SELF EMPLOYMENT ON THE INCREASE

According to the office of national statistics two thirds of new jobs created since the financial crisis have been people becoming self-employed. The increase in self-employment has led to a growth in the labour market for the past 30 years hence the continued support for entrepreneurs.

It has also become an alternative to retirement. The office of national statistics stated that self-employment among the over 50’s is up by 36% compared to 10 years ago. This could be due to the changes to pensions and the ageing population.

The most popular sectors for self-employment include

• Construction and building: 167,000 people
• Taxi Drivers and Chauffer’s: 166,000 people
• Carpenters and joiners: 144,000 people

The increase in self-employment could be due to the fact that many people have aspirations to be their own boss. This would allow them to take more of the profits and have increased flexibility for their hours of work.

If you like the sound of becoming self-employed or need advice on whether it would be an advantageous career move for you please contact us.

Fraudulent emails can contain links to webpages similar to the HMRC website however these are used to trick people into disclosing personal/confidential information. You should also be aware that fraudsters customise their emails with links to genuine HMRC websites. Fraudsters often send high volumes of phishing emails in one go therefore you should be wary of generic greetings like ‘Dear customer’. Also attachments on fraudulent emails can often contain viruses which are another way to obtain personal and financial information.

The HMRC can act upon phishing emails by removing reported fraudulent websites. If you have already given any personal information away to an email you suspect is fraudulent you can still report this to the HMRC. You can report phishing and bogus emails relating to the HMRC by forwarding the email to this address phishing@hmrc.gsi.gov

It aims to provide an alternative source of finance to the usual bank loans and other lending resources. The process should be completed within minutes after the application is sent.

New plans announced by Business Minister Matthew Hancock at the first ever ‘Home Business Summit’ in London encourage the growth of home businesses. Entrepreneurs will be given greater freedom to start and grow their businesses from home under these new announcements.

It was revealed that 70% of new businesses begin in the home and contribute £300 Billion to the economy. To encourage more entrepreneurial home businesses the government has announced plans to make the process easier.

This includes new legislations to make it easier to run a business from a rented home. A new model tenancy agreement will outline the effect on landlords and tenants. Planning guidance will also be updated to ensure that planning permission will rarely be needed to run home businesses. New business rates guidance will highlight that home based businesses will not attract business rates.

Business Minister Matthew Hancock explores the effect of home businesses on the economic recovery “home businesses don’t just fire up the economic engines and create jobs, they turn dormitory towns into living communities, they keep our streets safer, and by driving down car emissions, cleaner too.” 

If you would like to find out more about running a business from home or need advice on the benefits of home businesses please contact us for a free consultation.  Call 0113 2864486 or email admin@businessworksuk.co.uk

Wouldn’t life be easier if you could enter your accounts on the go rather than losing invoices here and there? …Well now it is! Introducing the new Sage One mobile app for all of your accounting needs.

This new app is available for clients using Sage One accounts and Sage One Accounts Extra. It allows clients to view and edit their expenses, sales and debtors list whilst on the go. The function of mobile map integration also allows businesses to find clients easier. They can also contact Sage clients on their mobile and issue sales invoices as well as paying for purchase invoices.

The app is available to download from the App Store on Apple mobile devices and will soon be available to download on android devices too.

If you require any assistance on Sage or wonder whether this accounting software would benefit your business please call us on 0113 2864486 or click the button below to book a free 1 hour consultation.

The HMRC business records checks were introduced to identify businesses with poorly kept records. These checks have increased by 60% its highest level since 2011. According to a Spokesman for HM Revenue and customs they were “designed to help our small and medium sized business customers to keep better records leading to more accurate tax returns.”

Businesses with poorly kept records can face up to £3000 fines in advance of any unpaid tax or interest penalties.  After the investigations, 73% of the companies reviewed were found to have no significant errors. This is a 15% increase on the previous tax year which highlights the success of the improvements after the scheme was reviewed in 2012.

At Business Works UK we support our clients through all kinds of HMRC activity including record checks as we understand that this can be a stressful exercise for a small business.  Why not book for a free 1 hour consultation to find out more?

