Brookson News Feed - Contractor Limited Company

Contractors invited to air PAYE views

Wed, 28 Jul 2010 09:38:08 GMT

Posted by Alex Turner

Contractors working as limited companies are among those being invited to air their views about the Pay As You Earn (PAYE) income tax scheme.

HM Revenue and Customs (HMRC) is launching a discussion paper to gather ideas on how to improve the system and make it more efficient for taxpayers.

Exchequer secretary David Gauke said it is important that the PAYE scheme responds to the needs and circumstances of individuals.

"Only in this way will we be able to reduce errors and provide taxpayers with the clearest picture possible of their tax and allowances," he insisted.

Reducing the burden of the system on employers will also be a key focus of the consultation, he added.

In particular, HMRC will be looking at how real-time information can be used to improve the operation of PAYE.

The document forms part of a wider consultation package, with the government also seeking views on areas of tax policy such as pensions tax relief and national minimum wage requirements.

Cable calls on banks to boost business lending

Mon, 26 Jul 2010 09:47:13 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies could be among those to welcome comments made by business secretary Vince Cable regarding bank lending to small firms.

In an interview with the Sunday Times, the Liberal Democrat politician said financial institutions would come under greater pressure to approve business loan applications and help enterprises grow.

"We are very worried about the behaviour of the banks," he stressed. "The banks are not acting in the national interests. I don't think they get it.

"At the moment we are talking to them in an amicable way and we are monitoring them, but if this doesn't work there are combinations of carrots and sticks that can be employed."

His comments come ahead of the publication of a government green paper which will set out new approaches to improving cash flow to business.

Last week, Mr Cable said the figures being produced by financial institutions on business lending are "misleading" and suggested that banks are not lending as much as they claim to be.

Contractors call for IR35 abolishment

Mon, 12 Jul 2010 11:20:15 GMT

Posted by Alex Turner

The government's new Your Freedom website, which invites businesses and individuals to say which laws and regulations should be axed, has proved an attractive platform for contractors wanting to see the back of the IR35 tax legislation.

Last month, the coalition launched the website in order to give people in the UK a place to voice their opinion on the success of various laws and regulations.

Abolishing IR35 is now one of the "highest rated ideas" on the website's business section.

A number of contractors have now called for the end of the tax legislation, which was introduced in the late 1990s in a bid to reduce cases of disguised employment.

One post on the website said: "What IR35 actually did was force a lot of single employee limited companies to scale down their aspirations or even close their companies down.

"This stopped a lot of people in this situation from growing the company, employing more staff or following other entrepreneurial ideas that by default would have generated more tax and National Insurance contributions for the government."

The government has promised to look at IR35 as part of a wider review of business taxation following pressure from industry groups such as the PCG.

UK internet use on the rise

Fri, 02 Jul 2010 11:42:09 GMT

Posted by Alex Turner

Contractors working as limited companies in the UK could be inspired to increase their online presence following the publication of a new report.

According to new figures published by boutique press relations agency Punch Communications, more than two million Britons have started to use the internet in the last 12 months.

The firms said the rise should prompt enterprises that have not already established a "digital presence" to do so.

Data from the study also showed that more than 50 per cent of the new users are aged over 50 years, something which the firm said displays a "growing confidence" in the internet as a businesses medium.

Pete Goold, managing director of Punch Communications, said: "Given such an increase in internet use amongst an age range not commonly associated with the use of digital technology, it is important for businesses to adapt certain aspects of their marketing to attract this new market.

"Consumer internet confidence is on the increase and businesses need to ensure they establish a suitable digital presence to fully utilise a new age of internet users."

Contractors urged to ensure cover is in place

Thu, 01 Jul 2010 09:48:14 GMT

Posted by James Curtis

Contractors working as limited companies in a range of UK industries could be encouraged to make sure they are adequately insured following recent comments made by one expert.

Responding to a contractor's question on advice website Contractor UK, Paul Thorpe of insurance firm Caunce O' Hara said not having a policy in place could leave a contractor with a hefty bill.

In response to a contractor asking if they could "get away" with not having professional indemnity insurance, the expert commented: "Perhaps the most convincing argument to make you rethink contracting without PII is that the cost is literally a fraction of the potential costs of a claim - potentially tens, or even hundreds, of thousands of pounds."

Mr Thorpe explained that PII insurance can be obtained online in a matter of minutes and prices can range from between £200 and £400 pounds.

The expert also said that many agents will include the insurance requirement on a check-list of obligations along with a bank account and limited company.

VAT hike will be 'bad for business'

Tue, 22 Jun 2010 09:56:16 GMT

Posted by James Curtis

Limited company contractors could be among those to be concerned about a potential rise in VAT.

It is widely expected that chancellor George Osborne will announce an increase when the coalition's first emergency Budget is announced later today.

However, a recently-published report by comparison service uSwitch has revealed that 87 per cent of the UK's small enterprises believe the move will be "bad for business".

According to the research, one-third of the respondents believe increasing the VAT rate will have a direct and negative effect on consumer spending.

Jake Ridge, small business energy expert at uSwitchforbusiness.com, said: "Small enterprises seem to be very clear about one thing - a VAT rise will be bad for business.

"They need support from the government to help safeguard their future - a VAT hike could be one blow too many for businesses who have faced the brunt of the recession and are now battling their way to recovery."

Chancellor must tread carefully, says BCC

Fri, 18 Jun 2010 10:18:01 GMT

Posted by James Curtis

Contractors working as limited companies in the UK could be among those to be encouraged by recent comments made by the British Chambers of Commerce (BCC).

David Frost, the organisation's director-general, has warned chancellor George Osborne to tread carefully with regard to changes in businesses taxation when announcing next week's emergency Budget.

The expert has said that the bulk of new measures introduced to reduce the UK's "unsustainable" deficit should come from public sector cuts rather than exposing small enterprises to "punishing tax hikes".

He commented: "The chancellor must tread carefully to avoid introducing damaging new taxes that negatively affect private-sector growth.

"Short-term revenue gains would be outweighed by longer-term economic consequences, from reduced business investment to lower rates of job creation. Any tax rises must be focused on consumption taxes rather than payroll, income or profits."

Mr Osborne will deliver the new coalition government's first emergency Budget at 12:30 on June 22nd.

UK tax system 'a barrier to business growth'

Fri, 11 Jun 2010 03:27:36 GMT

Posted by Alex Turner

Contractors working for UK limited companies may be interested in a warning from the Institute of Directors (IoD), which claims that growth-focused businesses are being held back by the UK tax system.

In a new report, the group found that the tax burden on businesses differs widely between micro-sized and medium-sized firms.

The research showed that this year, the typical micro-sized company would have been earning profits for the state from January 1st to May 1st.

However, for slightly larger companies, this extends to May 21st and for the average medium-sized business, tax freedom day does not come until June 10th.

The IoD said that with the tax burden growing heavier as firms expand, this could act as a disincentive for growth.

It is therefore urging the government to implement a "steady programme of significant reductions" in business taxation.

"The high road to renewed economic growth is to allow businesses to retain more of their profits for investment and not to do anything that would increase the burden," said Richard Baron, head of taxation at the IoD.

His comments come ahead of chancellor George Osborne's emergency Budget on June 22nd.

Chancellor expected to announce corporation tax cut

Wed, 19 May 2010 05:03:25 GMT

Posted by Alex Turner

The chancellor is expected to announce a cut in corporation tax in a move that may be good news to contractors working for limited companies in the UK.

It is thought that George Osborne will introduce a reduction in both the small business and main rates of the tax to diffuse a row over capital gains tax (CGT).

The coalition government plans to bring CGT in line with income tax, which could mean a hike from the flat rate of 18 per cent to rates as high as 50 per cent for the biggest wage earners.

Currently, large companies pay corporation tax at 28 per cent, while small firms face a 21 per cent rate.

Mr Osborne is expected to say that both rates will be reduced, with economists predicting cuts of three pence in the pound.

A Treasury source told the Daily Mail: "We want to have the most competitive corporation tax environment in the G20."

Emergency Budget 'must help small businesses access finance'

Wed, 19 May 2010 12:10:38 GMT

Posted by Alex Turner

The emergency Budget due next month must contain measures to help small businesses access credit, it has been claimed.

Sara Lee, a spokesperson for the Federation of Small Businesses (FSB), pointed out that many firms need to borrow at the moment to take on more staff as the economy recovers.

Contractors working for limited companies in the UK may agree with her view that the Small Business Credit Adjudicator, which was announced by the outgoing Labour government, should be continued.

Ms Lee also urged the new coalition to be lenient in taxing small companies when looking for ways to reduce the budget deficit.

"Clearly the reversal of the employers' National Insurance contribution increase is something we have lobbied for, as this would cost around 57,000 jobs," she remarked.

The country's new chancellor, George Osborne, is due to deliver his emergency Budget on June 22nd.

According to research by the FSB, 93 per cent of small firms want to see robust plans for trimming the black hole in the nation's finances.

Civil engineering contractors may be needed for Swansea University development

Wed, 12 May 2010 10:15:47 GMT

Posted by Alex Turner

Contractors are likely to be sought ahead of a major civil engineering project in south Wales despite warnings from one expert.

Swansea University is intending to build a new campus on land to the west of the city's docks and a three-year remediation process is due to get underway shortly, the South Wales Evening Post reported.

This is in spite of the opinion of local civil engineering contractor Paul Collins, who said the university needs to ensure its plans are thoroughly worked out because of chemical spillages at the site over a number of years.

However, site owner St Modwen, which acquired the land last November from petroleum company BP, has pledged to clean it up between now and 2013.

Rupert Joseland, a regeneration specialist at the organisation, told the newspaper the new university campus is expected to be completed in approximately ten years' time.

Elsewhere in Swansea, WalesOnline reported that the city's old Hafod Copperworks site could soon be redeveloped in a development encompassing new homes, a restaurant and a hotel.

Double-dip fears alleviated by GDP growth

Fri, 23 Apr 2010 12:25:00 GMT

Posted by James Curtis

UK Contractors' fears of a double-dip recession could be alleviated in the short-term by the results of the latest GDP estimate.

An Office for National Statistics (ONS) report, released earlier today (April 23rd), revealed that UK GDP increased by 0.2 per cent in the first three months of 2010.

Sole traders and limited companies working in the finance sector could be particularly encouraged by the result as the figures revealed that the GDP expansion was largely down to positive growth in the business services and financial industries.

According to the ONS, the transport, storage, communication and government sectors also contributed to the growth.

