New costs faced by small businesses
UK small firms face a number of new costs and charges from April 2019
A number of new costs and charges are faced by small UK businesses from April 2019 onwards.
These changes were announced in last year's Autumn Budget, and many SMEs will inevitably have forgotten about them. So here's a quick summary of the three key changes, to ensure you plan for them and avoid a nasty shock in the coming months.
Business rates changes
Further business rates changes are being implemented which will reduce bills for some small businesses, and raise them for others. The average restaurant will save more than £7000 a year, but during 2019-20 the government will collect £25 billion in business rates - an increase of £206 million. So the fact remains that some small firms will lose out.
Check your bills carefully and contest any increases that you don't believe are justified. You can get discounts and support in some instances - find out more here: https://www.gov.uk/introduction-to-business-rates/getting-professional-advice.
HMRC's Making Tax Digital
This new initiative could change the VAT reporting requirements of 2 million businesses, and the necessary software is said to cost SMEs an average of £564. This change affactes VAT-registered businesses, so check your circumstances carefully and find out more here: https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital
Auto-enrolment pension increases
Small businesses' contribution to auto-enrolment pensions are compulsorily increasing to 3% too. If you have several employees, this will add hundreds, if not thousands of pounds to your staff expenses, so it's worth thinking about how you can set some extra money aside.
Be frugal in 2019
It might sound obvious in these challenging times, but 2019 really is a year to focus on tightening the purse strings. With costs increasing, it's essential that you manage to increase your coffers and therefore your cashflow. And for starters, at least one way to do that is to put your monthly bills under the microscope.
At XLN, we can help with many of them. We provide low-cost phone, broadband, card payments, energy, SIM-only mobile deals and public Wi-Fi, all exclusively for small businesses. And in almost all cases, we can beat whatever price you're paying now. So for times like these, we can make a real difference.
For more info, head to www.xln.co.uk