Tag Archives: self employed

Finance and Banking, News

NatWest launches tax calculator for businesses following Budget

NatWest has today launched a new online tax calculator, which will allow UK businesses to identify and calculate additional tax incentives that may be available via super-deduction or annual investment allowances, to assist them with business investment planning.

The launch follows the announcement of “super-deduction” in the Spring budget which allows companies to claim up to 130% deduction against profits for any new and unused plant and equipment purchased between 1 April 2021 and 31 March 2023, to help stimulate business investment and promote economic growth and recovery from the pandemic.

Yesterday’s Autumn Budget confirmed the retention of the £1 million annual investment allowance until 31 March 2023. This was due to drop back to £200,000 at the end of this year meaning the extension provides further help to businesses across the UK to invest and grow.

Powered by Swoop, the bank’s new tax calculator complements the grant finder tool which was launched in February 2021 to help UK businesses search for grants to help them manage the ongoing impacts of the COVID-19 pandemic. The tool has had more than 15,000 hits, and NatWest continues to provide this service free of charge to support businesses to achieve their growth and sustainability ambitions.

Both tools are available free of charge to any business online through the NatWest, Royal Bank of Scotland, Ulster Bank NI and Lombard websites. Upon completion of some simple questions, applicants can either review grants matched to their business, or understand potential tax savings applicable as a result of investment in plant and machinery.

Ian Isaac, Managing Director, Lombard Asset Finance, NatWest Group said:

“The government’s decision to increase tax incentives both by way of extending the £1m Annual Investment Allowance until March 2023 in the recent Budget, and introducing the super-deduction scheme, will help businesses to stimulate business investment and increase productivity. With businesses now looking to build back better, grow, diversify and become more sustainable, it’s essential we continue to provide them with the practical support to help achieve these ambitions.

“We’ve worked with Swoop on the tax calculator tool which offers business leaders access to the information they need to understand the tax benefits they may be entitled to when investing in qualifying assets. This development follows the success of the grant finder tool which has now been made more widely available to help more businesses benefit.”

Andrea Reynolds, CEO of Swoop said:

“Swoop was built to help SMEs learn about and access the support they need more easily. Working with NatWest Group is an opportunity to reach a huge number of businesses which will benefit from the ‘super-deduction’, ensuring that the help offered by the government actually reaches those who need it most. I can see how this approach will create win-win situations across the value chain and boost the UK’s economy as we go into 2022.”

NatWest’s grant finder service and tax calculator is now live at www.business.natwest.com

News

Self-employed women lost almost DOUBLE the income of male counterparts during pandemic, yet remain more optimistic about the future

Self-employed* women surveyed lost almost double the income of their male counterparts during the course of the pandemic, but remain more optimistic about the future of their business. This is according to new research released today by Superscript, the SME insurance provider.

Research of over 2,000 sole-traders, freelancers and micro-business owners** showed that women lost 20% of their income, compared to men who only lost 11%. The news comes after academics said that the female self-employed have been ‘overlooked’ by government support schemes, with female take-up of the SEISS grant lower than male take-up.

Overall, the self-employed lost an estimated 15% of income. The primary factor for the drop in income was not because of the closure of physical premises, of which only 14% of respondents attributed the primary reason, but because demand for products and services dropped (35%).

As a result of the drop in income, self-employed women have also suffered a greater mental toll than self-employed men. Over half (53%) of women surveyed say that their mental wellbeing has been negatively impacted by the pandemic, compared to 38% of men. The primary reason for this is due to concerns about providing for themselves and their families (28% overall). Lack of human interaction with colleagues, friends and family (23%) and concern over the future of the business (14%) were the other primary factors. Only one in ten (12%) said that their drop in mental wellbeing had nothing to do with work.

Despite a difficult period, now that restrictions are lifting and the road to recovery is clearing, ‘optimism’ is the prevailing state of mind for the self-employed (29%) currently. With female respondents (30%) slightly more optimistic than their male counterparts (29%), despite being more heavily impacted. Additionally, enthusiasm for being self-employed and running micro-businesses has not dimmed, with half (50%) of respondents agreeing that they love doing what they do so much that they don’t see it as work at all.

