HOW TO ACCESS N.H.T FUNDS? 🤔

HOW TO ACCESS N.H.T FUNDS? 🤔

There has always been a lot of speculation around attaining a housing or land loan from the NHT (National Housing Trust). A lot of which is merely due to the fact that most of us are misinformed just didn’t seek to get some clarity from the respective authorities or simply ‘have just accepted the usual myths surrounding the NHT’. Whether you are self-employed or employed you can gain access to your NHT Loan once you have met the following requirements explained below. 

1. You must be an NHT Contributor: 

This might sound simple to some, but there are a lot of people who still don’t understand this simple notion. Contributing to the NHT simply means that a portion valued at 3% as a self-employed person or 2% as an employed person(with your employer contributing a further 3% for you) is deducted from your net income or salary respectively on a quarterly basis for self-employed persons or on a weekly, biweekly or monthly basis for employed persons, and then paid over to the NHT via making payments at the Tax Office for self-employed persons, For employed persons, this is paid over by your employer. It is important to note that this must be done consistently and on time over a 12-18 months period. Sometimes, persons of the employed category end up falling short as their employer was not paying over the deducted amount to the Tax Office, as such it is extremely important for you to check with the NHT or Tax Office to ensure that this is being done. 

2. Self-employed Persons must file an SO4/SO4A Return yearly:

Back then, most persons within this category were able to just make payments at the NHT via the submission of a form(s) which details your total revenue and expenses accrued and absorbed over a year. However, this has been changed by the government which now requires all self-employed individuals to submit an SO4/SO4A Return yearly on or before March 15th. This form will outline all income and expenses with your attached or calculated NHT amounts and other contributions or taxes to pay such as NIS, Ed-Tax & Income Tax (For those with a net profit above the threshold). This again must be submitted and paid on time for you to be qualified. 

3. Qualified income or salary falls between $15,000 – $25,000 weekly:

To be qualified for the housing loan of $6.5M your salary or net income must fall within the range of or between $15000 – $25000. It is keen to note, however, that you may or can still be qualified for a loan below the stated range if your salary or Net Income falls below. As such, visiting an NHT Office to ask about your qualification range is best to do if you are below the stipulated range. 

4. Age may be a deterring factor:

Many people fall short here, as they have been contributing over the years but have still failed to obtain a home due to the fact that their salary or net income might just not be enough to cover mortgage amounts, to qualify for an NHT Scheme house or just simply didn’t see the need to apply then. This is due to the fact also that your mortgage amount is highly dependent on your projected or future lifespan which may fall between 30 – 35 years for repayment. As such, in situations like these, you can seek to join with parents/children/spouse in aid of them using your points and vice versa to purchase the needed home or land. Most people also disregard the fact also that if they are not qualified for the full 6.5M, they can still use the qualifying amount to purchase land and then use the remainder towards building on the said land. This is why it is very important to seek clarity on these issues or requirements. 

5. You might be required to JOIN:

The typical NHT Scheme home falls within the range of $8-$15M. Hence, this raises the notion that will or might have to join with your partner or family member to meet the price tag attached to houses of these values. This is why most persons seek to go the land or lot route which involves them using the land loan of $2.5M to purchase land and then use the remaining monies they were qualified for to build. 

6. To attain your needed home you must have a DEPOSIT: 

Many persons fall short at this stage or requirement as they always begin to scratch their heads when they are made aware of this by the NHT. Many sellers usually require a down payment or deposit of between 5-15% of the value of the house to start the selling process. As such, it is highly important for you to calculate and have this money at hand before starting, and also, if you’re going to use a lawyer, they will require a 5% payment as well. This is why most people try to access an NHT Scheme house instead as you would have met all the necessary requirements, you’ll just need to start making your monthly mortgage payment. However, some persons that fall short in this category can still fill the gap again by either having the necessary cash at hand or seeking assistance from the bank once your eligibility letter is supplied. 

