Wednesday January 20, 2010 at 9:36am
I have previously written about the business rates revaluation. For those businesses which may experience a large increase in business rates, the transitional relief scheme is intended to spread the impact over several years. To find out whether your business rates increase will be phased in over time, check the lists below.
Caps for small properties Small properties are those with a rateable value of below £18,000 (£25,500 in Greater London) as at 1 April 2010. The cap ....
(read more...)Thursday January 14, 2010 at 5:26pm
The surprise banks’ overdraft charges victory could leave landlords’ exposed to a new challenge by estate agents. The High Court originally ruled that millions of pounds of residential tenancy “renewal” fees charged by Foxtons to landlords were unfair resulting in expected refunds running to millions of pounds. The new interpretation of the law means that buy-to-let investors may now face delays in their claims for a rebate whilst any appeal is heard.
Please get in touc....
(read more...)Monday January 4, 2010 at 9:29am
The Chancellor’s December 2009 pre-Budget Report announced that the Government is to extend and increase the temporary relief from empty property rates for low value properties. The Government will continue the relief for a further year from April 2010.
Further, for 2010-11, empty commercial properties with rateable values up to £18,000 will be exempt from business rates. This continues the exemption for what the Government says is an estimated 70 per cent of empty properties.
Wit....
(read more...)Wednesday December 9, 2009 at 6:37pm
Giving with one hand, taking away with the other? The chancellor’s pre-budget report is perhaps no big surprise in delivering both pluses and minuses for the small business owner. Along with The Federation of Small Businesses (FSB), I welcome the chancellor's decision to defer the one pence rise in corporation tax for small firms. This increase had been due to come into effect from 1st April next year, but will now be delayed until April 2011. I’m sure this deferral will help some sm....
(read more...)Thursday October 15, 2009 at 12:20pm
It’s heartening to read in the Independent that small and medium sized firms are ‘poised to lead the country out of recession.’ Our experience of SMEs – our clients – is that they are indeed innovative and determined to succeed as the Independent’s research suggests. But it’s more than that; with many being owner managed, we see a real spirit of enterprise coupled with grit and determination. Many of our clients have spent a lifetime working in or on the....
(read more...)Thursday October 8, 2009 at 10:26am
The new Companies Act has made some changes as to who directors are and registration requirements. Most of these new rules came into effect on 1st October 2009 but it seems many Directors know nothing about them.Who is a
director?A director is anyone who has either been formally appointed as a director (by the shareholders or board as set out in the company’s Articles), occupies the position of director (even if they are called something else) or someone whose directions or instructio....
(read more...)Wednesday August 26, 2009 at 3:47pm
I am sure that all buyers (and most sellers) will want to make sure that goods sold are of satisfactory quality and do the job intended. But what is the remedy when things go wrong, for example the steel supplied is not up to the job, the cattle food makes the cattle ill, the computer does not live up to its billing, or the machinery keeps breaking down?
Sale of goods law provides remedies for buyers where the goods are not of "satisfactory quality". A recent High Court case conf....
(read more...)Friday August 21, 2009 at 7:00pm
There’s a new feeling in the air in certain quarters – one of optimism – and I’m sure I’m not the only one who’s feeling it. For those of us who follow all the research statistics about SMEs and the recession, this summer has been full of conflicting news. There have been many days where the good news statistics were evenly balanced by the bad news statistics. It looked like green shoots had germinated but would they grow or can we expect them to whither in th....
(read more...)Tuesday August 18, 2009 at 4:28pm
As businesses continue to struggle at the moment, there’s been a recent increase in the number of SMEs who are making Directors redundant. It can often make sense: if a company’s activities have shrunk, with fewer sales and a reduced workforce, it can now appear too top heavy and under performing directors might be at risk. Handling a Director redundancy can be much more complicated however than making a staff member redundant as we explain in the more detailed article on Director Re....
(read more...)Tuesday August 11, 2009 at 6:42pm
It is estimated that the first serious wave of Swine Flu will hit the UK between August and November this year with the cities being affected more than the countryside. This means that approximately 12% of the workforce nationally is likely to catch it during this period. The impact on SMEs is likely to be particularly severe. The problem is that it spreads easily from person to person, which is likely to mean that, once it takes hold in a particular workplace, far more than the 12% average coul....