However, decreases were reported in distribution, hotels and restaurants and the construction sectors.

The ONS statistical release showed that the business services and finance sectors increased by 0.6 per cent in the three months to March 2010, following growth of 0.4 per cent in the previous quarter.

EU equal treatment measures 'not meant' for contractors

Fri, 09 Apr 2010 10:24:09 GMT

Posted by James Curtis

Equal treatment measures, included in the EU Directive, are not intended to cover workers who are not "under the control" of end users, it has been confirmed.

This was announced at a recent round table discussion with the European Commission's Labour Law Unit, which was held in order to ensure the directive is being implemented and to ensure the regulations are being adhered to and understood.

The Recruitment and Employment Confederation (REC), which was in attendance at the meeting, said the confirmation reflected its argument that self-employed workers and limited company contractors should be excluded from the regulations.

Tom Hadley, the REC's director of external relations, said: "Discussions on the EU Directive have shifted to the national level but the umbilical chord to Brussels has not been cut.

"It is crucial for the UK industry to maintain a strong presence in Brussels in order to promote the need for interpretations that take account of the different ways that the temporary work operates across the EU and in order to exchange views with other national federations."

HMRC launches new tax podcast

Tue, 02 Mar 2010 11:10:14 GMT

Posted by Alex Turner

Contractors working as sole traders or limited companies in the UK could be among those to benefit from the launch of a new tax podcast.

HM Revenue & Customs (HMRC) has launched the online service in a bid to provide enterprises with up-to-date information on changes in the VAT, PAYE and corporation tax system.

Stephen Banyard, director of HMRC's Business Customer Unit, said: "Our Super Podcast is a great way for businesses to remind themselves about some of the major changes on the horizon affecting VAT, PAYE and corporation tax.

"So whether you're a VAT-registered trader, employer or limited company, we'd urge you to take 15 minutes to download and listen to it, to help ensure you're prepared for the changes."

HMRC urged enterprises to view the podcast for information on online Employer Annual Returns, which come into effect this spring and details of new penalties for late payment of PAYE.

The podcast is set to feature guidance from HMRC experts Mr Banyard and Don Macarthur.

Contractors to benefit from social media

Tue, 05 Jan 2010 10:21:10 GMT

Posted by James Curtis

Contractors working as sole traders or limited companies could be among those to benefit from increasing their use of social media, a new survey has suggested.

Research by employment specialist CareerBuilder.com revealed that 37 per cent of businesses plan to develop their social media presence in the coming months.

According to the report, one in five employers also plans to add social media responsibilities to employees' workloads.

Sole Traders could also benefit from new opportunities as eight per cent of the survey's respondents said they intend to hire someone new to focus or partially focus on social media.

Richard Doherty, group vice president of solutions for recruiter Jobpartners said social media will play an "increasingly important role in attracting and engaging with top talent".

"[The] key to the success of social recruiting will be to ensure that it is aligned and integrated with an organisation's existing recruitment processes and technology," he added.

Private sector pay rises expected

Mon, 04 Jan 2010 04:47:45 GMT

Posted by Alex Turner

Pay rises in 2010, equal to or greater than those received last year, are expected by three in five private sector workers, according to a new report.

Research conducted by the Chartered Institute of Personnel and Development (CIPD) revealed that many workers expect to receive a three per cent rise on average.

The report also showed that just a third said they were expecting to receive a pay cut during 2010.

Charles Cotton, the CIPD's reward adviser, said: "This indicates that workers believe that the economy will improve in 2010 and are hopeful their employer will be able to share the success with them."

However, Mr Cotton explained that the enthusiasm was not shared by all workers.

"While most private sector workers predict that they will get a pay rise next year, over one in four do not think that this will be the case, focused in hard-hit economic sectors such as construction and manufacturing," he added.

HMRC issues VAT alert

Thu, 03 Dec 2009 02:30:11 GMT

Posted by James Curtis

HM Revenue & Customs (HMRC) has urged VAT-registered businesses to prepare now for "major changes" to filing and payment of the tax.

The changes, which will be effective from next April, will affect a number of limited companies.

From April 1st 2010, VAT-registered businesses with an annual turnover in excess of £100,000 will only be able to file their VAT returns online.

In addition, businesses registering for VAT for the first time after the date will also have to file returns online and make electronic payments.

Stephen Banyard, a spokesman for HMRC, said: "Filing your VAT return online has a number of benefits: it's secure, convenient, does arithmetical checks and calculations for you, and provides you with an immediate online acknowledgement that your online return has been safely received by us.

"So, if your turnover is £100,000 or more, and you're not already filing your VAT return online, sign-up now for VAT online services - that way, you'll avoid a last-minute rush, and be able to enjoy the benefits of online filing sooner rather than later."

VAT, which is charged on the sale of goods and services, will return to a rate of 17.5 per cent from January 1st 2010.

A temporary rate of 15 per cent was introduced by the government on December 1st 2008 in a bid to ease the financial difficulties caused by the recession.

Contractors retain choice to opt out of conduct regulations

Tue, 17 Nov 2009 10:20:19 GMT

Posted by James Curtis

Contractors will retain the choice to opt out of the Conduct of Employment Agencies Regulations, following a successful campaign by the Association of Professional Staffing Companies (APSCo).

The campaign was launched after the Department of Business, Innovation and Skills (BIS) announced proposals to broaden the Conduct Regulations.

One suggestion was to take away the option of limited or umbrella company contractors to opt out of the regulations.

APSCo said that under the proposals, agencies are prevented from recouping placement costs when workers are offered permanent posts by an organisation.

The association also said agencies were more susceptible to fraud by being forced to pay contractors even in the absence of valid timesheets.

Agencies also face heavier scrutiny and increased obligations to ensure detailed information on workers and positions is obtained, before staff are supplied.

Ann Swain, chief executive of APSCo, said: "This is an important victory for the recruitment industry. If the opt-out had been withdrawn, the red tape burden on recruiters and contractors of automatically having to comply with the Conduct Regulations would have imposed significant additional costs.

"The government has acknowledged that there is insufficient evidence of the opt-out being used to exploit vulnerable workers. It should concentrate on finalising the Agency Workers Directive regulations and getting the employment market back on track before it returns to this issue again."

New employment agency rules announced

Mon, 16 Nov 2009 10:12:41 GMT

Posted by James Curtis

The government has announced a series of new regulations which will affect the conduct of agencies that supply temporary workers.

Under the new laws, which will be enforced from October next year, agencies will be banned from charging up-front fees for people seeking work in the modeling and entertainment industries.

The regulations also indicate that the present opt-out for limited company contractors will be maintained and the issue of workers operating under umbrella companies will be kept under review.

Rules on advertising job opportunities are also set to be simplified under the legislation.

Tom Hadley, the director of external relations at the Recruitment and Employment Confederation, said: "The government has listened to calls for unnecessary red tape in areas such as suitability checks to be cut.

"Outcomes on issues such as licensing and enforcement are also in line with our recommendations and we welcome the news that the opt-out for limited company contractors will be maintained."

Limited companies to be excluded from AWD

Tue, 20 Oct 2009 04:31:03 GMT

Posted by Jim Ottewill

Self-employed contractors working through limited companies will be excluded from the Agency Workers Directive (AWD), a government consultation has claimed.

However, freelance consultants who are not registered as self-employed or work through an umbrella company will need to adhere to the new legislation when it is introduced in October 2011.

The AWD is a European directive aimed at providing temporary workers with the same rights as permanent staff members after they have been with an organisation for 12 weeks.

In the government's response to the AWD consultation it said that agency worker will be defined in the same way as workers in the Working Time Regulations 1998.

The document said: "This will exclude [people] who are genuinely one of the following: the self-employed; those working through their own limited liability company; or those employed on 'managed service contract," Shout 99 reported.

Contractors working for umbrella companies or who not self-employed are to be included as the government is concerned the "unscrupulous" could use these positions to evade the regulations.

Limited companies can use Twitter as communications channel

Wed, 30 Sep 2009 11:12:52 GMT

Story written by Alex Turner

Contractors working as sole traders or through limited companies are beginning to see the value of Twitter as "another communications channel", an internet expert has claimed.

According to the Social Media Portal (SMP), the micro-blogging website could benefit businesses through offering more services.

Tim Gibbon, co-founder of the SMP, said: "From a business perspective, business owners are beginning to see the value of Twitter being another communication channel (not just sales).

"If done correctly [firms] are engaging their audiences on their level to learn more about them, more about the products and services that they sell."

He added that Web 2.0 companies such as Twitter are having an impact as they influence the way culture moves forward as well as changing how businesses think.

Figures from siteanalytics, an internet analysis company, showed that in August 2008, Twitter had 2.6 million users.

The study showed that by August 2009, the website had increased the number of unique visitors by approximately 900 per cent to reach 23.6 million.

Brits want to be self-employed contractors, study shows

Tue, 22 Sep 2009 02:47:12 GMT

Story written by Alex Turner

Nearly two-thirds of Brits want to work as self-employed contractors, a new study has revealed.

Research from the Association of Chartered Certified Accountants (ACCA) revealed that three-quarters of 25-34 year-olds want to become their own boss.

The study, which questioned 2,000 adults across the UK, showed that 96 per cent believe small businesses, including contractors working as sole traders or through limited companies, are important to the success of a town or city.

Glenn Collins, head of business advisory services for ACCA, said that smaller companies are the "lifeblood" of the British economy.

"Running a business is seriously hard work and requires skill, dedication and drive. It is hugely encouraging that so many respondents – especially so many young people – aspire to be their own boss. This entrepreneurial attitude bodes extremely well for the next generation of business leaders

Further findings from the study revealed that many were interested in working with "creative and unusual" business ideas including space tourism.

Self-employed contractors 'need to manage relations face-to-face'

Thu, 17 Sep 2009 11:33:08 GMT

Story written by Jim Ottewill

Small-to-medium enterprises including self-employed contractors need to ensure they personalise their relationships with customers, a travel management body has advised.

According to the Guild of Travel Management Companies (GTMC), contract establishment, sales activity and customer relationships are best done "face-to-face".

Philip Carlisle, chief executive of the organisation, said that it is acceptable to deal with routine pieces of work through video conferencing or conference calls.

"[However] for anything business critical, it really requires face to face meetings," he explained.

Mr Carlisle added that the business travel sector is showing signs of growth, which will be evident in October when compared with figures from the same month in 2008.

