The sole trader business structure is the most popular in the UK. In 2019 there were approximately 3.5 million sole traders, accounting for 60% of small businesses. The sole trader structure has been popular due to its many advantages and the ease of setting up. Sole trader business owners are known as self-employed and most freelancers opt for this structure of the business. There are both advantages and disadvantages of the sole trader business structure that need to be taken into account before making any business decisions.
Value Added Tax is charged on almost all products and services provided in the UK. The current standard rate is 20%. If your business becomes VAT-registered, you will charge VAT on all invoices you submit to your clients.
Salary aside, most limited company directors (and shareholders) typically draw down most of their income in the form of dividends. Dividends are distributed by companies of all types in order to return a proportion of company profits back to their shareholders. Here we look at what are company dividends and how to calculate them.
Every small business wants success, but achieving this goal can be challenging and demanding. The good news is that there are ways to capture your audience’s attention and assist them on their journey to find your products. There are plenty of eCommerce strategies that can help you impress customers enough so that they come back for more products and services.[continue reading…]
2020 has brought on more challenges than small businesses were prepared to deal with. One of them is the rise in cyber attacks taking advantage of the panic caused by the pandemic. To give businesses some breathing room, we’ll be exploring what no-logs VPNs are and how they can stem the tide of hacking activity and mass surveillance.[continue reading…]
If you are facing business challenges, they can conspire to make us feel down and sap our energy and enthusiasm, which is not good for business. Consider what it would be like if you could have a positive mindset permanently! If these things didn’t affect you negatively but could be faced without fear or stress?[continue reading…]
It is always a good idea to go global if your business is already doing well locally. The benefits and opportunities that emerge from going global are endless. Among them is that:
- There is a chance to find lower production costs overseas.
- You get access to new markets and customers which increases your revenue.
- Globalisation also helps you tap in on the latest innovation and technology that exists in the market.
When your company turnover reaches the ‘VAT threshold’ (currently £85,000) in a twelve-month period, you must register for limited company VAT. Even if you don’t, there may be professional reasons why you would want to register anyway. So, how does the VAT registration for limited companies work?
Put simply, a pension is a long-term savings plan designed to financially prepare you for when you stop working.[continue reading…]
We’ve had recent good news in relation to vaccines but also a reminder that Covid-19 will be with us for some time yet. This means it is very important for all small businesses to have processes in place so that you can keep going safely and without business owners feeling too much weight on their shoulders.[continue reading…]
One of the questions we are most frequently asked at Company Bug is “how many limited companies are there in the UK”, or similar questions relating to the business population as a whole
Having a digital marketing campaign that does not use a stable strategy for SEO is similar to driving on an unfamiliar road without using a roadmap. The chances of success become slim as you are not able to find a way. SEO is a tool that can be used to let the customers find you on the internet. The continuous changes in the Google search algorithms and the cut-throat competition in the market makes it necessary to improve your SEO techniques constantly. You are constantly required to adapt to the movement of these algorithms.[continue reading…]
You can commence the striking off procedure for a limited company providing certain conditions are met, and the company has not traded for the past three months.
Scope creep is a silent killer for many projects as we don’t typically catch these issues until it’s too late. This phenomenon happens when your project’s scope grows beyond what you originally anticipated. A high scope happens when a client has too many edit rounds, your team spends too long on a project or even when your boss’ standards are way too high.[continue reading…]
Readers questions: I’m in my first year of running my limited company, and I am the Director and only employee. I haven’t paid myself any salary in this tax year yet, because I earnt a salary in this tax year before I set up my business. My Limited Company will reach it’s one year anniversary in mid-May 2020. My question is, is it tax efficient to pay myself £8632 next financial year, and before mid-May when my Limited Company reaches its 1st anniversary, to minimise corporation tax payment?[continue reading…]
Influencer marketing is no longer just an optional strategy to help you get a few more followers. Over the past few years, it has proven to be an effective way to significantly improve brand awareness.[continue reading…]
If you set up a limited company, you are not legally required to appoint an accountant, although there are multiple benefits of doing so. In this article, we discuss if appointing a limited company accountant to look after your affairs a statutory requirement, or if can you take care of your accounting duties yourself?
According to UK Finance, small- and medium-sized enterprises (SMEs) borrowed £28 billion from lenders in 2018, the latest year for which data is available. That took total outstanding loans to SMEs to £100 billion by the end of 2018.[continue reading…]
Due to its ability to create a connection with the audience, television marketing is quite effective, even in a world that seems to be dominated by digital marketing. Since television marketing tends to be more expensive than other types of marketing, though, it’s important to do it effectively. With the right strategies in place before, during, and after your marketing campaign, your company will be well on its way toward exceptional success.[continue reading…]
There are several great reasons why every business should strive to operate sustainably. Firstly, it’s mostly a money-saver. Using sustainable resources and processes might take some upfront investment, but it reduces your costs in the long run. Secondly, it’s great for PR. There’s an excellent chance that your target audience will think better of you if you go green.[continue reading…]