Great benefits for small businesses – Michael LansdellFeatured Products Promotional Features
Posted by: The Probe 2nd April 2019
According to government figures, at the beginning of 2018, there were 5.6 million small businesses in the UK and they accounted for 99.3 per cent of all private sector business.[i]Another great statistic? Well, as of January 2018, 99.9 per cent of private sector businesses were small-to-medium sized enterprises (SMEs).[ii]
If you own a dental practice, you will likely qualify as a SME and this means that you are in great company. Also, you would have been pleased by the measures announced in the last Budget that will specifically benefit you. Amazingly, despite so many people being employed by a SME, these measures didn’t really grab any headlines at the time, although they could affect a significant proportion of the UK workforce.
If you employ apprentices, the co-investment rate from their training will be cut from 10 per cent to 5 per cent. Taking on younger people for training at your practice is a fantastic way to enrich your workforce with fresh perspectives and new ideas, but remember that apprentices don’t have to be young! They can also be current employees – if they are studying to develop skills/knowledge for a specific role/trade/profession and want to combine this with on-the-job training, then they may qualify for an apprenticeship. In short, apprenticeships are well worth investigating.
Another benefit to SMEs outlined in the Budget was the chance to escape some of the new restrictions that are being placed on larger organisations. For example, after April 2020, if an employer has national insurance contributions (NICs) bills of £100,000 plus, then the government will withdraw the employment allowance (EA). EA is a great benefit to keep hold of as it allows employers to claim back a rather handy £3,000 in class 1 NICs, annually. There are also new restrictions to entrepreneur’s relief from April 2019 that may not apply to you as a SME either; you will need to check with your specialist accountant for all the details.
What isclear is that SMEs are vital. By reducing the impact of business measures on these employers, the government is recognising the valuable contribution that they make. Of course, anyone who owns one of these businesses, such as a dental practice, must get support from people who know the potential pitfalls and can provide tailored advice. Dental practice owners should consult with experts such as the accountants at Lansdell & Rose, who can provide on-going insights to help maximise profits and also stay within the legal guidelines.
SMEs may be able to profit from restrictions on measures recently announced that apply to bigger organisations, so they should make the most of them! They may seem modest benefits, but with good structuring and restructuring and some creative thinking, the financial rewards could be fantastic.
To find out more, call Lansdell & Rose on 020 7376 9333,
Or visit www.lansdellrose.co.uk
[i]Business population estimates for the UK and Regions 2018. Statistical release from the Department for Business, Energy & Industrial Strategy. Publication date, 11 October 2018. Link: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/746599/OFFICIAL_SENSITIVE_-_BPE_2018_-_statistical_release_FINAL_FINAL.pdf(accessed November 2018).