What’s in store for businesses in 2010?
News Article - 06 January 2010
Category:
Business
The economic downturn caused significant changes for UK
businesses in 2009, and many organisations struggled to cope with
the effects of recession. Others were more fortunate and managed to
remain profitable despite the poor market conditions. In the latter
half of the year there were early signs of economic recovery, and
competition for market share increased. Access enjoyed a successful
year, winning more six-figure contracts than ever before following
a company-wide rebrand in July.
Yet industry commentators believe 2010 will be a tough year for
UK businesses. Richard Lambert, CBI Director-General, has labelled
2010 a 'year of exceptional challenges for businesses in Britain.'
He blames the poor shape of public finances and the unresolved
banking crisis for many of the upcoming problems companies will
face. Mr. Lambert's scepticism is shared by Graeme Leach, Chief
Economist of the IoD, who feels economic recovery is improbable in
2010.
Whilst it is unclear exactly how the economy will fare in 2010,
below is a snapshot of what's in store this year for UK
businesses:
2010 - General Election
The 2010 general election must take place on or before June 3rd.
In the face of the economic backdrop, the major parties are
expected to use their pledges to outline plans for economic
recovery. Whilst it is unclear this early what these plans will be,
policies to kick start the economy will definitely be high on the
agenda. SMEs will be watching the pre-election build up carefully
to ensure they can prepare early for changes and hoping they get
the full support of any incoming government.
2010 - Microsoft Office 2010 to be released
Microsoft Office 2010, the latest version of Microsoft's popular
office productivity suite, is due for release in the first half of
2010. For the first time, the software giant will also offer free
in-browser versions of the most popular Office programs, such as
Word. UK businesses will be faced with a number of upgrade choices.
Many organisations will be considering or may already have upgraded
to Microsoft's newest operating system, Windows 7 and the new
Office suite might encourage more to do so. Hardware costs may also
have to be considered in organisations with dated systems.
March 31st - New tax reporting language to affect 2010
accounting period
HMRC is advising accountants to prepare early for the new iXBRL
tax reporting language. Whilst it doesn't become compulsory until
2011, it is expected to affect accounting periods starting March
31st 2010.
April - Compulsory electronic filing of VAT 100 and VAT
payments
As HMRC continues its move to digital submission methods,
businesses will be required to submit their VAT 100 and VAT
payments electronically. In November 2009, a survey by the
Institute of Payroll Professionals called for HMRC to
accept P60s electronically and electronic submission of P45s
will become compulsory from 2011.
April - Carbon Reduction Commitment to set mandatory compliance
regulations
From April, the UK's Carbon Reduction Commitment (CRC) will
require the UK's most carbon-intensive businesses to cut their
output by roughly 1.2million tonnes a year. The commitment, seen as
the World's first legally binding carbon-reduction budget, will
help the country achieve its aim of reducing carbon output by 80%
by 2050. The CRC is independent of the Copenhagen Summit, the
heavily criticised global discussion on climate change held in
December 2009.
Summer - Companies House to accept iXBRL-based submissions
Companies House will offer the new iXBRL tax reporting language
on unaudited accounts before developing it for use with other types
of account. As with all changes like these, businesses would do
well to prepare early to help ease the burden on their company.
December 1st - Secretary of State to publish report on
efficiency of carbon reporting
The Secretary of State will publish a report outlining the
contribution carbon reporting has on reducing carbon output. A
positive report may eventually require UK businesses to upgrade
their technology to include carbon-tracking capability.
In addition to these changes, trends that have become apparent
over the past year may also continue into 2010. The emphasis on the
'green economy', particularly by World governments, has kept this
issue firmly in the spotlight. And will continue to do so.
Elsewhere, HMRC are expected to cope with the country's large
budget deficit by increasing tax take. The return to a 17.5% VAT
rate was an additional burden on businesses, and with the
possibility of longer-term tax reforms brought about by the general
election all organisations should remain up-to-date to ensure they
can prepare early for changes. HMRC's
increasingly aggressive stance on litigation - seen by some as
a possible threat to corporate reputation - has been cited as
another method for increasing tax take.
On the back of the MPs expenses scandal, there's also likely to
be increased financial scrutiny in both the public and private
sectors, and company accountability may become a significant issue
as audit openness is encouraged and required. Businesses should
ensure they maintain comprehensive audit trails that will stand up
to this intense scrutiny.
Access will be commenting on many of these
issues and providing further information throughout the year, via
its blog, press release and industry news section.
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