The report shows that 60 percent of respondents feel that growth of their business is being held back by the economy. Other respondents cite lack of broadband coverage, employment taxes and training and recruitment as factors that prevent business growth. A larger number of small businesses have launched new merchandise or services in the last 24 months, which is an increase of 15 percent in comparison to figures in 2009. Just over a quarter of respondents are considering expansion of their workforce, whilst just under three quarters wants to expand their client database and 57 percent want to develop an online presence.

Suggestions have been made by the Federation of Small Businesses to the government to help businesses to develop over the next 12 months. The call for action includes changes to current employment law to encourage recruitment levels. Super-efficient broadband coverage for the whole of the UK is also necessary for businesses, in addition to simplifying the procedure for securing government contracts by small businesses.

Small businesses that outsource to an accountant firm will maximise current opportunities and have more time to concentrate on developing their company.

Self-assessment taxpayers should also be aware that even if there is no tax payable, or the tax owed is fully paid, the penalties will still be issued if their 2010-11 tax return is outstanding. Three months after the initial deadline of 31st January, further penalties will be charged on a daily basis of £10 per day up to 90 days maximum. Further penalties will be charged after a period of six months and then again at the one year mark. The penalty will be £300 or five percent of the tax which is due, the greater amount being chargeable. If tax remains unpaid, penalties of five percent will be charged at 30 days, six months and 12 months.

Stephen Banyard of HMRC said:

“We want the returns, not the penalties. So anyone who still hasn’t sent theirs should do so as soon as possible. People who receive a penalty notice should act now to avoid further penalties.”

HMRC also urges anyone who believes they shouldn’t receive a penalty and has a reasonable excuse to submit an appeal, perhaps through their small business accountant, as soon as possible.

The study was carried out for RSA insurance company by One Poll, and revealed that the cost of yob mentality amounts to around £4,000 for each UK business. The anti-social behaviour includes smashed windows, broken doors, harassment, theft, graffiti and intimidating behaviour. Nearly 20 percent of businesses were victims of criminal damage or anti-social behaviour in 2011, which cost each of the companies affected around £20,000.

The most typical problems for businesses were smashed windows, doors and theft. Of the 1,000 business managers who were included in the research, 37 percent expect the problems to escalate in 2012, especially as the UK economy is unstable. The commercial managing director of RSA, Jon Hancock said:

“This research shows that Britain’s yob culture is having a tangible and negative impact on British businesses up and down the country.”

He further stated that hard working and honest businesses all over the UK are paying for this behaviour, while already struggling to survive. Ensuring that adequate protection is in place may guard against unexpected expenses if damage does occur, which small business accountants will advise. The research indicated that anti-social behaviour is expected to cost UK businesses even more in 2012, so employers are advised to consider future protection of their company.

Figures provided by a leading accountancy firm show that if the nil rate band had continued to rise in line with the Retail Prices Index, the threshold would stand at around £360,000. However, as the threshold has been frozen and future rises will track the CPI, more estates could have a liability to pay tax, which is currently 40 percent on anything over the threshold. According to estimates from the Treasury, a further 1,500 estates will be required to complete HM Revenue & Customs paperwork, with around 900 estates having a liability to Inheritance Tax. The figure is expected to continue to rise.

Although a study carried out by Legal & General shows that 69 percent of the respondents are aware of IHT and that it could affect them, no financial planning has been carried out other than to make a will. Seeking advice from low cost accountants could minimise the effects of IHT in the future.

The video has been produced to outline the negative effects of errors being submitted, and to offer advice to reduce errors. A study of end of year returns submitted to HMRC revealed 40 which had dates of birth indicating the employees were aged over 200 years old. The surname ‘dummy’ was used for 128 employees and 824 were given the surname ‘unknown’. A number of employer returns have the forenames and surnames entered incorrectly, causing confusion for HMRC.
The director of customer operations at HMRC, Jim Harra said:

“It’s really important that employers get their employees’ information right, so that HMRC can match it to the right tax records. Otherwise, it can lead to more contact from staff, trying to sort out their tax, and from HMRC, trying to sort out the data issues.”

Businesses which outsource their administration to low cost accountants are less likely to make errors which affect the quality of data. This ensures taxpayer records are accurate and the correct amount of tax is paid at the year end. HMRC is eager for employers to watch the YouTube video in order to improve data quality.

