There may be a recession on, but if you’re looking to start a new business, this may be just the time to do it. Richard Branson was recently quoted in the press as saying: “Fortunes are made out of a recession. A lot of entrepreneurs get going in the economic depths because the barriers to entry are lower.” Many people, frustrated by the sudden lack of job security, view a recession as an opportunity to become their own boss.

Things to take advantage of in the current economic climate include:

• Great deals on rented premises – a by-product of businesses downsizing, … Continue Reading

A loophole in the business rates system will mean that thousands of small businesses rate bills will double this week.

Those worst affected are SME’s leaving the small business rates relief scheme, which cuts bills by up to half. The scheme gives financial relief to high street shops, workshops and offices that are valued at less than £12,000. Many of these benefits will end over night as the new rateable value takes effect on April 1.

The increase is due to the fact that, over the last five years, many businesses have seen the value of their premises rise from … Continue Reading

Yesterday’s budget featured minimal benefits for businesses, there were a few positives however, here’s a summary:

Tax

The previously announced rises in income tax (new 50p rate) and National Insurance will be going ahead, but no further increases are planned. VAT remains at 17.5 per cent.

Entrepreneurs

The benefits for entrepreneurs who sell their business have doubled, with tax only charged at 10% on the first £2 million.

Business rates

Nearly half a million small businesses will benefit in business rate cuts from October, some of which will pay no business rates at all.

Investment allowances

Businesses will be able to claim back capital expenditure of … Continue Reading

To encourage the huge numbers of people in Britain on incapacity benefits back to work, from next month, the ‘fit note’ will be replacing the ‘sick note’.

On the face of things, fit notes sound like a good idea for employers, as rather than signing people off work completely, if appropriate, they will suggest any activities an individual will be able to carry out, despite their illness or injury.

The fit note system passes some responsibility back to the employer however, as the GP has the option to suggest temporary changes to the work environment. This could include altered hours and … Continue Reading

According to research by the Association of Investment Companies (AIC), Government backing of venture capital trusts (VCTs) is vital for supporting the UK’s enterprise economy.

The research surveyed 15 fund managers employed by 61 VCTs. Results showed that managers believed continued support for VCTs should be part of any future government plans to back innovation and growth in the UK’s small business community.
Ian Sayers, director-general of the AIC, said: “This research demonstrates that VCT investment provides substantial benefits for UK small businesses and the economy. We urge policymakers to reaffirm their commitment to VCTs, which are the best way to support … Continue Reading

If your start-up business has outgrown the spare bedroom, finding affordable premises to expand can seem like an impossible task – particularly in the UK’s major cities.

To help fledgling businesses in London, a new initiative has been set-up by Boris Johnson and the British Property Federation (BPF) – London New Enterprise. Centred round a website, www.londonnewenterprise.co.uk, the scheme brings together up-and-coming firms looking for office space and landlords with property to let.

Businesses can search available premises and landlords list available space. The site provides the perfect place for building owners with short term lets, or spare rooms in existing … Continue Reading

Banned from nearly all shops, life is now being made difficult for the humble cheque by HMRC.

To deter traders from settling their VAT liabilities using cheques, from 1 April 2010, all cheques posted to HMRC will be treated as received on the date the cheque clears, not when they have arrived in the post. Small businesses posting a cheque to HMRC will need to allow time for delivery, and for the cheque to clear, in order to avoid the risk of a late payment penalty.

This means that companies will have to rely on the fact that the HMRC will … Continue Reading

From April 2010, there will be new funding available which should make ‘going green’ a much more attractive proposition. FIT or Feed in Tariff’s is a cash back incentive scheme, where building owners who install renewable technologies will receive money for the electricity they generate. For solar photovoltaics’ (PV) this could equate to £1,000 a year.

Already successfully deployed in over 45 countries, the scheme, also known as Clean Energy Cash Back, will reward those who invest in green technologies by paying a guaranteed set rate for each unit of energy produced – over 20 years for wind technologies and … Continue Reading

The Federation of Small Businesses (FSB) has announced today (4 March) that the flat rate VAT charged to small businesses, has risen to a higher level, with rates changing depending on what sector your in.

Flat rate VAT is charged to businesses with a turnover of less than £150,000 and aims to minimise the red tape around VAT, providing a slightly lower rate. For more information on flat rate VAT, visit http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm

The FSB’s analysis of the rates found the following increases:

· Agricultural, services sector and membership organisations – rise of 2.5%.
· Grocers, newsagents, tobacconists, social work, computer repair services and clothing shops … Continue Reading

Do you dream of starting your own business, but are wary of the risk of going it alone? Nicknamed five – niners, an increasing number of people are setting up their own ventures alongside employment, working evenings and weekends to generate extra income and start a new business with the security of a regular wage.

According to Enterprise Nation, the home-business website, an estimated 5m people in the UK keep their jobs while building their own company at night and at weekends. Of these, two-thirds hope the businesses they are starting will become big enough and profitable enough to enable them … Continue Reading