Small Business Matters

VAT rate change: today is the day!

It’s finally here: at midnight tonight small businesses across the UK must ensure all their prices are in line with the new VAT rate of 17.5%. Hopefully businesses have been able to plan for the change well in advance and as a result won’t find the adjustment too taxing.

However, if you’re still unsure of all the rules surrounding the change then you still have time to visit the HMRC guidance website which provides all the information you need. You can also refer back to our practical guide to handle the change, which gives some easy to follow top tips.

Don’t forget, if you’re open for business tonight then the Treasury has granted a six hours grace period. This applies to pubs, restaurants as well as retail and telecommunication businesses that will be operating beyond midnight.

Good luck and let us know how you get on – we’re keen to hear about your experiences, tell us what went well and what didn’t!

And most importantly, have a very happy New Year!

Have a very merry business this Christmas

It’s Christmas time, hip hip horay! The last minute shopping has been done (hopefully), the cash has been counted and the Christmas holidays are about to begin.

While people are at home joining in the festivities, enjoying Christmas dinner, and having a break, let’s not forget that the show must go on for small businesses.

It’s important to make sure that all is wrapped and ready for the New Year. January is expected to bring in a flurry of business as bargain hunters flock in for the January sales. To make the most of this, ensure you’re stocked up and your stores are ready to go.

As we know the VAT is to return to 17.5% on the first of January - this doesn’t leave  much time to prepare when we return in 2010, so make sure everything is in order for the change. That includes the changing of price tags, displaying notices to inform customers and making sure that payments are settled up.   

What goodies do small businesses have in store this Christmas?

In the New Year, I will be making regular contributions to smallbizmatters, looking at small and local businesses from around the UK. While I planned to start posting in 2010, the Christmas shopping season inspired me to get an early start. There are so many presents to buy, meals to share, corks to pop… I think it would be great if we all made a point to spread the word about good local businesses and get into the Christmas spirit.

Putting my money where my mouth is, I’ve decided to source the necessities for my Christmas meals at two of my favorite food shops in central London:

La Fromagerie and The Ginger Pig

Both offer a phenomenal selection of gourmet foods and a high-level of service. Add to the mix, knowledgeable staff and heaps of charm and you’ve got the recipe for a fantastic occasion. A jaw-dropping selection of fine cheese and impressively raised and masterfully presented meat don’t hurt either. Even a cooking-newbie like me can’t go wrong! Well, at least not the shopping bit anyway.

Where are you shopping this Christmas? With Santa on his way, I need your recommendations before the snow settles!

Michael Porcaro, Small Business Specialist

Are British people ready to set up their own business?

Last month, Intuit asked YouGov to survey 2,000 British people to find out just how much interest they have in setting up their own business, and whether the recession has impacted their entrepreneurial dreams.

The result were some fascinating findings which confirmed that while people would like set up their own business in 2009, the recession has curbed enthusiasm.

• A third of Brits have or would like to set up their own business, but have put off their decision due to recession fears.

• Half think that now is a worse time to set up a business compared to this time last year.

• 40% believe that the recession has delayed their ambitions in setting up a business alone.

• 36% of people aged between 25-34 hope to set up on their own one day, compared to just 22% of 45-54 year olds.

On the whole, the results show that people are wary. The downturn has knocked confidence in the staying power of small businesses, and the results echo the awareness of the risk involved. It seems the older, wiser, more experienced folks who have struggled through previous recessions are more reluctant to take on the risk whereas the younger, less experienced budding entrepreneurs are still keen and rearing to go.

With increased support for small business more evident and a New Year just around the corner, who knows, attitudes may change in the near future.  We certainly hope small businesses keep fighting and get the support they so desperately need, especially since they are the back bone of the British economy and critical in pulling the UK out of the recession.

There are just three weeks to go until the VAT rate change from 15% to 17.5% takes place.

Are you planning to absorb the costs of the VAT increase rather than increase prices?

