Brookson News Feed - Sole Trader Business

Fashion firm recognises sole trader's success

Mon, 12 Jul 2010 11:31:29 GMT

Posted by Alex Turner

A sole trader specialising in online fashion sales has had his success recognised by a leading retailer.

Chris Griffin signed an agreement with fashion chain Superdry to sell defective items of their clothing range on eBay.

After Mr Griffin's site, 888 Clothing, became eBay's number one seller of clothes, shoes and accessories, SuperGroup, Superdry's owners, decided to cancel the agreement and bring the platform in-house.

The deal saw the sole trader pick up £500,000 in shares and appointed head of e-commerce within the group.

Julian Dunkerton, SuperGroup chief executive, said: "Chris Griffin's appointment represents a huge step for us as we move towards creating a dynamic, fully integrated e-commerce capability.

"Chris's undoubted track record and understanding of e-commerce are a great boost to SuperGroup, and we welcome him on board at such an exciting time of growth both in the UK and internationally."

SuperGroup floated on the stock exchange for the first time in March this year

Self-assessment taxpayers warned of phishing attacks

Thu, 08 Jul 2010 09:56:49 GMT

Posted by James Curtis

Contractors who file self-assessment tax returns have been warned to be on guard for unsolicited emails from HM Revenue & Customs (HMRC).

According to Trusteer, a leading provider of secure browsing services, a number of fraudsters will use the forthcoming deadline to file for tax credits as a way of obtaining HMRC log-in details.

The firm warned that as the July 31st deadline gets closer, cybercriminals will send out e-mails made to look like they are from HMRC in order to carry out various tax and VAT scams.

Mickey Boodaei, Trusteer's chief executive officer, said: "Back in February we warned online banking users of phishing and malware infections stemming from emails offering internet users a tax refund.

"And given that such phishing emails are twice as successful as bank phishing attacks, cybercriminals have realised that an email with HMRC in its message header is a lot more attractive to recipients."

Sole traders given online VAT return reminder

Mon, 14 Jun 2010 05:20:00 GMT

Posted by Jim Ottewill

Sole traders and VAT-registered businesses are being reminded about new online filing requirements for VAT returns.

HM Revenue and Customs (HMRC) said new rules mean that returns must be filed online and VAT paid electronically.

The legislation applies to existing VAT-registered businesses with annual turnovers of £100,000 or more as well as those that have registered for VAT from April 1st this year.

Returns covering the April to June period are the first to be affected by the changes and must be filed online by August 7th.

Stephen Banyard, director of HMRC's business customer unit, said most of those who need to have already enrolled to use the online returns service.

He added: "If you're a VAT-registered trader who's affected by these changes and you haven't yet signed up, you need to take action now."

Businesses and sole traders who know they will be unable to make an accurate VAT return on time are advised to contract HMRC as soon as possible.

Self-employed women to be given maternity benefits

Fri, 11 Jun 2010 10:24:48 GMT

Posted by Alex Turner

Self-employed contractors and sole traders could soon be given maternity and pension rights under new laws proposed by the European Union.

The legislation would see self-employed women benefit from maternity leave in the same way as permanent company employees.

It would work in a similar way to maternity leave for employees, but on a voluntary basis.

Viviane Reding, vice president of the European Commission, said this would encourage more women to become entrepreneurs.

"It will help them to better balance work and family life," she remarked.

Also under the proposals, self-employed people and their spouses and life partners would have equal rights to social security coverage, such as pensions.

According to the European Union, around 16 per cent of the active population in Europe is self-employed.

In the UK, self-employed women paying class two National Insurance contributions or holding a small earnings exception certificate are entitled to a weekly maternity allowance from Jobcentre Plus.

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.

HMRC issues guidance on tax codes

Mon, 15 Mar 2010 01:46:35 GMT

Posted by Alex Turner

HM Revenue & Customs (HMRC) has published guidance on what taxpayers should do if their tax codes are incorrect.

The authority explained that the transition to its new National Insurance and PAYE Service (NPS) has resulted in errors appearing in existing records.

