If you’re thinking it’s a bad time to go into business, think again! Notwithstanding a few of this new century’s devastating economic ills, recoveries are on the rise. In fact, the total business population of the UK has not only substantially increased, but has broken an all-time record.
The UK has topped its former 5 million private sector business population, with a new 2014 record of 5.2 million!
This is not only great news for our entrepreneurial inclinations, and our society as a whole. And, just in case you need a bit more of a push in pursuing your business startup dreams, have a look at these additional pertinent facts from a November 2014 statistics release by the Department for Business Innovation & Skills:
- In 2014, small businesses comprised 99.3% of the total business population!
- UK business population has increased by 51% since 2000, with a growth of 1.8 million businesses.
- In 2014 over 500,000 new businesses registered with Companies House.
- Business structures are made up of 62% sole proprietorships, 29% companies, and 9% partnerships.
- Increasing self-employment has been the key driver of business population growth since 2000, with an increase of 330,000 since the start of 2013.
- In 2014, non-employing businesses represented 80% of the total growth.
- Of the 5.2 million count, 43% of these were registered for VAT or PAYE.
So, what does all of this mean to you? It demonstrates that UK small business startup is literally going through the roof, and that self-employed contributions back to the economy are proving the government right in its support of this sector.
The following chart represents the estimated number of businesses (millions) in the UK private sector, from the years 2000 to 2014:
BENEFITS TO A BUSINESS STARTUP
Money, Money, Everywhere
There are quite a few funding opportunities from private lenders and investors, to be sure. In this regard though, think (and do plenty of research) before you act. Remember an investor is essentially becoming a partner, and gaining equity in your company. Be sure to review this option with a solicitor experienced in business and company law, who can pull together all the facts and help you make a good decision.
Alternatively, did you realize there is an abundance of government-backed financing? From loans and grants to recognition awards, the HMRC has a current list of 575 available funding schemes! With small business startup on the government’s A-List, this is a step you shouldn’t miss.
Any funding process can take a while, however the rewards may be well worth the wait. With lower interest government loans and outright grants included as options, you should definitely give it a go. One note: you should be aware that grants usually require that you match their award amount.
Taxes and the Self-Employed
You may be dreading saying the word out loud: T-A-X-E-S. Now, breathe. We know the word conjures up huge amounts of added paperwork, boxes of receipts, potential audits and fines. But wait, there’s more!
Can you spell A-D-V-A-N-T-A-G-E-S? That’s right! Remember all those costs you previously incurred but never were allowed to deduct from earnings, before paying your self-assessment return? Well, the good news is, in most cases, now you can.
We all know that maintaining an (unreimbursed) office in your home costs money. From telephone and Internet installation and monthly fees, to laptops and printers; from supplies to direct vehicles expenses – it all adds up, doesn’t it? Now that you’re looking to start a proper business, these expenditures can be deducted from your profits prior to paying those nagging taxes!