What the UK Chancellor’s Budget 2018 means for Entrepreneurs and SMEs

At a glance, the Autumn Budget 2018 is a win for entrepreneurs and SME’s. If your personal income is less than £100,000 and you’re a ‘genuine’ entrepreneur, taxation rules and entrepreneurs’ relief remain favourable. The more indirect budget effects could also be highly beneficial.

Established entrepreneur and founder and MD of globally-recognised, Absolute Translations, Sergio Afonso summaries the 2018 Budget’s impact on UK entrepreneurs and SMEs.

1. Entrepreneur Relief Timeline Extended

Phillip Hammond decided to meet halfway regarding the contested £10m entrepreneurs’ relief allowance, choosing to revise rather than abolish. The change is an increased minimum holding period from one year to two prior to selling a business.

This is meant to reward ‘genuine’ entrepreneurs who recognise that establishing a successful business ready to sell takes time.

Those who build and sell a business within 24 months will no longer qualify for the tax allowance.

2. Rates slashed for independent businesses

Businesses of all sizes have generally gained.

High-street based small businesses are the biggest winners. Up to £8000 in tax savings are now available for small businesses who have a rateable value under £51,000 for the next 2 years.

The fight to protect independents from corporations like Amazon from running local enterprise out of business is additionally supported through co-funding to local councils, with Hammond committing of £675m to the transformation of streetscapes, infrastructure and transport access.

3. VAT Raid scrapped & allowances raised

Despite reports of a VAT raid on small business lowering the minimum required turnover amount required to pay VAT from £85,000 to £43,000, no such decision was officially made.

In fact, the chancellor raised the personal tax allowance from £12,500 for basic rate taxpayers and £50,000 for higher rate taxpayers in 2019.

Businesses seeking capital expenditure will also be pleased with the “Annual Investment Allowance” being substantially increased from £200,000 to £1m.

4. Digital Services Tax a win for Start-ups

Tech-based startups are likely to benefit indirectly from the digital services tax that will be placed on “established technology giants”.

Public calls for companies such as Facebook and Google to contribute to local tax and “pay their fair share towards support of public services” has encouraged Hammond to show the way to the international community.

The “UK digital services tax” introduces a 2% tax for tech companies with sales over £500m. This strategically avoids the UK startup and SME market and potentially creates an opportunity for them to gain market share.

Critics hope it has been designed in a way that doesn’t prevent home-grown tech innovation or international business investment in the UK.

5. Brexit’s Impact

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The Budget 2018 cannot be evaluated without taking into consideration the broader implications of Brexit.

Hammond’s Budget aims to reduce austerity but, in the event of a no-deal Brexit, he concedes that the economic situation will continue for another 5 years.

This is a potential worry for UK-only entrepreneurs and businesses. Opportunities to take a global view is an option for relevant business owners to avoid the expected financial fallout. Others must hope that the unconfirmed but rumoured spending increase of 1.9% will come into fruition.

You can read more detailed takeaways from the Budget 2018 here

Free Access to Europe’s Biggest Business Show with Angel Investment Network

Angel Investment Network are proud to announce our latest partnership with the Business Show. As part of this, we are offering complimentary tickets to their London event on 16th & 17th November 2017. For more information and to claim your tickets please see the article below by Shane Ransom, Senior Marketing Manager at PRYSM Media Group:

Overview

After 19 years of running, PRYSM Group are proud to announce the 38th edition of The Business Show will be kicking off on the 16 & 17 November at London’s Olympia.

To anybody who has attended the show, it will come as no surprise that it has firmly established itself as Europe’s largest event dedicated to helping startups and SMEs successfully evolve or expand their businesses.

Due to the show’s sterling reputation within the B2B events community, 25,000 tenacious entrepreneurs and business owners will flock to The Business Show. All on a mission to source the latest services, solutions and strategies to take their business to the next level.

World-renowned Speakers & Business People

Renowned for acquiring a calibre of attendee unmatched by any rival show; over the years the exhibition has attracted industry legends looking to discover the latest business innovations to stay ahead of their fierce competitors. This list includes James Caan, Lord Alan Sugar, Peter Jones, Touker Suleyman and many more.

business dragons

The Business Show continues to be at the forefront of all other business exhibitions, from Apprentice winners to a plethora of dragons from Dragons’ Den, from the head of B2B marketing for Google UK to even the chairman of Crystal Palace F.C, our show consistently attracts the industry’s most relevant speakers and – as you can see – November’s speaker lineup is no exception.

