Social Cost Holiday for New Companies in the UK

The UK Government has introduced a new and very valuable incentive aimed at encouraging new companies to start up in the UK outside the area of London, the South and the South East of England.
With effect from 6th September 2010, and continuing until 5th September 2013, newly established businesses (including all those at the EBS and University of Warwick Science Park offices) can receive a holiday from the first GBP 5,000 of social costs paid to the first 10 employees who start in the company for the first 12 months that they are employed.

In summary:
- The company starts to trade at any time up to 5th September 2013 and employs people, then you can claim back the first GBP 5,000 of social costs due in the first year that each of the first 10 people are employed.

The tax authorities' guidance on this subject available from Business Link.

Companies need to apply for registration under this scheme. EBS will cover the costs of registration free of charge to all clients setting up during this period.

This social cost holiday applies only to companies formed outside London, the South and the South East of England, and this exclusion area is quite large. For example, companies establishing themselves at EBS's offices in Warwick (and this only has to be the administrative headquarters) are eligible to apply for the scheme, but companies setting up some 50km to the south in say Oxford are not eligible.

VAT Increase in the UK

The standard rate of VAT in the UK has increased from 17.5% to 20% for all transactions taking place on or after 4th January 2011.

For more information on VAT in the UK, please see our VAT Quick Facts sheet.

Lucia

The traditional annual Santa Lucia service was held at Birmingham Cathedral on Monday 13th December.

The choral support was provided again by the ExCathedra Choir and as usual the Cathedral was full. The service was followed by a reception at the offices of Martineau in the centre of Birmingham.

The Santa Lucia service and reception are sponsored by Sandvik, Handelsbanken, Martineau and EBS.

UK Market Access Program

The original three private sector partners in Bridge to Growth, University of Warwick Science Park, Martineau and EBS, have come together and decided that they wish to keep the benefits of the old Bridge to Growth program available for the future once the Regional Development Agencies are effectively closed at the end of March 2011

Following the decision of the UK Government to close all the Regional Development Agencies, it became clear that programs such as Bridge to Growth, which is supported by the local Regional Development Agency AWM, and in which all three businesses are involved, was in serious doubt.

The original three private sector partners in Bridge to Growth came together and decided that they wished to keep the benefits of the program available for the future, and therefore they have come together to form UK Market Access Program. UKMAP retains the important benefits of the old program such as a free limited company, as well as bringing in a wider range of team members to add more important practical benefits for foreign owned businesses establishing themselves in the UK.

UKMAP has been trialled in Finland at three events with the support of Nordea bank, and the outcomes were very positive. The UK Market Access Program will continue to be developed in the Nordics and other countries in the first quarter of 2011, and will be ready to continue providing benefits and services from the point when Bridge to Growth is expected to close at the end of March 2011.

More details will be available in the next newsletter, and from www.ukmarketaccess.eu.

Bridge to Growth

EBS has continued to participate actively in the Bridge to Growth program.

During October 2010 a series of seminars was held in cooperation with UKTI in Oslo, Copenhagen, Stockholm and Helsinki, attended by in excess of 100 companies.

On the 13th January 2011, Martin Williams of EBS had the pleasure of speaking at the final Bridge to Growth seminar which took place in Dublin in cooperation with the Dublin Chamber of Commerce.

The event was opened by HMA Julian King, and we also were very pleased to be joined by John Glennane of Capricorn Ventis who attanded the first Bridge to Growth event in Ireland two years ago. John told us about his experiences and how the easy access to the UK market has helped his company to prosper.

This was the final event before the Bridge to Growth program closes due to the financial cut backs which are affecting the UK and many other countries. A new replacement, the UK Market Access Program, continues with many of the same colleagues, but sadly without the Regional Development Agency Advantage West Midlands, which is closing later this year.

Martin Williams (EBS), James Blakemore (Sector Marketing), John Glennane (Capricorn Ventis)
HMA Julian King (British Ambassador to Ireland), Gina Quin (Chief Executive Dublin Chamber of Commerce)
Simon McKeever (Director Trade & Investment UKTI Dublin), Robbie Beak (Advantage west Midlands)

Royal Wedding

Prince William, second in line to the UK throne, and Kate Middleton are to be married at Westminster Abbey in London on 29th April 2011. This day will be a National Holiday in the UK.

Other National Holidays around this time will be Good Friday on 22nd April, Easter Monday on 25th April, and the May Day holiday on Monday 2nd May. This means that there will be only three working days between Thursday 21st April and Tuesday 3rd May, and as this is also a school holiday period many businesses are expected to be closed or very short staffed during this period.

Note: In UK all national holidays except Christmas Day, Boxing day (the day after Christmas) and New Year are planned to be on Mondays or Fridays, and if these do fall on a Saturday or Sunday the following Monday, and Tuesday if necessary, are declared as replacement holidays. For example, Christmas fell on a Saturday in 2010, and the UK also has the following day, called Boxing Day, as a holiday. The Boxing Day holiday was moved to Monday 27th December and the Christmas Day holiday to Tuesday 28th December. As New Years Day fell on a Saturday, this was also moved to the following Monday, in this case Monday 3rd January.
The May Day holiday is always a Monday, so if 1st May is not a Monday, the holiday is moved to the first Monday after 1st May.

UK Immigration

On 23 November 2010 the UK Government announced limits for workers entering the UK from outside EU and the EEA.Announcing a package of measures the UK Home Secretary, Theresa May, said "We have set out an approach which will not only get immigration down to sustainable levels but at the same time, protects those businesses and institutions which are vital to our economy."

The UK will continue to welcome the brightest and best people from around the world. These measures will help ensure that the UK remains a top destination for investors and entrepreneurs and will be operated in a way that will give businesses in the UK and abroad the confidence they need in our immigration system.

The main measures for 2011-12 are:

• A limit of 21,700 across Tiers 1 and 2 of the Points Based System on the number of people coming to work here from outside the EU.
• Within this, a limit of 20,700 under Tier 2 and raising the required standards to graduate level jobs so that only the most skilled migrants will qualify.
• Intra-Company Transfers (ICTs) will be exempt but standards will be raised and numbers reduced through a new salary threshold of £40,000 for ICTs staying longer than 12 months (and up to 5 years). To support high value companies further ICTs will be allowed to enter the UK for less than 12 months at a minimum salary of £24,000.
• Certificates of Sponsorship will be distributed to employers each month, rather than pre-allocated as now. If, in any given month, there is an over-subscription, applications will be prioritised on the basis of applications in skill shortage areas; jobs which require high level qualifications; and salary.
• Tier 1 General route will be closed but used to attract more investors, entrepreneurs and people of exceptional talent. A limit for the revised Tier 1 route, excluding entrepreneurs and investors, will be set at 1,000.

Company car mileage allowances

The advisory fuel rates for company cars were updated on 1st December 2010.

The updated rates and further information on company cars can be found on our Company Cars Quick Fact Sheet.