The monthly report by Lloyds TSB surveys more than 1200 private companies in the manufacturing and service sector. The growth was due in part to the introduction of new businesses, which stimulated levels of employment in a number of UK regions. The East Midlands saw employment levels rise for the 15th month in a row, with the number of new orders rising at the fastest pace for the last three months.

However, the uncertainty displayed across the Eurozone is a cause for concern as this may act as an obstruction to the recent levels of optimism. For businesses able to access the export markets which are beyond Europe, expansion may be an option as the markets are continuing to display resilience. Growth of SMEs and exportation are likely to be the leading factors in the recovery of the UK economy. Creating a strong growth strategy may include the possibility of moving into exports, which is why the expertise of national accountants is crucial. Lloyds TSB and Mr Galbraith advise businesses to seize opportunities as they arise and seek support and guidance from professionals.

The Report on Jobs produced by KPMG and the Recruitment & Employment Confederation revealed that the number of companies hiring permanent staff moved into the positive figures to 51.2 from December’s figure of 48.5. KPMG’s head of business services, Bernard Brown said:

“Given the continued impasse surrounding the Eurozone and the knock-on effect this has on business confidence, it is a welcome surprise to see a modest increase in the number of permanent job placements across the UK.”

Brown further observes that employers may be realising that the correct employees are required in order to stimulate growth of the UK economy. Businesses should discuss this with their small business accountants when creating a growth strategy. The research surveyed 400 employment and recruitment agencies, discovering that fewer opportunities were available in the hotel and catering business. The highest demand was demonstrated in the engineering and construction sector.

The executive of the REC, Kevin Green admitted that he was encouraged by the increase in demand for six out of eight sectors. He further added that employment was proving to be challenging as potential employees don’t have the qualities that employers are looking for. He advised greater use of apprenticeships and improved careers guidance to help solve the problem.

The Business Records Checks initiative commenced in April 2011, with 2,437 record checks being carried out up to 4th January 2012. The checks carried out on the business records of Small and Medium Enterprises revealed that 28 percent of companies had problems with record keeping. Another 11 percent of businesses had problems which were severe enough to warrant a follow up visit by HMRC. The only Business Records Checks to be carried out now are the existing appointments and any follow up visits which have been arranged.

Richard Summersgill, the director of local compliance for HMRC said:

“The BRC visits provide benefits for the business and HMRC. We want businesses to pay the right amount of tax at the right time, avoiding potential interest and penalties. The checks also give greater assurance to HMRC when the business submits its tax returns.”

Following consultation with accountancy firms, businesses which are considered to be at a higher risk of inadequate record keeping will be contacted by letter or phone to establish whether a Business Records Check is actually necessary. This practice will reduce the burden placed on already overstretched small businesses that are fully compliant with HMRC.

The Real Time Information pilot will start in April 2012 with volunteer employers taking part. The system will require employers to submit details of pay and tax to HMRC as the transactions are carried out, or just before. Currently, employers send in details to HMRC at the end of each year which occasionally results in either too much tax or too little tax being paid. Other employers will join the system by April 2013, with all employers being included in the Real Time Information system by October 2013.

The form P45 will be given to employees to hand in to their new employers, so that accurate details will be used. The acting director for Personal Tax at HMRC, Stephen Banyard said that the rollout of RTI is on schedule and that consulting with stakeholders of RTI and employers would guarantee that it would be introduced with as few problems as possible. He said:

“We have been working closely with employers and stakeholders about the introduction of RTI. Employers told us to keep the P45 –which is exactly what we have done.”

National accountants will be involved in discussions surrounding the new system, keeping their clients informed of new procedural requirements.

Although record numbers filed in a timely manner, one million taxpayers failed to meet the deadline, despite the fact that the filing date had been extended to 2nd February as a result of strike action by HMRC staff. The number of taxpayers submitting their tax returns online has also increased, with 80 percent filing online. The number of people filing online last year was 78 percent.

The Exchequer Secretary to the Treasury, David Gauke said:

“I’m delighted so many people filed their tax returns online this year. The record number proves that it’s quick, easy and secure to do. HMRC have always been clear that they want returns not penalties, so it is good news that over 90% of all returns were submitted on time.”

The new penalty system means that a £100 fixed penalty will be issued to everyone who misses the filing deadline, even if the outstanding tax has been paid or there is no tax due. The penalties can easily reach £1,600 after three months. Online accounting is becoming increasingly popular with businesses, who can be assured that their self-assessment tax returns will be filed in a timely manner.