Employment laws could be damaging UK SMEs and jobs

New market research by consultants Citrus HR suggests UK employment laws could be damaging small business and preventing them from taking on more staff.

Three-quarters of respondents said keeping abreast of legislation was a "significant drain on their time". When asked whether current employment law affected their decision to hire, 39% of small business respondents said they would take on more people if employment law was less complex. Only a quarter thought employment law was acceptable as is.

The research also suggests a marked lack of understanding of UK employment law among respondents. Less than a third knew the current National Minimum Wage (NMW) rates – despite the risk of a fine of up to £20,000 for employers who do not pay at least NMW rates.

Respondents said calculating holiday for part-time staff and those working "casual hours contracts" was particularly difficult. Changes to flexible working rules was a common answer when respondents were asked for examples of a recent legislative change that had made small business employment law compliance more difficult.

Almost a fifth (18%) of respondents didn't know which countries are in the EU, which, according to Citrus, means there is a risk of sanction for not carrying out checks to find out if workers are allowed to work in the UK legally.

Among the employment laws respondents most wanted to change included not being able to pay employees for unused holiday unless they leave (37%), followed by removing the compulsory retirement age (29%), employees being able to claim sick leave when unwell while on holiday (21%) and women on maternity leave continuing to accrue paid holiday (14%).

More than half (60%) of respondents used HR support, although much of the support aimed at small businesses was viewed as "expensive and cumbersome", which is a key reason why 36% of respondents did not use HR support.

In July, the government unveiled plans to launch "ambitious reviews into burdensome red tape" in key sectors (energy, waste, agriculture, care homes and mineral extraction) – its first step to working with British businesses to "axe unnecessary regulation and its poor implementation" by a further £10bn over the course of this parliament.

Business Secretary Sajid Javid commented: "I'm determined to take the brakes off British businesses and set them free from heavy-handed regulators. The government's pledge to cut £10bn in red tape over the course of this parliament will help create more jobs for working people, boost productivity and keep our economy growing. For the first time, these reviews will look not only at the rules themselves, but [how] they're enforced. We want firms to tell us where red tape is holding them back."

Click here to read the original article "Employment laws could be damaging UK SMEs and jobs"

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Dotty Directory promotes local small and medium sized businesses on our national website Dotty Directory and also on over 100 local directories.

Normally we charge £30 a year but take advantage of our special offer and advertise your business completely free of charge now.

For more information about this offer please either telephone us on 01824 719005 or email us at support@dottydirectory.com

Millions in R&D tax relief overlooked by SMEs

Laurence Bard, tax partner and R&D specialist at Smith & Williamson says that many businesses are investing large sums into developing IT systems, for example, but the firms are unaware that they could qualify for R&D breaks.

'Expenditure on systems development is widespread and companies are missing out. Following further increases, cash repayments of up to 33 per cent of qualifying R&D expenditure can now be claimed and this money feeds through to the current year, helping to boost a business’s profits,' adds Bard. 

The government has confirmed its commitment to R&D tax credits in a new report and this, combined with a slight further increase in the amount which businesses can reclaim, is good news for organisations in any sector, adds Bard.

Subcontractors undertaking work for other businesses are also eligible for the tax credits.

According to the report by HMRC, £1.4 billion was claimed in tax relief on R&D from April 2012 to April 2013, the most recent year for which information is available.

Claims must be submitted no later than two years after the end of the year in which the money was spent. For example, businesses with an accounting year end of April 30th have until April 30th 2015 to submit claims relating to 2013.

Tax specialists at Smith & Williamson analysed the figures and noted sector and regional imbalances.

Bard explains, 'The number of claims by SMEs in the finance and insurance, construction, real estate, arts and health sectors are particularly low. However, where successful claims have been made by firms in these sectors, the average sums received have been among the highest.

'We therefore believe there could be considerable scope for businesses in these sectors to claim R&D tax credits.'

Two thirds of the total amount claimed came from companies registered in London, the South East or the East of England.

Loss-making SME businesses are now eligible for a repayment of up to 33 per cent of qualifying expenditure, whereas those which are in-profit can claim a tax credit of 46 per cent of qualifying expenses. 

Bard adds, 'The potential for R&D tax claims on IT development arises, as software is specifically recognised by the tax authorities as technology, and its development is often difficult and uncertain.'

The resolution of technological uncertainty in respect of software can present significant opportunities to claim R&D relief, Bard continues. 'If your staff are experienced professionals working in the field, and they consider their development assignments to be uncertain as to whether or how results can be achieved, you should look into the potential for an R&D tax claim.

'It doesn’t matter if competitors have already found a solution – unless they have published the mechanisms behind their discoveries.'

