Tuesday 28 December 2010

A taxing start to the New Year


Small businesses which fail to keep proper financial records could incur the wrath of HM Revenue & Customs (HMRC) in the New Year, it has been revealed. HMRC is planning a clampdown on inaccurate bookkeeping and tax underpayment in 2011 through a Business Records Checks campaign, it has been reported.

According to the agency, 40 per cent of small businesses suffer from poor bookkeeping and these are the enterprises most likely to be targeted by investigators. Existing legislative powers will be used to check out 50,000 small businesses, with fines of up to £3,000 likely for those with the most disorganised financial records.

One Accountant has warned that many small business owners find it a "nightmare" trying to keep up with accounts administration. A spokesman said: "One of the difficulties facing entrepreneurs and small businesses is that they may have to keep records for income tax, VAT, capital gains tax, PAYE and so on. Separate penalties apply for each set of taxes so a small business can fall foul of the rules in several areas. Tax inspectors have little understanding of what life is like in the business world, and therefore expect entrepreneurs to keep records in textbook order.

Companies House recently urged businesses with a tax year end date of March 31st to file their business accounts before the December 31st deadline.

APA supports the need for better bookkeeping but will be writing to the Business Secretary asking him to start with a process of better education for business managers (reminding HMRC that few small business can afford the luxury of an in-house finance manager), followed by simplified processes and greater assistance. Gareth Osborne said: “Raping and pillaging small business is massively counterproductive at a time when the economy is dependant on them to employ more staff; especially redundant public sector staff - with financial know-how. We will be lobbying hard for Government to find ways to improve the reporting and payment mechanisms before they start fining every business in sight.”

APA

Sunday 26 December 2010

The jury's still out

I’m not sure how I feel about the Rt. Hon. Vince Cable MP, Secretary of State for Business, appearing on Strictly Come Christmas Dancing last night. I worry when the serious job of Member of Parliament (let alone Cabinet Minister) is confused with celebrity. I’m not sure I will see beyond the dancer when I next meet him to discuss issues of serious concern to our Members.

Still, I have to say it was better than the Dragons' move towards celebrity and especially Peter Jones’s attempt at acting the fool in his shopping trolley adverts. In his case I now see him as a definite contender for Strictly Orchestral, where he can play the buffoon.

I have always said that meeting Government Ministers is like a sparring session in boxing; you try and get a punch in against some pretty fair defending, you work hard to score some points but generally leave feeling like you have gone twelve rounds against a strong opponent. I will have to brush up on my footwork before my next visit to the Department of Business, Innovation and Skills (BIS).

I would be interested to hear what Members think. The question is: Are we human? Or are we dancer? Check out: http://youtube.com/watch?v=RIZdjT1472Y


Gareth, APA

Watch out for hackers over the holiday period


Companies and home PC users need to be on their guard over the holiday period, amid hacker attempts to compromise their systems. One senior security analyst has claimed that Christmas is a particularly busy time for virus and malware campaigns.

IT security firm Sophos recently outlined the history of Christmas malware and viruses in a blog post, ranging from relatively harmless festive pranks to those you definitely wouldn't want to wake up to on New Year’s Day. The company said hugely destructive campaigns have gradually grown to replace the worms of yesteryear, as malware technology has become more sophisticated. "Criminals absolutely do, every year without fail, conduct campaigns designed to take advantage of people's willingness to search for and click on links relating to the holiday period."

Whether it's going to be through phishing campaigns or sending social engineering emails masquerading as New Year cards, internet users are at risk during this period, they claimed.

They went on to say that apps on social networking sites had "come of age as an attack platform" and are "being extensively abused" due to the ease with which they can be created and uploaded to Facebook. It was noted that it is very easy for third-party developers to create applications and upload them using this website, as the code isn't checked by Facebook before the applications go live.

APA

Wednesday 22 December 2010

Lack of energy


UK small and medium-sized enterprises (SMEs) feel they are being let down badly by the major utilities companies, a new study has revealed.

In a finding which may alarm the so-called Big Six, 33% of SMEs questioned by the Forum of Private Business (FPB) described the level of service they are receiving as 'poor' or 'very poor'. Many cite contractual issues – including the practice of rolling businesses over on to often more expensive contracts with little warning – as being a major gripe.