Other on-demand documents might be needed which will include: 

1. Having a signed agreement between you and the seller.

2. At least three payslips and a job letter if you’re employed.

3. TRN and ID 

4. Bank statements/Financial Statements/ Annual Filing for self-employed persons

Also, persons who are going through the bank to gain access to additional funds as stated in requirement five (5) will still be required to have an eligibility letter. Thus, NHT payments again will be of necessity. Hence, let’s ensure that we continue to make our NHT payments on time and stop belittling our goals by accepting all those myths out there.

Other conditions may apply. You can visit the nearest NHT Office for more information. 

If you need help or further information, please feel free to contact us at 1 (876) 902-7259 | 545-6928 or email us at BIZcareConsultationAcct@Gmail.com to arrange your consultation session. Do remember at BIZcare “Your Business is our Priority”. We offer the services of:

  1. Business Registration
  2. Tax Filing
  3. GCT Filing
  4. Payroll Services
  5. Consultation Services
  6. TCC Services

And Others.

Like us on:

Written by: Kmar Henry [ CEO |BIZcare Consultation & Accounting Firm Limited ]

Edited by: Sheryl Bailey [ Director | BIZcare Consultation & Accounting Firm Limited ]

Is Going ONLINE the NEW BUSINESS PLATFORM?

Is Going ONLINE the NEW BUSINESS PLATFORM?

As COVID-19 continues to change the way in which we conduct business, many business owners are now relishing the fact that creating an online platform is predominantly the new way of doing business. As we can see with the present rise in the ‘errands industry’, where our renowned ‘yeng yeng’ bikes are now frontrunners in transporting groceries, meals or to simply put it ‘mash up dat errands for you’. It is now a great avenue for bike riders to generate sustainable income to meet their daily living needs. In turn, this has forced business operators to invest heavily in the transportation field as restricting and monitoring ‘crowd’ is primarily now a new norm.

Why go online?

Whether you’re in the grocery, restaurant, loan, or auto parts field, making the transition from local or community-based to online-based is now more than ever greatly needed. Over the years, we have seen an evolution in market trends, which were created by a simple hashtag like #bigdeal by KFC, or #switchtoflow by you know whom. Hence, it is safe to say that exploring the online platform should have been considered by business operators from some five (5) years back, even without the impact of our present new contender ‘COVID-19’, who seems to have already won the battle of transforming not only the way how we approach business but also crucial factors of health and security. Ergo, with all these contributing factors coming together comprehensively to resolutely break down all the apprehension that business operators had before of ‘feeling safe’ to operate remotely from their service station or primary location. 

There has been a new need to ensure that some form of online marketing work is being done to capture those such customers by creating an online presence and platform. Whether it is that you are marketing what you do, how you do it, or even a prize giveaway, pushing that online presence is now the premiere way of maximizing your potential database or market share. As it is now, it is safe to admit that this is just the new ‘social media age, an era where businesses must work adapt to for their own survival and long-term viability.

 
How to go online?
Firstly, getting that website will be the hub for all things. Business owners will need to form a central virtual area for potential and existing customers to visit in order to be connected to all facets of your business. This virtual area should be flexible and user-friendly enough to feel just like a walk-in store visit where questions are easily answered by the business and feedback can easily be submitted by the customer. 

Once this hub is established the other platforms that come in handy in connecting with your business are Instagram, Facebook, Twitter, or YouTube, engaging with your existing and potential customers via these virtual spaces should be the icing on the cake. Taking advantage of a consistent online presence will give you the leverage of creating a great following to market your products, services, and promotions with the aid of proper branding via online aesthetics. Also, let us not ignore the fact that transforming those social media handles will be tightly connected with the notion of how well these videos, pics (flyers, disclaimers), and hashtags are created. This is where business owners will need to sit and talk with a social media, PR agent, and marketing expert to bring across your imagery and online content in a manner that optimizes your engagement with the virtual world. 

If you need help or further information, please feel free to contact us at 1 (876) 902-7259 | 545-6928 or email us at BIZcareConsultationAcct@Gmail.com to arrange your consultation session. Do remember at BIZcare “Your Business is our Priority”. We offer the services of:

  1. Business Registration
  2. Tax Filing
  3. GCT Filing
  4. Payroll Services
  5. Consultation Services
  6. TCC Services

And Others.

