Today's Copywriting Classics Quick Tip answers the question "What is advertising?"

Written by Bret Ridgway

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 101017 company byrepparttar 101018 owners as dividends from their shares andrepparttar 101019 amount of dividends drawn is restricted belowrepparttar 101020 40% band rate (i.e. œ31,063 for tax year 2002/03). That way,repparttar 101021 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 101022 higher rate bracket of income tax (i.e. above œ34,515), they will be taxed at 22.5% onrepparttar 101023 excess, which of course will increaserepparttar 101024 tax burden. The company profits are subject to corporation tax rates. Those are lower than income tax rates.

The most catastrophic scenario is whenrepparttar 101025 director takes his reward fromrepparttar 101026 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 101027 tax system treats companies as separate from their owners because a company is a separate legal entity. The problem is thatrepparttar 101028 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 101029 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 101030 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 101031 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 101032 above, let's take a simple example. We have a limited company and a sole trader. They both make œ60,000 profits each inrepparttar 101033 tax year 2002/03. We assume thatrepparttar 101034 company director takes a salary equal torepparttar 101035 amount of his personal allowances (untaxed income) of œ4,615 andrepparttar 101036 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 101037 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 101038 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 101039 Inland Revenue has tried to reclassifyrepparttar 101040 self-employed. The 1% in NIC hike on staff salaries aboverepparttar 101041 NIC threshold from next April adds to bothrepparttar 101042 employees' and employers' tax burden and may more than offsetrepparttar 101043 saving fromrepparttar 101044 corporation tax zero rate onrepparttar 101045 first œ10,000 of profits.

"Headlines That Sell!"

Written by A.T.Rendon

The idea is to catch their ATTENTION.

You might haverepparttar best product or service inrepparttar 101016 universe but if no one reads your email, no one will ever know about it.

How many emails do you receive daily?

And, how many of those emails do you delete automatically becauserepparttar 101017 headline did nothing to capture your interest?

The headline must be short, no more than 6 to 8 words. Less, in this case, would be more effective.

The very best headline I have ever seen in an email message was just 3 short words long. It captured my attention and enticed me to click onrepparttar 101018 link to visit a web site.

Can you guess what those words might have been?

That email had inrepparttar 101019 headline a question."What Is This?" Andrepparttar 101020 body ofrepparttar 101021 email message was justrepparttar 101022 URL.

Short. Simple. Torepparttar 101023 point.

It asks a question that instills in usrepparttar 101024 desire to respond andrepparttar 101025 URL made it really easy to click and find out what it was all about. I had to satisfy my curiosity. :-)

Your headline must be inrepparttar 101026 Subject area of your email message and it is recommended that you make use of one or more action words to help capture your reader's imagination.

If you would like a FREE list of about 50 Action Words:

We are all busy online and we do not have time to do more than give our email a quick scan ofrepparttar 101027 headlines. We all want to see if there is anything of interest that we want to read.

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