Simpler Income Tax for small businesses

From April 2013, HMRC has introduced two simpler income tax schemes for small businesses – ‘Cash Basis’ and ‘Simplified Expenses’ – which are designed to make it easier for small businesses to do their income tax, and provide them with greater certainty that they have got their tax right. For the 2013-14 tax year onwards, this means that:

• Small, unincorporated businesses with income that does not exceed the VAT registration threshold (currently £79,000 per annum) can choose to be taxed on the money that actually flows into and out of their business (the Cash Basis), rather than using normal accounting rules. This means that these businesses will avoid the need to make year-end adjustments, required under current rules that were designed for more complex businesses.
• All unincorporated businesses can choose to use fixed rates (Simplified Expenses) to work out what they can claim for some common types of business expenses where there is a mix of business and private use. Until now, businesses have had to work out the actual amounts that related to business use. Three types of expenses are covered:

1. Motoring expenses – businesses will be able to claim a standard mileage allowance based on the number of business miles travelled during the year.
2. Expenses relating to business use of home – businesses can claim a flat rate based on hours spent conducting business activities from home.
3. Adjustments for private use of business premises – a flat rate can be used for the private use portion of costs where someone lives at their business premises (e.g. a bed and breakfast establishment).

Cash Basis and the Simplified Expenses are entirely optional, and businesses will be encouraged to choose any or all of the schemes which best suit their needs.

Help and guidance

Guidance is now available on the Government’s new single website, GOV.UK, on:

• Simpler Income Tax: Cash Basis
• Simpler Income Tax: Simplified Expenses
• Business records if you’re self-employed

HMRC have also produced a YouTube video on Cash Basis.

Keep an eye out for further HMRC messages as more guidance and online support is planned for both Cash Basis and Simplified Expenses.

The two have combined to establish the Local Lend a Hand scheme which makes properties available with a deposit of only 5 per cent. In addition, there is a range of fixed-rate mortgages at a lower rate of interest.

Subject to Lloyds TSB’s usual criteria, borrowers are able to select any existing property in Tameside up to a maximum loan of £130,000. First-time buyers must put down a minimum 5 per cent of the price and Tameside Council will provide a cash-backed indemnity of up to 20 per cent as additional security. The authority earns interest on this amount while the buyer owns the property.

Cllr Kieran Quinn, Tameside Council’s Executive Leader, said: “People might be able to manage monthly payments but very few can find a 10 per cent deposit.

“As an authority, we want our residents to have the best start in life. To make that possible we have invested £1 million in this scheme. By helping people to buy homes we will be providing a much-needed boost for the borough’s housing market.”

Stephen Noakes, mortgages director at Lloyds TSB, added: “With the launch of Local Lend a Hand in Tameside, we’re making the housing market more accessible. We know that many young people turn to the Bank of Mum and Dad to get their foot on the ladder, but that’s not a solution for everyone.”

For more information on the mortgages, contact the Ashton branch on 07741 291 706, or the Stalybridge branch on 07525 705 301.

Action for Business Tameside

Join us for he opportunity to network with like-minded business people not only from the local area but from throughout the whole of Greater ManchesterREGISTER FOR THIS EVENT

DETAILS

Join us for Tameside’s 3rd Action for Business Forum, in response to the attende feedback at our February meeting we’re going to be talking about how Companies can potentially reduce their costs of doing business.

Guest Speakers Liz Bohler, Project Manager at New Charter Housing Group Trust will talk about the cost saving measures that they have implemented and how they are looking at getting value for money. Steven Nathaniel of the Chamber’s Chamber Plus team will talk about the work they have done to help companies with their Business Rates and Water Rates. There will be the usual great opportunities to network, plus the chance for ten companies to give a 60-second pitch on the day Book online click here or download a booking form

Members can attend the event free of charge (one place) with additional places available at £10 plus VAT. Non-members are also welcome to attend for £15.00 plus VAT

At these events we hope to improve and grow the trading between companies, especially within the Tameside area, as well as obtaining your views on key issues affecting businesses in the area.

So BOOK NOW for the opportunity to get your point of view across and also network with like-minded business people, make some new contacts and widen your contact base. We will also be offering the chance for 10 of the companies attending to give a 60 second pitch on the day.

*Please note that non-attendance will result in a £10 admin fee

ITINERARY

7.30am Registration & breakfast/informal networking 8.00am Introduction & Welcome Presentations One minute rounds Networking 9.30am Close

WHO IS THIS SUITABLE FOR?

Businesses from throughout Greater Manchester

PRICE

Standard: £15.00 + VAT

Member: FREE

You’ve been successful running the business so far, but maybe now you need help hiring and managing people. Or you have already hired your first employees but found it a bumpy experience. You might already have dabbled with HR, or are new to it.