Let us take the hassle out of your tax and accounts, so you can spend more time doing the things you enjoy.

This £100 million investment from the Advanced Manufacturing Chain Initiative will provide funding for domestic supply chains and re-shoring.  It will be used for research and development, skills training and investment capital.

It is hoped that this investment will encourage production within the UK as manufacturing contributes £140 billion a year to the UK economy supporting two and a half million jobs. Research shows that one in six companies have re-shored production back to the UK bringing custom for other UK businesses in the form of parts and components.  This continued support to businesses will secure more highly skilled jobs and promote a stronger economic recovery.

The new funding scheme is available for companies based in England and will be allocated after a bidding process.  Businesses will be applicable for this funding if they hope to strengthen their supply chains with the help of capital investments, research and development and skills training.

If you receive Tax Credits, a renewal pack should be sent to you between April and June. In order to complete your renewal you will need to know yours and your partner’s total income for the last tax year.

You may need to complete a Self Assessment Tax Return to be able to calculate this income.  You need to complete a self assessment tax return if …

– You’re self-employed

– You’re a company director, minister, Lloyd’s name or member

– Your annual income is £100,000 or more

– You have income from savings, investment or property

– You’re employed and want to claim expenses or professional subscriptions of £2,500 or more

– You or your partner receive Child Benefit and your income is over £50,000

– You get income from overseas

– You have income from trusts, settlements and estates

– You have Capital Gains Tax to pay

–  You’ve lived or worked abroad or aren’t domiciled in the UK

– You’re a trustee

More information on tax credits is available at https://www.gov.uk/renewing-your-tax-credits-claim

George Osborne, Chancellor of the Exchequer, has today (19^th March 2014) delivered his Budget Statement to the House of Commons.

Below are some snippets that you may find of interest or you can view the whole Budget 2014 at gov.uk via this link http://bit.ly/OwNs1F

• Cuts in the main rate of corporation tax from 28% to 23%, and to 20% by 2015-16. The small profits rate of corporation tax will remain at 20% from April 2014
• From April 2014 the NICs Employment Allowance will benefit up to 1.25 million employers
• Following a consultation announced at Budget 2013, from April 2016 Class 2 NICs for the self-employed will be collected through Self Assessment
• Business rates support of £2.7 billion for 5 years from April 2014 will benefit 1.8 million ratepayers in England
• Over 330,000 more premises have access to superfast broadband
• £140 million of new funding to repair and restore the condition of vital flood defences that have suffered damage
• Personal allowance will be increased to £10,500 from April 2015
• The adult National Minimum Wage rate will increase by 3% to £6.50 from October 2014
• The government will increase the rate of the payable credit for loss makers under the SME R&D tax credit scheme from 11% to 14.5% from April 2014
• From 1 April 2014 the VAT registration threshold will be increased from £79,000 to £81,000 and the deregistration threshold from £77,000 to £79,000.
• The government will consult in summer 2014 on options to improve the operation of the CIS for smaller businesses and to introduce mandatory on-line filing for contractors
• To continue to support business investment, the government is doubling the annual investment allowance (AIA) to £500,000 from April 2014 until the end of 2015. This will particularly benefit small and medium sized firms

If any part of the budget causes you concern or raises any questions for you or your business, please call us on 0113 2864486 for help and support.

From 6 April 2014 employers can claim the Employment Allowance and reduce your employer Class 1 National Insurance contributions (NICs).

Eligible employers can reduce their employer Class 1 NICs by up to £2,000 each tax year.

How to claim your Employment Allowance

You can use your own payroll software (see your software provider’s instructions), HM Revenue and Customs’ Basic PAYE Tools or contact us to help you claim the Employment Allowance.

When you make your claim, you must reduce your employer Class 1 NICs payment by an amount of Employment Allowance equal to your employer Class 1 NICs due, but not more than £2,000 per year.

For example, if your employer Class 1 NICs are £1,200 each month, in April your Employment Allowance used will be £1,200 and in May £800, as the maximum is capped at £2,000.

Once made, HMRC will automatically carry your claim forward each tax year. So at the beginning of each year you should check your circumstances haven’t changed.

Note: The Employment Allowance is subject to Parliamentary approval.