Current Government Consultations

Among the government’s latest project consultations are two that will have a direct effect on small businesses which are soon due to close. One is about the regulations surrounding business names, which will affect all business organisations, large and small. The other is relevant to microbusinesses with up to ten employees, and is about the proposals to simplify their reporting requirements. Both come up in the context of The Red Tape Challenge which is now looking at the rules that affect business and commerce.

Business Names

Under current regulations, businesses must comply with certain rules about business names. The government has learnt that these are causing problems for established companies that want to change their names, as well as start-ups. The first question on the consultation asks if you think that all regulations should be repealed, or should be reduced and simplified. If they were repealed, names would be registered more quickly. Action would still be taken if a reasonable complaint was made about a registered name.

In case it is decided to retain some regulation, the second question is whether the list of sensitive words should be reduced and, if so, which ones should go. This list is made up of words which have to be considered by a relevant organisation, such as the Financial Services Authority, The Charities Commission, The Department of Health, Ministry of Justice, before they can be incorporated in a business name.

The third and final question asks the same for the list of ‘same as’ words. These are words which can appear in a number of names and cannot be complained about.

This consultation can be found at:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/94535/bis-13-648-company-business-names-consultation-red-tape-challenge.pdf

Reporting requirements for Microbusinesses

To be classed as a microbusiness, you must match two out of three set criteria: your balance sheet total is not more than £289,415; your net turnover does not exceed £578,830; and you employ up to 10 people. You may want to discuss with your outsourced bookkeepers whether you fall within the category.

The questions in this consultation are, firstly, whether you think the government should implement all parts of the EU’s Micro-Exemption, and if so, which ones and why. Secondly, what costs or savings would apply. A further nine questions go into various technical details of the proposals.

This consultation can be found at:

https://www.gov.uk/government/consultations/simpler-financial-reporting-for-micro-entities-the-uks-proposal-to-implement-the-micros-directive

If you are a micro entity, these possible changes could have a significant effect on your costs and workloads, so it’s worth sitting down with your bookkeepers and talking through the points whether or not you intend to submit responses. But if you would like to respond to either consultation, you have to do it before 22 March, 2013.

Are you Ready for RTI?

Last year we published information about the forthcoming changes to PAYE reporting by employers. The time for Real Time Information (RTI) is now upon us and hopefully, you are already prepared. Starting in April, employers should be reporting on their PAYE records for every employee every time they are paid. Some may be favoured with a window of a few months after that before compliance is expected from everyone in October.

The Seven Day Deadline

Under RTI, electronic returns must be made within seven days. Unless you were in one of the pilots for the scheme that have been doing this since November, this will be a big change from the former annual reports required.

According to the Forum of Private Businesses, many small businesses are still unaware of these new rules. However, HMRC is writing to all employers to explain what they will have to do. They have also published information about it on their website, and have made an explanatory video that is available on You Tube.

How RTI Will Help Business and the Economy

RTI should make records at HMRC more accurate, so that employers can be given the right tax codes to use and people don’t pay too little or too much tax. HMRC also claims that it will save employers some of the money currently spent on administration at the year end. Whether it does or not, all employers must comply with the new arrangements by October 2013.

Lin Homer has been Chief Executive of HMRC since January 2012. She said, "RTI delivers on all fronts. Business costs will be cut by £300 million a year, employees will be taxed more accurately and fraud and error in the tax credit system will be reduced by hundreds of millions of pounds every year."

Get Help if you Need it

It is therefore even more important than ever that your own payroll information is accurate and up to date at all times. If your outsourced bookkeepers are dealing with it, there should be no problem. There are still concerns that some small businesses will find it difficult to meet the deadlines after each payroll is run. But Lin Homer believes “If your data is in good shape then it’s going to be easy for you to access RTI. A small business that is not moving into the digital world is not doing itself any favours.”

So if you have any concerns about your ability to comply with RTI, you need to act now. Why not get together with your outsourced bookkeepers to discuss how they can help.

Pitchforit Brings Dragons’ Den Opportunities to All

You may be among the millions who have watched the TV programme Dragons’ Den and cringed for the would-be entrepreneurs who are ill prepared to beard the dragons in their den. You might also have admired their courage in putting themselves into such a stressful situation. And you may have envied those who were successful and walked away with thousands of pounds of investment in their businesses by the dragons, as well as gaining the benefit of their experience and expertise.

The TV series, of course, can only work for a few businesses and with a few investors, while most small business entrepreneurs are having a really hard time getting any funding for start-ups or growth. Peter Hart and his wife did succeed on Dragons’ Den, winning £100,000 in investment from Duncan Bannatyne. They know just how nerve wracking that was, and they decided to set up a facility for anyone to pitch to potential investors without having to go through that stressful experience.

Pitching for Everyone

Their brainchild is the website www.pitchforit.co.uk, where it is free to upload a video pitch to investors. It has a panel of high profile investors who see it as both a way to find worthwhile investments, and to help and advise would-be entrepreneurs. Currently you can go onto the site, watch the pitch videos and read the comments and advice they have given. They include Mark Pearson, of MyVoucherCodes, Sara Murray of Confused.com, Brad Burton of 4Networking and original Dragon Rachel Elnaugh.

The way the website owners make money is that, If you’d like to upload a pitch but don’t feel confident about making a video, they will organise a professional one for you, at a price that won’t break the bank. They’ll even create an animation for it, if you’d rather not be just a talking head.

Proof That it Works

Even before it was successfully launched, pitchforit won £10,000 in digital media and mentoring for Laura Thomas to develop her website business Happy Sugar Habits. The investment came from someone who was not on the panel of business gurus, so it seems that other investors can be reached as well.

If both you and your outsourcedbookkeepers agree that your business development is being held back by lack of funds, you might want to give this a try. If you are worried that someone else might see your video and copy your idea, the site owners have this covered. They intend to add a facility to make pitches private and viewable only by investors, so you just have to wait for that to happen.