As a result, some taxpayers, including contractors and sole traders, have been issued inaccurate tax codes for 2010-11 and risk paying too much tax on their earnings from April 6th onwards.

HMRC has said that although it is handling certain individual cases, taxpayers who feel they may have been affected by the discrepancies can contact the authority to check whether their records are correct.

"You should check your tax code using the guidance included with the Coding Notice and on our website," the department urged.

"If you think that it may be incorrect or if you do not understand an entry on it, please telephone us on the number printed on your Coding Notice or 0845 3000 627."

Contactor advice issued on website details

Wed, 03 Feb 2010 09:59:42 GMT

Posted by Alex Turner

Contractors opting to work as sole traders as a 'plan B' have been advised that any legal documents should contain the necessary information.

Responding to an enquiry on advice website Contractor UK, Ben Evans, trainee solicitor at Lawdit Solicitors, said sole traders who are selling goods or services on their websites must include their business name and VAT registration number under the Distance Selling Regulations and E-Commerce Regulations.

The expert explained that this was only necessary for sole traders who are VAT registered and said those who simply have web pages as adverts are only required to publish contact details such as a business name, phone number and e-mail address.

Mr Evans also advised having this information to hand when working in order to boost business potential.

"From a practical point of view, I would advise including an address on your stationery [and] business cards," he told the news provider.

REC appoints new regional director

Fri, 18 Dec 2009 10:04:47 GMT

Sole traders and freelance consultants in Northern Ireland could soon benefit from improvements in the country's recruitment industry following the appointment of a new regional director.

The Recruitment and Employment Confederation (REC) has appointed Jim Berrisford to "drive forward the recruitment industry’s voice" in the country.

Mr Berrisford, owner of Berrisford Recruitment Search Consultancy, has more than 12 years experience in the industry and previously held a senior positions at recruitment agency Grafton.

An executive committee has also been set up in Northern Ireland by the REC with Matt Tanner of Kennedy Recruitment Ltd and Conor Rafferty of Altmore IT as members.

According to the REC, this new structure will be responsible for liaising with politicians and civil servants, in promoting the work of the REC and highlighting the current challenges facing recruiters and businesses in Northern Ireland.

Mr Berrisford said: "It is vital there is a strong collective voice for the industry in Northern Ireland with which to take forward specific campaigns on these issues.

"At the same time, the increasing focus on jobs and skills means that the views of professional recruiters on the frontline of the Northern Ireland labour market are increasingly sought after."

Banking sector to drive IT recruitment

Thu, 17 Dec 2009 11:56:50 GMT

Posted by James Curtis

The banking sector will provide the most opportunities for sole traders and freelance consultants in the IT industry, a new report has suggested.

Almost half (48 per cent) of the professionals questioned by recruitment website the IT Job Board said that financial companies would offer the most jobs throughout 2010.

Software and telecoms are also expected to offer opportunities with 42 per cent and 41 per cent saying they would be the major hirers.

Peter Healey, sales director at The IT Job Board, agreed with the findings of the study saying the finance sector was likely to "really pick up" over the next 12 months despite the difficulties it has faced in 2009.

"Banking was the first to be hit during the recession, but it will also be the first to recover, and it will offer a lot of opportunity in terms of IT recruitment," he said.

The IT Jobs Board survey follows the recent prediction from Microsoft chief executive Steve Ballmer that 78,000 new IT jobs will be created in the UK over the next four years.

Sole traders issued "screen scrape" warning

Thu, 26 Nov 2009 02:36:03 GMT

Posted by Alex Turner

Sole traders who run their own websites could benefit from new advice issued by the Get Safe Online initiative.

Tony Neate, the organisation's managing director, has warned that commercial websites could be at risk of being "screen scraped".

Computer hackers have the ability to screen scrape, which means making whole copies of websites and obtaining personal data, if insufficient software protection is used.

"They have the ability to steal data from your website, or even impersonate you," Mr Neate said.

"You need to make sure you've got sufficient advice and software protection to make sure that sort of thing doesn't happen to you. One of the problems that you have with screen scraping is stealing people's intellectual property, so we need to safeguard ourselves against that," he added.

