News

October 05, 2012

Also in the news this week — 5 October 2012

Britain’s SMEs could save at least £230 per year on energy bills

The proposed roll out of smart meters means British businesses can each expect to save at least £230 on their annual energy bills, according to a new report by British Gas and Oxford Economics. The report analyses the costs and benefits of smart meters from 2012 to 2030 and finds that the typical SME will save a minimum of 4.7% on their electricity bills and 4.3% on their gas bills —equivalent to a £230 annual saving — as they become more energy conscious. The Government requires all homes and businesses to have a smart meter installed by 2019.

More companies to be exempt from audit

Subsidiary companies no longer need to have their annual accounts audited provided that, among other things, their parent company agrees to guarantee all liabilities of the subsidiary that are outstanding at the end of that financial year. In addition, companies that qualify as “small” for the purposes of preparing and filing accounts will automatically qualify for exemption from audit.

The relaxations have been introduced through amendments to the Companies Act 2006 that took effect on 1 October 2012 and apply to financial years ending on or after that date. You can download guidance from accountancy network BDO’s website.

The EU wants to hear your views on red tape

Small and medium-sized businesses are being asked to provide feedback on EU red tape as part of a commitment by the European Commission to cut excessive regulations. The Commission is calling for SMEs and organisations that represent them to comment on the areas of EU legislation that they feel are the most onerous. The Commission's consultation will close on 21 December 2012. Find out more here.

Metro Bank announced as banking partner for SME lending scheme

Metro Bank is to be the primary banking partner for the Government-backed GrowthAccelerator initiative. Business Secretary Vince Cable has announced that Metro Bank will support up to £100 million in lending for applicable growing small and medium sized enterprises.

Craig Donaldson, chief executive of Metro Bank, said: “Research has proven that high-growth firms make up just 7% of all UK firms — yet they generate around half of all new jobs and show particular resiliency during recession. Metro Bank is a growing business itself, with money to lend. We are pleased to work with Grant Thornton and the Department for Business, Innovation and Skills to support the small businesses that are spearheading Britain’s recovery.” 

SMEs still in the dark about pension matters

Research carried out by RSM Tenon has revealed that 66% of SMEs have not heard of the Retail Distribution Review (RDR) and 41% have not heard of auto enrolment. RDR means the end of charging commission for financial advice, effectively ending payments by pension providers to advisers. Businesses seeking company financial advice, such as for setting up pension schemes, will now have to pay fees to their advisers. Auto enrolment means employees in large firms are now (as of 1 October 2012) eligible to be automatically enrolled into pension schemes. Small firms won’t be affected until 2017 — you can read more on Law Donut.

Jobs report shows encouraging signs of recruitment

Companies have started to take on staff again, particularly temporary and contract staff, according to a report on jobs produced by the Recruitment Employment Confederation (REC) and KPMG. It shows that the rate of decline in permanent hires eased in August, halting a trend of several months. In addition, it finds that SMEs are most confident about future prospects and the strongest geographical expansion is happening in the Midlands.

Bernard Brown, partner and head of business services at KPMG, said: “With question marks still hanging over the long-term state of the economy, it would be easy to suggest that an upward curve in the jobs market is nothing more than a blip. But the truth is that, in some parts of the country, we are actually seeing a growth in the number of companies recruiting and where there is a decline it is now virtually insignificant.”

Exporting delivers results

Businesses that export grow by almost a third in just two years according to the results of a survey of 1,500 small firms in the UK conducted by Barclays. Over half (54%) of firms said this growth had exceeded their expectations. And nine out of the top ten countries listed as targets by established exporting businesses are outside of Europe, with Hong Kong, India, China and Australia topping the list. Barclays has recently launched Business Abroad, a new initiative providing advice and tools to help businesses start trading internationally. It is also running a series of free International Trading clinics across the UK, supported by UKTI.