Eligibility

Small and medium-sized enterprises (SMEs) taking on work as sub-contractors are also eligible. Only 575 sub-contractors claimed in the 2012/13 tax year, suggesting there is little awareness of the opportunities.

SMEs can benefit from an enhanced rate of R&D tax credits compared to larger businesses. To qualify, SMEs must employ fewer than 500 people, and have either an annual turnover of no more than €100 million or a balance sheet total not exceeding €86 million.

Smith & Williamson has set up an R&D calculator which is available here and is free of charge. It provides businesses with an immediate indication of how much they can claim in R&D tax credits.

Click here to read original article 'Millions in R&D tax relief overlooked by SMEs'

5 social business trends companies can't afford to ignore

If there is one thing that has, more than any other, fundamentally changed how businesses communicate with their customers, it is the group of technologies collectively classified as Web 2.0.

It’s difficult to pinpoint the one trend or technology that has had the most impact on business in the past couple of years. Mobile computing, cloud computing, the “as-a-service” model—these have all transformed how businesses operate. But Web 2.0 is certainly high up on the list.

These technologies, which include social communities like Facebook, social publishing platforms like Twitter, and digital sharing platforms like YouTube, have transformed company-consumer relationships. These relationships continue to evolve as new interactive technologies become available and consumer preferences change.

Here are five current social business trends that companies can’t afford to ignore.

1. Social media is starting to be incorporated into business’s marketing strategies

2. Visual media is being used more often3. Analytics and social media are coming together to provide businesses with valuable new insights4. Social engagement is focusing less on the brand, more on the individual5. Businesses’ use of social media becoming more interactive

More than 90 per cent of marketers already use social media for their business, but not all of them are doing so effectively. In many cases this is because they don’t have a defined social media strategy in place. However, with more and more customer engagement happening on social networks and publishing platforms, companies are starting to look more closely at how social media is being used and to incorporate it into their overall marketing strategies.

When businesses analyse the click-throughs, shares, and likes that their social content generates, there is one trend that never fails to stand out—images and videos are shared much more often than any other type of content. With the cost of video production declining and the ease with which images and videos can be distributed across the Internet increasing, the use of these visual media is rising rapidly.

Social media generates an unprecedented amount of behavioural data, but until recently businesses did not have reliable ways of extracting knowledge out of the data. With the rise of social marketing analytics tools, businesses can now mine social data for valuable insights into customer behaviour that they can use to power their decision making.

When brands first started using social platforms like Facebook and Twitter, they often used those platforms the same way they used television advertising: as a way to broadcast their brand message. As a result, many brands saw their followers flee in droves. The lesson was that when people use social networks, they want to see information that is interesting and valuable to them, not just advertisements. Brands that responded by better addressing consumers’ wants and needs saw their followers return.

The next phase in this evolution is for brands to engage consumers on a more individual level. This trend is being driven both by analytics, which allow brands to get better insight into particular customers, and social marketing tools that enable personalisation. For example, when users are signed in, Google uses their Google+ activity to personalise their search results, a feature that businesses can use to their advantage to put the right content in front of the right people.

As another way to respond to consumers’ needs, businesses are using social media more for conversations rather than for brand messaging. This strategy can pay off considerably by turning customers into brand promoters. According to this CeBIT infographic, “71 per cent of consumers that receive a quick brand response on social media are likely to recommend that brand do others.”

Social media is one of the most influential channels companies are using today to reach and engage their customer base. These five social business trends represent the top new practices emerging and expanding today.

Rosemary Brown is a business and market researcher with over 20 years of experience and is currently conducting experiments with web-based help desk tools like ProProfs Knowledge Base Software. 

Click here to read original article '5 social business trends companies can't afford to ignore'

Major upgrades to our local websites

Dotty Directory are delighted to announce that we have started to upgrade our local websites. We now have over 150 local websites throughout the UK and each one will be upgraded to our new template.

We use the local websites to promote businesses advertising with us by featuring the business on the local website, Facebook and Twitter pages.

Please have a look at some of the some of the local websites we have already upgraded:

www.wiganconnection.co.uk

www.ruthinonline.co.uk

www.northwichconnection.co.uk

Three in four small business owners will work through holidays

MORE THAN three quarters of small business owners will work through the upcoming festive holidays, as they sacrifice time off for the bottom line.

A One Poll survey of small businesses, conducted with 500 respondents on behalf of Xero, found 15 per cent will work more than half a day through the holidays, while as much as 17 per cent planned to take no break at all.

Gary Turner, managing director at accounting software firm Xero, said: “As Christmas approaches, small business owners, like anyone else, deserve a break. But these results highlight that even during a time like the festive season, it isn’t possible for most of them to switch off altogether.”

When asked about future plans, just 35 per cent of 18 to 24 year olds said they would prioritise on their company’s performance.

