Dragon pushes for tax holiday
Posted on August 27th, 2009
Dragons’ Den investor James Caan is among a group of entrepreneurs calling for a tax break for new business ventures in Real Business Magazine.
Real Business Magazines‘ article included suggestions for Lord Sugar, as well as Mr Caans’ ideas for new entrepreneurs. Mr Caan said of new business ventures, “They typically raise a small amount of money from family and friends and every penny counts. I see entrepreneurs raise £100,000 and then half of that is eaten up by tax.”
Mr Caan is pushing for the tax holiday to be given to first time entrepreneurs for the first 2 years of their business start up. This will encourage people who would normally have postponed or even discarded the idea of starting their own business to become entrepreneurs.
The edition in Real Business Magazine also commented on Lord Sugars’ role as the enterprise envoy. If he were asked to work full time, he could devote “exclusive attention” to his role.
Don’t forget to keep an eye out for Real Business’ Webcast with Mr Caan tomorrow (Thursday)
For start up advice, and encouragement to budding entrepreneurs, call Argo on 01424 776215
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Could businesses have cardnet services denied for having a poor credit rating?
Posted on August 27th, 2009
Lloyds Banking Group have confirmed that they have denied businesses the use of their Cardnet payment system due to their credit rating.
Bruce Palmer, who runs Chauffeur businesses in Berkshire had banked with Lloyds for 5 years when his application for a cardnet terminal was rejected. His original company ‘Bray Cars Limited’ was using the terminals with no apparent problems.
When Mr Palmer opened B.Palmer Chauffeur services, he was rejected the use of a Cardnet terminal. Mr Palmer acknowledges that his poor credit rating will limit the amount of services available to him, but was shocked that this would include a means by which his business could receive money.
A Lloyds spokesperson said “Whenever we agree to provide merchant services to a business customer through Cardnet, we are in effect, agreeing to provide that customer with a form of unsecured lending. This is because we are ultimately liable for any losses that might result, if, for example, the business fails or is unable to provide products or services to its customer, for which they have already paid by card.”
If you are looking to see how to improve your businesses performance, call Argo Business Consultants on 01424 776215
Tags: business advice, cardnet, lloyds banking group, merchant services
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One small step for SME’s trying to access public contracts
Posted on August 20th, 2009
A recent independent review of public contracts by Anne Glover called for the www.supply2.gov.uk website to be made free by the end of next year.
That request has been passed, and the site is now to free to register on, but it is only a small step in making the process cheaper, easier and more viable to small and medium enterprises.
The process is a laborious and often frustrating one, with many small businesses giving up. The email alerts (which are still chargeable) deliver small businesses with a regular feed of opportunities – but the process for following up these opportunities is fraught with red tape and bureaucracy.
The process requires you to display a working knowledge of the local authority and complete a pre-qualification questionnaire form. Malcolm Pitcher, an In-House Research and Training specialist has gone through the process many times.
“The one time we did manage to do a full tender it took a week of working through the 40-odd pages of tender documents, and you get a letter back saying you did not get it. You see that you were one of 65 other small businesses trying to get a bit of trainig work worth £15,000. The whole process is tortuous and a waste of time.” Said Mr Pitcher.
supply2 is not the only portal where you can apply for contracts. competefor.com advertises contracts for he Olympic games in 2012. Whilst the competefor website appears to be easier than supply2, it is misrepresented in that it still takes a couple of hours to complete the application forms.
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VAT clampdown could affect businesses and consumers
Posted on August 20th, 2009
Historically cash-based industries, notably the building trade are being targeted by the HMRC in a clampdown on VAT evasion. Plumbers, builders, electricians and carpenters are all examples of the trades that HMRC are trying to catch up with.
Cash payments could find consumers on the wrong end of HMRC as they try to reduce the £780 million in lost VAT every year. Where a tradesman comes under investigation by HMRC, they are contacting customers to corroborate the builders accounts.
The customer may face a £300+ fine if they do not provide receipts or statements within a set period. If the invoices do not tally up then harsher penalties can be enforced. If HMRC prove that a customer has conspired with a builder to avoid VAT costs, then an unlimited fine and 7 years in prison could be enforced. Although the likelihood of this occurring is small, it is worth consumers bearing in mind.
Builders and tradesman with an annual turnover of £68,000 or more must be VAT registered. It is important to obtain VAT receipts for all your work, no mater what payment method you use.
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Aldi Director leaves after 20 years with the business
Posted on August 13th, 2009
Paul Foley, the managing director of Aldi UK has left the company by ‘mutual consent’ in a shock exit this week. Foley will be replaced by Armin Berger – previously his Austrian counterpart.
Aldi had, up until recently, been enjoying a boom in sales. The retailer had seen sales increases of 20-25% over 12 week periods during 2008, as consumers sought the unbranded cheaper goods for which Aldi had become famous.
Aldi, together with fellow German supermarket Lidl, had challenged consumers perception of cheap goods, and cemented themselves as ‘leading brands, offering high quality and best value products.’
This growth had taken a knock recently, with mainstream supermarkets such as Tesco and Asda realigning their business models to add extra weighting to their own brand goods. This new focus on recession hit shoppers had damaged Aldi’s usp.
Aldi are still looking to maintain their growth in the UK, with plans to triple the amount of stores from 500 to 1500. Funds for this were to be raised by a 200 million euro bond, startling the business and financial world due to the normally secretive and debt adverse nature of the owners – the Albrecht family.
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What is a free business health check?
Posted on August 13th, 2009
One of Argo Business Consultants’ main services is a business health check. We provide this free, and aim to help business owners and decision makers take a better look at their business and understand the ways in which they can maximise their business’ potential
Our free business health check form is a simple, 12 page form which is created with the intention of making you look harder at your business, and yourself to understand what you want to achieve in the near, and distant future.
We take a look at the company structure, your business objectives and contracts. We examine your industry, and look at your market share and competition, along with production/service costs and staffing.
Lastly, and perhaps most importantly, we find out more about you – the business owner, in order to find out how you as an individual can get the most out of your business.
Yes! This is all free! Argo business consultants were borne from a desire to aid business owners from all sectors. With a solid background in financial advice and business advice – and as business owners ourselves – we are perfectly placed to understand your needs, and the needs of your business.
For more information, contact Argo on 01424 776215, or fill in and return our free business health check form.
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Jaguar secures jobs with help from financial institutions
Posted on August 12th, 2009
Tata, the owners of Jaguar Land Rover (JLR) have rejected backing from the UK Government in favour of help from foreign financial institutions.
Ratan Tata, the head of the Tata Group has labelled the governments terms ‘very onerous and hence unacceptable’ in a letter to Lord Mandelson, the Business Secretary. Last year, Tata asked for a total of £840 million in guarantees, of which £500 million would have come form the UK bank lending, and the rest from the European Investment Bank. The Business Secretary offered a £175 million bridging loan.
Lord Mandelson’s reluctance to offer suitable help to JLR has come as a surprise to some, not least Tata’s owners, due to the prospect of 14,500 jobs being lost if a deal could not be brokered.
The Tata group does contain a significant value to the UK economy, as it is one of the UK’s largest foreign employers. Across the groups 19 companies, including the Bombay Brasserie and Corus Steel, it employs 47000 britons.
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