1. The main rate of Value Added Tax will, from December 1st, be reduced from 17.5% to 15% until the end of 2009.

2. Deferral of the increase in the small companies’ rate of corporation tax. The rate will stay at 21% from April, instead of rising to 22% as previously announced.

3. National Insurance rates will increase by 0.5% from 2011 - for both employers and employees.

4. A 45% rate income tax band will apply to salaries of £150,000 and above after the next General Election.

5. The £120 rebate for basic rate taxpayers will remain and will be increased to £145 from April 2009.

6. A new Small Business Finance Scheme to support up to £1 billion of bank lending; a separate £1 billion guarantee facility to support bank lending to small exporters; a £50 million fund to convert businesses’ debt into equity; and a £25 million regional loan transition fund.

8. Introduction of a new HMRC Business Payment Support Service to allow businesses in temporary financial difficulty to pay their HMRC tax bills on a timetable they can afford.

9. Changes to the taxation of foreign profits - including the introduction of a foreign dividend exemption for large and medium-sized businesses, supported by a worldwide debt cap on interest.

The 2008 Home Business Report, launched as part of Small Business Week 2008, highlights a 16 per cent rise over the last year in the number of businesses being run from home. There are now more than 2.5 million home businesses, accounting for more than half (53 per cent) of the 4.7 million small and medium sized enterprises in the UK.

Home based businesses are also bucking the trend when it comes to confidence in their prospects during the financial crisis. They are buoyantly optimistic about beating the adverse economic conditions, with 72 per cent planning to win new customers over the next six months, two thirds (66 per cent) planning to increase turnover and more than half (58 per cent) developing new products and services.

The freedom to make their own decisions is the most popular reason (33 per cent) why home based business people enjoy being their own boss, closely followed by the benefits of a better work/life balance (24 per cent).

The use of technology is a critical factor in the start up and growth of home businesses - a view held by 82 per cent of business owners, with more than half of them (52 per cent) spending between 500 to 1,000 on Information Technology each year.

Home business owners view their spending on technology as a valuable return on investment as it helps to keep their costs low and their sales and productivity high.

Undoubtedly fuelled by worries about the current economic climate and the future of their careers and businesses, people are increasingly turning to the internet to find mentoring, support and business advice. Throughout the last three months, searches for mentoring and coaching on Yell.com have increased by 116 per cent above the monthly average for 2008.

Four awards of 20,000, plus three months support worth 5,000, are up for grabs in the 2008-09 Glasgow Business Challenge Fund. Run by Glasgow City Council, the fund is open to small and medium-sized firms from the city (maximum of 250 employees) that have been trading for less than three years.

Interested firms are asked to submit a business plan of no more than 40 pages outlining their entrepreneurial spirit, innovation, and their plans for future growth. Shortlisted finalists will then get to pitch their ideas before a judging panel.

Companies have three chances to enter the competition, with the following deadlines set:

30 October 2008.
30 January 2009.
30 March 2009.

Two winners will be chosen from the October round, with one each from the January and March contests.

5.73 per hour for workers aged 22 years and older
A development rate of 4.77 per hour for workers aged 18-21 inclusive
3.53 per hour for all workers under the age of 18, who are no longer of compulsory school age

Tough economic and financial circumstances has seen smaller companies squeezed for cash and taking an increasingly defensive approach to business insurance.

The insurer discovered businesses were significantly more likely to consider policies which protected premises, business loans and reduced staff cover as more important than life, personal accident or property cover for staff.

But the majority of respondents also admitted to not understanding the product, with 13 per cent having never heard of it, 26 per cent having heard the name but not knowing what it covers and 36 per cent not understanding the difference between individual products.

The survey also revealed the business owners most common worry is a downturn in the market, with 46 per cent of respondents placing it in their top three concerns, followed by losing clients to competitors, at 32 per cent, clients failing to pay for services, at 30 per cent and utility bills, at 23 per cent.

The business grants will help almost 5,000 businesses to implement Safer Food better Business (SFBB) ? an innovative and practical approach that helps small businesses put in place food safety management systems. This year the FSA grants have focussed on those caterers and retailers who are harder to reach. SFBB has been developed by the FSA in partnership with industry and local authorities with specific advice available for different cuisines and groups such as care homes.

Applications for the grants were invited in May and applications were internally appraised and considered by an external appraisal panel on 7 August. The panel had representatives from local authorities, LACORS (Local Authorities Coordinator of Regulatory Services), the British Hospitality Association and an academic from Birmingham University. The Agency received 40 applications for grants and 26 were successful, involving 69 local authorities and a range of other organisations.

An exception to the rule is for home based businesses whose company name does not have to be displayed at a location which is primarily used for living accommodation.

The research was carried out by business consultants www.getsetforbusiness.com who surveyed businesses established for less than six months on their motivations for becoming self employed. Over 40% of respondents indicated their main reason was the fear of redundancy from employment and the subsequent removal of financial security.

Over 200 business owners were questioned and other motivations included the flexibility of working from home and not having to answer to bosses.

Recent figures released by Companies House and the British Banking Association show further signs of business confidence. Over 27,000 new Limited Companies were incorporated in England and Wales in July 2008. In addition, the latest figures (Q3 2007) for the leading high street banks providing small business services show that:

Overdraft borrowing is £9.0 billion, a fall of one per cent over the year, reflecting a lower reliance on temporary, cash flow finance.
Term lending stands at £39.9 billion, having grown nine per cent over the 12 months to September.
Deposits total £48.8 billion, having increased by eight per cent over the 12 months to September.
Over 585,000 small businesses established new banking relationships in the latest 12 months.

GetSet for Business has actually seen a 20% rise in the number of businesses seeking support in the last six months compared to the same period last year.

Managing Director, Kate Beever, commented

Our customers are clearly eager to gain the right support for their business from the outset. The credit crunch has actually encouraged business owners to plan ahead more significantly to prepare for a potential slump in their market. GetSet for Business gives users the confidence, knowledge and direction to consider and prepare for every area of the business and produce an online, bespoke business plan

Established businesses can also earn revenue through the GetSet affiliate scheme. For more information contact the sales team on 0161 286 3001 or visit www.getsetforbusiness.com.