This jumped to more than seven out of 10 for 45 to 54 year olds who put profit at the top of the agenda.

Younger respondents may have a better mix of work and leisure, with less than one in five 18 to 24 year olds and one in 10 25 to 34 year olds saying they need to improve work-life balance. This rose to around two in five for business owners aged 45 and over.

Mr Turner added: “Getting a good work-life balance is tricky, but it’s really important that we all switch off occasionally.”

Click here to read original article 'Three in four small business owners will work through holidays'

UK small businesses contribute £22 billion to UK economy by working overtime

Overtime worked by small business decision makers is worth an estimated £22 billion to the UK economy, according to new research.

The research by Everline, the digital lender for small businesses, and the Centre for Economic and Business Research (Cebr) found that the value of small business overtime was equivalent to more than 1% of the UK’s annual GDP.

The research surveyed over 1,000 small business decision makers as part of the Everline Small Business Tracker and found, on average, almost four in five of those with responsibility for a small business reported working overtime in the last month, with 18% working more than 60 hours or more per week.

In addition, half (52%) of small businesses owners that usually work conventional weekday hours (i.e. not at a restaurant or a pub) plan to work on their business to some extent on at least one bank holiday over the next 12 months, with more than one in ten expecting to work this Boxing Day and New Year’s Day (12% and 13% respectively).

This additional work would boost the UK economy by up to an estimated £1.7 billion over the next year.

For the majority (51%), working over bank holidays is performed because owners do not want to get behind on their work. Interestingly it is the older generation of small business owners that tend to work more hours outside of their standard working day than their younger counterparts (13 hours vs 9 hours in the last month). As a result, older business owners are more likely to be primarily responsible for a wider range of functions such as marketing, administration and finance.

Russell Gould, managing director at Everline, commented: “Skills remain an issue for small businesses, and evidently working ‘9 to 5’ is a misnomer for employers who are working longer days in order to compensate for those gaps.

"The worry is, that in a digital world where speed and time are paramount, small business owners are spending too much time covering other people’s work when they could be focusing on growing their business.“

Sam Alderson, economist at Cebr said: The strong pick-up in business activity illustrated by the Everline Small Business Tracker is evidently stretching the capacity of small businesses.

"A shortage of skills is constraining the ability of businesses to expand their resources and as such decision-makers are being forced to take on responsibility for greater range of functions.

"While small business owners should be applauded for their dedication and hard work, it’s a shame that these qualities are being devoted to tasks such as administration rather than strategy and business development; areas that could translate into sustainable growth for the small business sector.

Click here to read the original article: "UK small businesses contribute £22 billion to UK economy by working overtime"

Victoria Beckham tops chart of Britain’s most successful entrepreneurs

Designer heads rankings based on turnover growth and job creation over the past five years for her fashion label

Victoria Beckham, the pop star, model and Wag who reinvented herself as a fashion designer, has topped a list of Britain’s 100 most successful entrepreneurs of 2014.
The woman formerly known as Posh Spice came in at No 1 in the list compiled for business magazine Management Today. The rankings are drawn up by assessing turnover growth and job creation over the past five years.

The magazine said of the designer, who opened a 6,000 sq ft (550 sq metre) boutique in Mayfair, central London, for her fashion brand last month: “Beckham is living proof that celebrity may be the most marketable commodity of all.”

Philip Beresford, who drew up the list, said it was “her finely tuned business acumen” that won her the top spot.

Since the 40-year-old mother-of-four and former Spice Girl set up her fashion business five years ago, her staff has grown from three to a 100-strong team with the latest turnover at £30m.

Offering leather credit card holders for £150, T-shirts for more than £700 and handbags for up to £18,000, she has seen sales growth of 2,900% and employment growth of 3,233%. “Deservedly she is number one in these two crucial measurements for success,” Beresford said.

The accolade follows her topping of a poll to find the greatest style icon at London fashion week in September.

Beckham spoke of her transformation from singer to designer in a recent Guardian interview, saying: “First time around I felt famous, but now I feel successful.”
She added: “I used to wear clothes which would make me stand out and now I don’t so much because I don’t feel I have anything to prove.”

Born Victoria Adams in Harlow, Essex, she burst on to the pop scene with the Spice Girls in the mid 1990s and married the England footballer David Beckham in 1999. The couple’s joint wealth is estimated at £380m, and she is credited as the driving force behind “Brand Beckham”.

She joined the other Spice Girls for a world tour in 2007/8, but chose not to perform a solo song, instead posing as though in a fashion show, in a nod to where her real ambitions lay.
Beckham launched her eponymous fashion label in 2008, and a lower priced diffusion label in 2011. As a businesswoman, she has demonstrated herself to be “an adept exploiter of her own celeb value”, according to the list. By 2011 she was a fixture at New York fashion week.