Like us on:

Written by: Kmar Henry [ CEO |BIZcare Consultation & Accounting Firm Limited ]

Edited by: Anothonio James [ CEO | I Am Skilled ]

Credit Karma

Credit Karma

There’s a new benchmark within the banking or financial industry that sets or draws the line rather, to assess the fundamental ability behind the capability of employed and self-employed individuals to garner loans and other financial products. This has therefore made it easier for these playing industries to make more viable long-term decisions on profit margins and ultimately slide from the chaos fostered from having too many ‘bad debts’ from customers that have a proven history of not ‘repaying’. Hence, this is exactly what we call the ‘Reciprocal effect of not managing your credit properly or simpler put; The NEW CREDIT Karma‘. 

What is a Credit Score? 

In layman terms, a Credit Score basically outlines all your previous loans and other financial products in bad debt as well as the amounts owed as well as the time period, it is also used to evaluate your potential risk as an individual and shows your ability to payback based on a score shown via letters, meaning from A-E to grade your said repayment ability. As such, all your banking, hire purchase, credit card, Student loan Repayments, and even billing history are now being taken into consideration. Of course, the conjunction was made due to the outcry made over the years by various financial institutions to join the landscape which was already implemented in other modeled countries and is, therefore, an already proven source to track and ultimately lessen credit cards or loans that are most times given to persons that just don’t fit the requirements of being able or willing to ‘repay’. A backslash that many employed or self-employed persons must work effectively to correct if they fall within this department.

Who controls your Credit Score? 

Your credit score and history are ultimately controlled by you, however, should you need to check on your score and where you stand, that check is done by The Credit Bureau of Jamaica (CRIF). An entity that has partnered with various financial institutions, major appliance companies, The Student Loan Bureau and now looking to join with even utility companies to track the algorithms and repayment records of Jamaican Citizens. By using this score, many citizens are now left with no choice but to ultimately become more responsible with how they have made various financial decisions when it comes to protecting their credit and even fixing it if it was already destroyed. It is important to note though that this credit score can be accessed by contacting or visiting the credit information service of Jamaica which is located in Kingston and is completely confidential and assessable for your intended use. 

Can your Bad Credit Score be rectified? 

Of course, as you know with any test, once you have a bad score it will prove that you have various capabilities that must be taken into consideration. These capabilities can even linger on your financial sleeves for the rest of your life if you choose to take the ‘ignore route’ like many persons that fall within this category. Which are most times a financial setback that will ultimately affect the wealth of your family. More simply put; ‘a financial curse and karma that will plague you for the rest of your life. So, what to do or the steps to take in order to correct this BAD Credit Score that you might have:

1. Contact the Credit Bureau to get a report on your actual Credit Score. This will provide you with direct information on where you have bad credit. 

2. Contact the financial institution or wherever your bad credit is. Take the time to sit with a debt collector or loan officer at the noted institution to discuss how can things be rectified. 

3. Try to come to an agreement on an amount to be repaid. You must try your utmost best to discuss and agree on a figure that you will be able to repay quickly or even in a one-time fashion if you can. This also concludes and exerts leniency within your favor as it will show your ability and urge to repay. 

4. Once you agree with this amount, make payment as soon as possible. Please don’t fall within the ease again to sit back and not take action, once you have accumulated the funds necessary to pay, do implement everything within your will to do so. 

5. Seek to get a letter to prove your repayment and settlement. Once you have made your settlement it will be your responsibility to get some form of written agreement or letter to prove your settlement as these said bad debts will remain on your records for any financial institution you may need to access another loan or credit card to see, it’ll remain until about five (5) years after. As such, if you try to access any loans or credit facilities in the near future you can use this letter to show that you have rectified your credit history. 

What Other conditions to consider? 

There are other considerations that must be understood. One of such is that if you now go to the bank as a self-employed person, you’ll need some form of repayment history. As such one of which the bank recommends is to gain access to a credit card. This will ultimately rebuild your credit score over a short period of time. The aim is to prove that you are now responsible in managing your finances and willing to cover your obligations. Also, once you have gained access to these credit facilities you will realize ultimately how much it will grow in the near future once you’re keeping up to date with your payments. It is ultimately the reverse Karma that you’ll experience with having a good credit score. Not a bad problem to have ain’t it?! Let’s ensure that we keep up to date with having the right credit score to build our businesses and families the right towards wealth.

