Britain is a nation of shop keepers and small businesses, so we’re constantly told.
It’s these small businesses that are the lifeblood of our economy. They drive growth and bring prosperity to the nation even in times of recession.
But how do you encourage more entrepreneurs to take the plunge and start up new businesses?
Well, as accountants we know that the best way of doing this is by offering incentives and making the prospect of running a small Start-Up more appealing. So Steven Glicher accountant are encouraged by news that the government is set to launch a scheme that will provide such an incentive. From April, 2014, the coalition government is introducing a new Employment Allowance scheme that will cut National Insurance contributions and could benefit as many as 1.25 million SMEs.
So what is this new scheme, and how could it help your small business?
The Employment Allowance scheme will be introduced on 6 April, 2014, to bolster the SME sector. The proposed changes to National Insurance contributions could give small businesses what is effectively a £2,000 tax cut. The scheme was trailed in the budget earlier this year and will be introduced in a bid to help 1.25 million SMEs and effectively take 450,000 out of NI contributions entirely.
Which businesses will feel the greatest benefit?
The drafting of the new scheme suggests that it’s the smaller SMEs who benefit most. 90% of the new Employment Benefit Allowance will go towards helping those small companies with fewer than 50 employees.
Speaking about the new scheme, Prime Minster, David Cameron, said the new rules reaffirmed the government’s commitment to helping these small businesses to get wages in people’s pockets, put food on their tables and drive the UK economy forward in the right direction. He said in an official statement:
“Small business and entrepreneurs are the lifeblood of our economy and this Government is firmly on their side.”
That’s not the only policy that the government is introducing to help SMEs. The Government is also hoping to take action to tackle late payment from larger firms. Small businesses have been bedevilled by problems caused by late payments, and have often complained that they have little redress or power to force large, more-affluent firms to settle outstanding bills. In fact, recent surveys have indicated as many as 85% of SMEs in the UK have experienced problems regarding late payments from bigger businesses.
Mr Cameron has now confirmed that, under new plans, large firms which delay payment to smaller suppliers will be penalised financially. Although the details are not yet clear, it is thought that the Government will reveal a raft of new rules that SMEs can use to ensure bigger businesses release money when it is due.
If you’re thinking of starting your own small business, then Steven Glicher accountants are here to help you. We can offer information and advice on the new Employment Allowance scheme, tax planning, business structures, book keeping, business planning and growth, raising finance and VAT registration. Whatever your small business needs, speak to Steven Glicher accountants on 0161 485 8007.