A firm is facing a fine of £10,000 after it failed to inform HM Revenue and Customs (HMRC) that it had changed its name – despite the fact that all it had done was change from a partnership to a limited company.
The unnamed firm had, according to the Forum of Private Business (FPB), an exemplary VAT-paying record and had always submitted its tax returns on time.
What is more, the change of name did not affect its VAT number and HMRC did not lose out on any tax payments. The firm simply failed to tell the VAT authorities that it now had “ltd” after its name.
This meant it fell foul of VAT notification liabilities contained in the Finance Act 1985, and later the VAT Act 1994, and landed the company with a £30,000 fine – since reduced following interventions by accountants and the FPB.
The Forum’s Tax Adviser Andrew Needham said: “It is important that all small businesses are aware they could face steep fines unless HMRC is kept fully updated.”
However, he went on, this heavy-handed approach is the very opposite of the support that is desperately needed at this difficult time and HMRC risks further alienating firms hit by its disproportionate, targeted business records checks regime and widely-reported poor levels of service.
Chancellor George Osborne and Business Secretary Vince Cable have both announced that their Departments are considering the creation of a new bank to improve the flow of credit to small and medium-sized firms.
This comes as good news to the British Chambers of Commerce (BCC) which has long championed the idea and has now set out a detailed case for the establishment of a state-backed British Business Bank.
This argues that the Bank should be a clear “first port of call” for all viable companies seeking growth finance but should complement, not cannibalise, existing banks and other lenders, with commercial lenders having a “first right of refusal” on all applications received by the Business Bank.
The BCC suggests that its plan would particularly help dynamic and fast-growing companies, many of whom report difficulty accessing finance. It would also address “discouraged demand” among some existing bank customers.
The Chambers’ paper also notes that the Bank could help companies seeking mezzanine, export or supply-chain finance support, which it sees as being key to rebalancing the economy in the years to come.
Director of Policy and External Affairs, Dr Adam Marshall, said: “Our new report addresses many of the obstacles to the creation of a business bank, and shows that a new institution is both realistic and achievable. Ministers have a golden opportunity to pass enabling legislation for a business bank this autumn, and to dedicate their attention to ensuring that it is operational before the end of this Parliament.”
World trade is predicted to grow by 75% in the next 15 years, with merchandise trade volumes set to climb to US$48 trillion by 2025, up from US$27.2 trillion today.
That at least is the view of the International Chamber of Commerce (ICC), which is concerned that new financial solutions will be needed to enable corporates to maintain a resilient supply chain.
Accordingly, the ICC Banking Commission is organising its first-ever ICC Supply Chain Financing Conference, to be held in Paris on 4 and 5 October 2012.
Innovations in working capital solutions are more vital in today’s economic climate than they have ever been before, the ICC said, with companies and suppliers under conflicting pressures to improve payment terms, reduce prices and improve cash flow.
“From today’s emerging markets, new international powerhouses will arise to further drive world trade growth,” said Andre Casterman, Conference Co-Chair, Head of Banking and Trade Solutions, SWIFT and Co-Chair of the ICC Bank Payment Obligation (BPO) Project.
To support such growth in a volatile economic climate, he explained, new supply chain finance rules are being established. BPO rules, for example, offer a new instrument that combines the benefits of the letter of credit with those of open account trade.
The conference will combine educational sessions on different supply chain finance techniques while drawing on case studies and examples of best practice. Topics will be divided between invoice-based and purchase order-based supply chain finance techniques.
Jointly hosted by British Expertise and the British and Colombian Chamber of Commerce (B&CCC), a meeting to be held in London in October will explain why these organisations believe that the time is right to see Colombia as a market.
Those attending will hear the results of B&CCC’s newly completed research into the project opportunities created by the Colombian Government’s commitment to develop the country’s infrastructure, and will be provided with a copy of the report.
Carlos Sanchez, a lawyer with the firm of Duran & Osorio, will summarise the legal context of doing business in the fourth largest country in South America and will examine Colombian public-private partnership contracts and briefly describe how to take part in public procurement processes.
The meeting will be held at the London offices of British Expertise (10 Grosvenor Gardens) on 1 October at 3.30pm.
British Expertise is organising a UK infrastructure mission to visit Bogota and Cartagena from 19-23 November, to coincide with the Colombian Infrastructure Chamber Congress, the country’s largest infrastructure congress.
The October meeting will provide the background to the potential benefit of participating in the mission and will explain how, over the next eight years, Colombia will invest US$55 billion in its infrastructure, covering airports, ports, railways, hospitals, schools and roads.
Further details of the meeting, which is free to attend, can be found here.
The Middle East Association, in partnership with the Saudi Committee for International Trade, warmly invites you to attend this year’s 9th Opportunity Arabia Seminar on Monday 1st October at One Great George Street, London SW1.
Opportunity Arabia 9 aims to introduce British companies to a thriving and growing market place and to raise their awareness of the limitless business opportunities that Saudi Arabia has to offer.
David Lloyd, Senior Consultant at the Middle East Association will be coming to speak at our “Spotlight on Saudi Arabia” event taking place on 5 March 2013.