Now in its fifth year, the Get Safe Online initiative is a joint venture between the government, Ofcom, the Serious Organised Crime Agency and sponsors from private technology, retail and finance firms.

Internet is freelancers' 'key to success'

Thu, 19 Nov 2009 03:00:43 GMT

Posted by James Curtis

Talented freelance workers should make use of the internet to build successful careers, it has been suggested.

Matt Brittin, UK managing director of Google, hinted that the recession represents the ideal opportunity for risk takers, including self-employed sole traders, in a Telegraph report earlier this week.

"The web has given entrepreneurs access to a live focus group which they can tap into to discover trends, build business plans and test their products cheaply," he said.

Mr Brittin claimed opportunities were still around despite the economic downturn saying "perhaps there's never been a better time to be an entrepreneur".

He added that entrepreneurial people have used the "severe and truly global" downturn to take risks, launch businesses and keep moving, while some established firms "battened down the hatches".

The Google executive went on to say that the industrial revolution of this generation was a digital one, which allowed entrepreneurs and small business to compete on a worldwide basis, in a range of markets.

Mr Brittin's comments come during Global Entrepreneurship Week, which runs until November 22nd.

Organisers claim the worldwide movement, which hosts a series of events, will allow millions of talented individuals to unleash enterprising talents and turn ideas into reality.

Graduates to boost sole trader numbers

Wed, 11 Nov 2009 12:17:56 GMT

Posted by James Curtis

Sole traders numbers are set to be boosted as a growing number of graduates enquire about becoming self-employed, according to the National Council for Graduate Entrepreneurship (NCGE).

Ian Robertson, chief executive of the NCGE, said they had seen a "tangible increase" in the number of graduates looking to get into self-employment.

"As companies downsize or contract out there are more opportunities for young graduates to take advantage of," he said.

Mr Robertson claimed the increase was down to a reduction in the number of available "mainstream jobs" and said this was likely to fall further in coming years.

The organisation also reported high number of early retirees entering the market, meaning a big increase in the number of contractors aged over 50.

In contrast to the NCGE comments, a report from the Prince's Trust, published earlier this week, showed that 56 per cent of "aspiring young entrepreneurs" have taken no action to put their business plans into practice.

According to the report around one in six young people are "holding off" on business ideas until the end of the recession.

Mr Robertson claimed business information needs to be more easily accessible for graduates to maximise their potential.

"Part of the problem is actually getting the information to them in a way that's easily digestible," he said.

"Graduates for example have issues of confidence, of debt, that need to be addressed up front and I think that traditional business support is not really geared up to that."

European VAT burden 'to rise'

Fri, 23 Oct 2009 02:12:04 GMT

Story posted by Paul Goatman

European VAT rates are set to reach new heights next year, according to the latest tracker report from accountancy group TMF.

The study found that the average weighted rate will hit nearly 20 per cent by 2010, following a two per cent rise in Spain, the termination of the UK's 2.5 per cent reduction and a one per cent hike in Finland.

This compares to an average weighted rate of just 18.6 per cent in 2006.

Richard Asquith, managing director of TMF VAT Services, commented that European fears around inflation and recession are beginning to subside.

"With record-breaking government deficits in all countries, we may now see a rapid re-acceleration of this policy with an expansion of the VAT burden on consumers," he added.

Earlier this month, accountants Scott-Moncrieff said that some commentators believe that the UK standard rate of VAT could increase to around 19 per cent following the general election next year.

Freelance workers to offer views to PCG

Tue, 20 Oct 2009 04:32:56 GMT

Posted by Alex Turner

The Professional Contractors Group (PCG) has called on self-employed freelancers and consultants to offer their views on what freelancing means to them.

According to the PCG, the initiative has been launched as part of its run-up to National Freelancers Day, which is taking place on November 23rd.

The Spirit of Freelancing campaign has been launched to encourage contractors to contact the group with anecdotes, stories, photographs or drawings which capture their thoughts on this way of working.

