July 31, 2010
Filed under: Business Finance — Alan @ 9:07 pm
Banks may face a new tax on any profits if they do not start to lend more to SMEs and other companies in need of credit as well as start limiting their bonuses according to the Business Secretary.
Vince Cable stated that if back payouts to shareholders and staff were trimmed then approximately £50bn could be generated towards new business lending.
At a news conference he stated that dividend payments are too large along with bonuses and the Government needs to look into placing a tax on profits in order to properly choose a way to re-invest into businesses. He also said that they hope the Government will not have to use sanctions to force lending, but it will remain an option.
Cable’s warning complimented the publishing of a new consultation paper from the Business Department and Treasury that looked at ways to increase business’ access to cash flow.
More government loan guarantees, stock exchanges on a regional level, and other methods to boost liquidity in the banking system were also suggested as a way to promote more financing among banks.
The Business Secretary stated that at the moment complaints from businesses that they cannot get proper access to finance is simply falling on deaf ears as banks continue to maintain that they are lending at an 80% level.
He added that the problem is especially large for SMEs that cannot find the proper finance impairing their ability to create jobs.
July 30, 2010
Filed under: Business Finance — Alan @ 4:18 am
Entrepreneurs may watch their dreams of retirement shatter after Government the proposed new cap pension contributions for the year that they plan to retire. The new proposals are tied into changes that will let top earners still receive 50% tax relief on all of their contributions.
However, if the proposal does continue the contribution amounts will be capped every year at £30,000 to £45,000 which is a large drop from the previous cap of £255,000. Plans to balance tax relief for those who have high earnings would be tossed aside as a result.
In order for the tax relief to be put into effect though, pension contributions in turn will become restricted. The concession was designed with the idea of aiding small business owners and entrepreneurs who oftentimes find that their wealth and retirement gets tied into their business.
Campaigners for small business have accused the Government of forcing small entrepreneurs to take the fall in order to protect the pensions of millionaires.
Spokesman for the FSB, Stephen Alambritis, stated that the new regulations would hurt the four million self-employed people that reside in the UK. This is due to the fact that self-employed people tend to place their money directly into their businesses instead of making large pension contributions.
Alambritis continued to say that in turn they start to make large contributions as they get closer to retirement in order to make up for their short contributions earlier as they try to cement their business into the marketplace.
July 24, 2010
Filed under: Business Tools — admin @ 2:13 pm
When 3G was first announced in the mobile community many providers instantly started offering plans for unlimited access to the high speed network in an effort to compete with each other.
In this new marketplace, unlimited plans were highly popular as they prevented users from suffering outrageous internet overage charges and the word unlimited in itself was very attractive to the eager mobile phone user, as it allowed free reign on a mobile phone. However, the future of unlimited 3G is now hanging by a thread as the mobile community continues to grow and bandwidth is quickly being eaten up.
While a huge amount of users is essentially the goal of the mobile market, the downside of this eventuality is that the more users are on the 3G network the slower it will run overall.
This has led to many major mobile carriers pulling their unlimited 3G plans from their offerings in an effort to reduce the traffic and congestion that heavily populated mobile usage areas suffer from. While this initially has led to widespread consumer outrage, the truth is that the move is more economical for consumers as well as practical for mobile companies than it may at first seem.
Leading mobile networks issued statements defending their similar decisions to remove unlimited 3G offers by explaining the average user consumption of data. These figures are relevant given the fact that they match up with most of the major mobile providers across the world as well.
According to the providers, only 2% of their entire unlimited 3G customer base actually consumed more than 2GB of data on a monthly basis. However, 3% of their customer base contributed to 40% of the network usage. The assumption that can be gleamed from these statistics: most people are overpaying for services that they do not need, and those that actually utilize it are a burden to the rest of the mobile society.
Thus, while the disappearance of unlimited 3G network packages or the restriction of the term “unlimited” from the market may at first seem negative, the truth is that smaller package offerings will save the average consumer a large amount of money over a contract time span and help reduce the amount of congestion that the 3G networks are facing.
Additional options such as free sim cards only deals that offer 3G access as needed will help to relieve the price tag and congestion over the networks, creating a better 3G network for all, even if it does have limits.
July 23, 2010
Filed under: Small business — Alan @ 8:03 pm
A survey that included 1,200 members of the FSB showed that only four percent expect that its trading prospects will improve during the third quarter of 2010, which is much less than the 16% that believed there would be an increase in the third quarter in March.
The FSB survey suggested that it may still be quite some time before recovery is complete according to a statement from the group which means that the Government still needs to encourage SMEs to hire more staff and grow.
FSB national chairman, John Walker, stated that it is expected that 600,000 public sector jobs will be lost which will stimulate the need for new private sector jobs and even more so within small firms in order for the economy to get rebalanced.
