Alliance & Leicester offers tips on how to handle the Budget

With many of the detailed changes announced in the Budget having an impact on the running of a company, it is no wonder that research from Alliance & Leicester Commercial Bank has highlighted that only one in ten (11%) SME owners understand what the proposed changes will mean for them.

With seven out of ten (70%) of businesses worried about the Budget, Steve Jennings, Director of Business Banking at Alliance & Leicester Commercial Bank, gives some top tips on what to do post Budget Day:

1. Seek advice. Consult professional advisors who will be able to guide you through how the changes will affect your business. A certified accountant or IFA will know the ins and outs of the Budget and can talk you through areas where you may want to make changes following the Budget.

2. Prepare now. Start to prepare now for any changes that come into force next year which will put an extra squeeze on your business’ finances. For example, the small company corporation tax rates are set to increase gradually to 22% by 2009/2010. Plan to put surplus money aside into a high-interest business deposit account that will earn extra funds, making your spare cash work harder for you.

3. Take advantage of positive Budget changes. Look to see if you can take advantage of any incentives that are included in the Budget which may help to reduce your running costs.

4. Keep a business diary. Know when new legislation comes into force and prepare well ahead of important deadlines. This will help ensure that you are best placed to avoid potential penalties for missed deadlines and can take advantage of any relevant incentives at the earliest opportunity.

5. Re-assess. Following the Budget re-assess your business plan to ensure you have a clear picture of where you stand financially and know what additional expenditure to expect over the coming year so that you can continue heading in the right direction.
To offer a point of reference for small businesses looking to understand the Budget, Alliance & Leicester Commercial Bank is offering a free downloadable guide from its website alliance-leicestercommercialbank.co.uk/tax