(read more...)Thursday August 6, 2009 at 2:58pm
The Credit Crunch is inevitably contributing to a delay in payment to businesses, particularly vulnerable SMEs. Money owed to small businesses shot up by 40% from £18.6 billion in 2007, to £25.9 billion in 2008, according to Bacs. And who knows where the figure is at this time, no doubt substantailly higher.
This attack on cash flow is probably the biggest single cause of company failure. For example Barclays state that more than 750 companies failed in the South East in 2008 due t....
(read more...)Friday July 24, 2009 at 4:37pm
Solicitors firms outside London are showing no signs of a recovery. According to an article in The Times this week, many such firms saw their profits fall by more than a third last year. The Article reports that many firms are imposing salary cuts of 10% or so in return for longer holidays as a way of cutting costs. I have seen this happen in firms in the Midlands area too and many very able
solicitors are finding their route to an equity partnership blocked – why would existing partners w....
(read more...)Wednesday July 22, 2009 at 4:56pm
Yes, according to new research published today by Creditsafe. They say that 33% of British firms are planning to stop using cheques to pay other businesses within the next 12 months, and that 11% are planning to stop accepting cheques altogether! Instead, they plan to rely on direct bank transfers (such as BACS) and debit and credit card payments. Reasons given were that these were more traceable, more efficient and reduced the need for manual processing. They estimate that the savings to the Br....
(read more...)Friday July 17, 2009 at 9:45am
The economic news continues with its mixture of good and bad statistics as to the state of the economy. The bad news is yesterday’s unemployment figures. These revealed that unemployment rose by 281,000 over the three months to May. There are now 2.38 million unemployed, which is the highest level since 1995. 7.6% of the economically active population are now unemployed, according to the Office for National Statistics, which compares with 6.9% over the three months to February. There is so....
(read more...)Thursday July 9, 2009 at 4:45pm
In the past 2 weeks I have been the victim of large scale internet fraud on 2 credit cards, and so I have taken a keen interest in liability and in ways to protect against future fraud.
I have been very careful to use only on line stores who encrypt customer details, but fraudsters have still managed to obtain my credit card details including security number, as well as my address, telephone number, date of birth. This can only be a result of sophisticated hacking, or criminal activity by an e....
(read more...)Thursday July 9, 2009 at 10:55am
The Cranfield School of Management has identified six behaviours that successful owner-managers possess. Why not test yourself against their list of behaviours which are about:
taking control,
being confident,
being distinctive,
being strong
making wise decisions
being ready to take advantages of opportunities that others will miss.
Nothing particularly novel in the list I don't support but the video on their website explaining these behaviours certainly makes y....
(read more...)Tuesday July 7, 2009 at 11:11am
Today's British Chamber of Commerce figures suggest that British business is over the worst of the recession. Let's hope they've got that right.
The survey data from 5,600 companies shows progress in both the manufacturing and service sectors with most key indicators improving in the last quarter.
Looking more closely at the data however I wonder how much of this is just trying to talk ourselves out of the problem. Not that I am against that - afterall some businesses I t....
(read more...)Monday June 1, 2009 at 6:32pm
Another sign that the recession might have bottomed out is a recent survey by the Forum of Private Business. Their survey reports that confidence in the SME sector has shown a slight improvement: 26% of respondents said the viability of their business had improved in over the past month, double those who thought it had got worse. Dissatisfaction with banks was still reported as a problem, with 18% saying that the support offered by their bank had deteriorated in the last month compared with 12% ....
(read more...)Thursday May 14, 2009 at 7:08pm
When can we expect a recovery? This must surely be the question all SMEs are asking themselves. Most have adjusted to the recession as best they can, costs have been cut, cash flow managed more effectively and surplus labour made redundant. It has been painful, profits have been slashed, if they exist at all, but we hear of more and more businesses saying that they think they will survive the recession. But just how much longer until the belts can be loosened? There has been some talk in recent ....
