It’s tempting to think that if a car is generally available to anyone who needs to drive it, it must be a pool car and therefore not taxable as a benefit in kind on anyone. Tempting but, sadly, not often true. To be exempt, the car must be one which is

– Actually used by more than one employee or director
– Not ordinarily used by on employee or director to the exclusion of all others
– Not normally kept overnight at or near the home of a director or employee (except where it’s kept overnight on premises occupied by the employer)
– Not used by anyone for private (including home-to-work) travel at all (except for private use which is “incidental” to business use, such as taking a car home overnight in readiness for a business trip starting very early the next day)

The rules are strict and are notoriously strictly applied. Be prepared to prove, if challenged, that they are met.

1 Prepare a business plan
A robust business plan helps potential investors understand the vision and goals of the business, and brings focus to management’s understanding of the business strategy.

2 Do your research
The funding landscape has evolved considerably over recent years; think about how appropriate and attainable the various forms of finance may be.

3 Utilise tax-relief
When seeking investment your business may wish to make potential investors aware of three HMRC tax relief schemes – the Enterprise Investment Scheme, Seed Enterprise Investment Scheme and Venture Capital Trust Scheme.

4 Invest in management
A strong management is the backbone of a successful company. Businesses with a full management team and advisory board in place will increase investor confidence and become more attractive investment propositions.

5 Manage your cash
Before seeking external capital, it is vital your business is managing cash effectively. A weekly cashflow forecast is essential, as is an understanding of the volume of cash and working capital required to grow.

6 Use external advice
In the early stages a business is likely to require outside advice to ensure that it is ‘investment ready’. Sources of advice include trade associations, such as ICAEW, whose Business Advice Service offers micro businesses free advice.

7 Set realistic targets
Ensure your business sets realistic KPI and milestone targets that can be relayed back to investors. Doing so will help you implement your business plan as you grow, and help investors monitor the progress of their finance.

8 Work with investors
In some investment circumstances, such as receiving equity finance, growth businesses should be aware that investors may wish to input into the strategic direction of the business.

9 Know your market
A review of the potential upturns and downturns in your respective market needs to be carried out and their impact assessed. Doing so will ensure your business is prepared for any unforeseen market developments.

10 Be flexible
Your business plan may have been produced when the business was little more than an idea. Circumstances change, so you must ensure you make regular fresh assessments of where your business is and what new challenges you may face.