After the hardest year for businesses, the optimism for 2021 is falling short. Small businesses are yet to face even more difficult challenges that may even lead to their closure. A report carried out by Take Payments looked at the challenges small businesses will face in 2021 by looking at 1,000 SMEs in the UK across 19 different sectors. Some of the main challenges expected are the Coronavirus restrictions (35%) and the new Brexit regulations (19%).[continue reading…]
In the modern economy, there is no shortage of candidates for any positions in a company. It appears as if the employers are successful in finding the most suitable candidate for a post within no time. But, this is not as easy as it looks. There is always a chance that you will end up hiring the wrong person for the job and this may trigger a series of negative consequences. This incorrect person may turn out to be unmotivated, lazy, or unqualified and he or she may influence the working atmosphere in your company adversely. When you spend a lot of time training the prospect and end up looking for another one, it costs a lot of time and money.[continue reading…]
A strong direct marketing strategy can often be found at the forefront of business-to-business marketing campaigns, helping companies to advertise their services toward their predefined audience and get ahead of their competitors through the use of popular mediums like email and telemarketing. However, with marketing techniques developing and becoming more advanced over the years, is direct marketing still the best way for B2B companies to advertise their services to their customer base?[continue reading…]
Setting up a business as a limited company is the second most popular way of setting up a business in the UK. In 2020 there were around 2 million trading limited companies. There are both huge advantages and disadvantages of running a limited company, as well as, other structures such as sole traders (which is the most popular business structure, with their being 3.5 million in 2020). It’s important for any aspiring entrepreneurs to understand the range of benefits and pitfalls of different business structures to determine if they are the right fit for their business idea.
The current VAT threshold in the UK stands at £85,000. Any business that has an annual turnover of that value must register for VAT with HMRC, and when they do this they will receive a VAT number. Before you work with another business, you normally want to find out all you can about them and you can easily do this through a Google search. However, something you might not consider looking at is their VAT number, and this is actually something that you should definitely be verifying.
Small and medium-sized businesses, popularly known as SMEs, are the backbone of any economy. Their owners have mastered the art of creating and selling for a quick profit. However, one of the biggest challenges that small business owners face in their daily operations is money management. Unlike big enterprises that have employed financial professionals and accountants, small business operation is usually a ‘one-man show’. As a result, the owner may become too engrossed with creating and selling without taking time to look at the cash flow within the business.[continue reading…]
Many small companies, including those providing professional services to clients, perform a lot of work from home. One of the most frequently asked questions by directors is what expenses can you legitimately claim back against your company? Here is a breakdown of claiming home office expenses.
If you have started a business or are thinking about starting one, then you will need to decide on a business structure. You can choose to create a limited company, work as a sole trader or a partnership. Each business structure varies, especially when it comes to accounts and the bookkeeping. Sole trader owners are classed as self-employed, therefore they have their own set of tax rules and regulations to adhere to.
Over 672,890 start-up businesses were launched in the UK in the tax year 2018/19 – that’s equivalent to 1,844 new businesses per day. However it is a sad, but the inevitable, fact that not all of these will succeed in the long term. So what can you do to try and tip the scales in your favour? One of the most important things is making sure that you get off to a good start, so here are some tips for starting a small business, given by Jeff Barber, Partner at Selling My Business.
If you’re self-employed, you can claim for a wide range of expenses against your tax bill, although you have to be careful to only apportion costs which have been genuinely incurred in the running of your business. Here is how to claim home office expenses as a sole trader.
When starting a small business, one of the first things to be decided is the legal structure used for the business. It can either be a sole trader or limited company or a partnership. Setting up as a sole trader is the most popular legal structure in the UK, with approximately 3.5 million sole proprietorships in 2020. Sole traders accounted for 59% of small businesses in the UK. There were also 2 million limited companies, making it the second most popular legal structure.
With the pandemic creating thousands of job losses across the country, the government has launched the ‘Kickstart’ scheme to create jobs for young people. There is a risk, especially for young people who may face a long time of unemployment. This scheme looks to help young people gain skills and training in their field.[continue reading…]
Responding to the coronavirus lockdown protocols, many businesses have embraced remote working as a safer, sometimes more convenient, alternative to being in the office. This has been widespread and will, in the long-term, likely normalise the practice of remote working. Yet, as a less than desirable short-term side-effect, many organisations are overlooking basic compliance with tax regulations and data protection laws.[continue reading…]
Hiring the right people for your team is both a science and an art. You might have a very clear idea about the qualifications and experience you require for a role, but how do you find the right person among the many candidates with similar credentials? It requires rigorous enquiry, intuition, experimentation and knowledge of the key areas to consider.[continue reading…]
If your contracts are caught by the IR35 rules, the financial impact will be considerable. Here, we look at the tax difference you will incur if you are inside or outside IR35.
Once you’ve started up a new venture, you’ll need to ensure that you have banking facilities in place before you can start trading. So, do you need to set up a small business bank account for your business, or can you use your own personal bank account?
There are several different kinds of limited companies available to set up in the UK. Limited companies are the second most popular business structure in the UK, only coming second to sole traders. The type of limited company structure chosen for a business will depend on various factors such as the number of shareholders, the responsibility that the shareholders have and the level of involvement by the public. Each has their own benefits, so each business will need to decide what is the most suitable structure for them.
Readers questions: My year-end is 31st January, I have two companies, can I pay dividends out of one? We have made £160k profit so far this year.[continue reading…]