Starting the Working Day in Bed

Freelancers who work from home have long luxuriated in the fact that they can start work when they want, and can stay in their dressing gowns while getting on with the job and even while talking to clients on the phone. Video calls may have put paid to the latter, but by making good use of new technology, they don’t even have to get out of bed before checking their emails, posting social media updates, performing research, working on drafts of proposals and reports and so on. Similarly, those entrepreneurs, directors, managers and employees who roll into the work place after 10am, could easily have been hard at it from before dawn.

Recent Statistics

Digital market research company, Toluna, recently revealed that around 70% of UK participants in a survey check their smart phones as soon as they wake up in the morning. Are you one of them? If so, you are probably starting your working day in bed.

Price comparison website, Give as you Live – which raises money for charity from transactions through the site – has also been doing research. It found that nearly half of its UK shoppers were in bed when they made purchases.

What This Means for Businesses

Outsourced bookkeepers and their clients recognise that these trends have implications for business. The shop is never closed when it operates on the web. Whether they are using mobiles, tablets or laptops, users can access the internet in their homes, gardens and bedrooms, and out and about wherever WiFi is available.

Paul Twite is the Managing Director of Toluna in the UK. He advised that, “As consumers use multiple devices to access the internet, it is becoming more important to understand how habits are changing.”

“With UK consumers active on the internet at all times of the day, and in all locations, it is important for marketers to be able to provide engaging content outside of traditional time frames. It is also vital to react quickly to trending themes and stories in order to meet the high expectations of an audience that is always switched on.”

If your business sells goods or services on the internet, you may need help to ensure you are making the most of its opportunities. Your bookkeepers know your finances and where your risks lie. If you make sure they know what you are trying to achieve, they will be happy to discuss it with you and may be able to introduce you to people who can help you get there within your budget constraints.

Minimum Wage Rise October 2014

If you have employees, you need to be aware that the next increase in the minimum wage comes into force on October 1^st. For anyone over 21, the hourly rate rises by 19p to £6.50. For 18 to 20 year old employees the rise is 10p to reach £5.13 an hour. For those in work at the age of 16 or 17, it is 7p, making their minimum wage per hour £3.79, although youngsters only become eligible for this on the last Friday in June of the year in which they become 16.

Now that some form of education is compulsory until the age of 18, 16 and 17 year olds can only be employed if they are also undergoing some part time education or training as well. You might have one or more young people on apprenticeships with you, in which case their minimum hourly wage rises by 5p to £2.73. As your outsourced bookkeepers will know, after apprentices’ first year, the rate remains at this level for those under 19, while those over 19 must receive the same rate as other employees in their age group.

Non-compliance can be Expensive

Failure to comply with these regulations can evoke some hefty penalties, and these become even more severe on October 1^st. Where currently the maximum fine that could be imposed is £5,000 per employee, it is set to go up to £20,000, which will add up to a significant total if several workers are involved.

HMRC have powers to investigate employers at any time if they have received a complaint or have reasons to suspect non-compliance. They can request pay records for up to the previous three years.

Make Sure you Comply

You are advised to get your bookkeepers to check the payroll and ensure that all your employee records are up to date, especially those for young people whose rates could have changed on their birthdays. Rules for what can be excluded when calculating the minimum wage can be complicated and many employers have fallen foul of the regulations because they were not known or understood. Outsourced bookkeepers keep up to date on all these aspects, so make sure you discuss the changes with them before the end of the month.

If you discover that anyone has been underpaid, pay the arrears straight away to demonstrate that it was just a mistake and you have acted in good faith. That way, you may be able to avoid the heavy financial penalties that can be imposed where employers deliberately flout the rules.

Local Authorities and Small Businesses

The Centre for Entrepreneurs, and the Spend Network, have been analysing the breakdown of spending for the 158 local authorities across the country. Their survey covered over 44 million transactions between April 2011 and March 2014. It found that, at a time when central government claims to be trying to do more business with small firms, most local authorities don’t seem to be following that trend.

The Survey Analysis

We have looked at Spend Small, the report on the work. It states that, in total, during the three years the local authorities spent £89 billion with companies. Only £11.1 billion of this went to small firms, while £9.9 billion went to just 20 of their largest suppliers. While none of the 78,128 small businesses concerned received more than £50,000 in a 12 month period, the average receipts per year of the top 20 suppliers to local government was £165 million.

Some councils have even lowered the amount they have been spending with small local firms, while a few have been increasing it. If you are based in the London boroughs of Wandsworth, Greenwich, Croydon or Newham, you might have more chance of persuading them to do business with you, as these are among those that have increased their spending with local small businesses the most.

Why Local Authorities Spend as They do

The analysis considered various environmental factors, such as financial size, location and political control, and it made like with like comparisons. It found no apparent links between these factors and whether the institutions used small local firms. Their work indicated that what makes the difference is a commitment to spending more with them. To quote the report, “Where an authority’s leadership commits to boosting small firm spend, they are able to do so – indicating that the key factor is having a Spend Small Policy and implementing it.”

How Change Might be Achieved

If you and other local entrepreneurs believe you have much to offer your local authority, we believe this is what you need to be lobbying for. That supporting small local businesses makes real economic sense could be good ammunition for this. Research has shown that, as they develop, small businesses are a key source of job creation and economic growth in local areas.

If you don’t have a local pressure group to run a campaign, you could use your networking contacts to set one up. Your bookkeepers can probably help and might be able to introduce you to other like-minded small companies.