Other conditions may apply. You can visit or call the Credit Information Service Limited for more information. 

If you need help or further information, please feel free to contact us at 1 (876) 902-7259 | 545-6928 or email us at BIZcareConsultationAcct@Gmail.com to arrange your consultation session. Do remember at BIZcare “Your Business is our Priority”. We offer the services of:

  1. Business Registration
  2. Tax Filing
  3. GCT Filing
  4. Payroll Services
  5. Consultation Services
  6. TCC Services

And Others.

Like us on:

Written by: Kmar Henry [ CEO |BIZcare Consultation & Accounting Firm Limited ]

Edited by: Sheryl Bailey [ Director | BIZcare Consultation & Accounting Firm Limited ]

Your PAYROLL is a COMPLETE UNIT for itself!

Your PAYROLL is a COMPLETE UNIT for itself!

Being a Small Business may side track a lot of business owners from the fact that having employees really means you might possibly have a whole unit or department to deal with at once. Not many have truly realised and admitted to this fact entirely, as the notion of just getting employees to get the job done just seems far more important. With that being said, let’s look at some important pointers to highlight when running your payroll and ultimately your Human Resource Department.

1. Ensure to conduct a proper INTERVIEW: Many business owners in our land may find it suit or fit to ignore this factor as they mostly try to use the ‘network code’ to get the ‘knowing about a prospective employee’ done. Thus, most times we fall short in conducting a proper interview to get to know or have a feeling about our prospective employees. We tend to not realise how essential it is to give potential employees scenario exams or tests, foster the opportunity of asking team-oriented questions and even more so, to get a chance to tell the potential employee a little more about our businesses and what you expect; Afterall an interview is a two way stream.

2. Employees must sign a written contract: Please my compadres, its 2021. Stop allowing ‘word a mouth’ to be your tool if/when your employees file a report on you at the Ministry of Labour & Social Security. If you don’t understand the full essence or the conditions necessary to draft a valid contract, speak to an accountant or lawyer as the long-term monetary effects may prove far more detrimental.

3. Employee Contact Information should be Stored and Filed: It is also, important to note that along with a letter properly introducing and congratulating the employee to the company, a sheet outlining contact information in regard to the name, address, TRN, NIS, Emergency or next to kin contact and bank account details must be kept safely also. This serves as a route to capture information in regards to salary payment and Payslips as the employee may need this info in the future to access loans.

4. Be sure to understand key employment terms and conditions: These include terms or conditions like vacation pay/days, sick days, departmental leave, maternity leave, probationary period etc. Again, these are important and essential terms that all employers must know.

5. Proof of payment or salary of employees must be recorded: Whether it is supplying them with a pay slip, receipt or transfer to a bank account, the amount and date transferred to your staff must be recorded properly and signed. Again, this might become pivotal in cases of breach, fines or reports made by your staff.



6. A monthly SO1 must be filed monthly for permanent staff: Once monthly deductions are being deducted from the salary of your permanent staff, please ensure that your monthly SO1 is submitted and paid over to confirmed these amounts. These include that of NIS, NHT, Ed-tax and Income tax if the employee is making over the 125,008 (monthly) Income tax threshold. Bear in mind also that employees will need to know that these are being paid in order to retrieve and use their NHT or NIS benefits.

7. Store all documents signed by your employees safely: Yes! All those contracts signed, pay slips or invoices given and sick or vacation days taken. Everything must be properly documented and kept safely for easy retrieval if needed for future reference.

Understanding the importance of these pointers are extremely important when running your business. As such, please ensure to get proper guidance and advice on how to use and implement these aspects within your business.

If you need help or further information, please feel free to contact us at 1 (876) 902-7259 | 545-6928 or email us at BIZcareConsultationAcct@Gmail.com to arrange your consultation session. Do remember at BIZcare “Your Business is our Priority”. We offer the services of:

  1. Business Registration
  2. Tax Filing
  3. GCT Filing
  4. Payroll Services
  5. Consultation Services
  6. TCC Services

And Others.