Her Dover Street shop opened in September, but she missed the official opening to speak to the UN general assembly in New York about her role in the UNAids campaign. Since then a steady stream of celebrities have been through its doors. It has been likened to an art gallery, with sparse interior, clothes hanging from chains on the ceiling or a jagged rail, and no cash tills as all purchases are completed through an iPad.

The “burgeoning entrepreneurial talent” of Britain’s Asian community is also evident in the list, said Management Today, with nine individuals or families making the rankings. They are led by brother-and-sister team Amit and Meeta Patel, in second place, just pipped by Beckham. The siblings’ London-based pharma operation, Auden McKenzie, specialises in the development, licensing and marketing of niche generic medicines, and is at the cutting edge of work into areas such as treating heroin addiction.

Mahmud Kamani, 50, of online fashion site Boohoo.com, is ranked third, while Julian Dunkerton 49, of clothing chain SuperGroup, claims fourth spot.

Apart from Beckham, the list includes 14 other women, up from 11 when the rankings were last published in 2011. Among them are software entrepreneur Suzanne Marshall-Forsyth and Cathie Paver, founder of Paver Shoes.

The top 100 were “real job creators”, said Management Today. “In five years, they have added more than 61,556 employees to their payrolls taking their head count to 158,189. This represents a 64% rise, and shows that in the critical area of productivity,(in which much of the UK economy is notably lacklustre) our MT 100 members are right on top of their game.”

Spice Girls – where they are now?

Emma Bunton, 38, Baby Spice. She has guest-hosted on shows including GMTV, Lorraine and was a judge of Dancing on Ice. She presents a show on Heart FM and has two children

Melanie Brown, 39, Scary Spice. She has been a judge on a number of reality TV talent shows. She is currently a judge on X Factor and has three children,

Melanie Chisholm, 40, Sporty Spice . She has sold more than 12 million records as a solo artist, including collaborating with Bryan Adams on the hit “When You’re Gone”. She has also won acclaim in muscial theatre. She has a daughter.

Geri Halliwell, 42. Ginger Spice. She has recently appeared as a judge on Australia’s Got Talent and has one daughter.

Click here to read original article 'Victoria Beckham tops chart of Britain’s most successful entrepreneurs' 

Are your customers paying you what you’re worth?

When you’re feeling the pinch and money is tight it’s easy to assume that everyone is feeling the same way. You transfer your money beliefs over to your potential customers, by thinking: “Surely they won’t pay that” or “They can’t afford those prices”.

And your mind reinforces these beliefs by adding little comments such as: “Who do you think you are, charging those prices?” and “They’ll see through me and realise I’m not as good as they think”. This is what happened to someone I was chatting to recently. Instead of positioning herself as the true expert and brilliant coach she is, she made it into a money issue.

There are loads of business owners who feel uneasy when they’re discussing price and who subsequently charge a fraction of what they’re really worth. And assuming their customers have the same money beliefs as themselves is just the start.

They don’t know who their ideal customers are and, as a result, don’t understand the huge value they bring to them. They have a “spray and pray” approach to marketing, where any customer will do, and then they end up competing on price. Bad place to be.

Let’s face it, when you get into the “competing on price” game you’re always focused on being the cheapest. If you only attract people who want the cheapest, you will always have to offer more for less, just to keep up. It’s a hard way to make a living.

But do you really want to be the cheapest? People looking for “the cheapest” probably won’t be loyal. They don’t really care about you. They just want a commodity at the lowest possible price. Which is fine if you’re selling baked beans or toilet rolls.

But you’re a small business. Your business is a huge part of your life, filled with your passion, energy and time. So it’s better to find those ideal customers – people who really value you, love what you do, for whom you make a real difference. They aren’t looking for cheap. They’re looking for the best fit for them. There’s a big difference. Leave cheap to the others.

Value what you do. Price it so you make a decent profit. Get clear on how you make a difference to your ideal customers. Then, only market yourself to your ideal customers, not people looking for “cheap”. It will make a huge difference to both your bottom line and brand value.

Click here to read orignal article 'Are your customers paying you what you’re worth?'

Making switching simple for small businesses

Small Businesses can also use the free bank account switching service launched by the banking industry

It isn't just personal current account customers who can take advantage of the free Current Account Switch Service to swap between banks - small businesses up and down the country can make the most of the service, too, if they want to move to another current account provider.

Launched by the banking industry last September, the service ensures that existing payments such as Direct Debits or standing orders will be moved to the new account automatically, and any transactions which do go through to the old account will be redirected to the new one for 13 months, avoiding the problem of any payments going missing. 

