Catch up on the big issues with our weekly Small Business Bites. We cut through the noise to dig out the big stories from the past seven days that really matter to the you. Here’s our roundup of things small business owners need to know:
HMRC sets out its timetable for ‘Making Tax Digital’
The end of the dreaded annual tax return could be in sight for the Britain’s small businesses. This week, HMRC released new details about its plans to shake up the tax system; part of the Government’s flagship ‘Making Tax Digital’ scheme which aims to replace the yearly headache with quarterly digital updates and published reports. The consultation papers set out a plan to give the UK ‘the most digitally advanced tax system in the world’, phasing in the changes between 2018-2020.
“This new system will make the UK’s tax administration more efficient and straightforward, and will offer businesses greater clarity when it comes to paying their tax bills.”
Jane Ellison, financial secretary to the Treasury
Some groups criticised the plans to make digital accounting mandatory for all businesses as an unnecessary burden – the Institute of Chartered Accountants for England and Wales (ICAEW) was “dismayed” at the plans, as economia reported. However, the Government insists that those businesses who cannot go digital would not be forced to do so, and it will be looking at steps to assist businesses with the transition.
Unemployment’s unexpected fall
Figures released by the ONS this week showed that jobless claims were down in July, going against expectations for the period immediately after the Brexit vote. The number seeking jobseekers allowance fell by 8,600 in the month, after holding steady at 4.9pc in June. Reporting on the announcement, The Telegraph’s Tara Cunningham noted that “much of the data from the ONS covered the labour market in the run-up to the Brexit referendum” (read full article).
Source: Office for National Statistics, Department for Work and Pensions
How productive is your business?
A survey out this week suggests small businesses aren’t measuring their productivity well enough. According to the news site SmallBusiness.co.uk, only 8 per cent regularly monitor productivity metrics. Less than a quarter said they thought it was something that needed doing more, and the ‘worst’ at reviewing their productivity were companies in education, sales, media and marketing.
‘Technology affords us so many exciting ways to improve productivity….[however]… many workers feel like the boundaries between work and life are blurring.”
Graham Allcot, author, ‘It Pays to Play: Play and Productivity’ report (Bright HR)
According to the businesses asked in the report, the most common threats to productivity were:
- HR administration – 31%
- Office politics – 29%
- Play in the workplace – 28%
In other news
The Small Business Saturday 100 was announced this week; the start of preparations for the fourth annual celebration of the UK’s small business community. Read the full list, featured in this week’s Guardian. This year’s event takes place on December 3rd if you want to get involved!