See full keynote line-up here

Learn how to Grow your Business

With 350 visionary exhibitors showcasing the latest products, systems and services transforming the business world, our show allows more SMEs and startups to connect with more sought-after suppliers than ever before.

Every one of our 250 seminars features up-to-date content, based on current UK business trends. We have attracted a vast array of world-class speakers working within the health and fitness industry – a sector that has grown in popularity over the years – including; Peter Roberts, the founder of the largest gym operator, PureGym; and founder of LA Muscle Parham Donyai.

Our phenomenal lineup of speakers also consists of success stories that would inspire any ambitious business owner. Levi Roots will be here to provide you with the insights into how he became one of the most iconic and charismatic figures in business world. James Gold, co-founder of Skinnydip, will discuss how his creation of the phone case accessory helped him develop one of the most successful privately-owned companies of this generation. Ben Towers, who has been named by Richard Branson as “one of the UK’s most exciting entrepreneurs” will share his journey to becoming a multi-award winning business owner by the age of 19.

Business Show_Olympia_Main

Your Free Ticket

Your ticket grants you access to more than just the seminars and suppliers. November’s instalment of The Business Show will play host to an endless array of features including the Google Digital Garage; which offers free digital skills training to people looking to grow their business, their career or their confidence online. If you register for a free ticket, you can even book a one-to-one mentoring slot with the world’s most influential business via our website, but you need to make sure you book in advance!

Over the two days visitors will also have access to 15 masterclasses; whether you’re looking to expand your knowledge of branding, digital marketing, e-commerce, trading or franchising, we have got you covered. You will gain all the information and guidance you need to achieve the business growth you desire.

To ensure you make the most out of your visit we have split the show into six different zones; the Startup Zone; the Marketplace; the Finance Zone; the Digital Zone; Going Global Live; and for the very first time, the Legal & HR Zone. These zones have been carefully crafted to provide expertise across all sectors of the business world.

To top it all off, the show offers visitors unrivalled networking opportunities; our Speed Networking Feature located in the SME Zone allows you to make 40 new contacts in just 40 minutes! It is the quickest and most efficient way for you to add potential suppliers, clients and partners to your contact list, but seats to this free feature are first come, first serve so make sure you get there early to secure your seat!

business show tickets

If you’re looking to start, grow or expand your business then you must register for a ticket to The Business Show, and you will have an opportunity to experience an exhibition like no other. Attending this event could define the future of your business, so what have you got to lose? Register for your free ticket now!

Click here to register for your complimentary tickets

Thanks to Shane Ransom and the team for writing this post.

Hope to see you there!

Infographic – 8 Successful Companies That Didn’t Start That Way

An important factor for new entrepreneurs is the ability and willingness to change your business model or product if necessary. This infographic shows eight successful startups that ended up doing something different from the original idea (and it’s a pretty impressive list!).

Can you think of any other startups that pivoted and went on to be a huge success?

Infographic – 5 online start-up myths

This infographic will help encourage you to take that leap into the wonderful world of the web by debunking some commonly held myths and revealing some fascinating facts about the expanding e-commerce market.

Infographic – Brain Drain – Companies around the world are mining for mind power in Silicon Valley

Infographic – 25 Customer Service Skills Every Company Should Have

Infographic – CEOs Are Getting Younger

The average age of CEOs has declined over the years, from 59 years old in 1980 to 56 years old in 2013.

Infographic – What Your Company Logo Says About Your Brand

Infographic – 3 Reasons Loyalty Programs Grow Your Business

This infographic really highlights the importance of customer loyalty marketing and really focusing on your existing customers.

Data show that loyal customers, those who visit stores at least ten times, account for about 20 percent of a company’s shoppers.  Furthermore, that 20 percent drives 80 percent of a firm’s total revenue and comprises 72 percent of total visits to a business.

Top 20 Reasons Startups Fail based on an Analysis of 32 Startup Failure Post-Mortems

We hope this list will come in handy on your startup journey and help you to avoid some of the pitfalls that brought down other startups.

Have you been part of a failed startup.  If so, what were the main reasons that it didn’t make it?