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UK BUSINESS NEWS

Small business sector gives thumbs up to the Budget

The cut in small business corporation tax to 20% brought, according to John Whiting of the Chartered Institute of Taxation, “certainty” and made the UK a “more attractive place to do business”.

The rise in capital gains tax to 28% was less than feared and the jump in the entrepreneurs’ relief threshold to £5 million was higher than expected.

The £200 million increase in the Enterprise Finance Guarantee scheme to support lending was cheered, as was the exemption from up to £5,000 of National Insurance contributions for new businesses outside London, although there were calls to make it UK wide.

Small business owners said they could “wear” the rise of VAT to 20% with the January introduction giving them time to adjust and benefit from New Year sales.

The Forum of Private Business said, “Small business owners will be pleasantly surprised.

“Not only did the Chancellor make all the right noises about supporting enterprise and smaller businesses, he backed it up with crucial tax changes.”

The tax headlines

• CGT lifted from 18 to 28% for those paying the higher rate of tax
• 10% CGT rate for entrepreneurs extended to first £5 million of qualifying gains
• Corporation tax down from 28% over 4 years, 1% each year, to lowest rate in G20
• Small companies’ tax rate to be cut to 20% from 21%
• Business rate bill cancellations
• NIC exemption for up to 10 employees, £5k maximum per employee outside London and the South-East
• A rise in VAT from 17.5% to 20%

Online VAT return reminder

HM Revenue & Customs (HMRC) is issuing a reminder to businesses affected by new online filing requirements for VAT returns.

Under the new rules, existing VAT-registered businesses with annual turnovers of £100,000 or more (excluding VAT), and any businesses which registered for VAT from 1st April 2010, now have to file their VAT returns online and pay their VAT electronically.

The vast majority of traders file their VAT returns quarterly, and the first quarterly returns affected by the changes are those covering April to June 2010, which, for most online filing customers, must be filed online by 7th August.

Stephen Banyard, the director of HMRC’s Business Customer Unit, said: “The vast majority of customers affected by the new arrangements have already enrolled for HMRC’s VAT Online service, and many have also filed their first returns online.

“However, if you’re a VAT-registered trader who’s affected by these changes, and you haven’t yet signed up, you need to take action now.”

Customers wishing to sign up for the VAT Online service should go to the HMRC website (http://www.online.hmrc.gov.uk/registration.htm) and follow the instructions on the screen.

There is more information about the registration process on the HMRC website, including an online demonstrator and two downloadable Beginner’s Guides, at the following address: www.hmrc.gov.uk/vat/vat-online/index.htm.

UK to cut number of skilled workers from outside EU

The number of skilled workers allowed into the UK from outside the EU is to be cut, Home Secretary Theresa May confirmed.

Numbers will go down to 24,100 between now and April 2011, 5% less than last year. Ministers say the temporary measure will cut the flow of immigrants while they hold a consultation on the right level for a permanent cap.

But Shadow Home Secretary Alan Johnson said it was a pointless gimmick.

The cap will only apply to highly skilled migrants and skilled workers in certain categories of job. It does not apply to workers from EU countries, who are free to take jobs in the UK and make up a third of all foreign-born workers in the country.

But the coalition government argues it will help them achieve their objective of cutting net annual migration to the levels seen in the mid-1990s, a key Conservative election pledge which has survived the coalition agreement with the Liberal Democrats, who had previously opposed a cap as unworkable.

DATES FOR YOUR DIARY

The Entrepreneurs Forum: Top-ten tips for doing business on the Web

Date: 11th August 2010
Location: The Summit Centre, Pavilion Road, Kirkby in Ashfield, Nottingham NG17 7LL
Organiser: The Entrepreneurs Forum
Event type: Information sessions, networking
Cost: Free

IT and the Internet offer powerful tools to improve your productivity and help you reach your customers and develop your online marketplace. This seminar will address some burning questions and provide the necessary knowledge, confidence and useful tips that you will require before making that all-important decision of doing business on the Web.

What’s covered

• Will my business benefit from being online?
• Why would I want a website – will it add to my bottom line?
• What sort of website do I need?
• How do I attract more visitors?
• Will a bigger audience create me more business?
• How do I make the best of my budget?
• Will I save money in the longer term?
• What are the common pitfalls to avoid?

Book your place by calling 01623 457008 or 01623 457171 for a booking form or contact e.oconnor@ashfield-dc.gov.uk or m.harvey@ashfield-dc.gov.uk.

The Business Growth Show: Oxford

Date: 15th September 2010
Location: Start Electron, Fermi Avenue, Harwell Science and Innovation Campus, Harwell, Oxfordshire OX11 0QR
Organiser: Corkscrew Events
Event type: Exhibitions, networking, seminars
Cost: Free

This networking event will provide delegates with the tools that they need to grow their business. This will include face-to-face networking, seminars, advice, exhibitors and speed networking.

For further information visit www.thebusinessgrowthshow.co.uk or email events@thebusinessgrowthshow.co.uk.