John Brazier, managing director of PCG said: "As National Freelancers Day approaches, we are asking freelancers and client organisations to let us know what freelancing means to them and we would like as many people to get involved to mark the day and capture the spirit of freelancing."

As part of the events surrounding the day, the group is to host a webcast featuring opinion and insights from many leading business commentators.

Dr James Bellini, author and director of content for the Talent Foundation and Michael van Swaaij, former managing director of eBay, will be expressing their views on the online event.

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.

Contractors urged to file tax assessments early

Tue, 13 Oct 2009 12:37:40 GMT

Posted by Jim Ottewill

Contractors and consultants looking to file a tax assessment by post should ensure they send it in early to avoid the potential disruption caused by the planned postal strikes, a financial services writer has warned.

Writing for the Daily Telegraph, Emma Simon said that two million taxpayers are expected to file a tax return by post this year.

However, a postal strike is being threatened by the Communication Workers Union in the run up to the October 31st deadline.

The action puts many contractors in danger of being awarded a £100 fine if they fail to send in their assessment on time.

Ms Simon said that tax assessment could be complicated further by many sole traders opting to file their own forms without an accountant as a cost-cutting measure.

"With unemployment rising, many former employees have started businesses or become self-employed and may be completing one of these forms for the first time," she explained.

Tax paper returns have to be in by October 31st, while electronic returns have to be in by January 31st 2010.

Flexible working can boost contractor motivation

Mon, 12 Oct 2009 02:55:11 GMT

Posted by Jim Ottewill

The motivation of self-employed contractors, consultants and freelancers can be improved by flexible working arrangements being put in place, a professional management body has claimed.

According to the Chartered Management Institute (CMI), flexible working should be made available to all employees.

More emphasis should be placed on the benefits of flexible working by organisations, the business management group explained.

Ruth Spellman, chief executive of CMI said: "Flexible working can have a significant impact on employee motivation, engagement, productivity and overall performance."

"Employers need to be receptive to the desires and needs of employees when designing flexible working offers where practical. But ideally when, where and how the work gets done should be down to the individuals."

Previously, ntl:Telewest Business claimed that increasing numbers of contractors operating as sole traders or through limited companies are adopting flexible working practices.

In the past the practice was harder to undertake due to the expense and power of the technology required.

Sole traders will help IT industry "recover and grow"

Fri, 09 Oct 2009 02:00:05 GMT

Posted by Alex Turner

Small-to-medium enterprises (SMEs), including contractors working as sole traders and through limited companies will help the UK's IT industry recover from the recession and grow, an IT company has said.

More than two-thirds of businesses working within IT and communications are small and local while they often supply fellow contractors and freelancers, Microsoft explained.

The company stated that a demand for innovation within the sector will lead to the creation of over 75,000 new start-ups between now and 2013.

Stephen Uden, head of skills and economic affairs at Microsoft, said: "When we look to job creation, formation of new companies, spending on software and IT, taxes, and revenues to local partners, they all point to the importance of local SMEs in helping us to recover and then grow in a sustainable fashion."

Recent research from the Economist Intelligence Unit showed that the UK ranks sixth in the world in a list of the most competitive business environments for IT.

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.

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.

Business burden 'needs to be reduced'

Wed, 02 Sep 2009 05:32:20 GMT

Written by Jim Ottewill

The government must attempt to reduce business burden on small and large firms, start-ups, contractors and sole traders in order to make the UK more attractive to expatriate workers and investors.

That is the view of Ian Wilson, director of finance advisory group Forum Wealth, who explained that there is a "brain drain" of talented workers to countries like Spain, which is more "attractive" than Britain at the moment.

Mr Wilson said that the "tax burden" faced by companies in the UK is forcing some to move parts of their operations overseas.

"Expats coming in are not finding it desirable to come in and people that live here are finding there are a number of different countries out there that are far more attractive," he explained.

"Businesses want to work in the UK, but again and again and again, the UK government puts as much burden on them as it can."

The comments follow the publication of a report from MacIntyre Hudson, which revealed that almost three-quarters of business people feel the UK tax system has become less competitive than the regime in other countries in recent years.

