.

6. Pursue frequently late-paying customers

Let customers know that you can no longer tolerate late payments. Sometimes the interests of customer service and debt collection can clash, but it is important to convey, politely but firmly, that bad debts are unacceptable. Explain to clients that although you will willingly discuss matters to the full, further delays in payment will not be tolerated.

7. Use a debt collection agency

If the worst comes to the worst, do not hesitate to use a debt collection agency to enforce payment. If a debt is more than 90 days late, hand it over to an agency. Not only will this let the customer know that you are serious about the late payment, but it will allow you to spend time more productively on those accounts which are less overdue.

We would be happy to discuss any of the issues raised above.

*****

Are you really Self Employed ?

Can you create conditions to favour self employment?

If you want to substantiate being self employed, we strongly recommend that you draw up and enforce a suitable contract defining the services provided. You will need to give particular consideration to the following points:

Pricing

One of the main requirements is that self employed workers bear some element of risk in the arrangement, which means you will have to avoid the 'hourly rate', in favour of a 'price for the job'. The main principle is that the price, scope, and timing of the work should be agreed, and evidenced in writing, before the job commences.

Workmanship

Within reason, the more freedom the worker has in the detail of the way the work is carried out the better. You must also make it clear that the worker will have to put right any faulty work at his or her own expense.

One of the strongest tests of self employment is the right to substitute a worker who is equally capable of carrying out the work.

All self employed workers should hold public liability insurance.

Provision of equipment

Where practical, the worker should supply at least some of the important equipment or tools. Of course, the extent to which equipment is required depends upon the nature of the work.

What about the construction industry?

The construction industry is subject to exactly the same rules as any other type of industry. However, there are some special considerations.

Where the work entails use of heavy equipment or expensive plant, it is sometimes recommended that contractors hire the equipment to their subcontractors, who then include the cost within their 'price for the job'. Such arrangements may seem artificial, and there is the danger that with substantial hire costs being included in the pricing, the subcontractor's turnover may breach the VAT threshold and force him or her to register for VAT. However, this is not necessarily a bad thing because VAT registration is often cited as further evidence of self employment.

With regard to pricing work, a competitive tender is best, but in practice it should not really matter who makes the first suggestion of an appropriate price.

Although there is a special scheme for taxing construction industry workers, registration as a subcontractor under the scheme in itself does not necessarily prove self employment status.

What about personal service companies?

These guidelines apply equally to the so called IR35 rules to test whether a worker would be treated as an employee of the client, if it were not for the existence of an intermediate service company.

*****