9 minute read
Financial Matters
from SE22 November 2020
by SE Magazines
With David Frederick FCCA | Marcus Bishop Associates | marcus-bishop.com
Understanding your is not uncommon to hear individuals state “it’s my company.” More devastating is listening to limited company sole shareholder-director companies who operate their limited company as a personal “piggy bank”. These individuals operate on the misconception UK limited company formations have continued that they can readily move funds between the unabated throughout the year. However, despite company bank account and their personal bank its continued growth there continues to be account because it’s their company. Behaviour some recurring misunderstanding of several key they would not undertake if they were employed elements of this business structure. in another company. At the formation stage there is a Salary and dividend are the two most used misunderstanding between directors and shareholders. During the operational phase one often finds a misunderstanding relating to the withdrawal of money from a limited company. methods used to withdraw funds from companies. However, these withdrawals are undertaken by different classes of company stakeholders although it may be same individual.
Shareholders Salary
The company shareholders are the individuals who are the legal owners of a limited company. Their ownership arises from the shareholders’ purchase of company shares either at formation stage or later during the life of the limited company. It is suffice to state at this stage A salary is the periodic payment to an employee or officer of a company. Furthermore for a salary payments to be made by company, a payroll system must be in place. The payroll system facilitates the statutory payroll deductions and reporting to HMRC. "...shareholders are not entitled to remuneration from the company unless a profit has been generated..." that shareholders are Dividends not entitled to remuneration from the company unless a profit has been generated and the board agrees to make a distribution. Unlike salaries, dividends are remunerations paid to shareholders. Dividends cannot be paid unless the company has a distributable profit. Directors This is not synonymous with cash in the company Directors are the officers of the company who bank account. To determine the existence of undertake the operational work on behalf of the distributable profits it is necessary to prepare shareholders. Directors do not own the company. financial statements for the period. The existence The only exception is in the case of sole owner of companies with a sole director-shareholder has companies or small companies where the given rise to the salary or dividend remuneration shareholders and the directors are often the same fallacy. individuals. However, not all small companies Why? Prima facie it appears as though have shareholders who are also directors. an individual is choosing their combination of The blurring of the lines between these two periodic remuneration. However, what is actually groups may be attributable to the explosion in being played out is the payment of salary to recent years of sole owner limited companies. It is an employed director and dividends being necessary to recognise that it is not the individual distributed to a shareholder. The key take-away that is important but the position or role played is the same individual is being remunerated but within the company. wearing different company stakeholder hats. A key operational challenge for small A limited company may be easy to form but companies, especially single person companies its understanding and management may be a far is the extraction of money from the company. It cry from easy.
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CwS | Smart Business Networking meets on the last Wednesday of every month.
During lockdown, we are holding our meetings virtually using Zoom.
Find out how to register for FREE at: www.cookingwithscissors.com | e-mail: sbn@ cookingwithscissors.com Next Meeting: Wednesday 25 November - 8.15pm prompt
Take a look at our fab website which covers the areas in and Around Dulwich including Forest Hill and Honor Oak Park. Up to date events, more stories and news.
Wednesday 11 November – Wednesday 2 December: Mental Health First Aid
Tuesday 17 November: Dulwich & District u3a Monthly Open Meeting Talk via Zoom
9:30am-11.30am. MHFA online includes a blended approach of individual learning and four weekly instructor-led live interactive sessions. You will learn invaluable skills, increase your knowledge and confidence to support your own and other people's mental health, both remotely and face-to-face. Join a community of over half a million people already trained in MHFA England skills. The Mental Health First Aid online course provides: • An understanding of mental health and the factors that influence wellbeing • Practical skills to identify the triggers and signs of mental health issues • Confidence to step in, reassure and support a person in distress • Enhanced interpersonal and listening skills • Knowledge to help someone recover their health by guiding them to further support e.g NHS or self-help resources TRAINING OUTLINE: The MHFA online training is completed over 4 weekly sessions, delivered via the MHFA England Online Learning hub. Before each live session, you will need complete online self-guided learning, all within the MHFA hub. Webinar 1 - 11th November 9.30am-11.30am Webinar 2 - 18th November 9.30am-12.00pm Webinar 3 - 25th November 9.30am - 11.30am Webinar 4 -2nd December 9.30am -11.30am PRICING: The cost of this course is £250.00 for all online self-guided learning, four webinars and includes MHFA Manual, Workbook, Action Plan 'Z card' and Certification Please get in touch if you would like more information or to purchase space for an organisation via invoicing by emailing tracy@waytowellbeing.co.uk 2–3.30pm. Peter Ruben will speak on "Revolutions, Understanding the modern world", focusing on liberal, Marxist, and modern views of what causes revolutions, ranging from the Russian and French revolutions to the present day. Details dulwich-u3a.uk/events. Q & A after the talk. Contact: secretary@dulwich-u3a.uk for the link to the Zoom meeting.