The research also showed that the most significant motivations for becoming self-employed were: greater control over schedule (27%); the satisfaction of building something themselves (19%) and following their passion (17%). Does being your own boss appeal to you? Take Superscript’s quiz to see what kind of boss you’d make.

Cameron Shearer, co-founder and CEO of Superscript, said:

“There’s rightly been a lot of focus on mental health in the workplace during the pandemic. So we wanted to explore the human impact on the self-employed and micro-businesses, who make up 95% of registered businesses in the UK, and don’t have access to resources like HR departments for support.

“It’s been a tough time for the self-employed as they have tried to keep their business, which they have worked so hard to build, above water despite demand for products and services dropping off a cliff. Self-employed women have been disproportionately impacted, which illustrates that society still has a way to go to encourage female entrepreneurship. Nevertheless, now that the fog is clearing, it is inspiring to see the resilience and adaptability that the self-employed have shown, and they will benefit from that in the long-run. We are seeing more demand for business insurance as confidence and optimism returns and more people look to set up on their own. There will be a lot of opportunities in the next 12 months for small businesses to grow and thrive, and I expect this to be a very fruitful period as the economy returns even stronger than before.”

Emma Maslin, money mentor, Founder of The Money Whisperer, said:

 “Like a lot of other self-employed women who took on a disproportionate amount of the homeschooling responsibilities during lockdown, keeping a service-based business running wasn’t easy. It was a challenging time, but those of us who choose self-employment thrive on challenge. I never want to go back to paid employment again so I kept my initial motivation for working for myself – freedom – at the front of my mind, and pivoted my business. Now it is more successful than ever.

“The self-employed have shown great resilience over the past year, often with little or no financial support from the Government. Small business is the lifeblood of the UK economy and for a strong recovery, we need to see entrepreneurship supported from all angles going forward. Certainly, the availability of flexible business service offerings, including insurance, is critical to enable small businesses to recover, grow and then thrive.”

About Superscript

Superscript provides business insurance designed specifically to meet the fast-changing needs of small businesses. Underpinned by proprietary technology, expertise in emerging risks and threats, and partnerships with some of the world’s biggest underwriters, it delivers bespoke, subscription-based insurance cover for all types of risk. Superscript shapes business protection around businesses’ individual needs, from essential cover through to complex risks. It delivers a personalised customer experience that supports the ever-evolving needs of small to medium-sized businesses.

Superscript was originally founded as Digital Risks in 2015 by Cameron Shearer, CEO, an accomplished marketer, entrepreneur and tech expert, and Ben Rose, Chief Underwriting Officer, an experienced broking, risk management, underwriting and claims specialist. Its investors include BHL Holdings (owner of Compare The Market), Beazley Group and Concentric.

About the research

*Those who described themselves as sole-traders, freelancer or micro-business owners, and were either ‘self-employed’; ‘employed full time’ or ‘employed part time’.

**The research was conducted by CensusWide, with 2,015 Micro-business owners (1-10 employees), sole-traders/self-employed and freelancers (with even quotas) between 03.06.2021 – 16.06.2021.

News, Start Ups

Entrepreneurs share their advice on overcoming adversity, as self-employment falls in the UK

Job market data shows the number of self-employed UK workers has fallen by 6.6%1 in the past six months alone, while more than 100,0002 job cuts have taken place in the UK so far during the pandemic.

Self-employment is challenging at the best of times, perhaps never more so than in 2020. With this in mind, experts from the University of Law (ULaw) Business School have analysed self-employment figures in the UK and sourced advice from successful entrepreneurs on how to overcome adversity and thrive in a challenging business environment.

Despite 2020 so far showing a drop in the number of self-employed workers, encouragingly this number has steadily increased by 34% over the last 15 years4 with more than 4.7 million Brits in this category5. The consistent increase shows that pursuing a self-employed career continues to be an attractive option.