The comments follow research from Hilton Hotels which showed that the majority of companies believe creating personal relationships is one of the most important aspects of conducting business.

Nearly two-thirds of respondents said that business travel can increase the importance a worker puts on teamwork, motivation and performance while concerns were raised by respondents about business efficiency being reduced by a reliance on technology.

New rules over limited company addresses

Thu, 17 Sep 2009 09:00:10 GMT

Story written by Jim Ottewill

Limited companies are to face new rules concerning premises during the autumn.

The changes, included in the Companies Act, will come into effect from October 1st and call for limited company directors to provide a service address as well as a residential address.

An address cannot be a DX or PO Box number and must be a location where post can be delivered as well as someone being on the premises to sign for any documents, Contractor UK reported.

Further rules include stricter legislation surrounding the registry of company names and permissions needed for registering a name similar to another organisation.

Companies House told the news provider: "You may register a name that is the same as another in the registrar's index if the company belongs or is to belong to the same group as the company already on the register and a written consent from the latter is sent to us."

HM Revenue and Customs and Companies House recently announced that they are adopting the same processes for receiving online tax forms.

Many over-50s are self employed, new study shows

Wed, 16 Sep 2009 11:12:33 GMT

Story written by Jim Ottewill

A new study has suggested that the over-50s make a positive net contribution to the UK's business economy.

Findings from specialist insurance provider RIAS showed that 1.7 million people over 50 years-old are self-employed, an entrepreneur or in charge of their own business.

A further 860,000 are planning on setting themselves up in a new business venture in the not too distant future, the survey revealed.

Janet Connor, managing director at RIAS, said: "The public stereotype has long been that the over 50s are a drain on society with an expected life path, taking more out of the public purse than they put in. In reality, the complete opposite is true.

"From their entrepreneurial spirit, through to their record-breaking achievements, today's over 50s are diverse, complex and aspirational - one size really doesn't fit all."

The statistics showed that over a quarter of respondents in the age bracket have opted for a fresh career direction or decided to take more training to enhance their job prospects.

Contractor jobs protected for Brits, government says

Wed, 09 Sep 2009 11:10:01 GMT

Story written by Jim Ottewill

The government has agreed to recommendations introducing tighter controls to ensure employers offer work to UK contractors before looking overseas, the home secretary has announced.

According to Alan Johnson, the government is to follow a number of measures suggested by the Migration Advisory Committee (MAC) to introduce more restrictions on employing foreign workers.

Overseas staff who want to transfer to the UK will need to have worked with a company for 12 months rather than six before they can move.

From 2010 all vacancies need to be advertised on the Jobcentre Plus website for up to four weeks before being offered to individuals from outside Europe.

Alan Johnson said: "The introduction of the points-based system has radically improved our ability to respond quickly to changing economic circumstances.

"We have now accepted all of the committee's recommendations and we will continue to work with them to make sure that we use the flexibility in the points-based system to the best advantage of society and the economy."

A total of 16 recommendations were put forward by the MAC.

Marketing integral for small buinesses, CIM claims

Fri, 04 Sep 2009 01:28:55 GMT

Story written by Jim Ottewill

Marketing is integral to the development of small-to-medium enterprises (SMEs) including limited companies and sole traders, a business expert has claimed.

According to the Chartered Institute of Marketing (CIM), government sometimes lacks the understanding that many problems for SMEs are based around marketing.

Mark Stuart, head of research at the CIM, said: "Rather than the government trying to offer consultants and other delivery aspects themselves, once an SME's needs have been correctly assessed, it's time to direct them towards recognised organisations for delivery, and funding along the way if necessary."

He added that the CIM needs to show it is an organisation interested in business growth for SMEs and the drivers behind it.

The comments follow the publication of the CIM's latest Shape the Agenda paper, which calls for the government to refine the support infrastructure in place for SMEs.

A recent study by Barclays revealed that nearly half of SMEs are planning on expanding during the next 12 months.

Small oil companies 'to boost activity'

Tue, 01 Sep 2009 10:56:43 GMT

Written by Alex Turner

Small oil companies within the UK have signalled that they are likely to boost their levels of offshore activity on the back of a number of recent government incentives, spelling good news for contractors working within the energy sector.

Prior to the start of summer, ministers moved to reduce the rate of tax being levied on smaller oil fields from 50 per cent to 30 per cent in a bid to boost exploration efforts.

Combined with falling costs, most notably of those related to lifting and extraction, this move means that businesses within the sector are now starting to step up their levels of activity, with an estimated 400 million barrels of North Sea oil set to be tapped over the next few years.

Explaining the upturn in the industry, Alessandro Pozzi, an oil analyst with Edison Investment Research, told Reuters: "It's a viable business because of the low lifting costs and the low capital expenditure.

"If they manage to maintain this 30 per cent tax rate on onshore fields as well, that will be a good thing. You will see probably even more companies doing exploration," he added.

This follows on from the recent publication of the latest Oil and Gas Eye Index from Ernst and Young, which concluded that the outlook for UK energy companies, and therefore for contractors within this field, is becoming "more positive".

New entrepreneur scheme to be set up in Northern Ireland

Mon, 24 Aug 2009 01:04:25 GMT

Story written by Alex Turner

A new programme is being set up in Northern Ireland to provide advice and support to entrepreneurs.

The Propel scheme will help the self-employed and entrepreneurs with skills, expertise and a business network to support them in turning their ideas into money-making endeavours, the Belfast Telegraph reported.

Up to 30 candidates are needed for the first phase, which will then be reduced to 15 for the next stage after a presentation of their business idea to a panel of judges.

Graham Davis, Invest Northern Ireland's director of regional economic development, told the newspaper: "The Propel programme will encourage more ambitious people with potentially lucrative business concepts to become entrepreneurs.

"It aims to help them develop and export their products and services, and contribute to the growth of an even more dynamic, knowledge-led economy in Northern Ireland."

He added: "There is an abundance of enterprising talent in Northern Ireland, and when this commercial acumen is combined with new cutting-edge ideas, it can lead to business success."

HM Revenue & Customs is currently running a number of workshops to help self-employed workers in Northern Ireland fill in tax and online forms.

VAT scrappage plans to "stimulate innovation" among entrepreneurs

Thu, 20 Aug 2009 05:03:11 GMT

Story written by Jim Ottewill

The introduction of a scrappage scheme for white goods would help stimulate innovation among entrepreneurs, a trade association has claimed.

Comments from the British Retail Consortium (BRC) follow calls on the government to remove VAT from all green appliances and introducing a scheme to encourage consumers to look for energy saving goods.

Krishan Rama, press officer at the BRC, said that the VAT cut would encourage entrepreneurs and self-employed workers within the manufacturing sector to come up with new ideas on how to make appliances green.

"To get the A rating, manufacturers will further develop their technology, and they'll try and compete for that energy-saving recommended performance, to take advantage of the zero-VAT," he explained.

Mr Rama added: "It would … stimulate innovation amongst manufacturers."

Research by the BRC showed that if VAT was to be removed from energy saving appliances, then carbon dioxide emissions could be reduced by 1.3 million tonnes each year by 2020.

The study also showed there are 15 million washing machines and freezers in the UK over a decade old.

Women dream of being self-employed, research shows

Fri, 14 Aug 2009 11:16:13 GMT

Story written by Jim Ottewill

The most popular ambition for women working in IT is to eventually become self-employed, new research has shown.

A study by website womanintechnology.co.uk, which questioned attendees at its recent W-Tech career advice event, showed that 14 per cent of respondents wanted to work for themselves, become their own boss or be an entrepreneur when asked what they would consider as their dream job.

Up to 12 per cent said they would like to work in project management while eight per cent were keen to become IT consultants.

Maggie Berry, director of womenintechnology.co.uk, told Personnel Today: "The answers that these women gave ranged from consultant to software tester, and from researcher to executive coach."

"It goes to show just how many different career paths IT can offer. The results also highlighted how ambitious women in IT are."

The website recently launched an initiative to encourage its members, which consist of nearly 5,000 IT professionals, to provide careers advice to young woman interested in working within the sector.

Self-employed and contractors offered business advice by HMRC

Wed, 12 Aug 2009 11:21:09 GMT

Story written by Alex Turner

HM Revenue & Customs (HMRC) is offering small-to-medium enterprises (SMEs) including self-employed workers and contractors business advice at an open day held at Aston Villa Football Club.

Taking place at the ground on September 3rd, the Business Advice Open Day (BAOD) brings together a number of experts to explain how to understand tax and get to grips with cash flow, HMRC stated.

Information on the Business Payment Support Service, a scheme which can allow businesses to delay their tax payments, will be held while a specific advisory session for the self-employed will also be taking place.

Roger Lovell, business liaison team manager, said: "HMRC runs a number of schemes to make tax as hassle free as possible, and engages with our customers.

"And our attitude has always been to assist businesses in short term difficulty so that we can help keep viable businesses afloat. Our partner organisations will also be on hand to explain their services and how they can help SMEs."

During 2008 more than 10,000 people attended a BAOD tax event.

Limited companies in Yorkshire to benefit from IT support

Thu, 06 Aug 2009 10:57:02 GMT

Story written by Jim Ottewill

Limited companies and sole traders working in Yorkshire are to benefit from the launch of a government backed IT initiative.

Yorkshire Forward, a regional development agency, is working with the Federation of Small Businesses, the government's e-skills council and NYNet to launch the Essential Guide to IT, the Yorkshire Post reported.

The project is aimed at providing support for entrepreneurs, contractors and freelance workers in the region.

Jim Farmery, assistant director of competitiveness for Yorkshire Forward, told the newspaper: "We have identified that smaller firms have a particularly low awareness of both the benefits and pitfalls of technology.

"The IT guide will support new and existing entrepreneurs and businesses in a particularly tough economic climate and, being free, they really should be utilised.

Up to six sections are contained within the document which includes information on securing data, how to set up a home office, marketing and selling services online.

It is available free of charge to all Yorkshire firms and can be ordered through contacting e-skills.

Government needs to support limited companies

Mon, 03 Aug 2009 11:29:46 GMT

Story written by Alex Turner

The government needs to do more to provide financial support to limited companies and sole traders when the UK begins to head out of recession, a business information provider has claimed.

According to the Federation of Private Business (FPB), many organisations have suffered from the unwillingness of banks to lend or the prohibitive rates of interest they are attaching to loans.

Businesses may be unable to cope with extra demand for products or services as the economy improves.

Noel Guilford, chairman of the FPB, said: "Small firms are finding access to finance a huge problem and the smallest firms are finding it almost impossible to raise bank finance.

