Exceptional Customer Service Starts With Your Executive Team

Written by Kennette Reed


According to a new survey carried out by Alliance & where ID_NUM=9270; Leicester, one in five small business owners view tax as their greatest concern. The Chancellor has announced in his last budget that companies with profits below œ10,000 will not have to pay any corporation tax with effect from 1 April 2002. The question to be asked is: does that announcement make incorporation a more attractive option compared to being a sole trader?

The answer is that from a tax point of view, it is advantageous to trade through a limited company as long asrepparttar income is drawn fromrepparttar 106666 company byrepparttar 106667 owners as dividends from their shares andrepparttar 106668 amount of dividends drawn is restricted belowrepparttar 106669 40% band rate (i.e. œ31,063 for tax year 2002/03). That way,repparttar 106670 owners have no further personal tax ("income tax") to pay. Moreover, dividends are not subject to national insurance contributions. This is excellent news of course. But, if dividend income falls withinrepparttar 106671 higher rate bracket of income tax (i.e. above œ34,515), they will be taxed at 22.5% onrepparttar 106672 excess, which of course will increaserepparttar 106673 tax burden. The company profits are subject to corporation tax rates. Those are lower than income tax rates.

The most catastrophic scenario is whenrepparttar 106674 director takes his reward fromrepparttar 106675 company as salary. Then his/her salary is taxed at income tax rates (like a sole trader's income). That is because, unlike sole traders,repparttar 106676 tax system treats companies as separate from their owners because a company is a separate legal entity. The problem is thatrepparttar 106677 income taxes are higher than corporation tax rates. On top of that, they will be subject to employee and employer national insurance contributions, which of course increaserepparttar 106678 tax burden and render his position worse than even an unincorporated business ("sole trader"), because NIC Class 1 on payroll are higher than NIC Class 2 paid by self employed.

In contrast, a self employed person ("sole trader") is taxed at income tax rates onrepparttar 106679 profits from his business, which are added to his other sources of income. As it has already been mentioned, income tax rates are overall higher than corporation tax rates. On top of income tax, national insurance contributions class 4 are payable onrepparttar 106680 business profits within a specified band (7% on profits between œ4,615and œ30,420). National insurance contributions Class 2 are also paid by self-employed people, although those are lower than those payable by company directors on their salaries.

To illustraterepparttar 106681 above, let's take a simple example. We have a limited company and a sole trader. They both make œ60,000 profits each inrepparttar 106682 tax year 2002/03. We assume thatrepparttar 106683 company director takes a salary equal torepparttar 106684 amount of his personal allowances (untaxed income) of œ4,615 andrepparttar 106685 balance as dividends. The company will pay corporation tax at 19% equal to œ10,523 and nothing else. The sole trader will pay income tax œ16,542, National insurance Class 2 œ104 and National insurance Class 4 œ1,806. Total œ18,452. The bottom line is thatrepparttar 106686 person that has incorporated his business into a limited company will make a tax saving of œ7,929 compared to a sole trader! Isn't that fantastic?

Somebody might be wondering: why is this entire happening? The official explanation is that, this government, to helprepparttar 106687 economy grow, encourages people to leave as much profits within their businesses to be reinvested, instead of being taken out and spent.

The "unofficial line" is that, as a matter of fact, for yearsrepparttar 106688 Inland Revenue has tried to reclassifyrepparttar 106689 self-employed. The 1% in NIC hike on staff salaries aboverepparttar 106690 NIC threshold from next April adds to bothrepparttar 106691 employees' and employers' tax burden and may more than offsetrepparttar 106692 saving fromrepparttar 106693 corporation tax zero rate onrepparttar 106694 first œ10,000 of profits.

Give Your Ezine A Boost - Promote With power

Written by Reynaldo Perales


Let me ask you a powerful question. "What isrepparttar purpose of your ezine?" I mean, do you intend to sell advertising and produce a line of income from it? Do you intend to use it to drive traffic to your Web site? Is your primary goal to provide an added value for those you do business with?

Now, let me ask you a second question. "How do you plan to accomplish your goals?"

Regardless ofrepparttar 106665 reason for your ezine, one thing is a given. You must have subscribers in order to getrepparttar 106666 end result you're seeking. And how do you gain subscribers? Promote, promote, promote!

There are several things you can do that will increase your ezine's circulation. Some provide immediate results and others take longer but offer more lasting success. In any event, be prepared to spend a great deal of time promoting. Large circulations don't happen overnight unless you choose to "buy" subscribers. Below are several ideas for promoting your ezine with power in order to keep a steady flow of new subscribers coming intorepparttar 106667 ranks.

Ad Recommendations

One promotional method that works wonderfully is to have other publishers recommend your ezine to their subscribers.

Just find publishers that have newsletters which are similar to yours but not identical. For example, a copywriter might team up with a Web designer or a printing shop (both of whose customers will need copy writing services). When a subscriber registers forrepparttar 106668 Web designer's ezine,repparttar 106669 welcome letter they receive will state something like, "Another ezine you will find beneficial is ABC Ezine from Copywriting Services, Inc. ABC Ezine will help you create great copy for your site in order to getrepparttar 106670 best results from it. You can subscribe by clicking here."

In return, you would include a "plug" forrepparttar 106671 Web designer's ezine in your welcome letter.

You can also exchange ads with other publishers on a regular basis to gain new subscribers.

Submit To Directories

Yes, you've heard this before but most only provide a small sample of ezine directories to submit to. There are literally hundreds that you can use and they are FREE. Here is an extensive list of sites you can visit to list your publication. But don't stop here. To be truly successful, you'll need to takerepparttar 106672 time to research and submit to all that you can find. Just visit your favorite search engine and type in "ezine directory".

http://bizx.com/cgi-bin/miva?newsletter.mv http://Ezine-Universe.com/ http://Globemark.net/FreeZinesOnline.htm http://gort.ucsd.edu/newjour/submit.html http://inkpot.com/submit http://marketingwise.com/ezines.htm http://www.arl.org/scomm/edir emplate.html http://www.bestnewsletters.com http://www.cashpromotions.com http://www.catalog.com/vivian/intsubform2.html http://www.disobey.com/low http://www.ezinehits.com/ http://www.ezine-news.com http://www.ezinesearch.com http://www.ezineseek.com http://www.ezineworld.com http://www.INFOJUMP.com/ http://www.intersuccess.com/ezines.htm http://www.lifestylespub.com http://www.liszt.com/submit.html http://www.meer.net/~johnl/e-zine-list/keywords/ http://www.netmastersolutions.com http://www.netterweb.com http://www.newsletter-library.com/ven.htm http://www.oblivion.net/zineworld http://www.site-city.com/members/e-zine-master/ http://www.theideaspot.com/directory/register.html?pfm http://www.time4profit.com/newsletters http://www.topbiznews.com http://www.webcom..com/impulse/list.html#Search http://www.web-source.net/web/ http://zineconnection.hypermart.net/ezinelisting.html

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