Employment Allowance reduces NICs for Employers

From 6th April 2014 employers are able to claim Employment Allowance. This Allowance reduces the NIC Class 1 payable by employers by up to £2000 per year. The aim of this allowance is to make it easier and less of a financial burden on small businesses to employ staff.

Employment Allowance

Not all businesses can claim the Employment Allowance however. Employers that cannot claim this allowance are those that:

  • employ someone for personal, household or domestic work, such as a nanny, au pair, chauffeur, gardener, care support worker
  • already claim the allowance through a connected company or charity
  • are a public authority, this includes; local, district, town and parish councils
  • carry out functions either wholly or mainly of a public nature (unless you have charitable status), for example:
    • NHS services
    • General Practitioner services
    • the managing of housing stock owned by or for a local council
    • providing a meals on wheels service for a local council
    • refuse collection for a local council
    • prison services
    • collecting debt for a government department

The allowance can be claimed through your payroll software by automatically reducing the Employer NICs payable up to £2000. HRMC will automatically carry the claim forward for succeeding tax years.

Further information is available from the Government website at Employment Allowance.

Our experienced business advisors are available to help with any aspect of business and many of them are registered Growth Coaches. For a no obligation discussion contact us or call 0333 444 8522

Yet Another War on 'Red Tape'

The War on Red TapeDavid Cameron recently announced that he was going to cut 3000 items of red tape as a way of helping small businesses. For instance out goes that riveting read “Cattle Movement Guidance” – all 640 pages of it!  Also 286 pages of hedgerow regulations will disappear! I am not quite sure how that will benefit the majority of companies that operate from an office or in an industrial estate in the heart of some of our cities. He also mentioned that over 600 rules had already been swept away but have small businesses benefited from it? Are they even aware that these rules have gone? But he also said that it would take nearly 2 years to get rid of the rest! A slow motion war indeed.

When senior politicians start to talk about the war on red tape, I start to worry. I worry that such a major announcement (it was in all the media including online, print and broadcast) is because the Government is bereft of ideas on how to help small business develop and grow. They always seem to revert to the ‘war on red tape’ as if that is the panacea for all the problems that business  owners have. Their theory goes that if they get rid of all the red tape (they won’t, they never do!) then businesses will save a lot of money, be more profitable and do more business. In theory they are right. Superfluous bureaucracy is indeed a drain on the resources of small business. But  some red tape is a necessary evil and needs to be in place.

As James Hurley said in his piece in The Telegraph “….. it’s actually a rather lazy assumption about what entrepreneurs believe is holding them back…..”

Business owners by their very nature learn to overcome or get round obstacles that are put in their way. That is why they do what they do. I believe they have many other more important issues that hold them back rather than red tape. Late payment by large organisations, lack of sensible lending by banks, the cost of hiring staff are but three common issues faced by all small businesses

So as a new front opens up in the war on red tape what do you consider are the three most important issues your business faces in 2014? Use the comment facility on this blog to list them and we will publish the top three concerns of SMEs.

And if you want practical help and advice from experienced business people contact us or call us on 0333 444 8522 for a no obligation discussion.

Yet Another War on ‘Red Tape’

The War on Red TapeDavid Cameron recently announced that he was going to cut 3000 items of red tape as a way of helping small businesses. For instance out goes that riveting read “Cattle Movement Guidance” – all 640 pages of it!  Also 286 pages of hedgerow regulations will disappear! I am not quite sure how that will benefit the majority of companies that operate from an office or in an industrial estate in the heart of some of our cities. He also mentioned that over 600 rules had already been swept away but have small businesses benefited from it? Are they even aware that these rules have gone? But he also said that it would take nearly 2 years to get rid of the rest! A slow motion war indeed.

When senior politicians start to talk about the war on red tape, I start to worry. I worry that such a major announcement (it was in all the media including online, print and broadcast) is because the Government is bereft of ideas on how to help small business develop and grow. They always seem to revert to the ‘war on red tape’ as if that is the panacea for all the problems that business  owners have. Their theory goes that if they get rid of all the red tape (they won’t, they never do!) then businesses will save a lot of money, be more profitable and do more business. In theory they are right. Superfluous bureaucracy is indeed a drain on the resources of small business. But  some red tape is a necessary evil and needs to be in place.

As James Hurley said in his piece in The Telegraph “….. it’s actually a rather lazy assumption about what entrepreneurs believe is holding them back…..”

Business owners by their very nature learn to overcome or get round obstacles that are put in their way. That is why they do what they do. I believe they have many other more important issues that hold them back rather than red tape. Late payment by large organisations, lack of sensible lending by banks, the cost of hiring staff are but three common issues faced by all small businesses

So as a new front opens up in the war on red tape what do you consider are the three most important issues your business faces in 2014? Use the comment facility on this blog to list them and we will publish the top three concerns of SMEs.

And if you want practical help and advice from experienced business people contact us or call us on 0333 444 8522 for a no obligation discussion.

New Information on Support, Grants and Funding for SMEs

As part of its service to SMEs, business advice specialists NGBA have updated their information on support, grants and funding to SMEs from a variety of governmental sources. NGBA advisors have a wealth of experience in helping clients obtain grants and other support for a variety of sources and would be happy to talk through the opportunities for your business. Contact your local NGBA Business Advisor or email grants@ngba.co.uk or go to Growth Accelerator

Innovation the key to business transformation

If you say the word ‘ Innovation’ to anyone their first reaction is likely to be ‘expensive.’ Talk to small businesses about innovation and their reaction is likely to be expensive R & D. Many people equate innovation with inventing a new product and usually equate it to unique product developments such as iPhone or iPad which would naturally cost hundreds and thousands of pounds.
However true innovation when applied to business need not be expensive and can be applied to almost any part of the business. Innovation can mean a new business process or a different way of engaging with customers . Reducing the number of processes in handling orders for instance is innovation. Going from paper invoices to electronic invoices is innovation. Many business have gone from a bricks and mortar type business to largely on line. This too is innovation.
Businesses that innovate tend to experience better growth, more profitability and by involving staff members in the process will have a happier workforce. And the process of innovation can be carried out in relatively short timescales. So by innovating business can reap the rewards quickly and move their business forward at the expense of their competitors.
If you want to transform your business through innovation contact Bob Francis on 07941 426 807 or at bob.francis@sgba.co.uk