Chancellor to Help Small Businesses

With numerous talks regarding the recession and economic crisis, a lot is being said about small businesses.  Experts like Lord Digby Jones are trying to get small businesses into the global market.  Darling, the chancellor has also made an effort to offer help and support for small businesses.  Before getting into some advice to help out small businesses we will look at what the Chancellor is hoping to accomplish.

Alistair Darling announced in a pre- budget report he will be allotting £500 million for capital growth for small businesses.  This money is to help finance small business operations and any extensions of small businesses that might be required.  Since the government experts feel recovery is possible through small businesses it makes sense to offer a budget of loans to get small businesses to expand, especially into the global market.

The first thing the Chancellor announced was delaying the 1 percent increase on taxes.  This increase is only delayed for those making less than £300,000.  He is also going to extend the property rate relief and continue the “time to pay” scheme.  This scheme allows the companies to spread their tax payments out over a longer period to help in other areas.  The VAT tax will be increased to 17.5 percent over the 15 percent it is now.  Small business individuals would like this tax to remain at 15 percent, but the other breaks will at least help.

The advice being offered here is to take advantage of the options the Chancellor is giving small businesses as well as to expand in the online international and local markets.  For small businesses afraid to go into the international market, they need to take the jump even if it is just online.  Offer products on the web that can be shipped to countries more interested in purchasing these objects.  The US, China, and India are all looking to stimulate the economy.  While the US would like this to be internal, you can still find customers looking for better value products that they cannot find in their own country.

Furthermore, on the tax front take a look at the “time to pay” scheme.  You may discover you can save a great deal by paying out over time, rather than paying on the due date.  This is an option you must opt- in for and be qualified to take advantage of.  If you are then your small business may be able to expand. Increase inventory or advertising to place your company in a more stable position.

Not all of what the government is doing will help, but at least there is being support offered that you can consider.  Even if these schemes do not work for you, it gets you thinking about what could.  With the numerous tools, information, and more available to you it is really imperative to grab what you can.  Think outside of the box a little bit regarding your small business and see where you can grow your revenues in the next year.