Recession 'boosting entrepreneurs and sole traders'

Wed, 02 Sep 2009 12:27:24 GMT

Written by Alex Turner

The economic downturn has provided a stimulus for people to work as sole traders, contractors and entrepreneurs, it has been claimed.

James Caan, a leading businessman and star of the BBC show Dragons' Den, explained that there are "three elements" to this rise in entrepreneurial spirit.

The chief executive of private equity firm Hamilton Bradshaw said that these three aspects are feeling less guilt in leaving employers, witnessing less of a risk in starting one's own company and reconsidering the business situation.

"Recessions offer a pro risk-taking environment," Mr Caan suggested.

"When times are good and money keeps rolling into an employee's bank account, they don't take the time to think about the future. In fact, they tend not to think about their current situation at all."

The comments come as a new poll by Monster.co.uk revealed that 15 per cent of UK workers are planning to set up their own business as a response to the financial crisis.

High alcohol prices hitting small pub owners

Wed, 02 Sep 2009 09:17:37 GMT

Written by Jim Ottewill

The Federation of Small Businesses (FSB) is calling for a reduction in beer charges, which the organisation claims is hitting small public houses hard.

Research by the trade association, which represents the interests of small firms and start-ups in the UK, found that one in eight pubs is "struggling" to cope with rates imposed upon them by the Pub Company (Pubco).

According to the FSB, these small pubs are forking out up to 50 per cent more than pub owners who buy their products in the open market.

Clive Davenport, trade and industry chairman at the organisation, said that the high charges are not only affecting pub owners and landlords, but are also making things difficult for contractors and sole traders employed in these public houses.

"The dramatic number of pub closures is not only affecting the tenants and their families, but the wider community - 24,000 people lost their jobs over the past year," he revealed.

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.

Young people 'urged to be more entrepreneurial'

Mon, 24 Aug 2009 12:58:00 GMT

Story written by Jim Ottewill

Young people need to be "entrepreneurial" to build networks and make themselves more employable, a resourcing organisation has said.

According to the Recruitment Society, young people looking to gain experience should research small to medium enterprises (SMEs) including sole traders and limited companies and not just big employers.

Steve Huxham, chairman of the organisation, said: "If you live in a particular area and you're looking to work, there are an awful lot of SMEs who might not otherwise have thought about taking young people on, whether it be for placements, apprenticeships, training positions, whatever.

"If you present yourself in the right way and try to be entrepreneurial, there may be some opportunities come along that otherwise you wouldn't have expected."

IT association Intellect recently explained that improving the tax system for entrepreneurs and self-employed workers employed within the IT communications sector will enable them to contribute to the recovery of the UK's economy.

The comments follow the unveiling of Micro Focus' Making BrITain Great Again initiative, a scheme to create 250,000 jobs within the IT sector.

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.

Older unemployed urged to become self-employed

Mon, 17 Aug 2009 10:42:26 GMT

Story written by Alex Turner

Becoming self-employed is an effective solution for out of work older people, a business expert has advised.

The comments from PRIME, an organisation set up to help older people into work, followed a report from the Trades Union Congress revealing that long-term unemployed older people are at risk of never returning to work.

According to PRIME, there is an increasing acceptance that unemployment among older people is becoming a real problem.

Laurie South, chief executive of PRIME, said: "You are unlikely to get back into the labour market if you are out of work for six months after being redundant.

"You stand a one in ten chance, so what we do is help people start their own business. It's a much better solution."

Government statistics, published earlier in the month, showed that the UK's unemployment level reached 2.43 million in the three months to June, an increase of 220,000 on the previous three months and 750,000 year-on-year.

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.

More self-employed workers are becoming bankrupt, PwC says

Mon, 10 Aug 2009 01:00:33 GMT

Story written by Jim Ottewill

Growing numbers of self-employed people are becoming bankrupt, a financial services firm has said.

PricewaterhouseCoopers made the comments following the publication of government figures showing that the levels of personal insolvency in the UK have increased for the fourth consecutive quarter.