How can we help?

Acas understands that small businesses are short of time. We’ve organised all our expertise and knowledge into new manageable step-by-step guides, so you can build your know-how on the basics a bit at a time.

Getting to grips with the basics

There are six step-by-step guides for small businesses on how to hire, manage and get the best from staff.

The guides are practical, concise, easy to understand and designed so they can be picked up and put down as you need them.

You can work through them in sequence, or go straight to the one you need right now.

Six step-by-step guides

The advice will tell you what you must do to stay on the right side of the law, and how to get the best out of your employees.

• Recruiting an employee
• Settling in a new employee
• The new employee’s contract
• Managing a complaint at work
• Managing staff absence
• How to get the best out of your staff

Acas has also launched a new guide on Managing discipline.

These guides are free and based on Acas’ experience of working with thousands of employers across the country over many years.

More advice on the basics

Sometimes reading a guide isn’t enough. If you need help on a specific issue we have a free helpline to answer your specific questions.
You can call the Acas Helpline on 08457 474 747 from 8am to 8pm Monday to Friday and from 9am to 1pm on a Saturday.

Acas also has a full range of training courses on hiring, managing and getting the best from staff.

SKILLS SURVEY

We conducted a survey amongst local businesses before the Skills Summit. 59% of our business reported skills shortages when recruiting!
Read More>>

We presented the results at Tameside’s Skills Summit on March 28th and now want more Business links with Schools & Colleges to provide Work Experience & Apprentice Opportunities.
Read More>>

The Youth Contract provides a cash incentive (up to £2,275) and makes a difference to Youth Unemployment.

Read More>>

The Summit brought together people from the private, public, and voluntary sectors with local schools, colleges and learning providers, to look at the impact of low level skills on Tameside’s future prosperity.

Studies by the UK Commission for Employment and Skills (UKCES) have shown that investment in higher level skills by businesses is associated with increased employee productivity, commerciality and innovation.

Greater Manchester performs worse than many other major economic areas of the UK in terms of skills, and Tameside performs worse than many other parts of Greater Manchester. The impact can be seen in lower-paid jobs for our working residents (half of whom work outside the borough), and lower productivity for Tameside businesses.

We’re going to turn this around.

Jobs in Tameside

Local jobs in many of Tameside’s key sectors have been in long-term decline, partly due to recession and partly because companies have become more high-tech as they respond to increased competition.

Employers say in national surveys that young people entering the job market don’t have the ‘softer’ interpersonal skills to make them ready for work. They say that existing employees don’t have  the ICT, literacy, customer and teamwork skills that they need for the future.

Economic forecasts predict that jobs growth will come faster in service sectors that are less well represented in Tameside. So more of our residents will have to compete outside the borough for jobs, but with lower level skills or little work experience, they may find it hard to succeed.

Skills Pledge

At the Summit Tameside Council called on local organisations to pledge their support to improve local skills.

We need our young people to have a better understanding of employers’ needs and the opportunities available to them – before they start to find a job.

• Could your business provide work experience for your local school?

We need our businesses to be more productive, to give them a competitive edge. Investing in skills could improve your business performance, and there are financial incentives to help.

• Can you provide apprenticeships or work experience opportunities for local people?

We need people in Tameside to understand the changes in the job market, and the need for higher level skills.

• Could you promote the need for higher level skills to your employees?

If you would like to know more about the Skills Pledge, or would like to get involved, please click here

Specific information about the Work Placement Scheme is at www.dwp.gov.uk/docs/work-experience-guide.pdf 

The Youth Contract is designed to help the job prospects of young people.  It provides nearly half a million new employment opportunities over the next three years, building on the fantastic support many employers have already offered.

The key elements are:

• 160,000 wage incentives worth up to £2,275 each for employers who recruit an 18 to 24 year old through Jobcentre Plus or the Work Programme
• An extra 250,000 work experience (available across Great Britain) or sector-based work academy (available in England and Scotland) places
• A further 20,000 Apprenticeship Grants for Employers (England)
• Additional adviser support through Jobcentre Plus
• An opportunity to have a careers interview with the National Careers Service (in England)
• Around £120m to help the most disengaged 16/17 year old NEETs (not in education, employment or training) in England back in to education, training or a job with training.

What does it mean for employers?

The Youth Contract could benefit your business by:
• helping you to recruit a workforce with the right skills
• helping you build an enthusiastic, loyal workforce
• bringing in fresh ideas
• fulfilling corporate social responsibilities
• giving people in your organisation the chance to develop expertise in skill development, mentoring and coaching.

