UK national accountants have warned new businesses that they could be losing out on savings up to £50,000. The government launched a new initiative in 2010 that would allow new businesses to waive up to £5,000 of National Insurance Contributions for up to ten employees. This applies to businesses who started from June 2010, and will apply until September 2013.
The government launched the scheme with a view to encouraging new business, but the marketing strategy hasn’t been as effective as expected. According to a large number of accountancy firms, many new business owners have so much administration that they miss out on opportunities such as this.
The scheme only applies to new businesses which are outside London, East of England and the South East. There are many other complex rules that entrepreneurs just don’t have time for. In this case, a lack of time and this specialist knowledge could be costing a business up to £50,000.
The government has been disappointed by the relatively small take up, with its marketing efforts failing to make an impression. One reason for the lack of interest is that many small businesses cut costs by not outsourcing administration to an accountant. This has proved to be a false economy as even a low cost accountant has the required knowledge of HM Revenue & Customs and the many ways that a new business can gain financially. A low cost accountant will help minimise payments of tax while planning for the future, meaning a great return on investment.
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