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Franchise News: Banks commit to further support UK business

October 20th, 2010 by Cathryn Hayes in Franchise Finance, Franchise Industry News
 

Cathryn Hayes - HSBC Head of Franchising

Bank finance has generated significant interest during the past two years in the wake of the financial crisis.  ‘Supporting UK Businesses’, published on 14 October by the Business Finance Taskforce in association with the British Banking Association (BBA), aims to address the concern that banks are not adequately supporting viable businesses.

Noel Quinn, Head of HSBC UK CMB said that the report, “Is a significant milestone for UK businesses and we fully support the recommendations.  Our lending position has not materially changed during the past two years and, compared to many competitors, our strong balance sheet has meant we have remained open for business throughout the financial crisis.  That said, it’s also important to recognise that we must do all we can to responsibly support businesses.  These recommendations are therefore a further positive step for all UK businesses and will help under-pin the UK’s recovery.”

The Business Finance Taskforce includes representatives from six UK banks, government and a number of trade bodies.  In July, the Taskforce agreed to review the support banks provide to small and medium sized businesses and ensure UK businesses have access to secure and sustainable sources of finance.

The report makes 17 recommendations, listed fully in the BBA summary and report, which focus on three key areas:

  1. Maintaining better customer relationships
  2. Ensuring better access to finance
  3. Providing better information and understanding

This is obviously positive news for the UK franchising industry and HSBC fully supports the implementation of the recommendations during 2011.

Additional information about the Business Finance Taskforce can be found at: www.bba.org.uk/taskforce.

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2010 Budget Reaction for Franchise Business

March 29th, 2010 by Carl Reader in Franchise Finance
 

Carl Reader, Dennis & Turnbull Ltd

The Chancellor gave his Budget on 24th March 2010 and the changes announced will affect all franchise businesses.

50% Tax

It was confirmed that the new 50% rate of income tax will come into effect from 6th April 2010 for those with income over £150,000.  Personal allowances will also be restricted for individuals with income over £100,000.

Capital Gains Tax

Capital Gains Tax rates have remained the same.  However, the lifetime limit for Entrepreneurs’ Relief has doubled to £2m for disposals made from 6th April 2010.  The Inheritance Tax nil rate band has been frozen at £325,000 until 2014/15.

Stamp Duty

It was announced that no Stamp Duty Land Tax will be payable by first time buyers on completion of the purchase of homes below £250,000.  This takes effect immediately for 2 years until 25th March 2012.  The rate of Stamp Duty Land Tax charged on purchases of properties over £1m will be increased to 5% with effect from 6th April 2011.

Corporation Tax

There will be no increase in the rates of corporation tax for 2010/11 which will remain at 21% for small companies and 28% for large companies.

Capital Expenditure

There is a boost to franchises purchasing plant and machinery.  The annual investment allowance has increased to £100,000, giving a 100% first year allowance on capital expenditure up to this level.  Any additions over this amount will also receive capital allowances of 20%.  This applies to equipment bought after 1st April 2010 for companies and 6th April 2010 for unincorporated businesses.

VAT

The VAT registration threshold has been increased to £70,000 with the deregistration limit increased to £68,000.  The fuel scale charges have also been increased for periods starting from 1st May 2010.  It is worth noting that payments made by cheque to HM Revenue & Customs will now be treated as being received once the amount has cleared through their bank account and not when the cheque is received.

Business Rates

With regard to business rates the government will fund a temporary increase in the level of rate relief so that small firms occupying properties with a rateable value up to £6,000 will pay no business rates for 1 year from October 2010.

Carl Reader is the head of franchising at franchise accountants Dennis & Turnbull, a leading firm of accountants in the franchise industry.

The above information is provided as general advice and no liability is accepted by the author, Dennis & Turnbull or Select Your Franchise in respect of individuals or businesses acting on the above. Independent advice should be sought in all circumstances.

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Franchisees should be mindful of Tax deadlines

January 8th, 2010 by Carl Reader in Franchise Finance
 
Carl Reader, Dennis & Turnbull Ltd

Carl Reader, Dennis & Turnbull Ltd

Franchisees should by now be aware that their Self Assessment Tax Return is due for filing by 31 January of each year, through online filing. The deadline for this is fast approaching and it is essential that this deadline is met to avoid penalties and surcharges.

Sarah Walker of HM Revenue and Customs (HMRC) said: “If you haven’t yet sent in your 2008-09 tax return, you need to start thinking about it now.”

You can file your tax return online at http://www.hmrc.gov.uk, or if you have an accountant they should be able to deal with this for you and ensure that the return is submitted correctly and in time.

Carl Reader is the head of franchising at franchise accountants Dennis & Turnbull, a leading firm of accountants in the franchise industry.

The above information is provided as general advice and no liability is accepted by the author, Dennis & Turnbull or Select Your Franchise in respect of individuals or businesses acting on the above. Independent advice should be sought in all circumstances.

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