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We’re in a recession and that makes people frightened. It is however exactly the time when you most need to be brave in business. Perception and confidence are key to the image projected by your business, and your clients and customers will be looking to you for cues that all is well. Yet when business is slow most small businesses will conclude that they have no budget for advertising, and that money spent on marketing is a luxury. In fact the opposite is true. It may be that for the first time ever, you now really need to advertise, and consider too that if other people are thinking as you have been, then there will be less competing advertisers in your market place, and a clearer path for your message. Money spent on promotion will in fact go further now than it did before and you are more likely to be rewarded for your courage. Whatever you do, you mustn’t share any anxieties you may have about money with your clients. Many small businesses make the mistake of discussing openly how difficult things are. Your customers will waste no time in spreading the word, that’s just what people do. And why shouldn’t they? They are following your example. People have an appetite for drama, and your misfortunes will feed it very nicely, but people are also attracted to success, so ‘confide in them’ how well you are doing and let them tell everyone about that instead. Focus on the positives, play down the negatives, stand tall, and you’re more likely to stay standing. Sharing your bad news is just putting the nails in your own coffin. Ask yourself whether you would be more likely to use a growing business or a dying one?

Collette Barber of Small Business Solutions is a Gold Member of RH123 contact details

It’s nearly time to wish you all a Happy New Year . . . Tax year that is. 2008/09 is history and 2009/10 has just begun. Strangely we don’t see invitations to New Tax Year’s Eve parties? Unlike the RH123 5th Anniversary which we are pleased be a part of, the tax year end just brings the annual misery of collating all your records to give to your accountant or start looking at yourself. The deadlines this year are still 31st October for paper returns & next 31 January for online submission. But what if you’ve still not filed your return for 2007/08 & are now getting letters from the taxman telling him you owe £100 late filing penalties? Try to get the work done & filed as soon as possible. If you leave it till around the 5th April you’ll find the website shuts down for a few days so you won’t even be able to do it online then. And the longer you do leave it the more interest you’ll have to pay on overdue tax. Why not make a payment straight away, because at least that

will stop the interest building up? Alternatively if you’re really struggling to pay, get in touch with the tax office ASAP because they’re particularly willing to hear about difficulties in the current climate, and it could save you further penalties, not to mention those nasty letters. If it turns out that you didn’t owe any tax after all, then the penalty will be cancelled too, because it’s not allowed to exceed the tax liability, so its not all bad news! Finally, now you’re up to date, try to stay that way. Because the next April will be here before you know it.

Effective from 7 September the basic Personal Allowance for the 2008-09 tax year will increase by £600 from £5,435 to £6,035. At the same time the amount of taxable income you can earn before paying higher rate tax will reduce from £36,000 to £34,800.

If you are an employee or receive a personal or company pension: the changes will be reflected in wages and pension payments from September 2008. Your employer or pension company will have received notification from HM Revenue & Customs of your new tax code.

If you are self employed: the new allowance will be taken into account in your Self Assessment tax calculation and tax bill for 2008-09, the balancing payment falling due on 31 January 2010.

There will be no change for most people over 65, the age related allowances were increased from April 2008.

If you pay tax at the basic rate of 20 per cent: on your first pay day on or after 7 September, you will pay up to £60 less tax, depending on how much tax how much you have paid already. After this you will pay up to £10 per month or £2.30 per week less tax. The total reduction for the year being £120.

The changes will only benefit basic rate taxpayers. If your annual earnings exceed £40,835 your total tax bill will be unchanged.

Why wait til next year to sort out your Tax Return for this year . . ?

Tax & deadlines, two things that go together and send people into a panic year after year. It feels as if we’ve only just got past last years self assessment tax return filing deadline, yet we are already fast approaching the end of yet another tax year on 5th April. The first thing to say is "Don’t Panic" (© Douglas Adams). Even if you file your return on paper & let the tax man loose on calculating your tax, you have until 31 October to complete it. If you use the internet to file online you’ve got until 31st January 2009. The later deadline will also apply if you have an accountant, unless he’s one of a dying breed convinced that computers are the work of the devil.

When it comes to actually doing the tax return, be methodical, make sure you have all documents you need before you start, P60 (& possibly P11d) forms if you’re employed, your accounts up to date if you’re self employed. Get annual certificates for interest earned or pension payments made. Keep the dividend vouchers from those Abbey National (or whoever) shares all in one place. If you’re stuck on anything, phone the organisation concerned and ask for copies, or phone the tax office helpline if you’re not sure what you need or where to enter it.

Or you could go to an accountant, but please don’t leave it until January before you do.

Don’t Risk your companies future security . . . New Year, New Start and a good time to give your business a quick health check. Re-evaluate what you do to ensure you have suitable liability cover, what you have to check your stock and assets are covered to the correct value on your policy and also what if? . . . the unplanned happened . . . a fire for example could ruin your business if you do not have insurance, fire protection such as extinguishers and more importantly a contingency plan supported by business interruption insurance.

A local restaurant recently suffered not one, but two fires in the space of three months due to electrical faults resulting in the loss of regular customers, and no income over the Christmas period, fortunately the building and contents were insured but the owner had decided not to pay for business interruption insurance and so was not entitled to claim for the resulting loss of profit. He was forced to use his entire savings just to pay the mortgage and bills, and keep key staff employed.

If the restaurant proprietor had taken out the business interruption insurance cover and arranged for an Electrical Inspection of his building then he would have not only been recompensed for his loss of income based on trading levels from the previous year, but he would also avoid an increase in his insurance premiums due to his adverse claims history.

Mark Barton of Coversure Insurance Services is a Gold Member of RH123 contact details