Just 11% of SME owners believe utilities contracts are easy to understand, while 35% think it is difficult to switch suppliers and 40% feel that contractual terms and conditions are poor. Some 69% believe it is difficult to keep track of contract anniversaries and switching windows, with 31% relying on renewal letters to keep them informed. Meanwhile, 47% of respondents believe they are paying too much for gas, electricity and water.

Ofgem does not have the necessary powers to protect all SMEs and unless proper levels of service and transparency are established which allow businesses to make informed choices, they will continue to suffer at the hands of utilities providers. There is however one glimmer of hope, under Ofgem's new utilities licensing condition 7A, many micro businesses – those with fewer than ten staff members – can have their contract rolled over for just a single year.

APA

Sunday 19 December 2010

PA Power rules The Apprentice

It is official, the former PA, Stella English, has been hired by Lord Sugar as his latest ‘Apprentice’; proving beyond all doubt that there is no limit to the versatility of someone with professional PA skills.

Mother of two Stella (31) will work as a product manager for the tycoon's computer manufacturing film Viglen after impressing Lord S with her determination and dedication.

She is reported to have had an extraordinary and colourful early life in Thamesmead before calming down and rising through the ranks. Stella now lives in St Albans, Hertfordshire with her fiancée.

Stella said: “I think I've been very consistent in everything that I've done. But I think my mistake is that I haven't spoken up for myself. I'm somebody that has to come up with new ideas and I'm constantly driving things. I'm not somebody who needs to be given instruction. I've got the best record in the process for a reason. I've taken a big risk here. I've got a family to support and I've walked away from a job that I do like. Anything I want I will get, I won't let go. That's a passion that enables you to do things that you never thought were possible.'

So Stella offers consistency, creativity, ambition, determination, an ability to calculate and take risks and passion. These are all traits that APA feels makes any great PA stand out from the crowd. Perhaps we can all learn a little from Stella and hope she does well for Lord Sugar and goes onto great things.

APA

A launch pad for entrepreneurs


The higher education system is "one of the most vital aspects" of the government's ambition for an "entrepreneurial" economy, it has been claimed. According to the National Council for Graduate Entrepreneurship (NCGE), the UK's "engine of economic competitiveness" is whatever our universities are able to produce.

The organisation said that as a knowledge-based economy, it is vital to produce graduates who are able to contribute substantially to the economy and society as a whole. The Chairman of the NCGE said the types of entrepreneurs that emerge in a technology-savvy world with global competition will come from higher education. Mr Robertson said that an enterprising attitude is needed right across the university system if the right environment in which to nurture the new breed of businesspeople is to be achieved. He added that the benefits of entrepreneurial attitudes extend further than the private sector.

A Deloitte survey published this week showed that 90 per cent of the UK's entrepreneurial businesses expected to grow their revenues in the next year.

Gareth Osborne of APA said: Entrepreneurship in universities can be only be fuelled if you have entrepreneurial lecturers and sadly that tends to be something of an oxymoron. The UK hasn’t yet mastered the art of professional mentoring and would-be-entrepreneurs need proven entrepreneurs (and not necessarily business leaders) to inspire them.”

We have the perfect demonstration of university-educated versus street smart entrepreneur on the Apprentice tonight; let see who wins! Other than Lord Sugar that is.

Gareth, APA

Saturday 18 December 2010

Self-promotion needed


Women who want to climb the professional ladder need to get comfortable with endorsing their own skills, it has been claimed.

Suzanne Doyle-Morris, author of Beyond the Boys Club, claimed that women in business continue to be discriminated against. She feels strongly that women remain under-represented on every board across every sector. "People often assume that it is male-dominated fields that have this problem," Ms Doyle-Morris said. "An industry could be well represented with women but the more senior you get, certainly to a board level, you get fewer and fewer women," she added.

She advised women to "get comfortable" with self-promotion; something that is especially necessary when starting their own business, and feels that female professionals should take the opportunity to network with senior staff and board members where possible - even during their lunch break.

Earlier this week, the Confederation of British Industry called for more women to be offered executive roles within UK companies.

APA members should see the Knowledge Zone for tips on self-promotion.

