Small businesses are those that are owned under private corporation, sole proprietor or partnership. Compared to a regular corporation though, the annual revenue is lower and the number of staff is fewer. According to the European Union, if the staff members are less than 50 people then they are categorized as small business. They are not free from financial burden through like regular and large corporations. Business owners also have additional costs to think about such as small business IT support because it is an important aspect of a business nowadays in order to be competitive.
In the economy of the United Kingdom, small to medium businesses also known as SMEs accounts for 47 per cent of the total revenue. It means that they have a major role in the productivity of the country but there is room for improvements to create a bigger impact economically by supporting them so they could conduct more activities.
The issues now that concern SMEs all over the United Kingdom is with regards to the new requirements for tax reporting and the new costs they will need to shoulder. These new regulations are implemented today. It is the reason why the first day of April has been called as Blue Monday.
While there are beneficial changes like lower business rates, there are also changes that mean additional costs which can be a burden to most. Federation of Small Businesses is an organization that represents SMEs in the United Kingdom. They believe that the changes were introduced at a bad time because the confidence level of the business owners in the country is in a very low state.
In an announcement made on August of last year, the government has given the green light for discount scheme with the business rates. This means than an average shop will be able to save $4,280 in their business rates charges for the next two years. An average public house, on the other hand, will be able to save $7,867.
In exchange, businesses are required to have new software that will meet the requirement of the MTD. This means that small firms will have to spend an average of $733 for the software and small business IT support will also come in as an additional cost because the software needs to be operated and maintained daily.