"This is a problem that will get worse as the economy climbs out of recession. It is a fact that more small firms go out of business coming out of a recession that going in. Most small firms have cut costs, including owners' remuneration, reduced their working capital needs and eliminated capital expenditure."

The FPB recently called for banks to judge each business application for a loan on its own merits.

Limited companies 'losing out from 'tick box' loan mentality'

Fri, 31 Jul 2009 12:32:19 GMT

Story written by Alex Turner

Banks need to avoid having a "'tick box' mentality" when making decisions over lending to small businesses such as sole traders and limited companies, a business association has said.

Comments came from the Forum of Private Business (FPB) after chancellor of the exchequer Alistair Darling told the BBC that he was "extremely concerned" by the treatment of small businesses by the UK's banks.

Although Mr Darling believes the problem to be overcharging on credit, the FPB suggested that banks are failing to judge each case on its merits.

Chris Gorman, FPB spokesman, said: "One of the clear problems our members are reporting in relation to the banks is this perception that they are not lending on a case-by-case basis and are instead deciding applications according to an unfair 'tick-box' mentality."

He said improving relationships between banks and small businesses would help the situation.

The FPB recently welcomed a report from the Risk and Regulatory Advisory Council which showed that small firms are wasting money due to confusion over health and safety.

SMEs face fines over VAT reversion

Wed, 29 Jul 2009 10:50:30 GMT

Story written by Alex Turner

Many small-to-medium enterprises, including sole traders and limited companies, are not ready to adjust their finances to meet the end of the temporary VAT cut in January 2010.

The Federation of Small Businesses (FSB) told the Daily Telegraph that UK businesses may pay the incorrect amount in tax, which could lead to heavy fines being administered.

Organisations are confused about the amount of tax they should be paying when VAT will increase to the rate of 17.5 per cent.

Chancellor Alistair Darling reduced the rate of VAT to 15 per cent to help businesses during the economic downturn.

Stephen Alambritis at the FSB told the news provider: "Companies will be suffocated by further red tape as a result of the change and they will face crippling tax fines if they get their tax wrong."

Brookson, a leading supplier of accountancy services to self employed professionals, suggested that there is no confusion for its members as all bookkeeping is administered by the company on their behalf.

Self-employed guidance video released by HMRC

Tue, 28 Jul 2009 12:37:53 GMT

Story written by Alex Turner

Self-employed or freelance workers looking for guidance and information can download a new video offered by HM Revenue & Customs (HMRC).

The third episode in the Start Up Diaries is available to download for free and is "essential viewing for anyone who's recently started up in business, or is thinking of doing so", the HMRC said.

According to the tax body, the video-series follows the lives of three entrepreneurs - Nick, Ruth and Hannah - and the various difficulties they encounter.

It can be accessed from the Business Link website and provides an insight into "how they've coped with the ups and downs of going it alone".
The organisation has also made a number of other video guides available to small businesses, which will be useful for sole traders and limited companies, and can also be accessed for free.

Presented by television historian Dan Snow, the programmes give guidance on corporation tax, income tax for the self-employed, National Insurance and record keeping.

More sole traders represented by network

Tue, 21 Jul 2009 02:28:18 GMT

Story written by Jim Ottewill

A new business network has increased the number of new sole traders and limited companies it represents to 200.

According to the Oxfordshire Town Chambers Network (OTCN), it has recently welcomed three business organisations meaning its membership now includes 24 groups alongside ten event networks.

Monument Park at Chalgrove is home to 80 businesses while the Oxfordshire Craft Guild is made up of over 70 designers, the body said.

John Naish, OTCN director, told Thames Local News: "We are delighted to welcome three new member organisations to our fast-growing network.

"Their enthusiasm for becoming part of the network is especially encouraging in that it demonstrates how we are continuing to widen our appeal beyond the original focus of local town chambers to take in other membership organisations and, now also, business parks."

The organisation is holding an event in Abingdon Council Chamber today (July 21st) as part of an initiative to see what commercial opportunities can be generated from climate change.

Limited company contractors to be excluded from AWD

Fri, 17 Jul 2009 10:30:45 GMT

Story written by Alex Turner

Limited company contractors may be left out of the Agency Workers Directive (AWD) while umbrella company contractors will be covered by the policy, one contractor expert has suggested.

Dave Chaplin, ContractorCalculator chief executive, made the comments on his organisation's website after attending a consultation meeting at the Department for Business, Innovation and Skills.

The meeting debated the AWD, which is a piece of legislation aimed at providing contractors with the same rights as permanent employees after working an organisation for 12 weeks.

Mr Chaplin said: "Whilst it is essential that these vulnerable workers are protected, contractors, who have not asked for these rights, are far from vulnerable and may frequently be remunerated higher than their permanent peers.

"So it is wrong for them to be 'protected' by legislation aimed at vulnerable workers."

However, the definition of a 'worker' is "someone who works under a contract of employment", which could technically apply to a contractor working through an umbrella company, he concluded.

The Association of Recruitment Consultancies has previously appealed to the government to ensure high-earning contractors are left out of the legislation.

Limited companies can promote services through blogging

Thu, 09 Jul 2009 10:22:20 GMT

Story by Jim Ottewill

Limited companies and sole traders should use a blog to promote their services to potential customers, an online marketing report publisher has said.

A contractor or freelance consultant can effectively communicate with clients through regularly posting unique content on a blog, complete with relevant search terms and key words to improve its Google ranking.

Chris Lake, editor-in-chief at Econsultancy, said: "Every small-to-medium enterprise (SME) should by now have some idea about the kind of search phrases it would request if a search marketing fairy granted three wishes.

"Build a blog around your chosen outcome and write unique posts about that subject. You need to categorise and tag your posts with relevant terms."

Mr Lake provided a number of other tips including blog frequently, be opinionated and embrace the online community.

Research from online marketing firm Write My Site showed that 70 per cent of SMEs say they do not have time to blog regularly.

Contractors to benefit from EDF Energy's investment

Tue, 07 Jul 2009 10:30:23 GMT

Story written by Jim Ottewill

Contractors and freelancers working within the energy sector will benefit from the development of four new reactors in the UK, EDF Energy has said.

The company held a supply chain event in London to showcase its new project and potential opportunities for British businesses.

EDF Energy's new programme is expected to generate more than £150 million worth of contracts while more than 300 small businesses, including sole traders and limited companies attended the event.

Vincent de Rivaz, EDF Energy chief executive, said: "This conference is where we begin forging working relationships that will last many years, or even decades. It is no longer about should we build new nuclear plants in the UK, or even when. It is now about how. We have the resources and expertise to make it happen.

"The huge investment we will now make to deliver new nuclear is good news for UK workers because it will create significant employment opportunities over the coming years."

EDF Energy recently announced the launch of Green Britain Day, a project aimed at promoting sustainable living.

Limited companies backed by Conservative leader

Fri, 03 Jul 2009 12:54:37 GMT

Story written by Jim Ottewill

The government's contractor list needs to be expanded with more emphasis on providing work to small businesses including sole traders and limited companies.

Conservative leader David Cameron was speaking to a number of volunteer workers when he made the comments, Bloomberg reported.

He said that smaller companies, entrepreneurs and voluntary organisations, which are "inventive and doing exciting things", need to be given more contracts to supply services rather than the bigger organisations.

Mr Cameron told the news provider: "We've got to have a culture that's a little bit more experimental and is prepared to take a bit of a leap sometimes with a small organisation."

"At the moment in the civil service there's a sort of mentality of 'no one got fired for giving the contract to Capita'," he added.

Shadow chancellor George Osborne outlined a new initiative earlier in the year to open up the contracting process within the IT sector to increase opportunities for smaller businesses.

High earning freelancers 'can work round new tax rules'

Wed, 01 Jul 2009 11:59:04 GMT

Story written by Alex Turner

High earning contractors working as sole traders or limited companies are being urged to look for ways around new tax relief rules proposed by the government.

Many contractors have used the pension contribution rules in the past to reduce their tax bill but this will change when new legislation begins in April 2011, Tony Harris, an independent financial advisor from Shout99, explained.

The government's new laws, unveiled by Alistair Darling, chancellor of the exchequer, in his Budget earlier in the year, mean that contractors earning over £150,000 a year will have the tax relief on their pension contributions capped up.

Mr Harris said: "We would advise that you seriously consider setting in motion a regular investment for the new trading year to not only maximise the reduced tax break still available but hopefully also to safeguard the right to continue contributions should the rules change again."

This is due to pre-existing regular pension investment being exempt from the new legislation, he commented.

According to the treasury, 230,000 people in the UK will be affected by the changes.

Self-employed advice workshop to take place in Ireland

Tue, 30 Jun 2009 01:06:51 GMT

Story written by Jim Ottewill

HM Revenue and Customs (HMRC) is organising a number of workshops for people in Northern Ireland looking to become self employed.

According to the organisation, the economic climate is making it harder than ever for small businesses to succeed.

The free workshops have been set up to provide advice and information for sole traders and those in partnerships and will take place across the region during July.

Modules include self assessment for the self-employed, how to become self-employed, VAT and inward processing relief.

Julie Jones, business advice team manager for HMRC said: "These are challenging times, but HMRC runs a number of schemes to make tax as hassle free as possible.

"Our attitude has always been to assist businesses during good times and in bad, so these events allow us to bring our advice directly to the business community in Northern Ireland and offer practical assistance where it is needed."

The first workshop begins on July 2nd at Newry & Mourne Enterprise Agency.

Limited companies 'spared by AWD'

Fri, 26 Jun 2009 03:43:26 GMT

Story written by Jim Ottewill

Limited companies may not be affected by the proposals in the Agency Workers Directive (AWD), a business expert has claimed.

The AWD is legislation from the European Commission aimed at providing temporary workers with the same rights as permanent staff after working with an organisation for 12 weeks.

Adrian Marlow, managing director of Lawspeed, told Contractor Calculator that the pressure to push the legislation through quickly is coming from the government rather than Europe.

He said that limited company contractors will be excluded from the AWD as it now stands although the European Commission may view leaving Personal Service Companies (PSCs) out of the legislation as exclusion.

"Excluding PSCs is not the silver bullet everyone is looking for and the directive does not allow the exclusion of any section of the workforce, so could be classed as avoidance," Mr Marlow explained.

Contractors working through their own limited company are referred to as PSCs.