APA

London's stirring


London-based business owners are increasingly confident about their future prospects as the economic recovery continues, it has been reported. The latest Confederation of British Industry/ KPMG London Business Survey found that 54 per cent of companies are optimistic about the coming six months, while just 12 per cent are pessimistic.

As such, 68 per cent are looking to expand over the next six months, compared to 58 per cent when questioned earlier this year. Some 84 per cent of respondents said they were benefitting from trading in the capital, the highest figure recorded by the survey since September 2008. The wide skills base and talent pool are viewed as being London's most attractive business strengths, cited by 69 per cent of companies. Access to markets was found to be the second most attractive strength, named by 67 per cent of respondents, up from 45 per cent six months ago.

KPMG said it was "encouraging" that after two difficult years for businesses in the capital, optimism levels are starting to return. Businesses are getting back on track with expansion plans now on the agenda. London has an amazingly robust business community who will be instrumental in getting the UK economy moving and putting us back at the top of the global competitiveness table.

Gareth Osborne of APA said: “It is obvious from the London focus of this report that the rest of the country does not yet feel as confident. If the Bank of England holds firm I am reasonably optimistic that business expansion will return in 2011. I am not as confident that the fortunes of the workforce or the unemployed will improve for some time to come.”

Gareth, APA

Wednesday 15 December 2010

Defend against the double-dip


The Bank of England should overlook current inflation figures and keep interest rates low for as long as possible, APA has said today.

APA backs the British Chambers of Commerce claim that the threat of a major setback to economic growth is currently much greater than the danger of a surge in inflation. This was after the Office for National Statistics reported that Consumer Prices Index inflation rose by 0.1 percentage points to 3.3 per cent during November 2010.

Gareth Osborne of APA said: "The marginally higher than expected inflation figures were disappointing, but are still broadly in line with the Bank of England's own forecast and given the dangers facing the economy, we would urge the MPC to persevere with current expansionary policies and maintain low interest rates for as long as possible. We must do everything we can to avoid a relapse."

APA believes the New Year already looks gloomy with VAT increases looming and likely hikes in the price of petrol. Members are asked to feed back unreasonable or exploitative price increases allegedly linked to these and other economic pressures. APA is currently considering its own response and is hoping to find ways to prevent increases being passed n to Members.

Gareth, APA

Monday 13 December 2010

Year-end working


APA Directors and Staff would like to thank Bloggers and Blog-readers for their involvement, interest and enthusiasm in 2010 and hope you will continue to bookmark this site in the coming year.

For reference, the APA offices will close at 4pm on 22nd December and reopen at 9am on 4th January 2011. During the intervening period emails will be monitored on a daily basis; this will be the best way to make contact.

Seasons greetings from all at APA.


Gareth, APA

Record Year for APA Qualifications

Recent participants have helped make the APA Diploma in Company Direction (DipPA) the most widely acclaimed and attended PA qualification programme in the UK . The Diploma has become the programme of choice for major businesses looking to develop a career pathway for their PAs and for small businesses looking to add valuable skills to their Executive Team. Having recently been accepted as one of the eligibility credentials for the PA Degree (BA in Business Administration for Personal Assistants: Middlesex University and APA), the Diploma promises to be even more popular in 2011.

APA is taking bookings for all of its programmes in 2011, from PA Apprentice, for newcomers, through PA Professional, for the more experienced and returning PA, to PA as a Manager and the Diploma. A full list with details of costs, dates and locations is available on the APA website at www.paprofessional.com and then select ‘APA Training’ on the navigation bar.

Pictured (L-R) are: Michelle Luggar, Siobhan Hall, Laura Richardson, Joanna Oldham and Julie North.

APA

Businesses face heightened fraud threats over Christmas

The increase in the number of transactions taking place at this time of year may make it easier for fraudsters to hide illegitimate activities, it has been suggested.

Research from CIFAS (the UK's Fraud Prevention Service) revealed there has been an increase in the number of impersonations in the UK. It advised people to be especially vigilant over the festive period. “It is about being certain about the merchants you are buying things from and being careful and prudent as to what information you are putting out there, whether that is in your Facebook profile or anywhere else.”

