Employment bill will open up new opportunities for SMEs to grow, innovate and export

15:10 02 September 2014

Archant

There may never have been a better time to think about setting up a business, says Cambridgeshire accountancy firm Price Bailey - but preparation is key.

It seems that each day in the news it is the large and multinational corporations that make the headlines - commenting and analysing performance, growth and development and how they are impacting on the economy.

However, spare a thought for our small and medium enterprises (SMEs). Whilst they rarely hit the front page, they have undoubtedly had the most significant impact on the UK coming out of recession.

And according to the IMF, we now have the fastest growing economy of all the major developed countries.

SMEs employ 24.3million of the UK’s 30.6million workforce and range across all sectors of the economy. From start-up business to well established and respected owner-managed companies, they are all playing their part.

Furthermore, the Small Business Enterprise and Employment Bill announced in June is planned to open up new opportunities for small businesses to compete, obtain finance to create new jobs, grow, innovate and export.

Banks are being encouraged, some may even say forced, to increase competition in SME business loans.

Along with funding for lending, growth accelerator and access to finance initiatives, there may never have been a better time to think about setting up a new business.

Certainly it is a big step and not one to take lightly with taxation being one of many commercial and legal aspects to be considered. It may be a well used phrase, but preparation is the key and a proper business plan is one of the first things you should do.

Some business structure options are:

Sole trader

The business of a sole trader is not distinguished from the proprietor’s personal affairs. If the business incurs debts which are unpaid, the creditors can seek repayment from the sole trader personally.

Partnership

Similar in nature to a sole trader but involves two or more people working together. A written agreement is highly recommended so all partners are aware of the terms of the partnership.

Limited Company

A company is a legal entity in its own right, separate from the personal affairs of the owners and the directors. Accordingly, it is taxed in its own right under corporation tax legislation. A company provides protection from liability which means that the creditors of the company cannot make a claim against the owners or the directors except in limited circumstances.

Limited Liability Partnerships

LLPs are a halfway house between partnerships and companies. They are taxed in the same way as a partnership but are legally a corporate body. This again gives some protection to the owners from the partnership’s creditors.

For more support on running or growing your business, its structure and efficient tax planning, contact Chris Jackson at Price Bailey on +44 (0)1353 662892 or e-mail chris.jackson@pricebailey.co.uk

Additionally, you are welcome to register to attend our Growing Business Network in Ely on September 16 or in Cambridge on September 11. This is aimed at decision-makers and influencers in SMEs with aspirations for growth over the next few years.

For more information visit www.pricebaily.co.uk.

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