Business News - Franchise News and Opportunities - Business Legislation and Rule Changes

25-11-2008	Pre-Budget Report 2008 The chancellor announced a series of tax-cutting measures in yesterday’s Pre-Budget Report. The main changes include: 1. The main rate of Value Added Tax will, from December 1st, be reduced from 17.5% to 15% until the end of 2009. 2. Deferral of the increase in the small companies’ rate of corporation tax. The rate will stay at 21% from April, instead of rising to 22% as previously announced. 3. National Insurance rates will increase by 0.5% from 2011 - for both employers and employees. 4. A 45% rate income tax band will apply to salaries of £150,000 and above after the next General Election. 5. The £120 rebate for basic rate taxpayers will remain and will be increased to £145 from April 2009. 6. A new Small Business Finance Scheme to support up to £1 billion of bank lending; a separate £1 billion guarantee facility to support bank lending to small exporters; a £50 million fund to convert businesses’ debt into equity; and a £25 million regional loan transition fund. 8. Introduction of a new HMRC Business Payment Support Service to allow businesses in temporary financial difficulty to pay their HMRC tax bills on a timetable they can afford. 9. Changes to the taxation of foreign profits - including the introduction of a foreign dividend exemption for large and medium-sized businesses, supported by a worldwide debt cap on interest.


01-10-2008	Minimum Wage Levels October 2008 New minimum wage levels have been introduced today: £5.73 per hour for workers aged 22 years and older A development rate of £4.77 per hour for workers aged 18-21 inclusive £3.53 per hour for all workers under the age of 18, who are no longer of compulsory school age Approximately one million workers will benefit from the rise and two-thirds of the beneficiaries will be women, reinforcing the NMW's positive role in narrowing the gender pay gap. The increase in the NMW will also save the taxpayer an extra £245 million in reduced payments of in-work benefits. The 3.8 per cent increase in the NMW (from £5.52 to £5.73) will be the ninth increase since it was introduced in April 1998. Over the last nine and a half years, the NMW has increased by 59.2 per cent, compared to a 44.2 per cent growth in average earnings. Annual increases in the NMW since April 1998 have not led to any significant job losses, despite predictions from some business lobbyists. In fact, the latest labour market statistics show that in the year up to June 2008, in which employment growth across the whole economy dropped to just 0.6 per cent (148,000 more jobs), the low paying job sectors - including retail, cleaning and agriculture - grew at twice the pace (1.2 per cent, 102,000 more jobs).


17-09-2008	Funding for Food Businesses The Food Standards Agency have released almost £1million of funding to local councils to support food related businesses.
	For more information visit: http://www.businessbabble.co.uk/2008/09/17/food-business-funding/

17-09-2008	New Laws for Limited Companies New laws will come into force in October that govern the display of company names at premises. The Companies (Trading Disclosures) Regulations 2008 are effective as of 1 October this year, and will mean that companies will have to display their registered name at their registered office and their inspection place, as well as any place where a company carries on business. Registered names must be displayed in a position where they can be easily seen by visitors. Furthermore, a company’s registered name, number, place of registration and registered office address must be displayed on business letters, e-mails, websites and other documentation. An exception to the rule is for home based businesses whose company name does not have to be displayed at a location which is primarily used for living accommodation.


17-09-2008	Personal Allowance Changes Following the Chancellor’s announcement, the basic Personal Allowance for the 2008-09 tax year is increasing by £600 from £5,435 to £6,035 and the basic rate limit is reducing from £36,000 to £34,800. As a result, many employees will see their tax code change in September. The new tax codes must be applied on the first payday on or after 7 September 2008.


17-09-2008	New legislation on employing foreign workers Parts of the Immigration, Asylum and Nationality Act 2006 came into force at the end of February and require employers to make stringent checks on foreign workers. The measures impose tough fines on employers caught breaking the law and also introduce a points-style system which takes into account the skills of migrants who want to work or study in the UK. The Federation of Small Businesses (FSB) has said that the new fines are draconian and unfair if imposed on employers who have no idea that their employees are working illegally. The Home Office has produced guides to help employers understand the new legislation.
	For more information visit: http://www.bia.homeoffice.gov.uk/employers/preventingillegalworking/

17-09-2008	2008 Budget Announcements made in the 2008 budget back in March 2008 are starting to come into effect. For more information Click Here


22-04-2008	UKs largest union campaigns for restaurant staff Recent reports from Unite claim that some staff are being paid below the minimum wage and restaurant owners are using tips to bring the hourly wage up to the legal minimum. Some firms keep part of the service charge paid whilst a BBC investigation found Italian chain, Carluccio’s paid some waiters £3.75 an hour, which is well below the legal minimum. Restaurant groups were found to hold back a proportion of staff tips, including Pizza Express - which keeps 8% - and The Real Eating Company food chain in Sussex, which retains 22%. Staff at one Tootsies restaurant in the home counties complained the company kept 60%. The Unite union is calling for changes to legislation to crack-down on those employers who use customers tips to pay their staff the legal minimum amount. New businesses should ensure they adhere to minimum wage regulations.


12-02-2008	Franchising Growth More entrepreneurs are attracted to the idea of franchising at the start of a new year, according to Domino's Pizza. The organisation reports it saw a 19% increase in franchise enquiries in January 2008 compared to December 2007, and a 15% rise on January 2007. Domino's claims this is because people are attracted to the idea of starting their own business yet are reluctant to take on the risk of going it alone. "Choosing a career in franchising can be the most rewarding and fulfilling career choice for individuals who are willing to invest time and commitment in developing their business," said Andy Hirst, franchise sales manager at Domino's Pizza. "As franchising has grown, so has its appeal to a broad range of individuals with a shared motivation to capitalise on entrepreneurial talent, and is now recognised as a genuine route to business success."


12-02-2008	TV Encourages New Entreprenuers The widespread popularity of TV shows looking at the world of business and start-up companies is helping to motivate more people to form their own small business, according to a new report. Dragon’s Den and the Apprentice have both proved to be consistent ratings hits for the past few years, resulting in a range of spin-off shows, but as well as being popular research from Natwest suggests they are giving many more people to courage to start their own company. The poll found that the equivalent of 17 million Brits have an idea for their company, with 30 per cent serious about making a go of it. Furthermore, a fifth of the young entrepreneurs who have gone into business in the last five years said their main motivation was watching a business reality TV show. “Whilst it’s encouraging that TV programmes can inspire an army of armchair entrepreneurs into action, they only really scratch the surface of what it takes to run a successful business,” said Steve Pateman from Natwest. “Although over half (52 per cent) aren’t confident they have the skills and financial know-how to get started straight away…these initial hurdles needn’t be a barrier to getting a good business idea off the ground,” he added.


12-02-2008	150 million investment for Welsh businesses A NEW £150m investment fund is to be set up to help small and medium sized businesses start up or relocated to “unfashionable areas” of Wales. Aspiring businesses are being given the opportunity to grow a business in Wales with the help of funding from the European Investment Bank. The money is being made available to help businesses grow in 'unfashionable' areas such as the Valleys and other rural areas. The funding will be available throughout Wales and will help businesses who find it hard to raise the capital to grow.