According to figures from the National Fraud Authority, identity fraud costs more than £2.7 billion and affects over 1.8 million people every year in the UK. At least £1.9 billion of this is the amount gained by the fraudster. That means that on average, fraudsters gain over £1,000 from every stolen identity; making identity theft a very lucrative industry.


APA

Maternity leave extension could hamper career development for women


Extending fully paid maternity leave to 20 weeks could lead to discrimination against women deemed most likely to become pregnant, it has been claimed.

The EU's proposed Pregnant Workers Directive has fuelled a storm of debate with objectors suggesting it could land small companies with unaffordable bills that they would look to find a way around. Estimates are that extending maternity leave on full pay to 20 weeks would cost the economy over £2 billion and would hit small firms particularly hard. Small business groups feel that many just couldn't afford to pay it, so might be tempted to avoid employing women they think may become pregnant.

UK government is campaigning against the EU proposal, which would enable new mothers to take five months off work on full pay. The German government is also strongly opposed to the extension, while countries backing the move include Portugal - a country that may well need an emergency loan from the European Central Bank.

Edward Davey, minister for employment relations, is visiting Brussels this week to lobby against the Pregnant Workers Directive on behalf of the UK government.

APA would be keen to know what Members think.

APA

Wednesday 8 December 2010

APA calls for higher VAT threshold for small businesses


As many as 35,000 additional jobs could be created if the threshold at which small companies start to pay VAT is increased, it has been claimed.

According to a Federation of Small Businesses-commissioned report from the Centre for Economics and Business Research, increasing the VAT threshold to £90,000, from the current rate of £70,000, could save up to £162 million per year.

Savings could be made through the reduction in red tape surrounding VAT compliance, as well as £700 million directly through a higher VAT tariff, the paper stated. This money could then be used to create up to 35,000 jobs on an average wage, the FSB claimed.

Gareth Osborne of APA said: "If the government is truly committed to a private sector-led recovery, then it must implement a Small Business Programme for Growth to allow small firms to grow and invest – and this would be a great start. The potential loss to government in VAT receipts by increasing the threshold to £90,000 would be more than outweighed by the VAT rise due to come into force in January."

APA fully supports FSB in its call to Ministers to adopt this recommendation

The value-added tax rate is scheduled to rise from 17.5 per cent to 20 per cent on January 4th 2010.


APA

Christmas - crackers!


Employees should not behave any differently at the office Christmas party than they would in the workplace, according to the Advisory, Conciliation and Arbitration Service (ACAS).

A spokesperson for the organisation has warned that behaviour is subject to the same rules regarding discrimination and harassment as it would be during an ordinary day at work. He said that it can be helpful for bosses to remind their staff of this fact before the party, to avoid any misunderstandings further along the line.

"Employers should have a quiet word with their staff before the party to alert them to the legal situation," the spokesperson said. At a party, things may get said that wouldn't normally. The party is not the place to raise a complaint, no matter how right it may seem at the time."

Meanwhile, he also reminded employers to remember that not every member of their workforce will necessarily celebrate Christmas or enjoy Christmas. ACAS said it is important to make sure that they are not left "holding the fort" while everyone else is out enjoying themselves. "It makes a lot of sense for colleagues to keep an eye out for each other. And finally remember to have fun," the spokesperson noted.

APA

Companies looking to recruit in 2011


Almost one-third of UK businesses intend to hire more staff over the next year, according to a new report from PricewaterhouseCoopers (PwC). It found that 28 per cent of companies expect to bolster their headcounts in 2011, compared to the 15 per cent who predicted expansion for 2010 questioned last year.

Businesses across the UK and Europe are now looking to hire again following the recession, the company claimed – pointing to a rise in the number of entrepreneurs growing new businesses. While 43 per cent of employers claimed they would be making cuts last year, this figure has now dropped to 16 per cent.

Michael Rendell, head of HR services at PwC, said: "The expected headcount increases are encouraging news for the job market and suggest the private sector will be able to accommodate those public sector workers who are made redundant We expect demand to be particularly high among services, technology and manufacturing industries."

The Recruitment and Employment Confederation and KPMG's monthly Report on Jobs has pointed to increased hiring activity throughout 2010, in both the permanent and temporary labour markets.

However, the rate of growth has slowed in recent months, with employers cautious about the effects of the government spending cuts.

APA