Foxglove Forest School for under 5s
Grow Mayow Community Garden Mayow Park, Mayow road, London SE26 4JA. 10-11 & 11:30-12:30 Wednesday, Thursdays & Friday mornings
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Saturday 21 November 2020 - 9 May 2021: Unearthed: Photography's Roots
The Dulwich Picture Gallery will reopen this November with a major new exhibition exploring the history of photography from the 1840s to today, through stunning images of plants and botany. Their first major photography exhibition, Unearthed traces the rich history of the medium through depictions of nature, with over 100 works by 41 leading international artists. Unearthed: Photography's Roots will reveal the fascinating technical processes and narratives behind these images, showcasing innovations in photography by key figures including William Henry Fox Talbot
Sunday 22 November: Peckham Car Boot Sale
10.30am-2pm. Every two weeks. £1 for buyers. For further details of how to book online go to:
www.peckhamcarboot.com. Cooking with Scissors – Via Zoom
An opportunity for local business professionals to meet, make new contacts and gain new business. To find out more or register your interest in attending, please email:
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and Imogen Cunningham as well as several overlooked photographers including rare works by Japanese artist, Kazumasa Ogawa and the English gardener, Charles Jones. Jones’ striking modernist photographs of plants remained unknown for 20 years after his death, until they were discovered in a trunk at Bermondsey Market in 1981. The exhibition opens with some of the first known Victorian images by Talbot, with his experiments with paper negatives, and will also feature many works by one of the first female photographers Anna Atkins. Focusing on botany and science throughout, themes range from typology and form to experiments with colour and modernism. The show culminates with more recent advancements in photography, from the glamour and eroticism of artists Robert Mapplethorpe and Nobuyoshi Araki, to experimentations with still life compositions by Richard Learoyd. The mausoleum will host a contemporary installation from renowned video artist Ori Gersht, On Reflection reimagines a still life painting by Jan Brueghel the elder, and has never before been on show in the UK. You will need to book online in advance
Wednesday 25 November:
of your visit. www.dulwichpicturegallery.org.uk
Monday 30 November: Self Compassion - Dealing with your Inner Critic
7pm-8pm. An online webinar that will help you release self-criticism and judgement through self-compassion. We often don’t realise how our own inner dialogue makes it so difficult to change and grow as human beings, what we tell ourselves or what we believe about ourselves can impact all aspects of our lives from work to relationships. Self-compassion has been linked to greater well-being and joy, reduced anxiety and depression, and improved emotional coping skills. In this online webinar, we will explore various strategies to help build Self-compassion reducing your stress and enhancing your life. Way to Wellbeing and Bell House are grateful for any donations. Suggested donation for this event is £5. www.bellhouse.co.uk.
Link Age Southwark’s Online Pet Contest A Roaring Success
Last month Link Age Southwark tried out a fun new fundraising idea by hosting their first ever Pet Contest online. The event was run through Facebook, with contestants invited to upload photographs of their beloved pets to the event page. Those who don’t use social media could still take part by sending their pictures as an email attachment.
There were five categories to choose from, and five local pet-lovers and friends of the charity were invited to be on the panel of judges. One of the charity’s Ambassadors, actress and doglover Lesley Sharp, said this about her category of ‘Best Buddy – most loyal lockdown friend’ – “All of these animals are utterly delightful and have obviously had a special place in the hearts of their owners’ lockdown. Fabulous. What would we do without these lovely creatures?” Link Age Southwark wanted to highlight the joy and comfort that our pets have brought to all of us throughout these last long months of lockdown and restrictions. For people who are isolated or alone pets can be an amazing source of companionship, and we should celebrate them. The event was a popular success with over 100 photos submitted, and more than £200 was raised for the charity. All money raised goes towards Link Age Southwark’s work in providing support to older, isolated people and people
Ted the Chow
with dementia and their carers in Southwark. Link Age Southwark would like to thank everyone who took part and submitted photos of their brilliant pets – everyone very much enjoyed seeing them and the judges were left with some tough decisions to make.