Figures from the government's insolvency service showed that 18,870 individuals were made bankrupt in the latest quarter.

Pat Boyden, partner and personal insolvency expert at PwC, said: "The increasing proportion of self-employed individuals going bankrupt is a trend that is likely to continue over the next two years.

"The sharp increase in IVAs reflects the desire of individuals to reach an agreement with their creditors, and the willingness of creditors to compromise rather than risk a total write-off through bankruptcy. We advise individuals in financial difficulty, whether self-employed or consumer, to seek help and to engage with creditors at the earliest stage."

Further statistics from the study showed there was a 27.4 per cent increase in individual insolvencies in the three months to June 2009 when compared with the same period in 2008.

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.

Self-employed offered support by new fund

Thu, 09 Jul 2009 03:02:09 GMT

Story written by Alex Turner

Graduates looking to become self-employed within the financial and personal services sectors can apply for funding with the Centre for Entrepreneurship at the Cass Business School.

Peter Cullum, founder and executive chairman of insurance group Towergate, is responsible for setting up the support network, which is offering £10 million worth of funding to the right entrepreneurs, the Telegraph reported.

Applications for the money are only allowed from Cass Business School employees or students looking to set up as a sole trader or limited company.

Mr Cullum told the news provider: "It was difficult in April last year for young entrepreneurs to raise funds and it's probably five times more difficult now.

"We have £10 million available but we will probably be able to invest that in the first four weeks. This is relatively high risk. We are not ignoring the risk profile but the returns that we are looking for from the fund are not what a private equity firm would look for."

Professor Andrew Oswald recently told the Times that more workers had become self-employed because of the recession.

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.

Self-employed tax limit to be raised

Wed, 08 Jul 2009 11:15:58 GMT

Story written by Alex Turner

The tax relief limit imposed on self-employed workers earning £150,000 or over has been raised by the government.

In the Budget, announced in April by chancellor of the exchequer Alistair Darling, the government outlined proposals to restrict pension relief for those with incomes over £150,000.

Under the proposals, workers, including self-employed sole traders and contractors, who make irregular contributions over £20,000 a year will be subject to 20 per cent taxation.

However in a recent amendment, the government plans to allow the contribution threshold to be raised to £30,000 a year.

Nigel Peaple, National Association of Pension Funds director of policy, said: "We are pleased that the government has addressed some of our concerns regarding the anti-forestalling regime.

"Adopting a more flexible approach to existing contribution agreements and to irregular contributions will make a real difference to some companies and individuals. However, the NAPF remains deeply concerned about the government's plans to change tax relief for pensions."

He concluded: "We need ministers to listen on this too."

Self employment is up during the recession, expert says

Tue, 07 Jul 2009 11:40:45 GMT

Story written by Alex Turner

Becoming a sole trader or limited company has become an option for a number of workers since the onset of the recession, one economist has claimed.

Professor Andrew Oswald told the Times that despite a large number of people losing their jobs, one of the "golden linings" to the current economic climate is how many have been able to discover their inner entrepreneur.

While cutbacks can be made to a business because of recession, positive change can also be made, he explained.

The professor said to the news provider: "Many people have been forced into self-employment, and the self-employed report a higher level of job satisfaction than the employed. We think it's because of the autonomy, the independence of spirit.

"It's easy to be overly gloomy. We do bounce back from recession. And sometimes it gives people a prompt that turns out to be beneficial. Some people end up happier in a way that wouldn't have happened without the shock."

Figures from the government show that the total employment level was 29.11 million in the three months to April 2009, down by more than 270,000 when compared with figures from the previous three months.

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.

Lloyds contractors losing jobs to foreign workers, union claims

Tue, 30 Jun 2009 01:06:24 GMT

Story written by Alex Turner

Contractors and freelancers working for Lloyds are losing out to overseas employees, a union has claimed.

According to Lloyds TSB Group Union, the bank has been outsourcing IT contracts to foreign workers as they are cheaper to employ than UK contractors.

