The business plan template is the same for virtually all countries. The only difference is the taxation and discounting of cash flows. Let’s review the features of a business plan template in Excel for the UK.
Peculiarities of accounting and taxation in the UK
The peculiarity of the accounting system in the UK is that enterprises do not use standard accounting records. The enterprise’s accounting is organized on the basis of accounting regulations and standards. All the companies must confirm their financial results by the audit findings every year.
The audit itself is carried out by the members of professional accounting organizations. Accounting of the fixed assets is conducted based on their initial cost. Accounting of depreciation is as follows: it is not applied to the capital investments, but the cost of fixed assets should be revalued and then the value is written off for expenses through depreciation.
Tax system in the UK
The company tax in the UK is called a corporate tax. The income tax rate is 19% in 2018 but it should be reduced to 17% by 2020. If income is derived from the use of patents, then the tax rate is 10%.
Capital gains tax
This tax is levied on profits from the sale of property. That is, if an enterprise has sold its own assets, it must pay a capital gains tax. The tax rate is 19%.
It is traditionally included into the price of many goods. The tax rate is 20% and is paid from the difference between a tax liability and a tax credit. There is also a number of goods with a lower or zero VAT rate.
The wage fund is taxed at a rate of 13.8%. The minimum social tax is 3%, depending on the amount of income.
Peculiarities of creating a business plan for businesses in the UK
In order to prepare a business plan, it is enough to forecast future investments and expenses for the current activity of the enterprise. At the same time, a profit tax of 17% and a social tax of 13.8% should be used for the calculations. The capital gains tax is not paid by the new businesses which aren’t involved in the sales of their own property.
Download a template of the business plan for the UK in Excel and plan your own business. Experimenting with costs will help you receive the expected result and find out a payback period
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