PM David Cameron recently confirmed that 25,000 loans had been issued by the Start Up Loan Scheme. Cameron welcomed this news, stating that small businesses were “the lifeblood of our economy”. The last loan had taken the total amount of funding by the scheme to almost £130 million.
The scheme, set up in 2012, is government funded and administered by the British Business Bank. The Prime Minister said:
“Small businesses are the lifeblood of our economy and supporting them to get off the ground and create jobs and opportunities for hard working people is a key part of our long term economic plan.”
The initiative provides a repayable loan to start-ups, while also providing support in the form of a business mentor. The scheme has been rolled out across the whole of the UK. The government is providing support for small businesses in other ways, including increased apprenticeships. A business that hires an apprentice will be offered a grant of up to £1,500, while the training received by an apprentice has also been improved. An Employment Allowance was also introduced by the government that can save businesses up to £2,000.
According to the Business Secretary, Vince Cable, the loan scheme has helped thousands of entrepreneurs to start their own companies, fulfilling their dreams. He added that enabling SMEs to access the funding needed to grow would aid the recovery of the UK economy.
To be successful, small businesses have to work hard to maximise the investment, which may be achieved with the following:
1) Keep accurate business records from the very first day of trading, so that you are aware of cash flow and general finance issues.
2) Outsource to an accountant if you find that time is a problem. Rather than fall behind with administration, outsource to a professional so that you can take calculated risks and have all your financial records up to date and to hand.
3) Claim for all expenses incurred in the running of the business. There are many types of tax relief, expense and allowances which you may be eligible to claim, reducing your tax bill in a legitimate manner.
4) Register for any free workshops run by HMRC. They are informative and may help you to understand how to maximise your revenues.
There are many forms of help available to anyone starting a small business. If you want to share your experiences or have a query, please leave a comment in the box below.
Want to learn more?
Subscribe to our newsletter to get accounting tips like this right to your inbox
About The Author
We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!