Dear Reader

Thanks to the wonders of modern technology (or the fact that I bribed Roger the apprentice to publish this in my absence, whichever you prefer…), I’m not really heeeeeere. I’m talking to you from the mists of last week, having taken some time off to visit the basements and broom cupboards of Edinburgh. Never fear though, I’ll be back next week with a whisky hangover, and I’m sure the PBTG team is hard at work in my absence. Right guys? Guys?!

This week (well next week for me. But last week for you…how terribly confusing), we return to the UK, where the Federation of Small Businesses is involved in something of a stand-off with the Department for Work and Pensions over the plans to introduce an automatic workplace pension enrolment scheme from October 2012.

Under the planned changes, all employers will be required to automatically enrol all eligible workers aged between 22 and the state pension age into a qualifying workplace pension scheme, unless the worker chooses to opt-out. Employers may choose either to enrol them into an existing pension scheme which meets or exceeds the minimum requirements set out in the reforms; amend their existing scheme to meet the qualifying standards, set up a new qualifying scheme, or enrol them into the National Employment Savings Trust (NEST).

However, the FSB has argued that this ‘one size fits all’ approach is likely to cripple very small businesses, which will be disproportionately affected by additional administrative burden that it represents.

Instead, it has urged the introduction of a different system for SMEs and micro-businesses, using a national payment collection system, like PAYE, to allow all employees and self-employed workers the opportunity to save for a pension at an annual charge of up to 0.3%.

It also criticised the government for failing to adequately publicise the forthcoming reforms, which it described as a “ticking time bomb”.

However, according to the DWP, the majority of businesses questioned in a recent poll were not only aware of the planned changes, but welcomed them.

The Department revealed, late last month, that of the employers and employees surveyed, 56% of the former group and 64% of the latter stated that they supported the changes.

With a report on the implementation of the new rules due this autumn, however, there may still be hope for the UK’s small businesses…watch this space!

With that, I…via Roger…shall leave you, until next week.

Caroline (Absent Ed.)

UK Small Businesses Lacked Confidence In Q4 2011

Wednesday 1/2/2012

According to figures recently released by the UK's Federation of Small Businesses, SMEs and micro-businesses were hard hit in the final quarter of last year by a combination of factors, including increased utility bills, high inflation, and reduced consumer spending power.

RSS | Email Updates

Re-Employment Legislation Takes Effect In Singapore

Wednesday 25/1/2012

The implementation of new rules and support for SMEs and other businesses in Singapore to re-employ older workers, in the face of a rapidly ageing population took effect earlier this month.

RSS | Email Updates

Hong Kong Start-Ups Reached Record Level In 2011

Wednesday 18/1/2012

Figures published by the Hong Kong Companies Registry earlier this month have revealed that the number of start-ups registering in 2011 showed an increase of 6.31% last year on 2010 figures, with a record 148,329 registering over the course of the year.

RSS | Email Updates

ISME Slams Ongoing Jobs Initiative Delay

Wednesday 11/1/2012

The Irish Small and Medium Enterprises Association (ISME) has this month slammed the Republic's government once again for delays in implementing the jobs initiative that was a key post-election pledge.

RSS | Email Updates

UK Small Businesses Concerned By HMRC Spot Check Plans

Wednesday 4/1/2012

Concern has been expressed regarding a ramping up of HM Revenue and Customs' Business Record Checks programme set to take place in April, with many small businesses fearing that the fine which can be imposed if they fail to provide adequate records to support their tax returns may push them into insolvency.

RSS | Email Updates

Latest Comments

Expat Brit

Hi,

I am facing a dilemma and would like to invite any reader to advise me.

I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.

In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.

However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?

If anyone has pertinent advice on these points, I’d be grateful to hear them.

TJM @ Eindhoven, NL

T. Dog

Read replies | Reply | Start new thread

Purchasing investment-link insurance for my staff

Would that count as income tax to my staff? And would that count as expense to my company?Michael

Read replies | Reply | Start new thread

Irish crisis - effects on small business?

Hi all,

Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.

Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...

Thanks,Kate

Read replies | Reply | Start new thread

Jersey vs. Malta??

Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary

Read replies | Reply | Start new thread

Living in France contracting to Australian company

I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD.
Do I pay tax in France or Australia or both ?
Any help or guidance would be much appreciated.France move

Read replies | Reply | Start new thread