Like us on:

Written by: Kmar Henry [ CEO |BIZcare Consultation & Accounting Firm Limited ]

Edited by: Sheryl Bailey [ Director | BIZcare Consultation & Accounting Firm Limited ]

Why taking a SALARY from your Company is IMPORTANT?

Why taking a SALARY from your Company is IMPORTANT?

Yes, it is quite easy for us as business owners to become side tracked into not seeing the vast benefits that can be attained when we are within the Self-employed field, as we just think that earning a viable profit is enough. However, have we fully researched and entirely tried to understand what the term ‘self-employed’ means? As I can assure the sooner, we understand this term is the sooner we can see how greatly we can implement measures to reap a whole lot of benefits when it comes onto the banking sector; Especially when you ensure that a salary is taken on your behalf. As such, here are a few:

1. Taking a Salary makes you not only Self-employed, but also employed: This simply means that you can also take a loan in the name of your company and also a personal loan as an employee of your business; or company rather as you must register as a Limited Company to have access to this type of loan benefit. So let’s break this down in the aspect of wanting or needing to purchase a car or vehicle, so yes you might need a van to carry equipment or inventory for the company of which you would need a loan within the company and then furthermore you might need a personal vehicle of which you use a personal loan to purchase. Quite interesting isn’t it?

2. You’ll better able to take your personal expenses from the company: Many business owners fall trap within this aspect as they are most times unable to separate their personal expenses from the company. As such, designating a monthly salary to cover your personal or home expenses is the best way to address this problem.



3. Taking a Salary lets you know entirely what the Company is making: As explained above in note 2, many times we are unable to know how much the business can sustain when standing alone without our personal expenses attached. Especially when that particular business is that of a sole trader where most owners just see it fit to tie all their personal needs and expenses to that of the business. Hence, it is now common practice for the owner to see profits as that of the owner and not that of the business. Which is entirely not good for making long-term business-related decisions.

4. Your Personal and Business Account must be separate: Having these done separately is extremely important to acquire loans from the bank. Too many times we are accepting business funds to our personal account until the true reflection of our revenue cannot be proven from our business account. Which is ultimately what our banks and accountants will or must use to verify our revenues earned. As such, all discipline must be maintained to ensure that all revenues are sent by customers to that of the business accounts and not personal. A problem again of which taking a salary can aid as most times it’s just the access to funds that we ‘oh so seem to urge’.

5. Filing as an Employee ultimately separates you from the company: Many business owners are not aware of this factor as the notion of always having access to funds from profits is just always what’s in its entirety as more important. However, what we should know is that once we are taking a salary from the company, meaning we are on the payroll and monthly taxes/contributions are being deducted, we have ultimately now separated the profits of the company from ourselves as business owners. Thus, this makes you a legal contributor that takes a salary from your company and not from the company’s profits. As such, the company will be responsible for itself. Again, this is in respect to those who are shareholders or owners of companies.

6. The ease of not having to pay all Taxes or Contributions at once: Finally, if we should look at the burden being eased of not having to pay all those taxes or contributions at once if you would just declare your director fees taken for the year at once when filing your SO4/SO4A the following year as payments would be done monthly through the filing of the SO1, once more this is another great reason to continue filing as an employee.

The matter of implementing all the necessary discipline and consistency to do this monthly may sometimes be of greater benefit to us if we employ or appoint someone to ensure that this done. As the handling of transactions like these are most times seen as not important due to high inflow of funds that is always at our may and will. Thus, let’s ensure that everything is done for us to reap and enjoy these benefits from the bank and the Tax Administration of Jamaica. 

If you need help or further information, please feel free to contact us at 1 (876) 902-7259 | 545-6928 or email us at BIZcareConsultationAcct@Gmail.com to arrange your consultation session. Do remember at BIZcare “Your Business is our Priority”. We offer the services of:

  1. Business Registration
  2. Tax Filing
  3. GCT Filing
  4. Payroll Services
  5. Consultation Services
  6. TCC Services

And Others.

