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Steve J Bicknell Tel 01202 025252
Helpful Comments on Tax and Finance – Bicknell Business Advisers Limited www.bicknells.net
Download our 18 page report on the yesterdays Budget
Click Here to get a copy
We are rapidly approaching BREXIT in March 2019 and its highly likely to cause currency fluctuations, that alone has to be a good reason to source products and services locally.
There are of course many other reasons such as:
The Chartered Institute of Procurement and Supply reported
EU businesses say goodbye to UK suppliers as Brexit bites into key relationships
06 November 2017
Nearly two-thirds (63%) of EU businesses expect to move their supply chain out of the UK
Two-fifths (40%) of UK businesses are looking to replace their EU suppliers
25% of large UK businesses* have spent over £100,000 preparing their supply chains for Brexit
Nearly two-thirds (63%) of EU businesses who work with UK suppliers expect to move some of their supply chain out of the UK as a result of Brexit according to a survey from the Chartered Institute of Procurement & Supply (CIPS). This is a dramatic shift from May, when just 44% of EU businesses were expecting to move out of the UK.
So unless we start to support Local and UK businesses there could be significant consequence for the UK economy.
The ‘Gig’ economy describes the growing popularity of using workers on short term contracts on an on demand basis.
There of course several issues to consider:
These issues are being considered carefully by the Office for Tax Simplification (OTS).
What we do know is that Self Employment has been growing in popularity as demonstrated by ONS statistics.
The level of self-employment in the UK increased from 3.8 million in 2008 to 4.6 million in 2015. While this strong performance is among the defining characteristics of the UK’s economic recovery, the recent rise in self-employment is the extension of a trend started in the early 2000s.
Full-time and part-time workers each account for around half of the rise in the absolute number of self-employed workers, but the growth rate of the part-time mode has been much stronger. Part time self-employment grew by 88% between 2001 and 2015, compared to 25% for the full-time mode. As a result, part-time self-employment accounts for 1.2 percentage points of the 1.6 percentage point increase in the self-employment share of all employment between 2008 and 2015.
What is also interesting is the split between male and female
Statistically Self Employed earnings are lower than those who are employed, however, Self Employed earnings are masked by fluctuating work patterns and the use of tax planning for example cars and expenses.
What are your views on the ‘Gig’ economy? is it good for Britain?
It looks increasing likely that the EU negotiations with US known as TTIP (Transatlantic Trade and Investment Partnership) have failed after 14 rounds of negotiations.
Most of the press picked this up at the weekend and this is key comment from the Independent
The free trade negotiations between the European Union and the United States have failed, but “nobody is really admitting it”, Germany’s Vice-Chancellor Sigmar Gabriel has said.
It would now make sense for the US to negotiate Free Trade with the UK, if the UK also had Free Trade with the Commonwealth we could create a trading block far larger than the EU.
The Express reported
Mr Hannan, Conservative MEP, said: “I’ll offer a pound to a euro that there will be a US-UK free trade agreement in place long before there is a US-EU agreement – if, indeed, that happens at all.
“What’s more, it’ll be a properly liberal agreement, based on free competition and maximum advantage to the consumer rather than on corporatism and the protection of vested interests.
“Leaving the EU won’t just allow Britain to pursue a more deregulated, more mercantile, more global future; it might revitalise free trade world wide.”
Before the vote we had lots of warnings:
I have to say it felt like everyday there would be a new and bigger more extreme warning of impending doom.
I think the Remain Camp over did the disaster stories and that lost them credibility.
The Leave Campaigners put forward a much better argument as demonstrated in this movie
So what happens next
So far ….
David Cameron has resigned and his successor is widely tipped to be Boris Johnson.
The Labour Leader Jeremy Corbyn has had a number of key members of the shadow cabinet resign and there could be a leadership challenge
The Scottish parliament want to veto the Britain’s Exit which could lead to Scotland having another vote on independence
Its expected that it will take up to 2 years to exit the EU and the UK vote could lead other countries to consider referendums
Its going to be a bumpy ride so prepare yourself now!
According to Government figures, there has been a net increase of 146,000 businesses in the past year, taking into account all start-ups, closures, takeovers and mergers. It means more businesses have started than closed.
The Business Population Estimates also show the number of businesses that employ people has grown for the second year running, with 35,000 more at the start of 2015 than in 2014.
Small businesses continue to make up 99.3% of all businesses and generate over £1 trillion turnover for the UK’s economy.
The UK’s most successful small business campaign, Small Business Saturday, has been launched and this year it will be on Saturday 5th December.
In 2014, approximately 16.5 million adults supported at least one small business on Small Business Saturday, with almost two-thirds (64 per cent) of the British people aware of the campaign.
The organisers say…
We want all kinds of small businesses to get involved, so know that whether you are a family business, local shop, online business, wholesaler, business service or small manufacturer, Small Business Saturday is supporting you!
Small Business Saturday UK is a grassroots, non-commercial campaign, which highlights small business success and encourages consumers to ‘shop local’ and support small businesses in their communities. The day itself takes place on the first shopping Saturday in December each year, but the campaign aims to have a lasting impact on small businesses. In 2015 Small Business Saturday will take place on Saturday, December 5th.
Sign up and get involved https://smallbusinesssaturdayuk.com/
Last year in was reported by BBC News….
A record amount of online shopping was done in December 2013, says the British Retail Consortium (BRC).
Close to one in five non-food items was bought online last month.
There was also a 19.2% growth in internet purchases from a year earlier, the fastest increase in four years……..
According to Law Donut….
Online sales in the run up to Christmas this year are expected to grow by 19.5% over 2013, with UK shoppers expected to spend £17.4 billion online.
Total Christmas sales are predicted to reach £74.3bn according to research conducted by the Centre of Retail Research for RetailMeNot, with the average UK household spending £775 on all of their Christmas shopping.
Are you trading online? do you have a website? do you have an App?
Back in June 2013 the EU passed a directive 2013/34/EU which changed the thresholds for small companies.
|Average no. of employees||50||50|
As before its a 2 out of 3 test. The Audit thresholds are unchanged.
The UK was required to transpose this into UK Law no later than 20th July 2015.
The Dept for Business Innovation and Skills (BIS) have just concluded their consultation (24th October 2014) and the plan is currently to implement the change for financial years starting on or after 1st January 2016.
As pointed out by SWAT
This could mean that a company with a turnover between £6.5m and £10.2m will be required to prepare its accounts for year ended 31 December as follows:
2014 as a medium sized company under present UK GAAP;
2015 as a medium sized company under FRS 102;
2016 as a small company under the applicable accounting regime for small companies.
This might depend on whether the company could early adopt the new regulations for its 2015 accounts. The possibility of early adoption is one of the questions asked by BIS.
Surely BIS can see that not allowing early adoption will place an unnecessary reporting burden on Small Companies?
Its the UK Trade and Investment’s 6th annual Export Week (10 to 14 November).
Previous Export Weeks have seen over 17,000 companies in the UK attend exporting focussed events. This week we will again have over 70 events across the UK; there will be at least one event per day in every part of the UK.
According to a recent survey by Barclays Corporate Banking, in new emerging markets 64% of consumers are more likely to buy a product which displays the Union Jack.
A survey by Exact back in June 2014 showed…
The survey of 453 SME leaders found that 54% of SMEs now sell products or services abroad. It found that exporting is the biggest growth area for 19% of the UK’s SMEs, and 68% of those who currently export saw export sales increase in 2013 over the previous year. For 18%, exports now account for over half their sales.
HMRC have a helpsheet TH/FS15 which has some helpful advice on importing and exporting.
So will your business be exporting this week?