Working from home may have its benefits - no commuting and flexibility for starters - but there's no denying there are downsides to consider too. One of the biggest is no doubt security, both in terms of stock you might be holding on the premises and also all your business equipment and documents.

Think about your insurance policy - Check your policy wording very carefully and speak to your insurer if you are at all unsure. You will find most home insurance policies won’t cover anything related to your business. This means if your computer and printer is stolen or damaged, for example, you could find yourself paying out for repairs or replacements. Alternatively, consider buying business insurance.

Examples of areas open for comment include:

• Internal workings of companies and partnerships: Rules on shares and share capital, requirement to hold information at business premises and rules on meetings and resolutions.
• Accounts and returns: The content, form and auditing requirements of financial accounts and other reports.
• Business names: The rules covering company names.
• Disclosure of company information: The regulations covering the information companies must supply to the official register.

While many sole traders may think they are saving money by carrying out their own bookkeeping, research carried out by Unbiased.co.uk has shown over half might actually be missing out on tax savings because they are not using professional accountants for their bookkeeping. Of those surveyed, just over half admitted to doing their own accounts and a fifth of micro-businesses (which consist of 1-9 employees) were also taking a DIY approach to bookkeeping. Clearly it is a risky route to take, especially with the HMRC crackdown on poor small business accounting, which could land business owners with a hefty fine.

Small businesses are being targeted again with the news that HMRC is contacting over 40,000 sole traders and one man companies who they believe should be paying VAT, which is presently set at a threshold of £73,000.

Businesses need to ensure they are fully aware of the financial situation of their company or risk facing fines up to 100%. At present businesses that aren’t VAT registered, but should be, are being offered a partial amnesty with reduced penalties on the outstanding VAT until 30^th September, 2011. However, the HMRC has reserved the right to hand out fines up to 100% where it believes a business knew it should have been registered but didn’t come forward. How the HMRC will decide whether they believe a business knew they should have been VAT registered is not clear.

While regulation is a good thing when it comes to protecting all areas of our lives - including businesses, employers and employees - the 21,000 plus rules that currently govern out lives are actually becoming a burden that is hurting businesses and as a result damaging the economy.

The current government has, therefore, set out to cut some of the red tape we are confronted by on a daily basis, and so members of the public, businesses and community organisations are being invited to have their say on regulations. This is where the Red Tape Challenge website comes in.

It's a very simple, but effective concept. Every few weeks a new set of regulations, affecting one specific sector or industry, will open on the website for anyone to comment on. Then, when a theme has closed, Ministers will have three months to explain why a regulation is still required, or it will be scrapped.

Tags: challenge, enforcement, environment, health & safety, rules, regulations, red tape, Red Tape Challenge, economy, business, government, policy, business link, customers, legislation

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Response to Telegraph article regarding the Government's plans to increase parental leave entitlement and to introduce new flexible working plans

© 25-05-2011 by Paul Smalley

According to The Telegraph’s article the Government will soon make substantial changes to the current number of days a father can take off work. The increase will be from two to six weeks’ paid leave. Fathers will also be able to use up some of the mothers’ entitlement, which could result in fathers being able to take five and a half months paid leave off work after the birth of their child.

In addition to this, both parents would be able to take up to six months off at the same time, which may cause staffing problems for small and medium sized enterprises (SMEs). The employer will not be able to refuse such a request.

Tags: parental leave, flexible working plans, redundancy, statutory maternity pay, SMP, SMEs, SME, legislation, paul smalley, government, business link, policy

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