Surfing the internet might be good for employee productivity

While sometimes feel guilty about our surfing habits at work, but a new study suggests we might surf as a way to relax and recharge when focusing on the task becomes difficult.

The study, published in the Human Performance journal, studied how well participants's could focus on tasks which required up to 40 minutes of concentration.

Importantly, they were looking at what they did beside the actual task, whether it was getting distracted or nothing, they had to simply try to focus for all that time.


They found if participants were surfing online - like looking at Youtube videos or on social media like Facebook - they actually were able to concentrate for longer. 

Our ability to concentrate on any one task is actually pretty low: without a break, we can go for from about five to 15 minutes, after which we start to lose focus. At which point, we're liable get distracted by anything little thing that pops into our periphery, like an email or notification.

We then so often develop guilty narratives about how easily we get distracted, by the ubiquitous cat gif or latest Facebook status. We say things like, "I just can't help myself!" But it may be our brain reaching out for a much needed refresher.

This goes someway to defeating the received wisdom that long hours on the same task are the best ways to work (what our parents called, 'hard graft'). In fact it seems from this research that we're better off working on smaller tasks, for brief periods, and switching between them. Or as found in the study, giving ourselves 5 minute breaks by surfing a little the internet, going for a walk or reading articles. 

Of course, it's important these tasks are more about passive scanning than actively taking up information: in which case, we're just further taxing our aching brain.

New insights like these advise companies not to ban websites like Facebook - which some businesses have taken up to prevent distractions - which create Draconian environments to keep office workers on task.

In fact, the study reported that positive or even neutral environments, which they tested by something sad and happy pictures, are far better for concentration and willingness to work than negative. A crackdown on internet access can both prevent workers from taking important breaks and create an oppressive, anti-productive environment.

The moral of the story is: do what makes you feel good (within reason): tasks that may seem vacuous and time-wasting may prove important. Managers should learn to be less Draconian and recognise that a happy workforce is a productive one, a fact which often goes ignored.

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Firms tangled up in red tape: 73 per cent of visits by taxman fail to uncover errors

The taxman has been accused of wasting the time and resources of small companies after a sharp jump in the number facing detailed checks on their records by tax officials and a decrease in the number found to have significant errors.

The number of firms forced to undergo a controversial ‘business record check’ – where the taxman visits a company and examines accounts and employment records in close detail – has leapt by a third.

The system was introduced in April 2011, but was put on hold in February of the following year after numerous complaints from accountants and small businesses.

The checks were reintroduced in November 2012, but Revenue & Customs had to abandon ambitious targets to inspect tens of thousands of companies because of a lack of manpower. However, figures show the rate of inspections is still growing.

Just over 5,500 companies underwent the checks in the year to April 2014 – up from 3,431 in the ten months between April 2011 and February 2012.

But almost three quarters of the companies investigated were found to have no significant errors or anomalies in their paperwork.

The figures were compiled by PFP, which insures companies against the costs involved in a tax inspection, and are based on details provided by the Revenue.

The 73 per cent found to have no significant errors was up from 64 per cent in the previous year leading PFP to suggest that the increasing number of visits came with a ‘relatively low hit rate’.

Kevin Igoe, managing director at PFP, said: ‘These business checks are a worry for small businesses because they don’t have time to sit in on the Revenue as it undertakes the checks. It is time that managers will think is better spent elsewhere.’

Companies found to have faults in their record-keeping can be fined £3,000 on top of any tax payments due. PFP estimates that the Revenue will raise £49 million from fines and unpaid tax as a result of business record checks.

A spokesman for HMRC said the checking system had been subject to revisions aimed at filtering out low-risk companies and preventing them from being exposed to the process.

He added: ‘From November 2013, the BRC programme was scaled back to better target those at risk of having inadequate records. It will allow us to concentrate on those who need our help and reduce the burden on those customers who are keeping adequate records.’

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Young people should think about starting their own business instead of university, says employment minister

School leavers should think about starting their own business instead of just planning to go to university, the employment minister has said.

Esther McVey said that for many teenagers, being their own boss would be better than embarking on a career with a large firm.

She said she wanted to encourage people who have a 'seed' of an idea to pursue it, instead of feeling pressured to follow friends or family into taking a degree.

Miss McVey, who was promoted last week in the Cabinet reshuffle, said the choices made by people to become apprentices or self-employed are 'equal and good and worthwhile' when compared to those who choose to go to university.

Ms McVey told the Daily Telegraph that the Conservative party should be supporting people no matter which route they take to employment.

'That is what we should be doing, liberating everyone's potential, whether it's a self-made individual, whether it's someone taking the university route, whether it's the apprenticeship route.

'They are all equal and good and worthwhile. To think that we are all the same and going to follow the same journey, that is wrong.'

The minister, whose father was self-employed, said a significant number of those who have claimed a New Enterprise Allowance supporting people on benefits who want to start a new business are aged between 18 and 24.

In an interview with MailOnline last week, she urged young people to get their first job 'as soon as possible'. 
She argues that whether working in a florist, funeral directors or grocers, a first job can provide money, but also friends, skills and insight into jobs they never knew existed.

Some people might try out a desk job or work in a bank on a Saturday but decide: ‘Actually I don’t like that at all I’m outdoors and people have ended up being gardeners or chartered surveyors.

‘Or sometimes you say what drives my desire to learn is actually a real hands-on practical skill, looking at engineering, manufacturing.

‘It’s that creation of something has then forced their desire to then do more in maths, physics or chemistry which they would not otherwise have had.

‘They said they sat in the school classroom and it just never came to life learning the periodic table but do you know now they are on a factory floor and seeing what they can create.’

Figures last week showed more than 30 million people are in a job, an increase of almost one million over the past year, the best figures since records began in 1971, while unemployment has fallen by 121,000 to 2.12 million, the lowest since the end of 2009.