In terms of the most prominent self-employed occupations6, construction comes out on top, with 862,060 workers in this field registered as self-employed. Other popular industries for self-employed workers are professional services, scientific and technical activities (610,385) and human health and social workers (366,566).

With self-employment representing 15% of employment in the UK7, ULaw spoke to leading entrepreneurs on why choosing to go self-employed is still a viable career option despite the current climate, as well as their top tip for a self-employed career.

Be present and consistent online
Gemma Nice, a self-employed yoga coach, recently decided to take the plunge to work for herself after being on furlough from her veterinary nursing career of 19 years. Her top tip for anyone considering going self employed is: “Be present in all aspects of social media and be consistent. People are watching and learning from you all the time even if they aren’t engaging with you there and then.”

Consider your personal pros and cons
Amie Marshall, a self-employed Clinical Nutritionist who created her own business six years ago, says: “I would encourage anyone who is debating whether to go self-employed during the current climate to write down the pros and cons in order of importance. For example, if you are used to a stable salary and that is essential to you, remember being self employed has its ups and downs – the pandemic aside, every industry has slow months, but always remember that if it’s your dream, you can make it happen.”

Seek mentorship
Lee Chambers, a self-employed Psychologist and Career Consultant, says: “I recommend considering a mentor, who can help you plot a path and advise the pitfalls they faced. It’s definitely a learning journey, so enter with a beginner’s mindset and start to read and practice the skills you will need to flourish in the early days. Start to build a network of other business owners and freelancers who understand the challenges and can collaborate together.”

Andres Perez, Director of the University of Law Business School, said: “Pre-pandemic, we were seeing self-employed figures consistently increasing in the UK as more people sought to work for themselves. Naturally, Covid-19 has slowed this growth and self-employed workers have been hit hard, but entrepreneurship comes hand in hand with grit and determination, which are certainly key to a strong recovery from any business setback – pandemic or otherwise.

“When it comes to the benefits of self-employment, research has shown that self-employed workers have reported improvements in the ability to concentrate, levels of self-confidence, self-worth and happiness. Self employment also allows workers to be flexible with their time and create a better work/life balance.

“Of course, self-employment won’t be for everyone, but the transferrable skills can propel you in any career and it’s this practical experience and knowledge we try to instil in our students.”

To find out more starting your own business, please visit: https://www.law.ac.uk/resources/blog/entrepreneurship-tips/

News, Start Ups

Eight top tips for setting up your own trade business

Being your own boss has many perks that make it an appealing career move, but it also presents challenges you’ll need to prepare for.

To help those looking to set up their own business, IronmongeryDirect, the UK’s largest supplier of specialist ironmongery, has spoken to tradespeople who have already taken the step to go self-employed, to reveal eight things to be aware of.

Consider if you’re a sole trader or limited company

Choosing whether you will operate as a sole trader or as a limited company is an important step and will have implications for how you pay your taxes. A sole trader is the simplest form of business structure and is essentially a self-employed person who is the sole owner of the business. A limited company has its own legal identity, separate from its owners and managers. This remains the case even if you’re the only person in the company.  Despite a limited company being a more complex structure, it offers an owner more protection. This is because as a sole trader, you have unlimited liability, meaning the law does not distinguish between your business and your personal property. This means that if your business incurs losses then your property could be seized by creditors.

Michael Wynn, Managing Director of Yorkshire Brickwork Contractors, said: “Setting up as a sole trader is seen as more manageable for busy tradespeople. This tends to be the preferred choice as less administration is involved when managing taxes, in addition to lower costs compared to a limited company.”

Put together a business plan

One of your first priorities should be to create a detailed business plan.

Christopher Field, who set up CJF Electrical Services, said: “By creating a business plan detailing all of your initial overhead costs, you ensure that you can save and budget for all the things you need to get started. This will include things like a van, tools, uniform, insurance, qualifications, and budget for marketing and advertising your services.

“Make a list of everything you need to buy and do, as well as estimating how long it will take to get everything sorted. It takes time to apply for a bank account, get the appropriate and best deal for insurance, set up wholesale accounts and create a website and social media channels, so don’t expect it to be quick to set up!”