Like us on:

Written by: Kmar Henry [ CEO |BIZcare Consultation & Accounting Firm Limited ]

Edited by: Sheryl Bailey [ Director | BIZcare Consultation & Accounting Firm Limited ]

STOP Ignoring the IMPORTANCE of RECORDING!

STOP Ignoring the IMPORTANCE of RECORDING!

When operating a business, it is easy to feel bombarded with the daily tasks of ensuring that your business stays afloat to meet its mountain of monetary demands. As such, every so often, small business operators become trapped or side tracked from ensuring that the recording of these daily transactions are done. Hence, we have always pounce upon small businesses with little or no data to get their taxes done, financial statements or even to do their payroll. This has therefore raised a matter of or major concern as our experience has shown us how detrimental this can be in the event that a particular business may become prompted by the Tax Administration to receive an audit. Thus, here are some key pointers to note on how and why maintaining proper records is so important. We will explain some scenarios of how it can be done as well. So, let’s go:

1. Store all receipts and invoices: This should be done by placing all receipts chronologically based on ‘expense category’ in separate file folders in a safe place, preferably a filing cabinet. It is important to note that all receipts and invoices should be kept for a period of at-least seven years before they can be discarded or stored off sight. This is mandated by the tax law also and should be maintained by all means. As such please ensure that your customers get a proper receipt from you when payment is accepted, and that all purchases or expenses invoices and inventory are stored as explained.

2. Try to do as much transactions through the bank and via usage of a cheque book: On many occasions where small businesses fall short in the ‘keeping of receipts and invoices column’, the act or notion of having a cheque book and bank account is most times their saviour to garnish some type of info. Hence, we highly recommend that some type of discipline is maintained in writing those cheques especially the cheque stubs that are attached to enhance clarity with the ‘category or type of expense’.

3. Download or buy an Accounting Software: This is primarily where the world is going currently. As such, the matter of installing and using an accounting software to capture your business transactions is highly recommended. Some of these are: Quickbooks, Cash Register Systems, Great Plains, Peach Tree etc. These software’s are determined for use based on the kind of business that you operate, thus speaking to a consultant or accountant before choosing one or two is highly recommended as well.

4. Employ someone to do it if you can’t: It is just that simple, most times as small business operators we are so deeply engaged with the daily activities of the business that we just simply ‘don’t have the time’. Thus, getting or employing someone to do the job is the best solution. Just ensure that this particular person has some type of accounting experience or background. Especially for the category of inventory counting.

5. Supplying FALSE information is a breach of the Tax Law or Act: Yes, we know this might make your tummies wiggle or shuffle a bit, but the statement is quite true. Any information submitted that is deemed false is subjected to a fine after an audit. And bear in mind also, that when there are no proper records, you’ll just leave the auditor to use margins and ratios based on the industry at hand. Thus, another really great reason to ensure that proper records are maintained.

6. Recording IMPROVES the making of Business decisions: You will need to make important decisions based on purchases, investments and cutting of expenses. Thus, what better way than doing this from having a pool of statistics and information at your disposal? Far too long we have been making decisions too brittle without no concrete proof of our actual numbers. Especially within the aspect of giving discounts. Let’s raise the bar by having actual numbers to know our ROI (Return on Investments) and also to determine our future Cash Inflows and Outflows.

For too long we have been ignoring these important aspects when it comes to recording. As such, let’s ensure that we do everything within our will to improve or implement these aspects as the future of our businesses are highly or most times determined based on how well we do and practice these things.

If you need help or further information, please feel free to contact us at 1 (876) 902-7259 | 545-6928 or email us at BIZcareConsultationAcct@Gmail.com to arrange your consultation session. Do remember at BIZcare “Your Business is our Priority”. We offer the services of:

  1. Business Registration
  2. Tax Filing
  3. GCT Filing
  4. Payroll Services
  5. Consultation Services
  6. TCC Services

And Others.

Like us on:

Written by: Kmar Henry [ CEO |BIZcare Consultation & Accounting Firm Limited ]

Edited by: Sheryl Bailey [ Director | BIZcare Consultation & Accounting Firm Limited ]