Wage Incentive

You could be entitled to the wage incentive if you:
• employ an 18 to 24 year old through Jobcentre Plus across England, Scotland and Wales or the Work Programme. The job should last for at least 26 weeks (in Great Britain) for 16 hours or more.
• pay them at least the National Minimum Wage.

There is a part-time rate (£1,137.50) for employing a young person between 16 and 29 hours and a full-time rate (£2,275) for 30 hours or more.
If you are interested in employing an 18 – 24 year old with support from a wage incentive, you should contact Jobcentre Plus or one of your local Work Programme Providers who will help you identify employment opportunities and issue claim forms.
For more information about the wage incentive scheme, including how to contact your local Work Programme Provider or Jobcentre Plus go to:
www.dwp.gov.uk/youth-contract/key-initiatives/wage-incentives/.

Source: Youth Contract 2013

See also www.dwp.gov.uk/youth-contract/ 

Love Your Local Market Fortnight in Tameside 15^th – 29^th May 2013

Following the Mary Portas review of the high street which highlighted the importance of markets, the Market Industry quickly responded with the idea of ‘Love Your Local Market’ fortnight.

Love your Local Market is a campaign designed to support local markets across the UK and provides the opportunity for new traders to showcase their products and test out the market. It is also a fantastic opportunity to showcase our Markets as a platform which can be used to generate awareness for community projects and public services. The campaign is now into its second year and has gone from strength to strength with over 400 markets registered to take part in this year’s event.

For more information about the background of the Love Your Local Market campaign visit: www.loveyourlocalmarket.org.uk

• The official Twitter site for the campaign is: @loveurlocalmkt & the hashtag is #loveyourlocalmarket

• The official Facebook site for the campaign is: www.facebook.com/loveyourlocalmarket

What’s happening in Tameside?

Local Schools, colleges and community groups have been encouraged to use our Markets as a platform to raise awareness for various projects they are working on and services they provide. Various internal services will be attending the event including the Sports Trust, Waste services and trading standards.

The NHS has put together a schedule and will be in attendance everyday throughout the event. An example of what they will be doing below.

• Give out Change4Life recipe books as a way of talking about healthy eating/healthy weight and promoting our weight management services.
• Do a Cook & Eat demo of a veggie stir fry or cook soup and give out free samples in polystyrene cups with recipe to make at home
• Do some sewing/craft mini sessions to promote our Sew, Mend & Create sessions
• Oral Health have volunteered to do the Guess the Smile celebrity quiz which can draw people in to talking about importance of oral health. Which will link in with our Smoking Advisors.
• Carry out lung life checks on smokers plus advice on quitting, obviously, but also to indicate if further checks for COPD are needed (chronic obstructive pulmonary disease).
• Health Checks – weight, diabetes etc.

Tameside Allotment Society

Tameside Allotment Society will be at Ashton Market giving out advice on composting, home grown produce and information on how to apply for your own allotment.

The Fire Service

Greater Manchester Fire Service will be talking about there “Home Fire Risk Assessment” service, which is a free service to any residents in the Greater Manchester area whereupon an officer will carry out an assessment and provide home owners with advice on how to make their property as safe as possible.

BBC Radio

The BBC will be holding its Retail Therapy session Saturday 18^th May. This is a fantastic opportunity to promote both our Markets and the Love Your Local Market campaign.

FAB Events

FAB Events have put together a schedule of entertainment and activities, including   utilising local colleges and schools.

The Market “Through Your Eyes” competition

This competition asks Market users to send in either a picture, a photograph, a painting or even a poem etc which they feel best reflects the Markets meaning/importance to them. Any items received would then be displayed within our Halls for our shoppers to enjoy throughout the period. The main focus will be on local schools to take part.

First Pitch

FREE market pitches are being offered during the campaign to support the start-up of new small businesses in Tameside.

The Council has teamed up with the National Market Traders Federation (NMTF) to encourage aspiring entrepreneurs through the First Pitch scheme.

Budding small businesses can apply for one of 20 pitches – which will be free throughout the event and then discounted for nine months – on Ashton and Hyde markets. They will also be given personalised support from the NMTF to help them establish long-term success.

Tameside Council Executive Leader Cllr Kieran Quinn said: “We are always very keen to support new enterprise and the First Pitch scheme is a great opportunity for budding new traders to get a helping hand.”

Love Food Hate Waste

Love Food Hate Waste aims to raise awareness of the need to reduce food waste and help us take action. It shows that by doing some easy practical everyday things in the home we can all waste less food, which will ultimately benefit our purses and the environment too. Cooking demonstrations will take place throughout the event with recipe cards and advice leaflets being handed out to the public.