The company making or taking the payment using the old account details will also get a message instructing them to update their records with the new account information. On top of that, the service is backed by a guarantee which means that if something should go wrong during a switch, any charges or interest will be refunded.

Until the service was brought in, changing from one account to another could be a lengthy process, with the switch typically taking between 18 and 30 days after the new account had been opened. 

That was a huge hurdle for small businesses heavily reliant on cash flow, with worries about missing out on invoice payments landing in the right account or suppliers not being paid according to terms, with the possibility of late payment charges being incurred.

But that timeline's been reduced right down to seven working days from the day the switching process starts to when the switch takes place.

One of the drivers behind the Current Account Switch Service has been to increase competition between banking providers, and make it much easier for small businesses to vote with their feet when it comes to picking the account which works best for them.

So, is it time for you to look at whether you're getting a good deal with your business banking? Here are the things you should consider:

Do I need a business bank account at all?

If your business is either a limited or incorporated company you must have a business account. If you are a sole trader or partnership, you could use your personal current account but that can make your finances messy - keeping personal and business accounts separate is the better option.

Am I spending too much on bank charges?

Some banks charge a fee for business banking services, and some don't. Other costs are transaction-based, like fees for cash withdrawals, cheques, Bacs transfers and overseas payments. Think about exactly what you need to use and check the charges for each service. Some providers offer free banking, either for a set time or with limits on the number of transactions over a month - look at the penalties for going over those limits, and charges which kick in when the free banking period ends.

What if I need an overdraft?

Costs can be quite high but will vary between banks - check interest rates, set up fees and the amount you can borrow this way.

And what about a business debit card?

Lots of business accounts come with these facilities but ask if you're eligible for a debit card - and a cheque book, if you need one - before changing to an account where you might not qualify for these.

What if I'm not happy with the service at my new bank?

With the new Current Account Switch Service, you can change your provider again quickly and easily.

Will switching bank accounts affect my business credit rating?

No -  as long as you repay any outstanding overdraft with your old bank or building society. If there are any problems with payments as part of the switching process, your new bank or building society will deal with them as quickly and make sure your credit rating is not affected.

Click here to read original article 'Making switching simple for small businesses'

Are you next on the taxman's hitlist?

HM Revenue & Customs has special task forces that investigate specific job sectors. Here we explain how the taxman picks its targets.

Tax crackdowns have arrived thick and fast in the past three years. Officials have targeted everyone from doctors to Avon ladies to claw back £35bn lost in unpaid tax each year – and more inquiries are in the pipeline. 

Accountants claim that HM Revenue & Customs focuses on “soft targets” through special task forces that investigate specific job sectors. 

They say middle-class professionals become anxious when faced with a bill for underpaid tax – and so are more likely to settle claims without dispute. The targeting of professionals began in 2007, but has become more prominent in the past three years, with the Revenue collecting almost £1bn. 

Here we explain how HMRC decides which groups to target – and who is on its radar.

How job sectors are picked: 

The taxman is not allowed to engage in “fishing expeditions”. Instead it must show evidence to justify wider inquiries. 

First it collates as much information as possible from third parties, such as banks and local councils. This is fed into the Revenue’s powerful computer system, called Connect, which cost £45m to build three years ago and is said to hold more data than the British library. 

A formula is applied to bring to the fore what would otherwise be undetectable information. 

For example, the computer holds details of every property bought in the UK, as it has access to the Land Registry. This was instrumental in the Revenue’s crackdown on buy-to-let landlords who had not paid enough tax. 

The computer also stores records from the Driver & Vehicle Licensing Agency, hospitals, insurers – and even the official list of gas engineers. All this data can be compared against an individual’s tax returns. 

The computer joins the dots to give an indication of particular industries where there might be tax shortfalls. 

Paul Noble, a tax director at Pinsent Masons, the accountancy firm, said: “The computer is the tax version of Big Brother, because so much personal data is being watched. 

“The computer system has only been up and running for three years, but during this time it has already targeted several professions and there are plenty of others it will also be watching over right now.” 

Scare tactics :

When the Revenue has enough hard evidence to launch a campaign against a particular sector, it offers workers the chance to get their tax affairs in order. 

Letters are sent out to taxpayers suspected to have underpaid. A deadline date to repay anything due is offered. If taxpayers pay straight away they can avoid a fine. Those who do nothing, or challenge HMRC, will be investigated further. If found guilty, non-payers can face prison. 

To “scare” people into paying up, the Revenue heavily publicises prosecutions, according to Dawn Register of accountants BDO. 

A recent example of this tactic was on show earlier this month, when an eBay trader was imprisoned for two years for failing to pay tax on more than 500,000 sold items. 

