33 rules in nine kinds of work
Each rule names the figures it reads and the level that raises it. Your firm can change the levels and switch any rule off. Saving the rules checks every client again.
Screen from a test practice in Accountin. The clients and figures are made up.
Tax planning
9 rules- 01
Pension contributions through the company
Company profit above £50,000, no employer pension payments and an owner older than 40.
Financial adviserLevel you can change - 02
Salary and dividend mix
Company profit above £30,000 and the mix not reviewed this tax year.
Your firmLevel you can change - 03
Research and development tax credit
A company in a research and development trade, development and testing costs above 10% of turnover and no claim made.
Your firmLevel you can change - 04
Incorporation
A sole trader, not mainly a landlord, with profit above £50,000.
Your firmLevel you can change - 05
VAT registration
Not registered for VAT and turnover within £10,000 of the £90,000 limit, or over it.
Your firmLevel you can change - 06
Making Tax Digital for Income Tax
Self-employment and rental income above £50,000 and no quarterly updates set up.
Your firmLevel you can change - 07
Overdrawn director's loan
A company whose director owes it money on the loan account.
Your firmFixed rule - 08
Benefits in kind return
The company pays for a car and no P11D return is set up.
Your firmFixed rule - 09
Construction Industry Scheme returns
A construction business paying subcontractors with no monthly returns set up.
Your firmFixed rule
Profit and margins
3 rules- 10
Gross margin falling
Gross margin down more than 3 points on last year.
Your firmLevel you can change - 11
Overheads growing faster than sales
Overheads growing faster than sales by more than 5 points.
Your firmLevel you can change - 12
One customer carrying the business
One customer above 30% of sales.
Your firmLevel you can change
Cash
2 rules- 13
Customers taking longer to pay
Customers take more than 45 days on average to pay.
Your firmLevel you can change - 14
Cash running out
Regular payments, wages and tax due take the bank balance below nought within 13 weeks.
Your firmFixed rule
Funding
4 rules- 15
Invoice finance
Customers owe more than £50,000 and take more than 45 days to pay.
Funding partnerLevel you can change - 16
Asset finance
Equipment bought outright for more than £25,000 this year.
Funding partnerLevel you can change - 17
Spreading a tax bill
Tax due in the next 60 days is more than 80% of the cash in the bank.
Funding partnerFixed rule - 18
Refinancing expensive debt
Repayments on a high-interest loan or a merchant cash advance.
Funding partnerFixed rule
Protection, pensions and investments
4 rules- 19
Idle company cash
Company cash above 6 months of costs.
Financial adviserLevel you can change - 20
Retirement planning
An owner aged 50 or over, no pension payments and no retirement plan known.
Financial adviserLevel you can change - 21
Key person and shareholder cover
Two or more owners and no cover if one of them died or fell seriously ill.
Financial adviserFixed rule - 22
Staff benefits
At least 5 staff and no health or group life cover.
Financial adviserLevel you can change
Legal work
5 rules- 23
Will and lasting power of attorney
An owner aged 40 or over who lives in England or Wales and has no will on file.
Law firmLevel you can change - 24
Shareholder agreement
A company with two or more owners and no shareholder agreement on file.
Law firmFixed rule - 25
Debt recovery
Money owed on invoices more than 90 days past due.
Law firmFixed rule - 26
Employment contracts
The first employee on the payroll this year.
Law firmFixed rule - 27
Lease renewal
The lease on the premises ends within 12 months.
Law firmLevel you can change
Compliance and risk
2 rules- 28
Filing due soon
The next Companies House filing due within 30 days, or overdue.
Your firmLevel you can change - 29
Net liabilities
The balance sheet shows the company owes more than it owns.
Your firmFixed rule
Growth and the owner
2 rules- 30
Selling or handing on the business
An owner aged 55 or over, profit above £40,000 and no one lined up to take over.
Your firmLevel you can change - 31
Payroll
Staff on the payroll and the payroll run somewhere else.
Your firmFixed rule
Your own fees
2 rules- 32
Fee review
Time logged above 120% of the fee.
Your firmLevel you can change - 33
Fee unchanged
No fee rise for 18 months.
Your firmLevel you can change
Legal work in England and Wales only
The five legal rules look only at clients in England and Wales. A will goes by where the owner lives, so that rule needs the client's own postcode or region. Where the company is registered is not enough.
Your own fees stay with your firm
The fee review and fee unchanged rules read your fee, the time logged against it and when it last went up. They have no email to the client.