We urge you to support your local market by attending or trading during this period.

Tameside Skills Survey

WHY?

Tameside Enterprise Board wanted to understand the skills needs of local businesses to make sure that our local skills and education providers are meeting those needs. We also wanted to address the number of people out of work in our borough, especially young people leaving school and college.

Tameside has traditionally been a low skill, low wage economy – on average Tameside residents earn less than people in other parts of Greater Manchester, and have lower level qualifications. On the other hand, we’ve usually been able to find work, even if it means travelling to a job outside the borough.

But with the recession, everything is changed. Competition for jobs is tough, and employers are able to pick people with the best skills and qualifications. As a result, many Tameside families are struggling to make ends meet.

Employers tell us that many of the young people they see just aren’t ready for work. Government data says that compared with the rest of the North West Tameside has fewer businesses that meet the VAT threshold, and our businesses are less productive in terms of Gross Value Added (GVA).

We wanted to know if employers think there a problem with local skills.

HOW?

The Enterprise Board sent a short online survey to the business leaders of Tameside to get a true snapshot of the skills our businesses need.  Are trainers providing the right skills your company needs – both now and for the future?  All Newsletter recipients were invited to participate.

WHAT YOU SAID

• 59% reported skill shortages when recruiting. Key issues were Customer Service, Technical Skills, Office Skills, Sales Skills & IT/Computer Skills.
• 31% currently employ apprentices (96% of whom would recommend apprenticeships to other businesses)
• However 75% of all companies would consider employing an apprentice and 75% would consider offering work experience.

The findings of this survey were presented at the Tameside Skills Summit on Thursday 28^th March, to which all respondents were invited.  To download the Business Feedback presentation please click Tameside Skills Survey 2013 – Business Feedback.

Many thanks to all who participated in the survey and/or attending the Skills Summit.  Your input has been invaluable and will help shape the future, aligning skills development with business needs.

Success for Hill Biscuits & Greater Manchester Investment Fund

HILL Biscuits of Ashton-under-Lyne is to create 45 jobs after being granted a loan by the Greater Manchester Local Enterprise Partnership.

The £102 million Greater Manchester Investment Fund, which was established to help companies expand, has lent £276,000 to the Smith Street business to fund new production and packing facilities at its Tudno Mill bakery.

Welcoming the news, Cllr Kieran Quinn, Tameside Council’s executive leader, commented: “I am really pleased that Hill Biscuits has secured this loan funding and that it is creating 45 new jobs for local people, 80 per cent of whom have been unemployed for more than a year.

“This demonstrates that with concerted effort we can work with the private sector to create jobs and prosperity even in these tough economic times.”

Steven Wetherby, managing director of Hill Biscuits, added: “We are delighted to receive this loan funding. We are using it as part of our growth strategy to extend our products and client base.”

Mike Blackburn, chair of the Greater Manchester Local Enterprise Partnership, said: “The GM Investment Strategy focuses on identifying and supporting projects that drive economic growth and jobs, providing leverage in the maximum private-sector investment into Greater Manchester.

“The investment in Hill Biscuits is really good news and we would like to encourage more companies to submit an application and take advantage of the opportunities that are available.”

Hill Biscuits was established in 1855 when John and Sarah Hill opened a shop at 46 Stockport Road, Ashton. Over the next few years they slowly expanded the baking side to complement their grocery and provisions business.

In 1889, manufacturing business began to develop on a much larger scale and in 1894 the foundation stone for Tudno Mill was laid by Sarah Hill. The business continued to flourish and became a limited company in 1906.

Later, Hill Biscuits was taken over by John Mackintosh. In 1980, when Rowntree Mackintosh made the decision to sell the company, Don Bennett led a management buy-out. The company remains in private ownership today.

The Greater Manchester Investment Fund has so far allocated almost £36 million to a range of projects. The loan to Hills is the first for the expansion of an existing business.

Lead chief executive for investment (Greater Manchester Combined Authority) Eamonn Boylan said: “This is a challenging time for the economy and the fund is pleased to have made a range of investment decisions which support business growth.”

Notes

Greater Manchester Investment Fund is the approach the Greater Manchester LEP is using to help deliver the next phase of economic growth in the region in line with the Greater Manchester Strategy. The ten local authorities in Greater Manchester are working to deliver a single investment strategy, which is underpinned by the availability of a range of financial support mechanisms. These include the Regional Growth Fund (RGF) Rounds 2 & 3 and Growing Places Fund. For More information on this please see our website,

http://www.agma.gov.uk/gmca/gm-investment-strategy/index.html