“For every campaign, one or two people are jailed and HMRC makes a huge song and dance about it,” Mrs Register said. 

“The people they jail are always extreme cases, such as the eBay trader, but publicising the sentences handed out is part of the Revenue’s agenda to unnerve people into paying early without challenging the taxman’s claims.” 

Who’s on the hitlist today? 

The taxman is currently focusing on two areas: people with multiple sources of income and landlords. 

Landlords are under scrutiny because the Revenue estimates that £500m is lost every year. It said thousands of landlords paid little or no tax on rental income, while others did not declare capital gains on second properties. 

Last month the Revenue said 40,000 landlords were suspected of bending the rules. Letters will be sent out over the next four months, which will give landlords an opportunity to clear their name. 

The “second incomes” campaign targets everyone from consultants and part-time taxi drivers to car boot traders. 

Andrew Watt, a partner at Watt Busfield Tax Investigations, said this campaign started only in April and would be one of the Revenue’s main focuses over the next couple of years. 

“With all the data they have at their disposal the Revenue will catch all sorts of people,” he said. “There is no end date given on the campaign, which is unusual, but this perhaps indicates that there is a big pool of tax sharks to be caught.” 

Who could be next on the taxman's radar? 

Expats could be next to feel the heat, experts say. 

The Government could prevent expats who let out British properties from using the personal allowance (income on which no tax is paid). The proposals are under consultation. If they are given the go‑ahead, the Exchequer is expected to raise £400m a year. 

The Revenue is also keeping a close eye on undeclared offshore bank accounts. It recently obtained powers that make it much easier for the Connect computer system to spot overseas assets. 

“This is high on the agenda, so it is best to make a voluntary disclosure before the Revenue comes knocking,” Paul Noble of Pinsent Masons said. 

Dawn Register of accountants BDO said solicitors and barristers could be targeted next. “The Revenue now has access to legal aid data, so if it spots a trend it could well take another look on a much bigger scale,” she said. 

Click here to read the original article 'Are you next on the taxman's hitlist?'

Most UK SMEs ambivalent about Scottish independence

After a poll on sunday found the Scottish pro-independence camp in the lead, the Government and the no campaign has been scrambling to convince voters north of the border to stick with the union. 

We've heard repeated apocalyptic warnings from business leaders and the city, but there are signs that businesses across the UK as a whole aren't so worried about the prospect of a yes vote. 

Vistage, the business leadership organisation, asked a representative sample of its members, primarily mid-sized and larger small businesses, how they felt independence would effect their company. 

Just 20 per cent agreed that it would have a negative impact, while 6 per cent said they were uncertain but worried. 66 per cent said the impact would be neutral or better. 

Vistage CEO Steve Gilroy said: "While many financial and large international businesses may not like the prospect of Scottish independence, it will have little impact on most small and medium-sized businesses in the rest of the UK.

"Whatever the result of the poll in Scotland on 18 September, our research shows that most owners of SME businesses in the rest of the UK will not be losing sleep over the result damaging their firm.

"Partly this is because Scotland is a relatively small market for most SMEs in the rest of the UK, and also because independence will not suddenly close the Scottish market. Whatever the result business will continue, although we can expect a hiatus amongst Scottish businesses should there be a vote for independence while they digest the implications."

Click here to read original article 'Most UK SMEs ambivalent about Scottish independence '

Don't forget to prepare for the forthcoming minimum wage hike

The Government has urged employers to be ready for the minimum wage hike which comes into force in just over three weeks. 

The rate for workers aged 21 and above is set to rise from its current level of £6.31 per hour to £6.50 on October 1st , with severe potential penalties for those employers which fail to comply. 

The wage rate depends on a worker’s age (£5.13 for those aged 18-20 and £3.79 for 16-17 year olds) and apprentices aged 16-18 will have a minimum wage of £2.73. 

The provision of accommodation, uniform hire and on-the-job travel times can also affect the level that should be paid. 

The Government has stepped up action against employers who flout the rules of late. Those guilty of not paying their workers correctly could face a fine of £20,000 and being named and shamed, or even being prosecuted.

Tips to help ensure you are paying the correct amount of National Minimum Wage:

- Check what rates you should be paying to each worker as there are different rates for different types of workers. Visit www.gov.uk/national-minimum-wage for more information.

- Have a conversation with your worker to ensure you have the correct details (e.g. check their birthdays, and whether they are an apprentice).

- Keep a record of the number of hours worked by each worker, such as a timesheet 
system, to make sure you are paying them for the correct number of hours per week/ month.

- Keep your payroll updated for each worker to ensure you are paying the correct amount. 

Click here to read original article 'Don't forget to prepare for the forthcoming minimum wage hike'

Diesel business mileage rates cut

DIESEL company car drivers look away now: changes to company car business mileage rates by HMRC are targeting the key 2.0-litre and under sector.

