With effect from 6th September 2010, and continuing until 5th September 2013, newly established businesses (including all those at the EBS and University of Warwick Science Park offices) can receive a holiday from the first GBP 5,000 of social costs paid to the first 10 employees who start in the company for the first 12 months that they are employed.

The Government has released more information on it’s website.

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Our latest newsletter includes items on incentives for new businesses, the increase in UK VAT, and the new UK Market Access Program.

For more information on VAT in the UK, please see our VAT Quick Facts sheet

May 24th: Aarhus
September 11th: Seinäjöki in partnership with Seinäjöki Science Park

Please contact Martin Williams to register.

This has been a difficult time. It is important that the UK has a strong and effective government which can steer the economy and has the authority to bring about the changes which it wants. It would seem that the Conservative Liberal Democrat coalition now has the authority which it needs, and the courage to make difficult decisions.

There will be a Public Spending Review, the results of which will be announced in the autumn, but it is widely expected to produce significant cuts in public spending.

For those still in any doubt, it has already been announced that the Government Department with responsibility for ensuring that UK is ready to join the Euro, and which has been in existence since 2000, will be closed as part of these cuts.

The Budget is positive towards EBS clients, with reductions in company taxes and social costs as well as incentives for newly established companies to create jobs.

The main points of the Budget are:

VAT up from 17.5% to 20.0% from 4th January 2011

Company Taxes The main rate of Corporation tax (for companies with profits over GBP 300000) will reduce from 28% to 27%from 1st April 2011, and go down a further 1% in each of the next three years to be 24% by 1st April 2014. The small companies rate, which is the rate most of our clients’ pay, will be reduced from 21% to 20% from next year also.

Social costs. The free allowance of social costs for employers will increase by GBP 1092 per year from next year.

Social cost relief for new companies. It was announced that any new company formed after 22nd June 2010 will not have to pay the first GBP 5000 of Social Costs due in the first 12 months of employment. This will apply to each of the first 10 persons employed during a three year period. The scheme will start in September but any company which meets the requirements and is established after 22nd June will qualify. Further details will be announced later.

Income tax. The tax free allowance on personal incomes will increase by GBP 1000 to GBP 7475 next year. This will take nearly 1 million people out of paying Income Tax and make a significant reduction in the costs of administering the tax.

Capital Gains Tax. The rate of 18% on non business assets will remain the same for standard rate tax payers. From midnight 22nd June it will rise to 28% for higher rate tax payers. This is designed to close the gap between income and capital tax rates and reduce the incentive for those who can to switch profits between the two.

Entrepreneurs relief, which sets the rate of Capital Gains tax at 10% for business assets for the first GBP 2 Million of gains during a persons lifetime is to be extended to the first GBP 5 Million.

Public sector pay will be frozen at present levels for the next two years for all those with salaries of GBP 21000 per year or more.

Personal consumption. There will be no increases in alcohol or fuel duties.

Social benefits. There will be changes to the social benefits system to make it easier to understand. Some benefits will be withdrawn from higher earners, and some social benefits will be cut or frozen in order to discourage benefit dependency.

Royal Family. The amount paid to the Queen and other members of the Royal Family for her public duties, known as the Civil List, is revised every 10 years and is due for review this year. The current payment has been frozen for one more year.

Bank tax. In cooperation with France, Germany and other European countries, the UK announced a tax on the assets of banks to be implemented next year.

Our colleagues Martineau have kindly made available to EBS the use of their meeting rooms in the financial centre of London, at 35 New Bridge Street London EC4V 6BW

You will of course be aware that our main office is in Warwick, and any meeting in London must be arranged in advance.

Directions to the meeting rooms can be found on Martineau’s website.

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All images copyright Katherine Shaw.

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The Julian calendar, which consisted of eleven months of 30 or 31 days and a 28-day February (extended to 29 days every fourth year), was actually quite accurate. It differed from the real solar calendar by only 11½ minutes a year. After centuries, though, even a small inaccuracy like this adds up. By the 1500s it had put the Julian calendar behind the solar calendar by 10 days.

However, the British did not make the change in 1582, so there was a difference of 10 days between the calendar in Britain and the rest of Europe.

By 1752 the difference had increased to 11 days (one calendar had a leap year in 1600, the other did not). Even the British realised that something must be done and they changed to the Gregorian calendar in that year.

Until 1752 the tax year in Great Britain started on 25th March, old New Year’s Day. In order to ensure no loss of tax revenue, the Treasury decided that the taxation year which started on 25th March 1752 would be of the usual length (365 days) and therefore it would end on 4th April, the following tax year beginning on 5th April.

The next difficulty was that 1800 was not a leap year in the new Gregorian calendar but would have been in the old Julian system. Therefore the Treasury moved the year start again from 5th to 6th of April, and this date has remained unchanged ever since.

The qualified electronic engineer is keen to strengthen public and private sector partnerships, harness commercial relationships between academia and business and develop a strategy that will support both traditional sectors and new industries, such as healthcare technologies, low carbon manufacturing and creative.

“This is an important time for the Enterprise Board with potential cuts in public spending meaning that we have to work even smarter to deliver maximum impact to the region’s entrepreneurs and established businesses,” explained David.

“It’s a major challenge but one that I’m relishing as I know that we have the right people on the Board to make a difference and look forward to building on some hugely successful policy implementations in place like the four Centres of Expertise and the recently launched Young People’s Enterprise Partnership.”

He continued: “I’m tired of people focusing on what the West Midlands hasn’t got and a lot of our time will be focused on working to our strengths and promoting all the good things about our region.”

David’s track record in the world of enterprise is extremely impressive after taking a derelict piece of land and transforming it into the University of Warwick Science Park, a thriving 40-acre home to more than 150 high-tech businesses employing in excess of 2000 people.

His approach to creating a supportive environment where specialist advice and access to finance is readily available was recognised with a Queen’s Award in 2006 and he currently holds a number of positions including Chairman of the West Midlands Business Start Up and Incubation Committee and member of the Board of the UK Science Park Association.

“We’re just below the UK average when it comes to number of start-ups,” acknowledged David, whose career has taken in positions at Marconi, Chrysler UK and the UK Atomic Energy Authority.

“Getting more companies to launch is not necessarily the solution to the problem. I’d prefer to look at the situation differently and to increase the survival chances of new starts, so we have younger businesses growing and providing sustainable employment opportunities.”

He went on to add: “A new paper released by the Government – ‘New industries, New jobs’ – will prove a careful balancing act for our business support agencies looking to embrace growth sectors without neglecting traditional industries.

“We need to make sure we support this development, but, rather than trying to reinvent the wheel, why not look at supporting our existing businesses to move towards these new areas.”

The Enterprise Board, which was set up by Advantage West Midlands, brings together a number of key organisations and private sector business leaders to advise Advantage West Midlands on enterprise issues.

It originally started life as a source of advice and guidance to Business Link, but the remit has grown considerably to include the creation of four centres of expertise aimed specifically at supporting young people, minority ethnic, women and social enterprises.

Going forward, the Board now effectively helps to shape and lead on innovative new business support and enterprise policies, all geared towards increasing the competiveness and productivity of the West Midlands.

Debra Blisson, Director of Business Support and Enterprise at Advantage West Midlands, is delighted with the appointment:

“David will be a dynamic, inspirational Chair who understands the regional economy and has a passion for bringing enterprise to the fore, whether that be in increasing starts-ups or encouraging companies, universities or employees to be more entrepreneurial in what they do.

“He’s been involved in the Enterprise Board for three years now and this experience will be crucial in shaping its ability to influence future regional economic enterprise strategy.”