(read more...)Friday May 1, 2009 at 6:06pm
The
Insolvency Service today published their statistics for the number of company insolvencies for the 1st quarter of 2009. These show that there were a total of 4,941 liquidations in England and Wales (an increase of 56% compared to a year ago). Of these, 1,579 companies were wound up by a court (an increase of 43.6% over the year) and 3,362 companies put themselves into liquidation (an increase of 62.5% over the year). From our experience, the main cause of liquidations is cash-flow problems o....
(read more...)Monday March 23, 2009 at 6:16pm
This was publicised in the Telegraph today and is another piece of bad news for businesses struggling with their cashflow.
The rateable value of some properties rose or fell in line with changes in rental values after the last revaluation on 1 April 2005 and 'transitional arrangements' were in place to phase in the increase or decrease in the rate bill. The next revaluation will come into effect on 1 April 2010. The current transition scheme operates over a four year period from 1 April 2005. T....
(read more...)Monday March 9, 2009 at 6:00pm
According to a recent poll by SmallBusiness.co.uk, 80% of those polled said their banks have failed to offer support; 48% said their bank had no understanding at all; 28% said they had been supportive verbally but not in action; and 10% said that their overdrafts had been cancelled. On the positive side: 7% said their bank had been more supportive than expected, and 4% said they had been very constructive and helpful. With these sorts of client-care statistics, you’d expect any modern busi....
(read more...)Friday March 6, 2009 at 5:41pm
The latest figures from the British Retail Consortium (BRC) suggest things aren’t quite as bleak for retailers as the media have been suggesting. The Retail Sales Monitor January 2009, from the BRC and advisory services firm KPMG, shows values increased by 1.1% on a like-for-like basis when compared to the same month last year. This represents the best performance since May 2008, when sales were spurred by sunny weather. Interestingly food sales were the driver of the increase, displaying ....
(read more...)Wednesday March 4, 2009 at 7:17pm
As cash flow is becoming an increasing issue for SMEs, we are finding that more and more creditors are issuing Winding-Up Petitions. These can be a very effective way of getting a company to pay its debts. A Winding-Up Petition will be delivered personally to the company’s office but, unlike most court proceedings, the documents do not state exactly what should be done when one is received. What must be done is to take immediate action and legal advice. If the matter is not resolved within....
(read more...)Wednesday March 4, 2009 at 2:00pm
Talking to clients I am conscious that the cost of business premises is concerning many business owners at the moment. In the retail sector some businesses just can't meet their rents - hence the latest figures suggesting that 90,000 shops stood vacant across the UK in February.
Premises are one of a business’ biggest overheads and so it pays to continually review what steps you can take to reduce your premises costs.
I've just added an article with 10 tips for saving money o....
(read more...)Friday February 27, 2009 at 6:59pm
There’s hardly a day goes by without a further announcement of solicitors being made redundant or being forced to accept a drop in salary. Those worst affected are the more senior solicitors, as solicitors’ firms push more trainees and newly-qualified lawyers forward to handle the day-to-day casework that more experienced lawyers used to do. In recent weeks, we are also hearing of partners being made redundant, which means that employment protection legislation can be side-stepped. I....
(read more...)Wednesday February 25, 2009 at 6:24pm
Not according to the Federation of Small Businesses (FSB) whose recent survey claims measures like the cut in VAT, pledges on payment practices and bank lending guarantees have done little to improve the situation facing small companies. Half of the 4,000 respondents in the FSB survey had experienced a fall in trade over the past two months, with getting paid still one of the biggest complaints. With this, and a new study from the Confederation of British Industry showing firms expecting the fin....
(read more...)Wednesday February 11, 2009 at 2:00pm
This blog is a plea to all business owners.
Please, please, please - if you see a business dispute on the horizon, NEVER ignore it and leave it to fester. I can tell you from nearly 20 years of dealing with business disputes that the sooner you tackle problems the better.
We covered the topic in our January Ezine (Spotting a Business Dispute on the Horizon), when I suggested three obvious signs that a dispute might be looming: payment delays, communication drying up and guilt.
In....
(read more...)Thursday February 5, 2009 at 10:46am
Cousins Business Law has published a Guide to doing business in the UK. The Guide covers:
The issue of jurisdiction and the laws of England and Wales
Business structure
Trading laws and regulations
Employment and staff issues
Property
Handling business disputes
Although written for overseas business owners who are either currently doing business here or are considering trading in the UK it’s also a useful ‘quick guide’ for British busines....