Vote now on our poll that you will find to the left of our home page.

Small businesses welcome support

Yesterday Chancellor Alistair Darling announced the pre-Budget report 2009, the results are available on the HM Treasury website. Overall the measures were positive and encouraging for small businesses. The focus was on freeing up cash and providing access to credit, which is exactly what small businesses need right now.

Below are the key outcomes that will impact small businesses.

1. The Enterprise Finance Guarantee scheme has been extended by six months to September 2010. This scheme guarantees 75% of loans to small businesses with a turnover of £25m or less, allowing start-ups to get moving while established small businesses can consider expanding and investing. So far this scheme has already supported 6,500 firms with offers of loans totalling £660m.

2. The time to pay scheme which allows small companies to spread tax payments over a longer period of time has been extended indefinitely. This scheme has been helpful for businesses trying to free up cash in the past year. 150,000 businesses have already deferred £4bn of tax in the past year as a result of the scheme and this extension now allows further small businesses to take up this opportunity and invest the available cash in new projects.

Today’s Pre-Budget report

Chancellor Alistair Darling will give his Pre-Budget Report (PBR) speech at 12:30pm today. You can follow all the latest PBR news on the HM Treasury website.

This could be Darling’s last chance to revive the struggling UK economy - it will be interesting to hear what he will propose and understand what the implications will be on UK small businesses.

We for one hope that there is some good news in store for small businesses including accessibility to much needed funding and recognition of the challenges the VAT rate change creates. Let us know your thoughts and what you hope to hear in today’s speech.

Business births and deaths

On Monday 30th November the Office for National Statistics announced the latest results of enterprise births, deaths and survival in the UK for 2008. The figures highlight some of the early impacts the recession has had on the business landscape and indicate those sectors that suffered most throughout the downturn.

Not surprisingly, the results show there was a 3.7% decrease in the level of business births in 2008 in comparison to 2007 ( 270,000 and 281,000 respectively).What is interesting, however, is that there were fewer business deaths  in 2008 compared to 2007 (219,000 from 223,000) which represents a 1.8 percent decrease. From an industry perspective, some industries faired better than others with business administration and support services having the highest level of business births in 2008. The hardest hit industries were within the accommodation and food sector, finance and insurance and construction sectors particularly suffering with 33,000 businesses closing across the UK.

The results reflect the economic climate of the time, where certain industries suffered throughout the gruelling year that was 2008. While there is evidence that the recession may be drawing to a close, British people continue to remain cautious about setting up businesses with just 14% of British people surveyed believing that now is a better time to start a business than a year ago.

While these figures do reflect the risks of running a business during a recession there is evidence that enterprises set up during a recession tend to be exceptionally resilient. For businesses to survive through a challenging economic climate, it is essential to manage finances correctly, be fully aware of what is going on in the industry and be present where the customer is, which increasingly is online. You can see our previous blog for top tips for prospective entrepreneurs. With over a third of Brits keen to start their own business we can hope to see a boom in business births come 2010.

Intuit celebrates the 12 days of Christmas!

 

As Christmas is the season of giving, Intuit UK is getting together with its Twitter followers to share top tips and tricks for small businesses over the 12 days of Christmas*. Each day, small businesses and entrepreneurs can share their advice on a different topic, helping others to succeed in these tough times. 

 

The 12 topics will cover some of the common challenges that are faced by small businesses, and the best advice will be collated into a free guide available online before Christmas, making it the ultimate Christmas gift for small businesses. Each tip chosen for the guide will include the contributor’s name, Twitter username, company and website. This is a great opportunity to highlight your business and of course, your personal expertise!

 

If you’d like to get involved or keep up to date with the great advice being shared, either follow @IntuitUK on Twitter, join our Facebook group or email your tips to 12daysofChristmas(@)Intuit.com

 

*The 12 business days starting from the 1^st December... because entrepreneurs need some R&R on weekends too!

 

Rebecca Hollis

Social Enthusiast