The union told Contractor UK: "The government has important questions to answer over why, when it owns 43.4 per cent of the Lloyds Banking Group after bailing the bank out early this year, it should not be using its influence to force Lloyds into investing in - and protecting - the jobs of UK-based staff?

"Furthermore, why is it providing work visas to overseas workers, who would otherwise have no legal right to work in the UK, when it could instead force the bank to invest in the jobs of existing workers in the UK?"

Previously, the news provider reported that freelance workers with the bank have been told to accept a pay cut or potentially face losing their jobs.

IR35 to be reviewed by Conservative government

Tue, 30 Jun 2009 01:05:51 GMT

Story written by Jim Ottewill

A Conservative government would review IR35 compliance and the accompanying legislation, a Tory politician has claimed.

In an interview with Contractor Calculator, Jonathan Djanogly, shadow minister for corporate governance and solicitor general, said that much of the law surrounding small businesses including sole traders and limited companies has become too over the top.

The politician explained that IR35 is one of the pieces of legislation that the Conservatives would review if they came to power at the next general election.

Mr Djanogly told the news provider: "We fully understand that self-employed people have concerns that they are being pulled into the employment sphere by IR35, and that the existing legislation must be reviewed.

"We have to ask whether we should simply scrap IR35 and return to pre-2000 conditions, or whether we should amend the legislation. We are aware that there will be unintended consequences if IR35 is simply scrapped, with nothing to replace it."

IR35 was introduced in 1999 and allows HM Revenue and Customs to tax contractors as if they were employed by a client.

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.

Micro businesses need skills council

Tue, 02 Jun 2009 10:40:26 GMT

The Federation of Small Businesses (FSB) has called for the creation of a Small Business Sector Skills Council for micro businesses.

According to the body, these firms including sole traders and limited companies are being excluded from government training initiatives such as the Train to Gain scheme.

The results of the survey showed that many sole traders wrongly believe that they do not qualify for training.

Colin Willman, chairman of the FSB's education and skills, said: "The government must start to recognise the needs of the country's smallest businesses, especially during this crucial time when firms need to be investing in skills and training so that they can emerge stronger as they pull the economy out of recession."

He added that training needs to be more flexible so micro businesses can take advantage of these development opportunities.

Further findings showed that only 18 per cent of those businesses questioned said they were aware that they could undertake training in 'bite-size' parts.

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.

Brits paying more tax than they need to

Fri, 03 Apr 2009 06:07:35 GMT

New research from Abbey revealed that Brits are paying more tax than they need to on their savings by not making full use of their tax-free savings allowances.

According to the study, 57 per cent of respondents have a tax-free Cash ISA while 54 per cent of those people questioned said they did not fully understand what a Cash ISA is.

The latter figure includes eight per cent who hold ISAs themselves.

Reza Attar-Zadeh, director of savings & investments at Abbey, said: "Utilising your tax-free allowance by sheltering your savings in a Cash ISA is an ideal way to make the most of your money.

"With the deadline for the end of this year approaching fast (April 5th) I would urge people to use up their full £3,600 allowance now - and then start building their tax-free savings pot in the new tax year too."

Previous research from Barclays revealed that nearly half of people in the UK have no plans to take out an ISA during the next tax year.

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.

Chancellor limits business rate rises

Wed, 01 Apr 2009 12:25:32 GMT

The chancellor Alistair Darling has cut the proposed five per cent rise in business rates allowing sole traders and self employed contractors to spread payments over three years.

According to the Department of Communities and Local Government, the rate rise is to be reduced to two per cent with businesses able to spread payment of the remaining three per cent increase between 2010 and 2012.

Under the new proposals ratepayers in the UK will be able to defer payment of an estimated £600 million, which should boost their cash flow for the current year.

Mr Darling said: "The government recognises that businesses need help now to ease their cash flow at a time when money is very tight.

"This measure will help businesses to smooth their rates payments over the next few years to deal with the effects of the recent spike in inflation."

A survey from the Times found that more than half of councils in the UK said businesses in their area are struggling to pay their tax rates.

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".

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.

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."

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.