Newsletter
Our informative newsletter will keep you abreast of any potential changing legislation affecting business; also, each month you can keep up to date with "Business Matters"
For several years we have been writing monthly articles for the long established magazine "The Islander" on Business and Accountancy Matters where we deal with across the board subjects covering all aspects of business and trading here.
From accounting and taxation to running your business practically, you will find throughout the year useful subjects which affect you and your business
Many changes have taken place over the last few years here in Mallorca, and they will continue to do so for years to come; not least are the proposals for a large area on the Palma seafront (paseo maritimo) in Palma city. Many developments are to take place which include proposals for a hotel, business inovation and technology centre, possible future convention centre etc.
Mallorca is continuing to grow and develop at a rapid pace, huge investments being made into the Island and the Balearics mean it will continue to rate highly as a place to live and trade.
The Islander Magazine
February 2007
Business Matters
When will this madness end? The number of small businesses and indeed companies who are failing due to lack of advice appears to be growing and potential new business owners are running the risk of going to the wall before they’ve got a years trading under their belt.
Unfortunately this plight is not limited to the type of back street businesses who historically failed. Recently I have had the sad task of breaking unpleasant news to several businesses that have had the misfortune of being on the receiving end of ill or quite frankly no advice.
In some cases we are in a position to salvage things and get them back on track, two of the companies in question are financially in a position to withstand the taxes and fines they find them selves subjected to, whilst in another case the best they can do is call it a day.
From the sublime to the ridiculous however, first prize has to go to the business, whilst not yet in trouble who has not filed any returns tax, iva or otherwise for around the last twelve months. When asked for the reason why he openly stated that he couldn’t see the point, it was a nuisance to have to deal with supplying information monthly or quarterly for that matter; and that he wasn’t worried about fines or otherwise as he would fight the appropriate authorities with the reason……..he didn’t understand and nobody told him! Hmmmmm it emerged he has had several businesses. Oh the reason for visiting, he had received an official looking letter.
The consequences of course for genuine cases could be potentially unsympathetic considering the cavalier attitude of the English speaking foreigner above. Any business who genuinely finds itself in a position of being unable to commit to obligations should take action to resolve the issues immediately.
Many people surprisingly find help is on hand, for example failure to meet an iva payment in full, if the sum is significant, perhaps stage payments could be considered. If you find you need to close your business down have it done correctly; failure to do this could unknowingly result in social security, fines etc accruing and embargoes being enforced.
On a lighter and brighter note Company taxation has been subject to change. More next month.
Martina Wysocki
Balearic Business Centre
C/Pins 7 bajos, C’an Pastilla, Palma
Tel 971 265 369
Email: mallorca@balearicbusinesscentre.com
www.balearicbusinesscentre.com
© all articles, script and text irrespective of content are subject to copyright and no part can be reproduced or copied in anyway whatsoever manually or electronically without the express written authorisation from the author, all and any reproduction however reproduced will result in breach of copyright law ©2007. The Islander Magazine
January 2007
Business Matters
Well here we are, a New Year with us once again. It hardly seems credible that another year has come and gone, suspiciously like some well intentioned New Year resolutions! 2006 saw the commencement of changes to many fiscal systems with additional proposals for 2007 taking effect from 1st January.
Last month we touched on a minority of these changes; and with a new year upon us everyone is raring to go and with business plans, forecasts ideas, etc, it is all too easy to sweep these changes under the proverbial carpet. Don’t.
The success of any business irrespective of size is to understand or have in place someone to keep up to speed with where the business is going, this should include any changes that could potentially affect the business and its performance.
For example a change of even one percent in taxation irrespective of whether it is an increase or decrease could affect cash flow quite significantly, resulting in the need to address internal policies in respect of credit control and terms on offer to customers.
Sole traders, partnerships and small companies often feel that looking at their business in this way is not necessary, particularly if they do not employ any staff or subcontract rarely. This is relatively dangerous as it is as easy to become a victim of ones own success as it is to fail dramatically.
Equally, businesses or companies who do not carry out policy and strategy reviews on a regular basis potentially leave themselves subject to the vagaries of wondering why they lost x client, why a competitor is geared to giving better discounts and why competition appears to be increasing.
As the exodus of migration continues to grow and with many people choosing Mallorca and the Balearics to relocate their new lives to, it is becoming increasingly important to ensure that your business is capable of growing and developing alongside the increase in trade that newcomers will bring.
Therefore carryout regular business health checks, talk frequently to your advisor, never underestimate how important a base knowledge is, if you have managers or employ, that reviews and revisions keep you in touch with base camp, importantly be aware and know financial strengths and weaknesses.
On this note we would like to wish everyone a very Happy, Healthy & Prosperous 2007.
Martina Wysocki
Balearic Business Centre
C/Pins 7 bajos, C’an Pastilla, Palma
Tel 971 265 369
Email: mallorca@balearicbusinesscentre.com
www.balearicbusinesscentre.com
© all articles, script and text irrespective of content are subject to copyright and no part can be reproduced or copied in anyway whatsoever manually or electronically without the express written authorisation from the author, all and any reproduction however reproduced will result in breach of copyright law ©2007.
The Islander Magazine
December 2006
Business Matters
There are many changes being proposed which are to take effect from 1st January 2007.
Even this late on in 2006, whilst these proposals are set to take effect from 2007 some may still be subject to review and rubber stamping from the appropriate authorities. What one needs to bare in mind is that some of these proposals which come into effect from 1st January 2007 will not actually be effected until we reach 2008 when we deal retrospectively with 2007.
As many of these changes will affect people and businesses differently you need to check with your advisor to see how these changes will affect you or your business. In addition to the few mentioned below you should also establish whether there are any others which will affect your circumstances.
This year as we all know, things have been tightened up in respect of declarations related to property rentals and ownership. The stringent controls which commenced with implementation in 2006 will continue with control becoming stricter in anything related to inmobiliaria. Where properties are being rented better records will be expected to be kept particularly where fiscal responsibilities are concerned.
Autonomos (Social Security) payments will rise to cover the costs of additional benefits being proposed for the self employed. In addition, the area concerned with an autonomos person who is billing one client is going to be tightened up; it appears that a blind eye will no longer be turned to this.
Tax allowances are being increased pretty much across the board for most people, including those older than sixty five and again for those older than seventy five. Allowances for dependents are also increasing.
The calculations for tax bands are subject to change with the current lowest band disappearing; so whilst tax allowances increase, what now becomes the lowest tax band could potentially mean an increase in taxation. In addition the highest paying tax band has decreased marginally.
Other proposed changes; pensions (only proper pension plans) these are still allowable there is a small increase. Property, (where applicable as an allowance) some percentages claimable may be subject to a small decrease. Dividends, these will potentially be subject to a different calculation.
If you are considering purchasing a property to put into a Company then think long and hard and take advice, patrimonial companies are a no-no and there is another change to the law on these and related taxation.
Martina Wysocki
Balearic Business Centre
C/Pins 7 bajos, C’an Pastilla, Palma
Tel 971 265 369
Email: mallorca@balearicbusinesscentre.com
www.balearicbusinesscentre.com
© all articles, script and text irrespective of content are subject to copyright and no part can be reproduced or copied in anyway whatsoever manually or electronically without the express written authorisation from the author, all and any reproduction however reproduced will result in breach of copyright law ©2007.
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