In response to this problem, the FSB is asking for new businesses to be given National Insurance Contributions holiday and extend it to companies and businesses located across the UK.
Walker stated that the policy is supported by the FSB; they simply believe that it should help out existing businesses and be applicable across the UK.
The scheme lets new start-up businesses avoid the £5,000 fee of national insurance payments for the first ten employees that they hire within their first year of trading. It does not currently include businesses that are located in London, the south east, and the east.
Senior economist Charles Davis who helped produce the FSB report stated that the SME community seems to feel that a strong recovery is still far away and there are present business risks to growth in the future.
July 22, 2010
Filed under: Business Advice,Business Finance — admin @ 8:52 am
As you will have seen from the various advertisements that grace our television screens each and every day, it is easier now than ever before to access no-win-no-fee legal services. This has contributed to the claims culture that is starting to gather pace in the UK and as a result it is important that as a small business owner, you protect your company against this by taking out public liability insurance.
There are many things you need to take care of when you first start up your own business and it’s important that getting the correct insurance is right at the top of the list. Whether you’re starting an IT consultancy business or are going into the estate agency profession, you will need to ensure that you plan ahead against every eventuality and get yourself a comprehensive insurance policy.
Even if you are one of the 20 per cent of small businesses in the UK that don’t work from an office space, a trend that has come about as companies try and reduce their overheads in these tough economic times, you will still need to invest in business insurance.
When you first start out in business you may find that you are the sole worker for the company, but as you as you start to employ staff you must make getting employers’ liability insurance your number one priority. If you have employees, whether they are full-time, contracted or voluntary workers, it’s a legal obligation that you provide cover against a claim from a member of your staff.
So if you run an energy assessment business and one of your employees are injured while carrying out work for your business, your employer liability will be triggered. If you don’t have the correct insurance this could turn out to be a major problem, but with the right cover the legal and compensation costs will be paid under the terms of the policy and you can carry on going about your business.
It is not only claims from your own employees that you need protection against, but also those from members of the public. As an energy assessor will be required to visit people’s homes as part of your work, and if an accident were to happen and you damaged their property, then a claim could be brought against you.
You also need to get protection for the work that you are carrying out, which professional indemnity insurance will take care of. Despite your best intentions, a client that you have performed work for may be unhappy with the quality of it and as a result you could be required to correct the mistake.
As a small business you are particularly vulnerable to claims of negligence, something that could well affect you if you run a consultancy business where you regularly give advice to clients.
It doesn’t take long to take care of your business insurance needs but it will definitely be time well spent. In the current business climate it’s not worth taking any unnecessary risks and by taking out business insurance you can be safe in the knowledge that you’re protected.
July 20, 2010
Filed under: Loans — Alan @ 7:39 pm
Lloyds Banking Group and RBS were accused of misleading the public about how they lend to SMEs and small businesses. Both banking groups stated that their loan application approval rate is over 80%, but Business Secretary Vince Cable stated that the claims are not true and mislead the public.
Chairman of the British Bankers’ Association, Stephen Pegge, stated that the entire banking industry held the same rate of approval for small businesses.
Cable on the other hand stated that this is not the full truth and the banks are ‘raising the hurdle.’ Instead, he said that the evidence collected by the Institute of Directors is that banks are not lending enough.
The Institute of Directors study found that one in three of its members that applied for loans during the first half of the year were turned down by the bank where they placed their application.
The report also showed that great deals of businesses are being asked to place large collateral to get loans even when the government backs the borrowing.
Director General of the IoD, Miles Templeman, stated that there is a new trend in which banks are demanding high fees, interest rates, and collateral before they will lend to anyone.
Templeman continued to say that many IoD members stated that if a loan is underwritten by the government by at least 75% still need to place personal securities up against the loan for half of the loan value.
July 16, 2010
Filed under: Uncategorized — Alan @ 8:20 pm
UK Health and Safety Consultants EDP encouraged SMEs to look over their health and safety policies. In doing so, they created the HSEasy which allows small business owners to stay complaint with all safety and health aspects within the workplace.
Included in the HSEasy package are safety and health solutions for SMEs available in three different levels that begin at £995.00 per year. The system allows for risk management, gives companies the tools for legal compliance with templates and forms, and comes in both digital and hard copy versions. Within each package is a step by step guide that helps SME owners through every situation that could arise concerning health and safety.
Among the guidance and services that are included in the HS Easy are Control of Substances Hazardous to Health Regulations, Display Screen Equipment, Reporting of Injuries, Electrical Safety, First Aid, Plant & Equipment Regulations, Fire Safety, Risk Assessment and Health and Safety Training, and Reporting of Injuries.
EDP Chief Executive Officer, David Skews, stated that the HS Easy concept s focused on providing health and safety services that are usually required by SMEs. He continued to say that access to a website that lets companies request information on the packages is available at hs-easy.co.uk so that companies can make sure that all legal procedures are followed at any company that has more than five employees.