While the business mileage rates, known as advisory fuel rates (AFR), remain unchanged for petrol, LPG and diesel engines larger than 2.0-litre, the reduction in rates, effective from Monday 1 September, for smaller diesel engines will hit a large section of company car diesel users in the UK today.

And likely to be the hardest hit are those company car drivers in the SME small fleet sector, because the majority of their company cars will come from the most frugal and tax-efficient sub 2.0-litre diesel range.

AFR is used to claim back business mileage in company cars or to repay private mileage if fuel is provided by the company so to avoid car fuel benefit tax.

HMRC reviews the AFR every quarter, basing its calculation this time on average fuel prices on 19 August from the Department of Energy and Climate Change and LPG average price quoted on the AA website.

The new company car business mileage rates are listed below.

 Petrol: Company car business mileage rates from 01 September 2014
Engine size 1400cc or less: 14p - unchanged
1401cc to 2000cc: 16p - unchanged
Over 2000cc: 24p - unchanged

Diesel: Company car business mileage rates from 01 September 2014
Engine size 1600cc or less: 11p – 1p reduction
1601cc to 2000cc: 13p - 1p reduction
Over 2000cc: 17p - unchanged

Hybrid and LPG-fuelled company car business mileage rates
Drivers of petrol/electric hybrid company cars should use the petrol rates.
Drivers of diesel/electric hybrid cars should use the diesel rates.
Drivers of LPG company cars should use the following rates: Engine size 1400cc or less: 9p –unchanged; 1401cc to 2000cc: 11p – unchanged (LPG); Over 2000cc: 16p – unchanged (LPG)

The AFR business mileage rates are to be used by company car drivers and should should not be confused with Approved Mileage Allowance Payments, known as AMAPs, because these are the tax-free pence-per-mile rates applicable only when drivers use their private cars for business purposes.

Click here to read original article 'Diesel business mileage rates cut'

Beyond networking

For many smaller businesses (particularly business to businesses) marketing equalled networking. But as a central way of promotion, those days are your business are long gone. 

So what are some of the best methods to win new clients that work today? Alastair Campbell from the Ideal Marketing Company explains the three key areas that every organisation should now be looking into.

Some say that selling and marketing is a numbers game. It’s a question of getting out there and speaking to as many people as possible, but I’m not so sure. Think of it like this. You want to make a hole in the wall, so you run at it as hard as you can. You knock yourself out; when you regain consciousness you walk back 20 feet and run at the wall again. You can do this all day, but you aren’t going to make much impression on the wall – and I’d suggest that you’ll end up in a worse state by the end of the day than you were at the start.

What if there was a better way of knocking a hole in the wall, or perhaps better still, walking around it?

I’d suggest that a way of getting around the wall is to focus on three essential areas of marketing:

◾Attention
◾Conversion
◾Retention

The problem is, if we put all our new business focus on any one of these (and ignore the others), then results are likely to be patchy at best. 

So here are a few ideas for specific marketing in each area – and how to apply them.

Gaining people’s attention:

 You can’t sell to somebody until you have their attention. You need to interrupt people’s thought pattern with your message before you can explain the service you offer. For example, nobody is walking around thinking ‘I’d love to speak to a builder’. But they might be walking around thinking ‘how much is this roof repair going to cost me?’ or ‘what is the best way to extend my house?’ This gives you a chance to get people to tune in to your message, to get their attention. 

One of the best ways to do this is to create an information rich product with a compelling headline / title. A builder could mail a booklet offering free advice on the most creative ways to add space to your home. 

Other businesses could consider some of the following:

◾A free e-book on preparing your business for sale
◾A recruitment agency may create a short video demonstrating interview techniques to get the best out of candidates
◾A law firm might publish a free report on the six questions you should ask a divorce lawyer before engaging them.

In each case, you are creating a valuable, but low cost product that is of great interest to a targeted group of people. Some people will not be interested in specific activities, for example, some companies will not be hiring at the moment, but for those who are, or considering doing so in the near future, the video is certainly going to be of interest.

Any of these guides (and hundreds of variations thereof) will get the attention of the people you want to speak to, when you want to speak to them.

Once you’ve prepared the guide, you now have a reason to speak to people, call them, write to them and e-mail them. You also have something to post on your blog, tweet about and post on your LinkedIn or Facebook pages. Each time there is something in the news about the subject, you have another reason to repeat the message with a new topical twist.

Converting the curious:

Getting people’s attention is the hard part. However, even when you have a prospect in front of you, it’s easy to let them slip away. 

High pressure sales techniques are almost certain to do more harm than good, so here are a few ideas to gently give confidence in your services if you are meeting clients at your offices.