Last Monday started off just like any other normal back-to-Parliament week for a backbencher. Then the phone rang. Even with reshuffle chatter bubbling away in the background, any MP might hope, but certainly not expect it to be the Prime Minister. With that I was a Local Government Minister at the Department for Communities. Surprised, yes. A privilege, certainly. A new challenge, definitely. But I am ready and eager to roll my sleeves up and get on with the job of governing. So instead of deciding which debates to attend and thinking about select committee work I was off to join Eric Pickles at our Victoria HQ. So far, so good.
I have always been an avid Olympics and Paralympics fan and I am keen to see the sporting spirit that swept the nation this summer continue. So I was thrilled that one my first duties as a new minister was to attend the Olympic cabinet committee, chaired by the Prime Minister (I seem to be seeing a lot of him lately!). We discussed the huge contribution made by team GB, not just the athletes, but also the organisers and games makers that made sure 2012 went off without a hitch. We talked about the plans for the closing ceremony and parade which, I think we can all agree was truly great way to cap off a stellar sporting summer. Not to mention Andy Murray’s first grand slam victory.
Day two meant the Government’s big announcement to boost the economy, deliver 70,000 new homes and create 140,000 jobs through billions in debt guarantees, new housing investment and more planning deregulation. The plans were announced by Prime Minister and the Deputy Prime Minister, but Eric and our team of ministers all took to the front benches to set out the steps to Parliament that build on the housing, local government finance and planning reforms already in play. Getting growth going is a top priority for the Coalition and this package is something the chamber will no doubt welcome as a key contribution to that.
With any new job the first week is often about learning the ropes. So I’ve been settling into my new offices, learning my way around the building, meeting with my new ministerial colleagues to discuss our priorities and responsibilities. I also have a new private office team and daily tasks like correspondence, responding to parliamentary questions, reading my briefing notes or meetings with the civil servants to get up to speed on various aspects of my portfolio, which covers local government, the Fire Service, the Thames Gateway and community pubs.
Talk about hitting the ground running, which is ironic given that my new role has given me less time to train up for the triathlon I’m competing in. The weekend will hopefully mean I can catch my breath, get in some training and spend time with the family. Although I’ll have my ministerial box to get through and my first ever departmental questions on Monday to prepare for, so fingers crossed.
Commenting on Vince Cable’s industrial strategy speech, Caroline Williams CEO Norfolk Chamber of Commerce, said:
“It appears that Vince Cable has listened to business’ plea for greater long-term thinking in policy-making, and has set out some sensible steps that could help to improve the business environment in the Norfolk. His proposals around industrial strategy make an important contribution to moving Britain toward a new model economy. A successful industrial strategy isn’t about picking winners or losers, but about creating the right environment for all businesses to thrive.
“While businesses will be heartened to hear strong support for the establishment of a business bank, this must be more than just a vehicle for existing government schemes. A brand new, fully-fledged business bank is needed to lend to new and growing companies, many of whom report difficulty accessing finance. Companies are clear, though, that nothing less than a ‘full service’ business bank will do – a rebranding exercise for existing government schemes or one that uses existing bank infrastructure is not enough. Businesses need policies that will help over the medium- and long-term, but boost confidence now. The government can do exactly that by addressing the problem of access to finance faced by so many of Norfolk’s firms.
“We have long said that the skills system is failing Norfolk businesses, with resources following the choices of individual learners, rather than the needs of business. The Employer Ownership pilots announced today are an important first step to ensuring that funding actually delivers the training that our companies need in order to grow. We support a further expansion of this approach, with employers having a greater say in how training funds are spent”.
Love it or hate it social media is here to stay. Just over a year ago Paul Hill the then business editor of the EDP challenged me to get involved in social media. I even wrote an article in the EDP about how I needed to get up to speed on how to use social media effectively, but that I was doing so with some reluctance.
My first step was to organise a business event last September, it considered all aspects of social media from a novice point of view which meant that I too could learn what was what. I did learn a great deal and facebook, linkedin, twitter and google+ were put into context. However, I soon found that knowing what each of them did, didn’t really help me to understand how best to use them within my business.
It was time to call in the experts. I asked lots of questions both from suppliers and other users to see who was engaged in using social media, to ascertain what was right for the Chamber. What became very clear was that social media is a very new form of communication and there are very few clear cut right and wrong answers but I learnt a number of key lessons.
The first lesson was that instead of replacing the need for an efficient up-to-date website, the opposite was the case. Social media channels drive traffic to your website so if it is not up to the job you have a major issue. This is why we invested in a brand new website which provides a proper platform for our social media communications.
The second lesson was that social media does not replace any other marketing which you may already be doing but is in addition to the marketing mix of emails, website, magazine, literature and newsletters as well as face to face networking. All businesses, but in particular smaller businesses have limited resources, which have to stretch even further to accommodate this new communication method.
