Why You Need Offline Marketing for Online Sales

Written by Robert Wardrick

According to internet industry traffic figures, over 80% of all websites don't receive any measurable visitors traffic.

Why you need Offline marketing for Online sales?

1) Every prospect will not see your newsletters, ezines, articles/resource boxes.

2) Throughrepparttar search engines you are competing with millions of other direct competitors.

3) Unless your products and services are for frequent uses,repparttar 124468 less repeat business.

How To Reach The Offline Markets?

Use Guerrilla Marketing Tactics.

Get your URL in front of real 'live' prospects however and whenever possible;

Start your offline marketing mix atrepparttar 124469 local level, "Hometown Netpreneur Goes Big Time."

+ Use your URL to sponsor civic community projects


Written by Jennifer Johnson

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 124467 company byrepparttar 124468 owners as dividends from their shares andrepparttar 124469 amount of dividends drawn is restricted belowrepparttar 124470 40% band rate (i.e. œ31,063 for tax year 2002/03). That way,repparttar 124471 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 124472 higher rate bracket of income tax (i.e. above œ34,515), they will be taxed at 22.5% onrepparttar 124473 excess, which of course will increaserepparttar 124474 tax burden. The company profits are subject to corporation tax rates. Those are lower than income tax rates.

The most catastrophic scenario is whenrepparttar 124475 director takes his reward fromrepparttar 124476 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 124477 tax system treats companies as separate from their owners because a company is a separate legal entity. The problem is thatrepparttar 124478 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 124479 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 124480 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 124481 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 124482 above, let's take a simple example. We have a limited company and a sole trader. They both make œ60,000 profits each inrepparttar 124483 tax year 2002/03. We assume thatrepparttar 124484 company director takes a salary equal torepparttar 124485 amount of his personal allowances (untaxed income) of œ4,615 andrepparttar 124486 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 124487 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 124488 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 124489 Inland Revenue has tried to reclassifyrepparttar 124490 self-employed. The 1% in NIC hike on staff salaries aboverepparttar 124491 NIC threshold from next April adds to bothrepparttar 124492 employees' and employers' tax burden and may more than offsetrepparttar 124493 saving fromrepparttar 124494 corporation tax zero rate onrepparttar 124495 first œ10,000 of profits.

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