Make the meeting room comfortable, uncluttered and professional. Messy files piled high, a bulging in-tray or a constantly ringing phone give the impression that their work won’t be given the priority it deserves. 

Where possible, a special meeting room for prospects should be used rather than an individual’s office.

What proof do you have of your previous successes? Convincing evidence can come from four possible areas.

1. Awards, accreditations, qualifications – any certificates, awards, photos of prizes being handed over all help to add credibility to your professional status.

2. Media coverage – have you been featured in the press commenting on industry matters, helping community causes or perhaps winning some of the above mentioned awards? If so, why not highlight these press cuttings in a cuttings book on the table? A second copy of this book could be in the reception area.

3. Case studies – for many people new areas of investment are the ultimate grudge spend. Given the choice, they’d either do it themselves or are hesitant to work with someone new. In fact, they are not buying your time; they are buying the RESULTS that they want you to achieve. So, in order to make them feel better about the hiring process, you can show how you have specifically helped other people. 

A collection of case studies could include examples of different problems within one industry, or problems relevant to different sectors within the same industry. Each should show how, by employing your services, your clients were able to turn things around and get better than expected results. 

You might not always need to go into precise details, or even name names, but 300 – 500 words that explain the results you were able to achieve with past clients can be a significant reassurance to a reluctant visitor.

4. Testimonials – similar to case studies, but usually much shorter and written word for word by happy clients. Testimonials are an endorsement of what you’ve done. The best way to get a client to say something about what you have done is to ask them – either in person, in an individual e-mail or as part of a survey. 

One client of ours received about 3 letters a year without asking, but over 60 a year when his clients were prompted gently – quite an improvement.

In all cases, these subtle messages are there to reassure and reinforce your words and deeds.

Another simple way to help the conversion process is simply to keep your word. If you say that you’ll send a letter the next day, do it. If you say you will call at 3pm, make sure you do so – or if you don’t have the answer, still call and explain why you haven’t got the information and when you will have it.

The better the relationship you can build and the more confidence and trust you create, the more likely you are to leave the meeting with a new client.

Retaining the business:

 Some clients may appear to be ‘one offs’ at first. But it is useful to consider how people will recall you. Most people will remember the service they received rather than the details, in a similar way that people think about their doctor or their dentist. You will remain their point of contact unless something changes the situation – or if you do a very bad job (as they perceive it).

A gentle, perhaps annual reminder that you are still there, still thinking about them, is always a good idea to stimulate memories and subtly keep you at the back of their mind. It’s also why regular publicity in the local press is a good idea to remind people that your company is doing good / interesting / helpful things in the community.

For business to business clients, it’s a different situation as you are likely to be called upon on a more regular basis. The focus here should be on education and support.

Education is about explaining the different range of services that you can offer. The company may have used you for a specific project, but making them aware that your skills can be applied to other areas of their business is important. This involves regular communication, explanations and campaigns that will help with awareness of your services.

Support can be through a variety of ventures. One popular area is joint seminars. In the past, I’ve run seminars with solicitors on creating a brand, whilst they have talked about how to legally protect a brand and trademark.

Running regular events for clients (and prospects for that matter), is an excellent way of positioning yourself as the expert at the centre of activities. It gives companies a reason to stay with you, and enhances your reputation.

If it’s hard to win new clients in the first place, the good news is that it’s relatively easy to retain them. Your job is really to keep clients updated on the full range of services that you could offer them, and explain how your services rather than cost them money, can in many cases actually save them money – or at least protect them from serious potential risk.

Some further thoughts:

The three stages of marketing hold true for most organisations, but are certainly true in the most competitive business environments. By splitting your activity into the holy trinity of marketing: attention, conversion and retention; you can be sure that you are making the most of your marketing spend.

However, in 2014, you may need to go a little further. We are living in a world of information overload, where the under 20s are just as likely to learn about the latest news stories on Twitter or Facebook as they are from the TV news. Tomorrow’s newspaper is an age away for many. With hundreds of e-mails pouring in every day, and a hundred demands on our time – where are your communications going to sit with prospects and clients?

Most will be ignored of course (and this has always been the case), but now more than ever we need to create messages that are ‘remarkable’. Standing out from the crowd is the only way to get noticed today and so, even doing all the right things is not always enough. 

Creating a strong benefit led message, creating a brand around it and presenting it in a way that people will notice and remember should be central to your strategy. If you can’t cut through all the other messages, then you won’t get far.

Ultimately, effective marketing is far more than a firm handshake over a glass of warm Chardonnay at a Holiday Inn. If you are to succeed and thrive in today’s competitive economic climate, it must be a central and ongoing part of your business growth plans.

Click here to read original article 'Beyond networking'