Filed under: Business Finance — admin @ 5:11 pm
There are already a number of challenges you’re likely to face if you’re an entrepreneur looking to get a business idea off the ground. But at Lloyds TSB, we believe our free business banking options could be just what you need to help make this process easier.
By making sure you have a reliable business bank account in place from the outset, you’ll have provided a financial backbone for your project – and in addition to the basic features you’ll need to keep track of all of your transactions, you might also discover our range carries a host of unexpected benefits.
One of the great things about setting up a small business account with Lloyds TSB is that we make it as easy as possible, while at the same time remembering every individual is different. It may be you want to get the account started from the comfort of your home or office PC. If this is the case, the application can be done online. If, on the other hand, you would like to benefit from having one of our expert members of staff to hand you can do so in one of our many nationwide branches. This means you get to ask questions at any point. Of course, should you prefer to combine convenience with peace of mind, the option to apply over the phone is also there.
Whichever you choose, in all cases you’ll need to have certain pieces of information to hand. Initially, you’ll need to be able to confirm that you’re over the age of 18 and that you are using the account for business purposes. This will also require that you can confirm you’re a sole trader, partner, or director of the company. Having available the personal contact details of all those who will require access to the account will also be necessary, which includes any associated partners or directors.
If you are already a Lloyds TSB customer and are looking at business accounts, you’ll find getting started is even easier – as we will have much of your information on record. However, if you aren’t already with us, some proof of identity and evidence of your current address will usually be enough to get things moving for you.
If you are successful in setting up the account, you’ll have an initial 18-months period where your day-to-day banking will not be charged. This means no fees for paying in or taking out cash, paying in or issuing cheques, paying standing orders and direct debits as long as the account is in credit. All we ask is that you operate your account within agreed limits, for example not going overdrawn without prior agreement. We also have a number of special offers from Sage, one of the UK’s leading suppliers of business management software.
Lloyds TSB Bank plc Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Telephone: 020 7626 1500. Lloyds TSB Scotland plc Registered office: Henry Duncan House, 120 George Street, Edinburgh EH2 4LH. Registered in Scotland no. 95237. Telephone: 0131 225 4555. Authorised and regulated by the Financial Services Authority under numbers 119278 and 191240 respectively. . Licensed under the Consumer Credit Act 1974 under registration numbers 0004685 and 0198797 respectively. We subscribe to The Lending Code; copies of the Code can be obtained from www.lendingstandardsboard.org.uk.
July 15, 2010
Filed under: Employees — Alan @ 12:27 am
Chief executive of British Airways, Willie Walsh, faced heckling from the cabin crew at the annual meeting of the BA this morning as he stated that the airline faced down the threat of strikes that have occurred in a series.
Unite trade union members interrupted Walsh with cries of ‘empty aircraft’ and ‘give us numbers’ as the BA boss stated that the airline had made it successfully through the strike series of crew walkouts in March, May, and June.
Walsh also faced a ten minute question and answer session from a flight attendant that accused the airline of failing to discipline cabin crew that made fun of customers on Facebook and ‘gagging’ staff.
As Walsh continued to speak about the response of the airway to the strikes about two dozen flight attendants attempted to shout him down. While saying that the airline had flown one hundred percent of services from Gatwick and most of the flights out of Heathrow Walsh was again interrupted by shouts of ‘no’ and ‘give us numbers.’
Walsh stated that British Airways was not disputing with its staff, but that it was in dispute with the Unite trade union which also caused cabin crew members to start laughing.
Sid Thatcher, a retired BA staff member, stated that the cabin crew strikes were not forgivable during his address and was also drowned out by crew members in the audience.
Shareholder David Millar spent some time meeting with Unite members prior to the meeting and was worried that customers were caught in the middle of the debate.
July 12, 2010
Filed under: Business equipment — Alan @ 10:26 am
HP had a big dream, and their big dream is to make entrepreneurs big dreams a reality; they have designed a range of new products, solutions and services that are specifically designed with ‘built for business’ attributes very much at the forefront of their concept.
HP computing products have been produced from basic dreams, through to conceptual ideas, and then they technical know-how and innovation to bring entrepreneurs the kind of products that they require to achieve an environment that pushes their business forward.
By their very nature entrepreneurs push the boundaries of business, they are attempting to move into new and uncharted waters, they are trying to do something just a little bit different from the competition in order to find their place with new business vehicles and strategies aimed at making them the very best in their field.
And that is what HP set out to do with their‘built for business’ products, when they saw the need for entrepreneurs to have the best computing tools that were specifically set up to cater for their needs.
HP is seeking to help those who dream of the near impossible by providing the near impossible to help them achieve their goals.
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