Limited companies need to choose professional name

Fri, 26 Jun 2009 11:36:16 GMT

Story written by Alex Turner

Sole traders and limited companies have been urged to choose a trading name that is professional and inoffensive.

Bytestart.co.uk, a small business portal, has produced advice for those looking to set up in business on their own.

A business name must not cause offence, not contain any sensitive words and avoid any trademarked words, the website explained.

The expert said: "For limited companies, you have to have a unique company name, and for sole traders you shouldn't choose a business name you know is being used by another trader (or a limited company).

"Clearly, as you cannot search a register of sole traders, you should scour the internet and phone directories for mentions of your proposed sole trader name before naming your company."

Bytestart.co.uk added that businesses should also research the availability of domain names as more and more trade is conducted over the internet.

Previously, the advisor stated that people setting up their own venture will save themselves "a lot of stress and costs further down the line" if they research both at the same time.

SMEs 'more effective at managing risk'

Wed, 06 May 2009 02:39:01 GMT

Small to medium enterprises (SMEs) including sole traders and limited companies, are more effective at managing risk, one finance firm has claimed.

According to Close Invoice Finance, three out of five SMEs, which are defined as those that have between one and 50 employees, have less than ten per cent of debt on their books for more than 60 days.

David Thomson, chief executive officer of Close Invoice Finance, said "This study proves that smaller SMEs have been more successful than their larger cousins at successfully managing exposure to the risk of bad debt. In such poor market conditions, it is imperative that factors such as cash flow supervision are managed closely."

He advised businesses working as contractors and freelancers to use cash flow management tools to provide protection against late payments and bad debt.

The research also showed that the majority of larger SMEs admit that they have an ageing debt.

It contributes between 11 and 50 per cent to their total debt book.

New tax clause welcomed

Tue, 05 May 2009 03:42:01 GMT

The enabling clause in the Finance Bill has been welcomed by an industry watchdog as it should provide taxpayers with a bigger stake in the planned Tax charter.

According to the Chartered Institution of Taxation (CIOT), the charter outlines the various rights and responsibilities of HM Revenue and Customs (HMRC) and taxpayers.

The body stated that the clause refers to the HMRC staff standards of behaviour, values and how these employees interact with others.

Under the terms, the board of the HMRC is required to develop the charter and review it as well as providing an annual report on the document.

Nick Goulding, the CIOT's president, said: "This enabling clause is very welcome given the content of the latest consultation document. That appeared to veer away from being a charter for the taxpayer and seemed to be part of HMRC’s corporate vision."

He added that the body's main problem with the clause is that it does not ensure that the charter's process is performed in collaboration with stakeholders.

SME lending situation "seems to be changing"

Tue, 05 May 2009 11:26:09 GMT

Lending to small-to-medium enterprises (SMEs) appears to be improving, one campaigning group has claimed.

The Federation of Small Businesses (FSB) stated that lending to SMEs, including sole traders and limited companies, was a problem as the cost of finance was up despite interest rates dropping.

However, the body said that the situation appears to have changed with money now "dripping" through the banks to business people.

Sophie Kummer, senior press officer at the FSB, said that the government's lending scheme the Enterprise Finance Guarantee has had an impact on SMEs as it has made £1 billion available in guaranteed loans.

"It does seem to be working. In the early part of this year there were frustrations, and we heard from a few of our members that they weren't getting hold of the money and that money wasn't trickling through fast enough. But now it seems to be working, we really welcome that."

Research from the British Bankers Association (BBA) revealed that the amount of money lent to SMEs during March increased by £271 million.

Fraudsters increasingly target the self-employed

Fri, 01 May 2009 11:26:47 GMT

Self employed contractors and small-to-medium enterprises (SMEs) are increasingly being targeted by fraudsters, one security expert has warned.

According to fraud firm Equifax, SMEs including sole traders and limited companies have recently been targeted by phishing scams aimed at those completing self-assessment questionnaires.

The company stated that HM Revenue & Customs (HMRC) has recently issued a warning on its website highlighting how a large number of phishing emails are being circulated.

Businesses are being urged to be wary of any messages stating that the recipient is entitled to a tax refund.

Neil Munroe, external affairs director at Equifax, said: "Many of these emails can look very convincing for people who don't know what to look for. But the crucial thing to remember is that HMRC would always notify individuals of tax refunds by post, rather than email or telephone."

APACS, the UK payments association, reported in March that losses sustained through online banking fraud rose by 132 per cent year on year.

Small businesses 'disappointed with Budget'

Tue, 28 Apr 2009 04:01:50 GMT

A significant majority of UK businesses are disappointed with the government's latest Budget measures, with most believing little or nothing has been done to offer them further help in this tough economic climate.

That is according to a new study carried out by the Forum of Private Businesses (FPB) on the back of last week's Budget announcements.

Of those businesses that responded to the FPB's online survey, 97 per cent stated a belief that nothing has been done to ease the burden of costs that they face, while one in four said that the measures laid out would ultimately prove to be 'harmful'.

At the time, it was revealed that smaller enterprises are still worried about finance issues, with 84 per cent feeling that the government has not done enough to help them obtain credit or deal with issues such as late payments.

Jane Bennett, the FPB's campaigns coordinator, commented: "The 2009 Budget has received a big thumbs-down from the FPB's members.

"The results of our survey highlight the government's missed opportunity to support employers and prevent job losses."

This comes as small businesses are calling for a cut in red tape, with many claiming that the new Equality Bill will simply add to their administrative headaches.

Small businesses 'need help from export scheme'

Mon, 27 Apr 2009 01:30:50 GMT

The Export Credit Guarantee Scheme (ECGS) should be made more accessible to small businesses, it has been argued.

According to the most recent figures from the Office for National Statistics (ONS), the UK trade deficit widened to £3.2 billion in February from £3.1 billion in the previous month.

And while exports rose by £0.4 billion over the course of the month, helped largely by favourable exchange rates for exporters, the Institute of Export and International Trade has argued that more needs to be done to make the benefits of the ECGS more widely felt among UK businesses.

Lesley Batchelor, chair of the organisation, explained: "At the moment isn't very useful because it tends to work with companies which have got orders of five million and over.

"We have four and a half million small businesses in this country, they are not picking up five million pound orders each time."

In addition, Ms Batchelor also claimed that more needs to be done to help businesses obtain the necessary insurance for exporting goods, as well as assistance with issues such as Intellectual Property (IP) rights.

Insolvency law changes 'to benefit small businesses'

Mon, 27 Apr 2009 10:53:13 GMT

British small businesses are set to benefit from the planned changes to insolvency laws laid out in last week's Budget.

Under the new proposals from the Treasury, businesses suffering as a result of the economic downturn and facing the prospect of insolvency are to be given more help.

Specifically, firms will be given more breathing space to allow them to agree Company Voluntary Agreements (CVAs) with their creditors, while priority would be given to new money being lent to organisations going into administration in a bid to give them a much-needed funding boost.

Announcing the initiative, business minister Pat McFadden said: "Giving more businesses extra breathing space will encourage company rescues.

"It could make all the difference between a firm staying in business or entering insolvency - preventing the knock-on effects that failures have on employees, directors and creditors."

Already, small businesses experiencing financial troubles are able to seek a memorandum with their creditors over debts, with this benefit now given to larger organisations.

This comes after the Department for Business, Enterprise and Regulatory Reform (BERR) announced the creation of a £750 million fund to encourage greater innovation within the nation's small businesses, with a particular emphasis to be placed on green technology.

Budget offers business support package

Mon, 27 Apr 2009 10:25:51 GMT

An additional £5 billion worth of trade credit insurance will be made available to UK businesses under the proposals laid out in the chancellor's new Budget.

Announcing the government's economic plans to the House of Commons, Alistair Darling confirmed that those businesses that have suffered reductions in their levels of cover as a result of the downturn will be given further assistance through the Working Capital Scheme.

This will follow on from the £290 million worth of loans already granted to businesses struggling to obtain credit through the scheme.

"These measures continue to show that government is providing real and targeted support to those businesses which need it most," business secretary Lord Mandelson said.

"Businesses are the lifeblood of our economy and I am determined that we do everything we can to support them through the economic downturn and equip them to emerge stronger on the other side."

Meanwhile, under the new Budget, a further £50 million will be made available to the Technology Strategy Board, which helps businesses research and implement IT programmes and projects.

Chancellor should have done more to help self-employed

Thu, 23 Apr 2009 02:00:37 GMT

The chancellor should have taken more action in the Budget to provide support to self-employed people and small business owners, one financial services provider has claimed.

According to NFU Mutual, a specialist insurer, the introduction of tax relief restrictions on pension contributions for those earning over £150,000 will affect business owners and contractors working as sole traders.

The firm said that small businesses, including sole traders and limited companies, should seek to review their pension plans with a specialist advisor.

A spokesperson for the company, said: "We're disappointed that the Chancellor did not do more to help self-employed people and those running businesses.

"News that petrol and diesel duty will increase by a further 2p in September - and then ahead of inflation in future years - will hit rural people hard."

However, the firm praised the government's changes to ISA limits.

Alistair Darling announced that the annual ISA allowance will be increased to £10,200 by October for the over-50s and from April 2010 for all other savers.

CIOT 'cautiously welcomes' new HMRC powers

Thu, 23 Apr 2009 11:26:50 GMT

The Chartered Institute of Taxation (CIOT) has cautiously welcomed changes to HM Revenue & Customs (HMRC) powers outlined in the Budget.

According to the CIOT, the new provisions for the regulatory government body include proposals surrounding compliance checks, interest, penalties for late returns or late tax, payment and debt.

CIOT stated that it was pleased to see the postponement of the expanded P35 and the removal of fixed penalties for late payment among the changes.

Andrew Hubbard, CIOT deputy president, said: "We feel the consultation process has ironed out a number of issues that were concerning the Institute.

"We are keen to ensure that the new Implementation Forum monitors the new powers so that it understands how they are working in practice. This will make it easier to deal with any unintended consequences promptly and to the satisfaction of the taxpayer and their tax adviser."

The CIOT added that although the changes are welcome there are concerns over how the new measures will be enforced.

Budget must show commitment to business

Wed, 22 Apr 2009 11:57:29 GMT

The Budget needs to strengthen the business sector to ensure the UK's economy recovers, one industry network has claimed.

According to the British Chambers of Commerce (BCC), the chancellor Alistair Darling is in a "precarious position" as the recession means he cannot increase taxes or cut spending.

The BCC also called for the government to push forward proposals which will cut the UK's public deficits.