Other figures from the Office for National Statistics showed that the number of people claiming Jobseeker's Allowance fell last month, the 20th consecutive monthly fall and the lowest total since 2008.

More than 4.5 million people were self-employed, the highest since records began in 1992, after an increase of 404,000 over the past year.

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Britain’s biggest business contest seeks entrepreneurs with a social mission

One of the UK’s longest running business competitions is looking to award entrepreneurs out to change the world with a special package of business support, fund raising and mentoring.

The Pitch, presented by BusinessZone.co.uk and UK Business Forums in association with AVG, has helped thousands of small business owners since it was launched in 2008.

Serial social entrepreneur Karen Darby, who recently founded crowdfunding platform CrowdMission.com, has supported the competition since 2009 and in 2014, she is contributing a special package of support to up to five finalists running a business with a social mission at its core. 

The prize includes crowdfunding, sales, marketing and PR support, business mentoring with Karen, legal advice on IP and patents and a free, professionally filmed pitch video. 

Darby, who has 30 years business experience, was inspired to offer the prize after spending the last year mentoring Arthur Kay, co-founder of Bio Bean and overall winner of The Pitch 2013. 

Kay’s company turns old coffee grounds into bio diesel and has achieved great success since winning The Pitch last October.

Entrepreneurs interested in winning the prize need to enter The Pitch 2014 by 13 July at www.thepitchuk.com. 

Arthur Kay comments: “Karen has a phenomenal mentoring style. She has mentored me and my business partner on both a personal level in terms of what’s in it for us, and in terms of the business itself. 

“Her knowledge of how to set up a business, and how to sell into institutions and form commercial partnerships has been completely invaluable for us.” 

Dan Martin, editor of BusinessZone.co.uk and founder of The Pitch, adds: “Karen Darby has offered amazing support of The Pitch since 2009 so I'm absolutely delighted that she is offering this special prize to companies with a social focus.

“Many of our entrants over the years have run businesses that aren't just about profit, but also about making the world a better place. It’s great that we will be rewarding them this year. I urge anyone running a company that fulfils the criteria to get involved.”

To qualify for the prize, entrepreneurs must be running a company that has been trading for less than three years, is limited by shares (or prepared to incorporate as one) and looking to raise between £10,000 and £500,000 equity finance.

The Pitch 2014 is also supported by ICAEW, Constant Contact, .uk and Nokia. 

Entrepreneurs who don’t fit the social mission criteria can still apply for The Pitch 2014 and compete to win the general prize package worth thousands of pounds.

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Spend July shopping with the small independents, urges campaign

Consumers are being urged to support their local economy by spending money with small businesses to mark the fourth annual Independent Retailer Month.

Independent Retailer Month is a campaign that runs throughout July and aims to raise awareness of thousands of local businesses and increase footfall into town and village centres, thereby helping retailers to stay open for business and to improve collaboration between retailers.

Research carried out by the Centre for Local Economic Strategies (CLES) for the Federation of Small Businesses (FSB) found that for every £1 spent locally, 50-70p recirculates back into the local economy. In contrast, only 5p of every £1 spent out of town finds its way back to the local community.

“Most people don’t realise how valuable their custom is to their local, independent businesses,” said Clare Rayner, the Retail Champion and founder of Independent Retailer Month. “We need these customers to understand how their hard-earned cash can boost their local economy, depending on where they choose to spend it.

“Every pound spent with independent retailers in your local town or village is worth 10 times more to your community than if you spent it elsewhere. That’s what Independent Retailer Month is all about: we want consumers to re-engage with their local businesses and discover the benefits of shopping closer to home.”

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Entertainment expenses for limited companies

With the party season upon us once again, we look at the tax treatment of entertaining clients and employees – including the rules governing Christmas party expenses.

In most cases, the cost of entertaining is not tax-deductible, and VAT is not recoverable on expenditure.

However, the rules are complex (as ever), and VAT can be reclaimed in certain circumstances.

Staff Parties

Your limited company can pay for an annual event, and there are no personal tax implications if the total does not exceed £150 per head.  This doesn't need to be one event either, just ‘annual’.  So you could have a Christmas Party and a Summer BBQ, and both would be allowable for Corporation Tax purposes provided the total of both doesn't exceed the £150 per head limit (if it goes £1 over then the whole amount is a benefit in kind, so be careful!).  The costs can include food, drink, tickets to events, accommodation and a taxi fare home.

If you’re registered under the flat rate scheme then obviously you can’t reclaim any VAT, but those who are standard rated can reclaim to the extent the costs are applicable to staff.  If you have 2 staff and 2 guests, you could therefore reclaim 50% of the VAT.

As with everything when it comes to HMRC, a common sense approach is advised.  If you run a limited company and are the sole employee/director, having a Christmas party where you invite 10 guests (who happen to be your family members or friends) may be seen as uncommercial, and therefore has the potential to be disallowed as it’s not ‘for business purposes’.

Client Entertainment

Your company can pay for entertaining of clients or potential clients, but this will not be an allowable deduction for Corporation Tax purposes.  It’s still worth paying from the company though, as it saves you the income tax you would otherwise pay on withdrawing the funds to pay the costs personally.

It makes no difference if the person being entertained is an existing customer, a potential customer, or any other person who is not an employee.  The VAT element of entertaining can only be claimed when it relates to staff, as detailed above.  Which leads to a further word of caution – if the staff member is acting as a host, and the purpose of the cost was to entertain the client, then no VAT can be reclaimed at all.

Personal Entertainment

Your company can pay the costs associated with your own entertainment, but it will be a benefit in kind, thereby leaving you no better off tax-wise than if you’d paid the cost yourself!

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