Small Business Matters | A Blog for UK Small Businesses

What Small Business Britain wants from …

With our Small Business Britain Charter now live we thought you might be interested to read some of the key findings from the YouGov survey which questioned over 1,000 small business owners from around Britain.

The survey was split into three focus areas, what Government needs to do for small businesses, what banks need to do for small businesses, and what small businesses can do for themselves over the next year and beyond.

In order to avoid posting a novel, we will focus on the first two today and the third tomorrow!
… the UK Government

• 40% of respondents called for a reduction in employers’ national insurance contribution.
• 30% called for Corporation Tax deferment

The UK’s small business community are a leading contributor to the country’s employment and economy. In the run-up to the 2010 General Election, small businesses are looking to the successfully elected party to develop programmes and policies that will encourage growth in this economically difficult time.

The Small Business Britain Charter goes live!

Exciting news, we are today launching our Small Business Britain Charter

A couple of months ago we decided to commission YouGov to survey over 1,000 small business owners around Britain to find out about the challenges and opportunities they face in the run-up to the 2010 General Election.

Small businesses are absolutely crucial to our economy. So instead of just announcing the results as an FYI, we decided to develop them into the Small Business Britain Charter, which will give small business owners a platform from which they can call on government, elected bodies, banks and the wider business community to support their success over the coming decade.

As well as the Charter, the Small Business Britain website, which went live today, includes profiles of small business owners who have already had a sneaky peek of the Charter and details their feedback on the areas that they most relate to. Why not take a look and see if their experiences match yours? 

Don’t forget the January tax deadline

The tax return deadline of 31st January 2010 is just around the corner. Failure to meet this could result in hefty penalties so make sure it’s at the top of your priority list. Here are a few tips to follow so you don’t get caught out by the tax man.

Submitting your tax return online - the deadline for paper returns was 31st October 2009, you must now send your tax return online which needs to reach HM Revenue & Customs (HMRC) by midnight on 31st January. By now you should have registered to use the HRMC’s online services and received your activation code.  Given that this is done, you’ve now not got a week to file or otherwise you could face a £100 penalty, on top of any tax due.

It’s also worth noting that if you’re new to the online world there’s a very small number of cases where HMRC will still allow you to send your tax return on paper - read the section 'Exceptions - where you can't file online' rules surrounding this.

Pay any outstanding tax - as well as submitting online, the full and final tax payment will need to accompany the tax return. If you have been within self-assessment for a number of years, you will now be required to pay the final amount on 31st January 2010, together with the payment on account for the subsequent tax year 2009-10.

Top 10 Small Business Goals for 2010

The last 12 months have been incredibly tough for all of us, but we’re optimistic that 2010 will be a great year for UK small businesses. To succeed, businesses will need a sound understanding of their priorities and strategies. Based on our discussions with small business owners, we have come up with the Top 10 Goals for 2010 that every small business owner needs to think about.

Here is a taste of some of the tips on offer:

1. I will sort out my finances
Sometimes even the greatest business ideas can fail due to a simple lack of readily available cash. This is something that many small business owners find challenging to keep track of, but it’s vital to be aware of how much is being spent and for what, as is tracking VAT and making accurate returns. It is important to keep on top of bookkeeping right from the start, otherwise there is a risk of forgetting crucial costs or, even worse, failing to invoice a customer.

2. I will learn something new
Going solo can be nerve-wracking and lonely at times, however there is an absolute wealth of advice and top tips available online, as well as many forums and communities where other small businesses share their experiences. Our blog has advice and tips, including the ‘Secret Guide for Small Business’, which was created by small businesses for small businesses. Smarta, Enterprise Nation and BusinessLink are just a few other examples of sites where you can get free information and support.

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.

Tune in for advice and to win small business prizes!

In honour of Global Entrepreneurship Week, tomorrow morning our resident small business specialist, Catherine Harrell, will be featured on local radio stations across the UK providing top tips to small business owners and prospective entrepreneurs on how to survive and succeed in the recession.

 

For more information on when and where you can tune in, please see below:

 

• Colourful Radio, UK (at 08:35)
• BBC Sussex and Surrey, Surrey (at 08:45)
• Phoenix FM, Brentwood, Essex (at 09:05)
• Lanarkshire's L107, Lanarkshire (at 09:15)
• Asian Star, Slough Berkshire (at 09:25)
• Radio Verulam, St Albans (at 09:35)
• 209radio (Cambridge), Cambridge (at 09:45)
• GTFM, Wales (at 09:55)
• Radio Cardiff, Cardiff (at 10:15)
• Harborough FM, Harborough (at 10:25)
• AFAN FM, Wales (at 10:35)
• 91.8 Hayes FM, Hillingdon, Ealing, Hounslow (at 10:45)
• Heart 103.1 and 102.8, Kent (at 10:55)
• Gold Kent, Kent (at 10:55)
• 101.8 WCR FM, Wolverhampton, West Midlands (at 11:05)
• Play Radio, Southampton and Winchester, Hampshire (at 11:15)
• Sunrise Radio National, UK (at 11:25)
• Kismat Radio 1035, Greater London (at 11:25) 
• BBC London 94.9, Greater London (at 22:45)

 

There will also be competitions to win free copies of QuickBooks SimpleStart (RRP £89.95) and £100 worth of PC World vouchers on the following stations, so listen out for your chance to win.