David Kern, chief economist at the BCC, said that the chancellor needs to focus on spending and not taxes.

"We take the view that the business sector is the one that is going to take the economy out of recession and it is important that in the budget they show their commitment to support businesses because if we don't have a strong business sector the UK economy cannot recover."

Recent research from the Confederation of British Industry revealed that the UK's recession deepened more than anticipated during the first quarter of 2009.

SMEs 'want more support to win contracts'

Wed, 22 Apr 2009 11:56:45 GMT

Small-to-medium enterprises (SMEs) are looking to the Budget to provide them with more support to win contracts, one campaigning group has claimed.

According to the Federation of Small Businesses (FSB), the impact of today's (April 22nd) Budget will be huge for SMEs including sole traders and limited companies.

The group, which works to protect the interests of the self-employed and SME owners, said that businesses will be looking for the chancellor to provide some relief from the financial pressures brought about by the recession.

Stephen Alambritis, head of public affairs at the FSB, said nearly five million firms will be "waiting with baited breath" for the government's announcement.

"We hope SMEs will be given rate relief automatically and that their will be measures to help them take part in the procurement processing so that they can take advantage of contracts," he stated.

A recent report by Lloyds TSB Commercial revealed that 52 per cent of SMEs are worried by consumer demand while a further 44 per cent are concerned about retaining clients.

No more business tax increases, CBI says

Tue, 21 Apr 2009 09:52:51 GMT

The government needs to avoid making further business tax increases in this week's Budget, one economic expert has claimed.

Speaking to the Herald, Jim Gorie, the Forum of Private Business' spokesman for Scotland, said that the chancellor's 'Budget for Jobs' should be renamed as a 'Budget for Business Survival'.

He said that small business corporation tax needs to be reduced to 20 per cent, small business rate relief should be automatic, the planned increases in fuel duty for April 2009 and 2010 need to be scrapped; and the government should reconsider the timing of the introduction of business rate supplements.

Colin Borland of the Federation of Small Businesses (FSB) stated that the Budget needs to increase income tax and National Insurance contribution thresholds.

He told the Herald: "The FSB wants to see the income tax and NI threshold increased to £10,000. This would lift people on the lowest incomes out of paying tax entirely, including many self-employed small business owners. This would also reduce the number of people claiming tax credits."

Contractors 'need more than technical skill'

Mon, 20 Apr 2009 08:55:45 GMT

Successful contractors need more than technical ability if they are to remain in business during the economic downturn, one business expert has advised.

Dave Chaplin, ContractorCalculator chief executive officer, made the comments in the run up to an event he is speaking at on April 30th, which focuses on how to win work during the economic downturn.

He said that it is not necessarily the best contractors who win work but those who are best at bidding.

Mr Chaplin told ContractorCalculator: "To ensure success, contractors need to understand the sales cycle, know when to time their contract moves and where to find the plum contracts.

"Once they've found a suitable contract opportunity, it's up to the contractors to convert this into a paid contract by having a killer CV, winning interview skills and faultless negotiation."

The talk is to take place in Liverpool Street, London and should provide contractors with advice and networking opportunities.

Facilitator between business and banks needed

Fri, 17 Apr 2009 05:46:29 GMT

The Federation of Small Businesses (FSB) has called for a number of initiatives to be included in the new Budget, including the creation of an intermediary regulator between banks and limited companies and contractors.

According to the FSB, the forthcoming Budget should include the creation of a Corporate Mediator.

The body stated that this new organisation would assist with negotiations where disputes arise, help contractors and business owners solve financial issues and ensure the availability of support packages are clearly communicated to the business community.

Other initiatives suggested by the FSB include abolishing the proposals by the European Union to introduce financial reporting obligations for micro-businesses, a move which could cost small businesses over £1,000 per year if implemented.

The body added that the government should reduce penalties for contractors and firms and attempt to encourage prompt tax payments by providing financial incentives.

Meanwhile, chancellor Alistair Darling recently announced that plans to increase business rates by five per cent in the forthcoming Budget have been scrapped.

Lending for businesses 'set to improve'

Wed, 08 Apr 2009 04:57:45 GMT

The worst of the lending conditions are over for a while, something that businesses "should take heart from", one professional services organisation has claimed.

According to the Institute of Directors (IoD), new figures from the Bank of England (BoE) should inspire confidence among contractors and limited companies.

The BoE's latest research predicted that banks and building societies in the UK are preparing to make more credit available with increases in corporate lending and credit seen in the first part of 2009.

Alexander Ehmann, head of parliamentary and regulatory affairs at the IoD, said that there is a danger that "business perception is slightly different from the data that is released from the banking community and that could be because commercial perception might lag".

He added that there could be some negativity in relation to what overdraft facilities are offered to businesses.

Previous IoD research showed overdrafts for contractors, limited companies and self-employed workers were being withdrawn twice as fast as lending facilities were being introduced.

Self-employed on the increase in financial sector

Tue, 07 Apr 2009 09:29:53 GMT

The number of self-employed contractors working within the financial services sector is increasing, a new survey has claimed.

According to the latest financial services survey from the Confederation of British Industry and PricewaterhouseCoopers, many people are turning towards the public sector for work due to the impact of the ongoing recession.

The study suggested that many financial experts are looking to become self-employed and work as sole traders in order to access more avenues of potential employment.

Gerwyn Davies, government policy adviser at the Chartered Institute of Personnel and Development, said: "Self-employment has actually gone up, so what we are seeing is a number of people opting for other careers and taking up ownership of their own careers within that sector."

He added: "It obviously remains to be seen how viable that future is at a time when we are going through one of the worst periods since the Second World War."

Commenting on the findings of the report, Ian McCafferty, CBI chief economic adviser, added: "Conditions remain exceptionally tough in the financial services sector."

HMRC sets up tax calendar

Mon, 06 Apr 2009 03:33:29 GMT

HM Revenue and Customs (HMRC) has announced it is introducing a new tax deadline calendar for 2009-10 to help sole traders and limited companies remember their tax deadlines.

According to Mike Purvis, HMRC's assistant director for small and medium enterprises: "A number of smaller business customers have told us it would be useful to bring together all the key fixed and variable dates in one place. The new tax deadline calendar sets these out."

He added: "Most of you will know these dates already but we hope that the calendar will be a useful reminder."

The online calendar is available on the government's Business Link website in the Tax Help section.

Meanwhile, HMRC recently announced it is employing one set of rules and safeguards to cover VAT, income tax, PAYE, capital gains tax and corporation tax.

From April 1st, the organisation introduced a range of changes to simplify the entry and leaving rules for small businesses using the current VAT flat rate procedures.

Fuel duty increase 'should not have been allowed'

Fri, 03 Apr 2009 02:01:06 GMT

The government's second increase to fuel duty within five months should not have been given the go-ahead, one industry organisation has claimed.

According to the Federation of Small Businesses (FSB), the rise of 2.12p per litre as of April 1st will put increasing strain on the finances of sole traders, limited companies and contractors who have to drive.

John Wright, national chairman at the FSB, said that not only should the rise have been postponed but it should have been scrapped.

"The FSB is disappointed that the government has not taken action to help small businesses at such a difficult time."

"Small firms are road dependent and have already faced record fuel prices over the past year, which has led to huge financial pressures at a time when small businesses are already facing huge cash flow problems."

The Freight Transport Association stated that the increase will be particularly felt in the logistics sector, which is anticipating a sharp increase in insolvencies and job losses.

HMRC publishes new guidance on tax appeals

Thu, 02 Apr 2009 05:33:48 GMT

HMRC has published new documentation aimed at helping taxpayers understand the changes to its appeals and review system.

The guidance, available here, aims to explain how the tax appeals system has been updated since April 1st.

Both direct and indirect taxes and duties are covered by the guidelines.

Since the beginning of the month, all previous tax tribunals - such as the General Commissioners and the VAT & Duties Tribunals - have been amalgamated within the Tax Chamber of a new First-tier Tribunal.

Appeals from the decisions of this tribunal will then be heard by a newly created Upper Tribunal.

Additionally, appealing taxpayers are now able to ask for a review of their case by an HMRC employee who has not yet been involved in their appeal.

"The tribunals and appeals system is changing," commented HMRC's tribunals reform project director David Hinstridge.

"This guidance will help taxpayers and agents understand what they need to do when appealing or seeking a review of HMRC decisions, whether in direct or indirect tax."

FSB calls for rate relief for SMEs

Thu, 02 Apr 2009 01:40:19 GMT

The Federation of Small Businesses (FSB) is urging the government to provide more support to contractors, sole traders and small to medium-sized enterprises (SMEs) in the forthcoming Budget.

According to the body, small firms should receive automatic rate relief and an increase in the thresholds before Income Tax and National Insurance contributions need to be made.

The FSB stated that increasing the threshold to £10,000 would remove the need for self-employed contractors and sole traders to pay tax

John Wright, FSB national chairman, said: "The chancellor is about to announce possibly the most crucial Budget in decades and he has got to get it right."

"The government must take decisive action to inject life into the economy and resolve the big problems faced by small businesses: the double whammy of irregular cash flow and a lack of finance from the banks," he stated.

The FSB is urging the government to appoint an independent Corporate Mediator

'Businesses need to know their tax rights'

Wed, 01 Apr 2009 12:39:59 GMT

Sole traders and contractors need to be aware of how to act when a tax inspector from HM Revenue and Customs (HMRC) visits, one business advisor has claimed.

According to PKF Accountants and Business Advisors, whether an employee or receptionist opens the front door, they need to have instructions of what to do and who to call when the HMRC arrive.

John Cassidy, tax investigations partner at PKF, said that companies need to be aware of what their rights are, although they need not be applied in every case.

"But it's as they're going on with the visit and they're asking questions, looking at documents, the tax payer should always be aware of what he can do and think about when it would be appropriate to say: 'Well hang on I think I ought to mention this'," he stated.

The HMRC is introducing new systems for tax checks, penalties and appeals, across its main taxes, beginning from today (April 1st).

New legislation will allow tax inspectors to visit business premises unannounced.

Government introduces simplified business support structure

Tue, 31 Mar 2009 09:50:28 GMT

The government has completed the design and rollout of its Solutions for Business support structure.

According to the Department for Business, Enterprise and Regulatory Reform (BERR), sole traders and businesses new to contracting will be able to access guides to contracting from Business Link.

The schemes will provide firms with guidance on accessing products which can help with issues such as starting up, growing, export, finance and innovation.

