Entrepreneur Relief

For disposals after 5th April 2008 a flat rate of 18% comes into effect. Unfortunately this did mean a big tax increase for small business owners looking forward to selling their businesses, perhaps to fund their retirement, or maybe planning to invest in a different business. Entrepreneur relief has been introduced to help resolve this…

Research & Development Tax Credits

R&D tax credits are a company tax relief for investment into research and development projects. The R&D credit goes up to 175% from April 2008 (prior to this the relief was 150%) What does this mean? well simply if you spend £100,000 on qualifying R&D you get tax relief on £175,000. For companies not making…

Capital Allowances

Under the current system, small enterprises (and if you receive our newsletter, thats what yours is) get 50% of the cost of a new item of equipment or a commercial vehicle allowed against profit in the year it was purchased and then 25% of whats left in year 2 and so on. A new system…

VAT issues for 2008/09

The VAT registration threshold increased from £64,000 to £67,000 from 1 April 2008. The VAT deregistration threshold is increased from £62,000 to £65,000 from 1 April 2008. The legislation relating to the option to tax land and/or buildings will be simplified and minor changes will be introduced to enable taxpayers to revoke an ‘option to…

Income Shifting – changes postponed

All the professional bodies and the small business organisations (such as the FSB and the Professional Contractors Group) have been lobbying hard for the changes due to be introduced on the 6th April 2008 to be postponed, thankfully Alistair Darling has seen the light. The proposed changes were unworkable. What’s the fuss about? Well HM…

Protect Your Business From Invoice Scams

Paying on phony invoices is an occupational risk for small businesses. They are regularly the target of scammers hoping to take advantage of sloppy bookkeeping, inattention on the part of employees and poor communications between the people in the firm ordering goods, those receiving them and those approving payment. All too often they are paid…

Brainstorm your business to innovate

Marketing wisdom has it that to develop products with good sales potential you need to first appreciate your customer’s needs and then build a product that answers those needs. Customer needs analysis is the process of unearthing information about just what it is customers would really value in a product. The activities most commonly associated…

Dealing with unhappy customers

Let’s face it – the customer is not always right. What is always right is to treat them as if they were, because a customer will likely tell numerous people about their bad treatment at your business whereas they rarely pass on the good treatment experiences they have. After all, as customers they expect a…

VAT and property

If you own a business property you are probably aware if the property is subject to an election to tax for VAT purposes. If you charge VAT on the rents invoiced to your tenants, you will have an election to tax in place.In certain circumstances this can be a commercial inconvenience! Rental issues For example…