(read more...)Tuesday January 27, 2009 at 11:40am
Under the new Companies Act, Companies House are entitled to charge penalties for the late filing of Annual Accounts . These will come into force on 1st February 2009. Yesterday, they announced that new penalties will be as follows: For Private Companies (Ltd's):Less than 1 month late: £150Between 1 month and 3 months late: £375Between 3 months and 6 months late: £750More than 6 months late: £1,500For Public Companies (PLCs): Less than 1 month late: £750 Between 1 m....
(read more...)Tuesday November 18, 2008 at 10:01am
The latest Government figures on insolvency (published 7th November 2008) show an alarming increase in the number of business failures. There were 4,001 compulsory liquidations and creditors’ voluntary liquidations in the third quarter of 2008, an increase of 10.5% on last quarter and a 26.3% increase on the same period last year. Add this to the 27,087 personal insolvencies in the same period and you can see the recession in the UK is really starting to bite. Even if your industry sector ....
(read more...)Tuesday October 7, 2008 at 7:34pm
Here at Cousins Business Law, we are advising more and more directors of their responsibilities in times of financial trouble and we predict we will be advising many more in the months to come.
Whilst I think that everyone agrees the world has never seen anything like the present credit crunch, there has been some debate as to whether we can expect to see a recession as bad as the 1930s or, if not, as bad as the 1970s.
With this in mind, I came across this Times Article. Does it look as famili....
(read more...)Monday October 6, 2008 at 7:34pm
I was reading the results of a survey from the Coventry & Warwickshire Chamber of Commerce, which suggests that businesses in this part of the West Midlands are really starting to feel the effects of the current economic climate. 77% of those surveyed reported a marked difference in sales figures compared to the same time last year and some reported as much as a 90% drop in trade. It did make me wonder how businesses with a 90% drop in trade can survive. On the plus side, it does seem that s....
(read more...)Tuesday September 30, 2008 at 6:48pm
The latest issue of the Cousins Business Law ezine with a feature article entitled 'Should you rely on a gentleman's agreement' is generating lots of interest. It is amazing how many business owners and managers fall foul of the fact they didn't have the details of a commercial deal in writing.
The example we talked about in the ezine (of a multi-million pound property deal that went ahead based on a verbal agreement) may seem extreme, but you'd be surprised how often this happ....
(read more...)Monday September 22, 2008 at 11:56am
The latest ICAEW UK Business Confidence Monitor for the West Midlands reinforces many of the messages that we read daily in the national press and confirms the commentators' predictions for the impact of the credit crunch on the ‘real economy’. What started as a Financial Service sector problem has now started to impact all sectors in the ecomony.
Business confidence is in decline – showing a decline for the fifth consecutive quarter to reach a new record low.
Th....
(read more...)Friday September 12, 2008 at 6:26pm
The Government is considering reducing the time limit for debt collection from 6 years to 3 years.
At the moment, firms have 6 years in which to issue court proceedings to collect debts. This is set to change and an announcement is expected to be made in the Queen's speech to Parliament in December.
Whilst it is true that the older a debt is, the harder it is to collect, there are often good reasons that a firm would delay issuing proceedings, including:
trying other means of collection f....
(read more...)Tuesday September 2, 2008 at 12:25pm
The Government has recently announced that the UK will be opting in to the Rome I Regulation. This Regulation aims to clarify whose laws are applicable when a dispute arises concerning a contract between people or businesses based in different EU countries. The Regulation is due to come into force in December 2009. A similar Regulation, known as Rome II, applies to non-contractual disputes and comes into force in January 2009. The Regulations aim to give parties to a contract the freedom to deci....
(read more...)Thursday August 7, 2008 at 4:30pm
We all know that land transactions are potentially liable to Stamp Duty Land Tax (SDLT) but did you know that, in certain circumstances, SDLT can be charged on some or all of the goodwill of a business? This is what the HMRC manual says on the subject of SDLT: Stamp duty land tax is a charge on transactions in 'land'. Thus the subject-matter of the charge includes anything forming part of the land as a matter of law, such as buildings and structures forming part of the land, and fixtures. This m....
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