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Budget 2007 - the good news

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SmeblogpostThe good news for UK SME's on the budget is on VAT.  The cash accounting VAT scheme can now be used for businesses with an annual turnover limit up to £1,350,000 from 1 April 2007.  Currently the limit is set at £660,000.  That's a huge increase.

The VAT cash accounting scheme allows you to account for VAT (output tax) on your sales on the basis of payments you receive, rather than on tax invoices you issue. However, if you choose to use the scheme, you can only reclaim the VAT incurred on your purchases (input tax) once you pay your supplier.

This is good news for businesses with large trade debtors and good news generally for cashflow.

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Angry SME's

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Smeblogarrow_2SME owners are angry with UK Chancellor Gordon Brown. Why?  Corporation Tax for small UK companies is going up in stages from 19% to 22%

Check out the recent BBC article on the tax rises.  The comments are from real people at the sharp end running their businesses. 

Raising taxes is never going to popular, but raising taxes for the small companies whilst corporation tax is going down for the large companies is rubbing it in.  Cushioning the blow are accelerated tax allowances on capital expenditure, but not all small companies need substantial capital expenditure each year.

The real pity for me is the lack of a strong voice for SME's.  You can bet there would certainly be a lot more uproar if the increases hit the large companies instead of the small. 

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Shared content

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There is a vast amount of content being published and it is increasing. SME's risk drowning in a flood of information. Any organisation or blog that can deliver content that is relevant and valuable to us will flourish, but to remain successful they will need to adapt to new methods of distributing content.

Google know this and they are now much more than just Google search. Google Reader allows you to aggregate new content from websites in one screen using the Google Reader. Google call it "your inbox for the web."

Of more interest is the ability Google Reader gives you to share content. The below box contains content from a sample of 7 blogs I read using Google Reader. This is content that I find interesting. My hope is you will also find something new that is relevant to you.

Five years ago this type of content and its method of distribution just did not exist.  We are living in a technology revolution.  In 20 years time even this current method of distribution will be the technology equivalent of the black and white TV. 

A brief overview of the blogs included in the above Google shared box (click "Read more" in the above box for a complete list):

  1. Accman - a mighty blog, essential reading for those interested in business and innovation.
  2. Business of Martketing and Branding - if you think marketing is all about brochures then you really need to read this blog.
  3. Business Two Zero - beyond the call technology insight with a unique business & marketing twist.
  4. BusinessMatters - fellow accounting professional based in the English Lake District.  Good no nonsense advice (and I'm jealous of the new offices & lack of daily commute).
  5. Eie Fluid - Heather's niche business blog.  Real life tales of running a small business.
  6. Kite Blue - champion of the M in SME. Quite right, M's are constantly overlooked by the UK government where their SME focus tends to be on small businesses.
  7. Tax Research UK - a unique blog that focuses on ethics and taxations. Yes, it is possible.

These are just a sample of some of the great blogs I read.  Many more are out there producing great content. 

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Reading ease

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Smeblogreading2The Flesch Reading Ease test is designed to indicate how difficult a reading passage is to understand.  Higher scores indicate material that is easier to read; lower numbers mark harder-to-read passages.

I did some quick tests and found that a typical informal blog has a score of about 50 to 60, BusinessWeek scores from 40 to 50 and The Times 35 to 45. 

You can try it for yourself with a reading ease calculator at Online Utility. More importantly test it on your writing and get an online score on how easy it is to read.

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Hello Alaska

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Hello Alaska, population 660k and rising.  Welcome to SME Blog London, population 8m and overcrowded trains. 

Alaska_2If SME Blog can reach Alaska then anyone can.  It shows that SME's can have a worldwide marketing reach.  Your local niche now has the potential to be a worldwide niche.

Technology is breaking down geographical restrictions and not just for business - last year 1 in 12 newlyweds in the US met online .

 

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Philip Woodgate