 

• Heart 103.1 and 102.8, Kent
• Metro Radio, Tyne & Wear
• 96.4 The Eagle, Guildford Surrey
• TFM, Teesside
• 96.3 Radio Aire, Leeds & West Yorkshire
• Bang Radio, North West London
• Swansea Sound, Swansea
• Waves Radio, Peterhead
• Central FM, Stirling & Falkirk
• Imagine FM, Stockport
• Isle of Wight Radio, Isle of Wight
• Fire 107.6, Bournemouth

 

Practical advice for small businesses to handle the VAT rate change

With the end of the year fast approaching, small businesses will need to get ready for yet another admin challenge: the VAT rate change. On Friday 1st January 2010, business owners will wake up to the after effects of a 13 months 15% VAT reduction and return to the usual 17.5% rate. Despite the fact that an extension of the VAT reduction would be favourable, small businesses can still get the most out of this transition if they plan well in advance.

To quickly adjust to this change, small businesses can rely on some easy to follow top tips:

Inform your customers – Businesses should start making their customers aware of the VAT change as soon as possible to avoid disappointment or misunderstandings. It is important to clarify that the increase in prices of goods and services is due to the VAT rate change and it is not discretionary. In certain instances, it may also be appropriate to give customers practical examples of what the prices will look like from January 2010. Businesses that interact directly with the public, such as retailers, should display announcements in their shops and create bespoke banners for their websites.

Be aware:
1. Of the Price Marking Order 2004 - As January is traditionally a busy time for traders, you might not have time to adjust all your ticket prices on the 1st.  It’s worthwhile remembering that, under the Price Marking Order 2004 (SI 2004/102), you have up to 14 days to do this.  Until then, you can display general notices that advise your customers that an adjustment in price, to take account of the VAT change, will be made at the till.

Have your say - the BIS is proposing that this period should be extended from 14 to 28 days.  Responses to this consultation must be received by Monday 23 November 2009.

6 hours extra grace on VAT rate change - but still a headache for small businesses

It was reported this week that the Treasury has agreed to delay the VAT increase by six hours. This is welcome news for businesses that would have previously had to make the change at midnight on New Year’s Eve – especially the pubs, clubs and restaurants that will be open for business. The reprieve also applies to retail and telecommunication businesses that will be operating beyond midnight on 31 December 2009, and although good news, it doesn’t make the admin challenges of the adjustment for small businesses any easier!

Come January, business owners will wake up to the after effects of a 13 month 15% VAT reduction and return to the usual 17.5% rate and as such, have to face the problem of trying to sell products and services at higher prices to customers who are still hesitant to buy.

The VAT reduction came into force in December 2008 to help consumers with the recession. However, the fact is that the UK is still officially in recession and therefore, consumers are not likely to have more cash to splash in 2010 and will not like hiked up prices!

Optimistic outlook from small businesses

It seems the mood has changed to a more positive tone amongst small businesses in recent weeks. There is a general consensus that conditions are improving.

This week, The Times in conjunction with Barclays, released results from over 3,700 small business owners, who were surveyed on how they felt about the recession. Overall, the survey suggests a much more positive view from small business owners in comparison to six months ago. Many feel that the weight of last year’s recession has been lifted and their outlook for the New Year is a lot more upbeat. In fact, more than 60% of respondents were feeling confident about the future of their business.

Switching priorities:

While last year the priority for small businesses was very much focused on keeping cost down and the doors open for business, the priority is now shifting to expansion and growth, with small businesses investing in the new technology, people and expanding their product lines. 53% of those surveyed planned to grow their business throughout 2010; this is a significant increase from this time six months ago when just 42% of respondents had the intention of expanding.   

It’s obvious that small business owners have endured a tough year with their strategies being tested to the max. Only recently, it was reported that the UK economy was still in recession – yet, despite this, small businesses are showing real determination and grit, and now it seems, feel optimistic about their future.

Strike set to continue

So the postal strikes are set to continue, and hopes for a trouble-free two months in the run up to Christmas don’t look promising!

The walk-outs across the country have being going on since June now, that’s nearly five months of disruption, and it is fast becoming one of the most frustrating times – especially for the smaller companies, who rely solely on Royal Mail to deliver their letters, parcels and goods to customers.

Whereas bigger players, for example Argos and Ebay, have the flexibility to sidestep Royal Mail so their customers don’t feel the effects, small businesses are left troubled by the ongoing disputes, which may have a crippling affect on trade, especially with one of the busiest periods approaching. According to a poll conducted by the Federation of Small Businesses, strikes could cost every UK small businesses up to £5,000.

It’s no surprise then, that according to a survey from the British Chambers of Commerce, 75 percent of small businesses are looking elsewhere for a more reliable service. Richard Tyler, Enterprise Editor at the Daily Telegraph is encouraging businesses to walk away and consider alternative postal providers:

“the best punishment for any organisation that abuses its position is for its customers to walk away. Complain first, yes. If they don’t change their behaviour, that’s it!”