It always seems strange at this time of year to think of the year ahead as 365 days when we have just come from a time of decreasing days left - how many days to Christmas, then New Year, and suddenly it all slows down and we have a full year ahead. It is perhaps a time to stop, take stock and think about what 2011 will bring, but perhaps not for too long - it will no doubt be an interesting year ahead, so time to plunge in and get going...
The headline news today is about the VAT increase - up from 17.5% to 20%. So what does this mean? As mentioned originally in our newsletter of Dec. 2009, (and blogged about below), we will 'pay your VAT' for those who are not registered for VAT - up to a VAT rate of 20%, if the government should change the rate again to above 20% then we would pass on any such additional rise. So for the moment there isn't a big impact in the work we do for you. Our hourly rate won't effectively cost you anything more - for those who are vat registered, you can reclaim the extra - however there will be slight increases in hosting charges (£100 + VAT means a £2.50 increase, and £20 + VAT for domains means a 50p increase) - as we haven't increased the base cost for 5 years we feel this won't be too painful...
NB a rise of 2.5% in VAT does not make something 2.5% more expensive, the base item costing £100 used to have VAT of £17.50 and now has VAT of £20 meaning that it has gone from £117.50 to £120 - making it 2.12% more expensive! The actual VAT increase is from 17.5% to 20% a rise of 2.5/17.5 or an actual 14.28% increase in the VAT element - aren't figures fun!
So, for those who are not VAT registered, your base hourly rate will DROP! from £63.83 p/h to £62.50 p/h (as always, should you VAT register we ask that you let us know and we will put the price back up... neutral for you, but better for us!) For those who are VAT registered - nothing changes, your bill will be a bit higher, but you can reclaim the difference.
2010 was an interesting year, we found that most of our customers saw growth, contrary to the media coverage, suggesting that a good business run well can indeed continue to perform in recession times. For us, we had our best ever year and continue to grow thank you to our customers - much appreciated. For those who have not yet caught up, we are now: Alasdair Kirk / Dan Hawes / Mark Strange in the office, and in addition Helen Keen is now doing some work with us. Helen is experienced at business (having run her own), and in particular is good at communication / wording / etc. So, if you feel that your website or print copy needs bringing alive / refreshing this could be a good opportunity. As with all our work, we focus on content / design / coding helping to drive your business strategically, your growth is the priority.
We tend not to spend time in fanciful predictions, but we are starting to notice some trends which we think will continue into 2011:
So, an interesting year ahead - we are geared up and excited - what are your plans?