Make sure you have the right insurance

Business insurance is essential in any sector but is especially important in trades where health and safety is a factor in day-to-day work.

Alan Gott, from Alan’s Home Improvement Services, said: “It’s very important that you have public liability insurance (PLI) and professional indemnity insurance (PII). PLI covers you for injury and property damage claims made against you, whilst PII covers things like negligence claims and unintentional breaches of copyright or loss of data.”

Don’t forget your taxes Another part of getting your finances in order is knowing what taxes you’ll need to pay. Michael Wynn adds: “Remember to make sure you keep up-to-date records of all business sales and expenses and plan to submit a self-assessment tax return every year – this is critical so do not forget! If you don’t keep up to date, it‘s really easy to fall behind and find yourself in a rather sticky situation.

“Another thing to note is that if your turnover is more than £85k, you must register for VAT. You can also register voluntarily if you sell to other VAT-registered businesses and want to reclaim the VAT at the end of the year.”

Focus on customer service

While good customer service is always important, it is particularly crucial when first starting out as it can be the difference between your business succeeding or failing.

Alan Gott added: “Remember that customer service is key. Create a personalised and quirky answerphone message so that people can leave a message, and always respond to messages promptly, regardless of whether or not you’re able to do the job. Arrive on time, and always be polite, courteous and obliging with your customers. This will help you to build up trust and spread positive word of mouth.

“Remember that even the little jobs can lead to more work in the future, so never turn down opportunities because you think they’re not big enough for you to spend time on.”

Market your services

Marketing your services can be done cheaply and effectively online, using Facebook or Google My Business. This will help people find you and increase awareness of your business.

Andy Porter said: “Look into local advertising methods to market your services and see how other tradespeople are doing it for inspiration. Alternatively, social media sites like Facebook can also be a great way to market your services for free if you don’t have the budget for advertising.”

Keep a cash reserve handy

Businesses need to be prepared to deal with the unexpected and keeping a cash reserve could help your company get through difficult times.

Andy Porter, a self-employed carpenter, said: “It’s important to make sure you’ve got plenty of money saved up in advance, as cash flow is really important. Having a contingency pot of emergency funds will help make your business resilient during quiet periods, as well as allowing you to deal with unforeseen occurrences beyond your control.”

Don’t be afraid to ask for help

Remember that you don’t have to go it alone when you’re first setting out. Industry organisations, friends and family on similar ventures are great resources of knowledge.

Andy Porter added: “It’s a good idea to speak with other sole traders that have established their own businesses and done it all before. Ask them for advice to help you repeat your successes and avoid their mistakes. This can also be a good way to build relationships with professionals in other trades, which can sometimes lead to additional work that you otherwise wouldn’t have been offered.”

IronmongeryDirect sells a range of tools and products you might need to start up your own trades business – for more information, visit: https://www.ironmongerydirect.co.uk/

HR News

Hermes promises million pound ‘Coronavirus Fund’ to support Self Employed Couriers

Hermes, the consumer delivery specialist has announced it is to make a £1 million pound fund available for its self- employed couriers, to help support them if they need to self-isolate as a result of the coronavirus. It follows concerns about their welfare as self-employed people are not eligible for sick pay. Hermes will also support them in finding someone to deliver on their behalf if they do not have a substitute and guarantee that their rounds will be kept open for them for when they return. This initiative is supported by the GMB Union.

Martijn De Lange, CEO at Hermes UK, said:

“This is an extraordinary situation and we have taken the decision to help support our couriers financially if they need help and also ensure we are doing everything we can to prevent the spread of the virus. It is simply the right thing to do and I hope that other organisations will follow our lead.”

Hermes is at the forefront of supporting rights for the self-employed as demonstrated by its introduction of the ‘Self-Employed Plus’ (SE+) option, which attracts a number of benefits such as holiday pay and is the first of its kind in any sector.

The deal is backed by the GMB Trade Union under a partnership agreement which saw Hermes provide recognition of the GMB’s representation of any of its circa 15,000 self-employed couriers that choose to join the Union.