Business Assignment.

Sole Trader
A person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses. The Sole-Trader will keep all the profits, after tax. Staff may be employed, it just means that the company’s responsibilities belong to one person.

Examples of a Sole-Trader could include a freelance Cinematographer or an Editor.
Partnership
A business organisation in which two or more individuals manage and operate the business.

Both owners are equally and personally liable for the debts from the business. The business profits can be shared equally between both members of the partnership and each partner pays tax on their share of the profit.

Curry’s and PC World are a good example of a partnership that has been created in the past few years.
Limited Company
The standard legal designation of a company which has offered shares to the general public and has limited liability.

A Public Limited Company's stock can be acquired by anyone and holders are only limited to potentially lose the amount paid for the shares. It is a legal form more commonly used in the U.K. Two or more people are required to form such a company, assuming it has a lawful purpose.

Walt Disney Pictures is an example of a Limited Company.
Cooperative
A worker cooperative is a business entity that is owned and controlled by the people who work in it. Worker cooperatives thrive in many industries and regions. Worker-Owned. Workers own the business together. They usually invest with a buy-in amount of money when they begin working.

Facebook is an example of a Cooperative company.

What is tax?

“A fee charged ("levied") by a government on a product, income, or activity. If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax. The purpose of taxation is to finance government expenditure. One of the most important uses of taxes is to finance public goods and services, such as street lighting and street cleaning. Since public goods and services do not allow a non-payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the good or service, and so they need to be provided by the government or a quasi-government agency, which tend to finance themselves largely through taxes.”

Value Of UK Film Tax Relief

For films of all budget levels, the Film Production Company (FPC) can claim a payable cash rebate of up to 25% of UK qualifying film production expenditure. For films with a core expenditure of more than £20m, which completed principal photography before 1 April 2015, the FPC can claim a payable cash rebate of up to 25% on the first £20m of qualifying UK expenditure, with the remaining qualifying UK expenditure receiving a 20% tax rebate.

What Is VAT?

VAT stands for Value Added Tax and it is levied on the sale of goods and services by UK businesses.

National Insurance

“National Insurance (NI) in the United Kingdom is a system of contributions paid by workers and employers towards the cost of certain state benefits. It was initially a contributory system of insurance against illness and unemployment, and later also provided retirement pensions and other benefits.[ It was first introduced by the National Insurance Act 1911, expanded by the Labour government in 1948 and has been subject to numerous amendments in subsequent years.”

Loan

The act of giving money, property or other material goods to a another party in exchange for future repayment of the principal amount along with interest or other finance charges.

Overdraft

An extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the account has no funds in it. Basically the bank allows people to borrow a set amount of money.

Grant

Bounty, contribution, gift, or subsidy (in cash or kind) bestowed by a government or other organization (called the grantor) for specified purposes to an eligible recipient (called the grantee). Grants are usually conditional upon certain qualifications as to the use, maintenance of specified standards, or a proportional contribution by the grantee or other grantor(s).

Credit Card

Standard-size plastic token, with a magnetic stripe that holds a machine readable code. Credit cards are a convenient substitute for cash or check, and an essential component of electronic commerce and internet commerce. Credit card holders (who may pay annual service charges) draw on a credit limit approved by the card-issuer such as a bank, store, or service provider (an airline, for example). Cardholders normally must pay for credit card purchases within 30 days of purchase to avoid interest and/or penalties.

Credit Control

•'Credit control' is the system used by a business to make certain that it gives credit only to customers who are able to pay, and that customers pay on time. Credit control is part of the Financial controls that are employed by businesses particularly in manufacturing to ensure that once sales are made they are realised as cash or liquid resources.
•Credit Control is a critical system of control that prevents the business from becoming illiquid due to improper and un-coordinated issuance of credit to customers or even lending in a Financial institution. Credit control has a number of sections that include - credit approval, credit limit approval, dispatch approvals and well as collection process.

Risks

•There are risks, such as not getting paid on time or not getting paid the correct amount. It’s really important to do a background search and look at a client’s credit history. If this stage is skipped then there may be some problems in the future with payment.

Issues if not used properly

•If credit control isn’t in place, there can be issues with staff not being paid. People may also have a bad credit history, as there won’t have been a background check on their credit history.

What is Debt Collection/ Recovery

•‘Under the federal Fair Debt Collection Practice Act, a debt collector generally is a person or a company that regularly collects debts owed to others, usually when those debts are past-due. Debt collectors include collection agencies or lawyers who collect debts as part of their business.’
•A collection agency can send someone to your house. They may call this person a ‘doorstep collector’ or ‘field agent’.
•In practice it’s not common for debt collectors to visit you at home.
•If a debt collection agent calls at your house, remember:

-They are not a bailiff (enforcement agent) or a sheriff officer. Pretending to be one of these can be a criminal offence

-You don’t have to open the door or let them in

-They must show proof of ID

-They must leave if you ask them to

-They can’t take anything from your house

Task 1 You need to research the following areas in order to allow you to create a video or a podcast: • The legal status of small businesses i.e. sole trader, partnership • The legal aspects of small business i.e. laws, regulations, health and safety • The tax liabilities of small businesses i.e. how much tax do you need to pay, who do you pay it to?                • Sources of finance for small businesses i.e. business loans, public funding etc. • Financial systems suitable from small businesses i.e. software accounting systems, record keeping. • How to control credit i.e. internal or external credit control system. Evidence: Please provide a research log and print outs from all of your research including annotations of your findings           The finished work should be submitted to your tutor. This provides evidence for P2, M2, D2

Task 2 • From your research you now need to plan and create a video or a podcast advising students on the legal and financial aspects of starting a small media business. You should include a brief outline on each of the areas you have researched in task 1. • Ensure you aim your video or podcast at students your age and focus on making the content interesting and engaging. You are being given the option submit your assignment by one of the following methods: 1.)   Video presentation – ensuring you cover all the key elements 2.)   Podcast - ensuring you cover all the key elements. This provides evidence for P2, M2, D2