Train to Gain and Business Link brokers are expected to work together under the Business Link brand to provide sole traders and contractors advice on contractor tax and IR35 compliance.

Ian Pearson, minister for business, said: "To succeed in a competitive global environment UK businesses need ongoing access to help and support.

"The streamlined Solutions for Business portfolio makes it simpler for businesses to access the help they need, providing long-term, sustainable support to business."

Meanwhile, the BERR is to provide businesses in the UK with additional support to cope with new measures which will allow an extra 4.5 million people to work flexibly from April 6th.

HMRC given power to enter home business premises

Tue, 31 Mar 2009 08:40:23 GMT

HM Revenue & Customs (HMRC) is to have new powers which will allow it to enter residential properties being used for business.

According to the body, the changes are to take affect from tomorrow (April 1st).

Under the new rules, a tax inspector can pay a visit without having to provide any advanced warning, as long as it has been approved by an authorised officer.

Sue Holmes, head of national tax investigations at Smith & Williamson, the accountancy and financial services group, said: "The many thousands of business people and sole traders who claim expenses for 'use of home as an office' should recognise that from next month, HMRC has the right to enter their home to inspect business records."

She added that the power includes allowing HMRC representatives to visit any part of a residential home which is used as an office.

The HMRC will also be able to request information from contractors and sole traders relating to the tax position.

Businesses 'shouldn't be burdened with higher taxes'

Mon, 30 Mar 2009 01:19:22 GMT

Business leaders have warned of the potential dangers of raising corporate taxation levels in order to help drive the UK economy out of recession.

Coming just days before the chancellor lays out his plans for his next Budget, the Institute of Directors (IoD) has argued that the country's fiscal policy is in an "alarming" state and needs immediate attention.

However, rather than increasing the tax burden on private business, the government should focus its efforts on restricting growth in public spending for the foreseeable future, a statement issued by the professional body said.

"Higher deficits and higher taxes would be even worse for the economy, undermining growth in the long run," IoD director-general Miles Templeman argued.

"Our tough public spending regime would ring fence and protect key infrastructure spending and also permit a progressive reduction in corporation tax…The economic consequences of the current crisis must not fall on the private sector alone."

These comments come soon after the Bank of England governor general Mervyn King claimed that UK could not afford to "engage in another significant round of fiscal expansion".

Companies investing in nuclear skills

Fri, 27 Mar 2009 12:08:03 GMT

Energy companies are increasingly investing in training workers in nuclear power skills as they prepare for the forthcoming expansion of the sector, it has been reported.

Over recent months, the government has signalled its intention to significantly expand the UK's nuclear power capabilities, with both domestic and overseas operators having been given the green light to start work on a number of new reactors, as well as the refurbishment of several existing plants.

Given the direction the energy sector is taking, a recent meeting of industry leaders at the University of Manchester's Dalton Nuclear Institute showed that private businesses are increasingly looking to provide the necessary training for employers, with US firm Westinghouse revealing this will form a crucial part of its plan to build several new reactors across the UK.

The company's UK chairman David Bosner told Professional Engineering: "We are keen to work with the supply chain here, companies large and small, and to build the skills base.

"There are a lot of skills in companies in the UK which will fit well with the building of new nuclear power stations."

Meanwhile, Cogent recently announced it has signed a £3 million deal with the Higher Education Funding Council for England for the rollout of a modular science foundation degree.

BAE reaches Audacious milestone

Thu, 26 Mar 2009 01:45:18 GMT

Defence secretary John Hutton attended BAE Systems Submarine Solutions at Barrow-in-Furness for the traditional 'laying the keel' ceremony of the latest Astute-class submarine, Audacious.

Currently under construction, the new vessel will be the fourth and final addition to the submarine class, joining Astute, Ambush and Artful, all of which were also constructed by BAE.

Once completed, Audacious will weigh in excess of 7,000 tonnes and expand the Royal Navy's long-range attack capabilities, while the work on these latest additions to the British fleet is estimated to have sustained around 5,000 jobs over the past few years.

Speaking at the BAE production site, Mr Hutton stated: "This ceremony marks an important stage in a challenging project.

"The Royal Navy has a long term and enduring requirement for nuclear powered submarines and the Barrow-in-Furness yard remains the UK's centre of excellence for submarine building."

The Navy currently operates 12 submarines, split across the Vanguard, Trafalgar and Swiftsure classes.

MoD awards aircraft carrier contracts

Thu, 26 Mar 2009 11:28:04 GMT

The Ministry of Defence (MoD) has announced the completion of £80 million worth of sub-contracts for the construction of two new aircraft carriers.

Under the new agreements, a number of UK-based companies will contribute to the construction of the planned Queen Elizabeth Class additions to the Royal Navy fleet, which have been described as "vitally important to future defence capabilities".

The biggest sub-contract, worth £57 million, will see Glasgow-based Ticon provide insulation systems, with this new deal set to safeguard around 350 jobs for the foreseeable future.

Meanwhile, Thales UK has been awarded a £25 million contract for new communications systems, while Bradford's Ormandy Group will be paid £1 million for water treatment services.

Announcing the deals, Tony Graham, head of capital ships within the MoD's Defence Equipment & Support department, stated: "The Aircraft Carrier Alliance has now placed sub-contracts for almost 40 per cent of the total value of the materials and equipments required to build both ships, and we are pressing ahead into full scale production in the shipyards."

At present, the Royal Navy has three Invincible Class aircraft carriers, along with seven Type 42 destroyers.

Businesses gain from government loan scheme

Wed, 25 Mar 2009 03:47:27 GMT

The government's Enterprise Finance Guarantee (EFG) scheme has provided UK businesses with access to 1,300 eligible loans worth almost £145 million.

According to the Department for Business, Enterprise and Regulatory Reform (BERR), increasing numbers of sole traders and self-employed contractors benefited from the scheme as awareness spread.

The value of loans grew from £3 million in its first week to an estimated £30 million a week recently.

Business secretary Lord Mandelson said the figures are an indication that the scheme is proving to be a real help to businesses.

"The scheme has taken off since its launch in January with registered lenders now seeing a ten-fold increase in loan demand," he stated. "However, we must continue to work with all 26 lenders signed up to the scheme to ensure frontline staff are offering it where appropriate to small companies across the country."

The EFG is a £1 billion loan guarantee scheme, which is delivered to businesses via banks and other financial services providers.

The government stated that by the end of March 2010, an additional £1.3 billion worth of lending will have been provided to businesses.

Self-employed contractors 'will lose out' on tax relief

Tue, 24 Mar 2009 10:20:16 GMT

A government scheme to offer small businesses tax relief could end up with self-employed contractors missing out, according to an accountancy group.

The measure will let small companies offset losses this year against profits in the past, up to the value of £50,000.

However, according to the Daily Telegraph, the Institute of Chartered Accountants in England and Wales (ICAEW) has warned that the relief will only be available in the 2008-09 tax year, so self-employed contractors and other small businesses could miss out as they have not yet seen the recession reflected in their accounts.

"The period as it is currently set out appears to discriminate against unincorporated businesses, which is surely unintended," ICAEW tax adviser Anita Monteith told the newspaper.

She suggested that the scheme should be extended for two years, giving businesses an option of which year to take the relief on.

The government has also pledged to pay trade invoices to small companies within ten days - but a recent study from credit reference agency Graydon UK suggested that only one per cent of firms have received payments in that timeframe.

Government's 10-day pledge 'yet to take effect'

Fri, 20 Mar 2009 10:21:12 GMT

The government has still to deliver on its pledge to pay trade invoices to small businesses in ten days, according to a new study from a credit reference agency.

Graydon UK found that just one per cent of the small firms it questioned in early March have been receiving payments within the designated period.

The government said last autumn that it would shorten its payment period from 20 to ten days in order to help smaller companies cope with the recession.

However, only 39 per cent of respondents said they received payment within 30 days - the majority (53 per cent) had to wait between 30 to 60 days while the remainder took longer to be paid.

"Whilst I applaud the prime minister's desire to improve the cash flow of small businesses during these economically testing times, it seems that the political apparatus in this country has conspired against him in terms of actioning this undertaking," said Graydon UK managing director Martin Williams.

"Clearly the government's pledge is taking longer than expected to find its feet, but time is a luxury that many small businesses simply don't have."

Second offshore amnesty penalty 'to treble'

Thu, 19 Mar 2009 03:21:18 GMT

Offshore accountholders who take advantage of a second amnesty from HMRC will be subjected to penalties three times as high as the previous period, according to a new report.

Individuals who took advantage of the 2007 amnesty had to pay a penalty capped at ten per cent of the tax owed, along with interest.

However, a source with knowledge of the new scheme told Accountancy Age: "It's virtually inconceivable that it'll be as generous as the first one."

But some experts the magazine talked to warned that this would be too high a penalty to make offenders come forward.

The issue of tax havens has been heavily in the news of late, with European Union leaders agreeing on a crackdown on the problem earlier in the month at a summit in Berlin.

Additionally, US president Barack Obama made dealing with offshore tax evaders a theme of his election campaign and he has continued this rhetoric into his time in office.

Review planned for listed company code

Wed, 18 Mar 2009 10:45:13 GMT

The effect of the Combined Code on Corporate Governance is to be subjected to a review, the Financial Reporting Council (FRC) has announced.

Corporate governance standards for UK listed companies are laid out in the code.

FRC chairman Sir Christopher Hogg told a conference that the review is not being conducted because of any major problems with the code, but instead is being used to evaluate what changes may be required as a result of the financial crisis.

"While there is no assumption that the code is fundamentally flawed or that a different regulatory framework for corporate governance could have alleviated the financial crisis, we are clear that the time is now ripe for testing the code's content and application against the fresh thinking that the crisis must provoke," he explained.

Listed companies, including self-employed contractors, will be able to air their views on the code with the FRC until May 29th this year.

HMRC launches e-learning tools

Fri, 13 Mar 2009 04:36:01 GMT

Two new e-learning tools have been launched by HMRC, aimed at helping taxpayers deal with the new rules on compliance checks and penalties that begin in April.

Changes regarding the enforcement of PAYE, VAT, income tax and corporation tax, among others, will take effect from April 1st.

After this date HMRC will have extra powers to ensure compliance but there will also be a number of changes for taxpayers, including more flexibility on record keeping and a range of new time limits.

The packages, which are free to use, are available on HMRC's website.

Brian Redford, head of HMRC's Agents and Employers Service Improvement Programme, explained that the tools are "based on the training we are giving to HMRC staff".