However, the most important lesson of all is that content is key and without strong relevant content – don’t bother! As I start to get up to speed and even have my own twitter account as well as the Chamber having one, I am appalled by how many businesses, who should know better, are using social media without taking the time and effort to really think about what they send and to whom. The right online communication sent to a targeted audience is ‘information’ and can produce business. Poor untargeted content is clearly seen as ‘spam’ and likely to damage your credibility.
Love it or hate it, social media is here to stay and it is important for all businesses to take the time and effort to understand what it means to their own businesses. So needing to understand content management relating to social media better I am organising another September event, details below, to hear from the experts- I wonder what next year’s event will be about!
14 September 2012 – ‘Engaging Customers – using social media and technology’ 8am – 2pm EPIC Studios, Norwich
UK trade deficit in good and services was £1.5bn in July, compared with a deficit of £4.3bn in June
“The large decline in the July trade deficit more than reversed the setbacks recorded in June. Underlying export volumes rose in the last three months, while import volumes fell. We know that Norfolk exporters are facing major challenges due to problems in the eurozone and the global economy as a whole, so progress towards rebalancing will be slow and painful.
“However, the latest trade figures show encouraging progress, and reinforce our hope that the UK economy will return to positive growth in the third quarter of 2012. UK exports to non-EU countries were slightly higher than exports to the EU in the last three months, which shows a shift in the traditional pattern where exports to the EU are usually much stronger.
“These developments show that British including those from Norfolk exporters are making the right decisions and moving to faster-growing areas outside the EU. We have always stressed that exporting companies have huge untapped potential to expand, but need the right support to help them compete and break into new markets. We have developed a Global Market Place series of six seminars to assist Norfolk businesses to get into new markets and hear from industry experts. Firmer action from government in key areas such as trade finance, promotion and insurance would be a good start, but this needs to be part of a general shift in priorities towards more policies to boost growth.”
UK trade deficit in good and services was £1.5bn in July, compared with a deficit of £4.3bn in June
Commenting on the trade figures for July 2012, published today by the ONS, Tracey Howard international Trade Director Norfolk Chamber of Commerce, said:
“The large decline in the July trade deficit more than reversed the setbacks recorded in June. Underlying export volumes rose in the last three months, while import volumes fell. We know that Norfolk exporters are facing major challenges due to problems in the eurozone and the global economy as a whole, so progress towards rebalancing will be slow and painful.
“However, the latest trade figures show encouraging progress, and reinforce our hope that the UK economy will return to positive growth in the third quarter of 2012. UK exports to non-EU countries were slightly higher than exports to the EU in the last three months, which shows a shift in the traditional pattern where exports to the EU are usually much stronger.
“These developments show that British including those from Norfolk exporters are making the right decisions and moving to faster-growing areas outside the EU. We have always stressed that exporting companies have huge untapped potential to expand, but need the right support to help them compete and break into new markets. We have developed a Global Market Place series of six seminars to assist Norfolk businesses to get into new markets and hear from industry experts. Firmer action from government in key areas such as trade finance, promotion and insurance would be a good start, but this needs to be part of a general shift in priorities towards more policies to boost growth.”
Representatives of the key Norfolk business groups (Norfolk Chamber, FSB, IoD, NWES, FIG, and the NFU) met with Chloe Smith, MP for Norwich North and Simon Wright, MP for Norwich South to highlight issues affecting local businesses. Among the topics for discussion was how to improve mobile phone coverage across Norfolk, an update on the newly formed federation, Transforming Education in Norfolk (TEN) and a progress report from New Anglia LEP on the Enterprise Zone in Great Yarmouth and their Going Places Fund.
We knew it was coming as soon as the Prime Minister popped up in the Mail on Sunday, promising that this autumn the cabinet would ‘cut through the dither’ and deliver bold policy reforms to support growth. Since then, we’ve had a raft of announcements, a far-reaching ministerial re-shuffle, and fairly frenetic telephone calls from Number 10 and departments to the British Chambers of Commerce (BCC) meant to show us that Whitehall means business.
Perhaps the most important event of the week, apart from the promotion of some our Norfolk MPs, was the Chancellor’s off-hand comment on the BBC1 Andrew Marr Show last Sunday, where he let slip that the Treasury was actively considering the creation of a small business bank. An important shift, as it echoes the call that John Longworth Director General at the BCC and his BCC team have been making for many months now. The BCC’s own paper on the case for a British Business Bank is now being discussed at the highest levels of government, and we will work hard over the coming weeks to ensure that any proposal that emerges actually serves new and growing companies in the real economy – rather than just the government’s PR interests.
The most disappointing event this week, on the other hand, was the government’s decision to wallop the key issue of aviation capacity into the long grass. By convening yet another review and pushing decisions into the next Parliament, ministers are shying away from one of business’s top priorities.
So the talk of ‘cutting through the dither’ may yet be just that – talk. Or it could signal a substantive change in government policy that really helps business deliver a new model economy. We’ll be pushing for the latter in the weeks to come.
Ensure you are part of the debate by attending our Economic Breakfast with John Longworth Director General BCC and Chole Smith MP on 5 October at Dunston Hall and attend our business conference Unlocking Success on the 23 November at OPEN Norwich.