"They have been developed with the help of practising agents and take less than half an hour to complete," he added.

"We think they will be an excellent way for you to understand the changes that are happening on April 1st."

HMRC reveals interest rates

Fri, 13 Mar 2009 03:09:52 GMT

HMRC has announced the new interest rates it will charge on late payments and overpayments.

The rate charged on the late payment of income tax, national insurance contributions and capital gains tax has been reduced from 3.5 per cent to 2.5 per cent, with the rate for overpayments remaining at zero.

Undeclared VAT will be charged from 2.5 per cent, down from 2.5 per cent.

These new rates will come into effect from March 24th.

From March 16th, the rate charged on underpaid corporation tax instalment payments will also be reduced, from two per cent to 1.5 per cent.

Additionally, the rate on overpaid instalment payments or early payments of corporation tax will be reduced from 0.75 to 0.25 per cent.

However, self-employed people can avoid dealing with these changes by hiring a self-employed contractor such as Brookson.

"With Brookson, the system changes are always done automatically, meaning your software never gets out of date," said business strategist Brian Millrine earlier in the month.

CBI calls for long-term approach on pensions

Thu, 12 Mar 2009 03:22:51 GMT

The Confederation of British Industry (CBI) has called on the authorities to let companies find a long-term solution to the problems in the pensions sector.

According to the Pension Protection Fund (PPF), the deficit of final-salary pension schemes in the private sector reached a record of £218.7 billion at the end of last month.

CBI director of employment Katja Hall said that this rise in liabilities was a result of the volatility being felt in the world's financial markets.

However, she warned that the government and the pensions regulator must allow companies to avoid quick-fix solutions.

"If they do not do this, firms could be forced to make large contributions to their pension schemes when they can least afford them," she said.

"This would not be in the interests of pension funds, companies, the economy or the government."

Liberal Democrat shadow secretary of state for work and pensions Steve Webb added that the PPF "risks being overwhelmed" by the number of pension schemes which are now in trouble.

Small businesses 'are owed £26bn'

Thu, 12 Mar 2009 03:22:12 GMT

Small and medium sized enterprises (SMEs) in the UK - including self-employed contractors listed as limited companies - are owed £25.9 billion in overdue payments, according to new figures.

Research by payment processing organisation Bacs found that the amount of overdue payments rose by 40 per cent in 2008, from £18.6 billion.

The average outstanding payment stood at £38,000, up from £30,000 in 2007, Bacs added.

"Action must be taken to address this crushing payment issue; but businesses also have to take responsibility for helping themselves where they can," said Bacs managing director Michael Chambers.

"For instance, while the government has bought in a system of paying public sector invoices within ten days, surprisingly, three quarters of British SMEs haven't replicated that and still offer lengthier payment terms."

Cash flow difficulties were found to be the most common excuse for late payments, while nearly six in ten SMEs claimed that they are currently owed money.

PwC calls for tax increase

Wed, 11 Mar 2009 03:27:25 GMT

PricewaterhouseCoopers (PwC) has suggested that the government should increase taxes in order to balance its books by 2013/14.

Currently, the government is attempting to achieve balance by 2015/16, using the measures laid out by chancellor Alistair Darling in the November pre-Budget report (PBR).

However, the consultancy giant's head of macroeconomics said that while increased public borrowing is "inevitable in the short term... the government has a responsibility to plan now to put the public finances back on a sustainable basis in the medium term".

PwC's Dealing with Debt report suggests two options to reach balance by 2013/14, with the most likely option involving a freeze on public spending in the three years to 2013/14 along with £25 billion of tax hikes from 2011, on top of those already planned in the PBR.

Mr Darling is to make his Budget statement to the House of Commons on April 22nd.

Some commentators have suggested that he will be required to downgrade his prediction for the UK's economy in 2009, as a result of the worsening global downturn.

Jersey agrees to tax deal

Wed, 11 Mar 2009 02:01:59 GMT

Jersey has signed up to the Tax Information Exchange Agreement (TIEA) with the UK in a move to combat tax evasion.

The island has followed other Crown Dependences and Overseas Territories such as the Isle of Man and Bermuda in joining the initiative, aimed at tackling the problem of offshore tax avoidance.

According to HMRC, TIEAs let governments share information on issues which have been listed in the agreement.

"Exchange of information and transparency between countries and territories is vital in combating tax avoidance and evasion," said Stephen Timms, financial secretary to the Treasury.

"Jersey's decision to embrace this principle is very welcome and a crucial step in the right direction."

Mr Timms called on other countries to sign up to similar agreements.

According to a recent report by the TUC, British taxpayers lose out on £4 billion each year as a result of UK citizens who exploit tax havens and offshore accounts to avoid paying taxes.

VAT increase 'should be delayed'

Tue, 10 Mar 2009 02:36:32 GMT

The VAT increase will take place at the "worst possible time of year" and should be delayed by at least a month, according to the British Retail Consortium (BRC).

VAT was temporarily reduced from 17.5 per cent to 15 per cent towards the end of last year in an effort to boost the ailing economy.

It is due to go back to its previous value on December 31st this year.

According to the BRC, this timing will hit many businesses during the busiest time of the year and will also cost a large amount of money to implement.

The organisation suggested that £90 million was spent to ensure compliance with the new VAT rate last year and a similar amount will need to be spent when it is increased.

However, using accountants for contractors can mean that such problems are avoided.

Brian Millrine, business strategist at contractor accountant Brookson, explained earlier this month that his firm looks after clients' tax needs, including compliance with the new VAT rate.

Base rate reduced to 0.5%

Thu, 05 Mar 2009 01:12:21 GMT

The Bank of England's Monetary Policy Committee (MPC) has decided to reduce the base rate again.

Following an MPC meeting, the rate now stands at an all-time low of 0.5 per cent, after a cut of 50 basis points.

The MPC has consistently lowered the rate since October when it stood at five per cent, reaching what was then a historic low of 1.5 per cent in January.

Most commentators had predicted a cut of 50 basis points, including Vicky Redwood, an analyst at Capital Economics.

However, she claimed earlier in the week that the rate decision for March would merely be a "sideshow" and the real interest lay in what other measures the MPC brought in, such as quantitative easing.

"It looks set to be the first time in the MPC's history that it takes a vote on more unconventional policy measures," she said.

"This could potentially provide far more of a stimulus to the economy than even another 100 basis points cut in interest rates."

FRC provides update on going concern

Wed, 04 Mar 2009 03:40:05 GMT

The Financial Reporting Council (FRC) has provided an update on going concern for small companies which aims to address how the credit crunch might affect accounting.

According to the FRC, the guidance is for firms that have chosen not to undergo audits and only file reduced accounts at Companies House but use the Financial Reporting Standard for Smaller Entities (FRSSE).

Firms using FRSSE must make a series of checks to ensure that the going concern basis of accounting is suitable.

FRC director of corporate reporting Ian Wright said that the publication is "very practical in its approach".

"We consulted with a wide range of small business and accounting organisations in producing this update. We hope that directors of smaller companies will find it useful as they prepare accounts during this year," he added.

However, self-employed contractors listed as a limited company can avoid these checks by hiring a contractor accountant to take care of their finances.

New compliance checks 'simpler with contractor accountant'

Wed, 04 Mar 2009 12:22:44 GMT

Employing a contractor accountant can limit any possible problems posed by HMRC's new compliance checks, Brookson has said.

As of April 1st, HMRC will have a range of powers which will have an effect on areas such as income tax, VAT and corporation tax.

HMRC will be able to take various actions to ensure compliance, including asking taxpayers and third parties for documents relating to business practices.

"This new approach to compliance checks will improve HMRC's ability to ensure that the right tax is paid at the right time," said Dave Hartnett, permanent secretary for tax at HMRC.

However, using a contractor accountant such as Brookson can mean that such issues are taken out of a worker's hands, according to business strategist Brian Millrine.

"Brookson works closely with HMRC to ensure our customers are working compliantly, giving our customers peace of mind and allowing them to get on with their day jobs," he said.

Proposal for simplified accountancy services unveiled

Wed, 04 Mar 2009 12:21:36 GMT

A proposal to ease regulations on accountancy services for small businesses has been unveiled by the European Commission.

The measure will see reporting obligations for the smallest firms in the EU removed, which the commission believes could save roughly €6.3 billion (£5.6 billion).

Small businesses are defined in the proposal as those which fall into two of three criteria: a balance sheet total of under €500,000 (£445,000), a net turnover of less than €1 million (£890,000) and an average employee count of ten or under.

This would mean that self-employed contractors operating as a limited company will generally be covered.

"We intend to do whatever we can to encourage maximum take up of this exemption by our member states," said internal market and services commissioner Charlie McCreevy.

"Micro entities could save as much as €1,200 (£1,068) each year, if member states follow our lead on this one."

The proposal has now gone to the European Parliament and the Council of Ministers who will consider its merits.

Mr McCreevy added that the commission will attempt to simplify financial reporting further by the end of the year.

Tax havens 'cost £4bn a year' for taxpayers

Tue, 03 Mar 2009 01:22:34 GMT

The UK is missing out on £4 billion every year as a result of UK residents living in tax havens, new research has claimed.

According to the study from the TUC, which looked into areas such as Switzerland, the Isle of Man and Jersey, a number of rich Britons are using loopholes to avoid paying tax.

The issue of tax havens has been raised by a number of figures recently, with new US president Barack Obama expected to begin a crackdown and Liberal Democrat Treasury spokesman Vince Cable calling for the government to tackle the issue.

Both Mr Cable and TUC general secretary Brendan Barber believe that the recession means it is vital this money is recouped.

"With the tax take falling because of the recession, there can be no better time to get tough with the super-rich, so many of whom did so much to throw the world into recession," Mr Barber said.

HMRC provides online help for contractor tax

Wed, 25 Feb 2009 03:54:33 GMT

HM Revenue & Customs (HMRC) has launched a series of online videos designed to help people with contractor tax.

The scheme features ten "bite-sized" guides which aim to help new and small businesses with a range of tax issues, including corporation tax, CAT and tax for the self-employed.

Dan Snow, from BBC programme The One Show, will present the videos.

"We've broken the information down into small video chunks, so that people can access exactly what they need to know," he said.

"Hopefully this makes the new videos really useful for people and businesses."

The series is being launched in conjunction with a free guide, called Giving Your Business the Best Start with Tax, which will be available for downloading.

Additionally, HMRC will be providing a video diary which records the experiences of three people who have set up their own business and the challenges they have faced along the way.