Issue #79 - Was the Spring Budget good for business? 🤔
There's no business energy price cap | VOTE in our Spring Budget Poll | How to claim business allowances and tax breaks | Why honesty is the best policy | Melange chocloatier | Tunes | Words | More
🦾 GO
Energy prices are still coming down 📉
Welcome to Issue #79 of The Backbone - the fortnightly newsletter from Bionic.
The latest energy price cap announcement seems to have flown under the radar a bit, possibly because energy prices are falling to what we might consider a more acceptable level (no, really).
To recap, from April 1, the energy price cap will be set at £1,690 per year for a typical household dual fuel bill, paid by Direct Debit. This will run until June 30 and is £238 lower than the previous price cap level.
But remember, this doesn't affect your business energy bills as there’s no cap on business energy rates.
The good news though, is that energy prices are falling right across the board.
Prices have been coming down since the peak of August 2022, when gas wholesale prices were 593p per therm (around 29 kWh) and electricity wholesale prices were £522 per MWh (1,000 kWh).
To put that in perspective, gas wholesale prices are now 108p per therm and electricity wholesale prices are £99 per MWh.
There are loads of reasons why prices are falling, and you can find out more by checking out this Bionic blog.
In other news, Wednesday saw the government roll out a pretty underwhelming Spring Budget. There was very little mention of small businesses and even the headline-grabbing 2% cut in National Insurance Contributions (NICs) is only for employees. Business owners will still pay NICs at a rate of 13.80% for all employees who earn more than £8,840 per year (excluding those aged 21 or under and apprentices aged 25 or under).
If you’re self-employed, National Insurance Contributions will be cut from 8% to 6%. and there are changes to both "Class 2" and "Class 4" rates. All of which will kick in from April 6, 2024. Find out more at this Bionic blog.
Now you’ve had time to take it all in, we want to know how it will affect your business. Let us know by voting in the poll below 👇
🗯 COMMUNITY
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🗞 READ
How to claim business allowances and tax breaks 💷
As a business owner, it can be tricky working out what tax breaks you’re eligible for and what you can put on expenses - what you’re legally allowed to deduct and how does VAT work? This guide will help you get to grips with business expenses.
Why honesty is the best policy in business insurance 📝
A report from Sedgwick, a provider of technology-enabled risk, benefits and integrated business solutions, shows there was an increase in low-value and opportunistic claims fraud in 2023. The number of accidental loss claims flagged as suspicious by Sedgwick rose 15% in 2023 compared with 2022.
But if you’re thinking of lying to your insurance broker or insurer, think again. Not only is it illegal, but it’s not worth the risk of getting prison time. Who would run your business if you were put behind bars?
🗣 SHOUTOUT
#SmallBusinessStory - Melange 🤎
Bionic got in the Easter spirit early and chatted to Isabelle Alaya who runs Melange Chocolate Shop in Peckham. We discovered how she started, how the cost of living and energy crisis is affecting her and what her best piece of advice is for other business owners just starting their journey.
Bionic: How did you start your business?
Isabelle Alaya: “I remember all through my childhood, chocolate had an important role in consumption, obviously! But I started exploring the craft and the making side of it. I took a class and never stopped. Then I set up Melange and began artisan crafting and creating products. A few years after that, I opened the Chocolate Museum to tell the history of chocolate.
B: Has the cost of living crisis affected how you run your business?
IA: “Yes, definitely, the cost of energy has tripled for me. It was very difficult last year. Bills increasing for a small business is very hard because you're talking about profits, and this is money you don't necessarily generate. It was really worrying for me last year, the cost of ingredients increased as well.
B: Has it affected the way your customers shop?
IA: Instead of buying the most expensive gift, I’m seeing customers go for the most affordable option or something simpler. So, my sales have increased in terms of volume, but not in terms of money.
B: How do you cope with slower months of trade?
IA: I’m usually happy. I can take a little break when it's slow, I find I work a bit too much during busy months, often to the point of exhaustion. I'm not getting younger, so physically I really feel it now. When it slows down, it's less demanding. Financially it's the busy months which absorb the expenses of the slow months.
B: What is the best piece of advice you have for fellow business owners?
IA: I’d definitely say ask everyone coming in your shop to follow you on Facebook or Instagram, I'm ashamed of asking, so I never do it, but that's what needs to be done in this day and age. People respond to options. So, if people don't see you as an option, then sadly they will move on to somewhere else.
Head over to Bionic to read more of this small business story, or watch the full YouTube interview below 👇
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📊 BUSINESS
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Bionic - the business price comparison experts - compare a range of business essentials to help you save time, money, and hassle.
Our tech-enabled team will answer all your questions in simple terms, and help you find the best deal on business energy, insurance, phone, broadband, or finance. No jargon. No-fuss. #BeABionicBusiness 🦾
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🔊 LISTEN
Playlist 🎵
This week’s Daylist playlist has been chosen by Les, Senior Content Manager at Bionic. Instrumental dream Thursday afternoon isn’t all instrumental, nor is it only suitable for a Thursday afternoon. It does have a Zero 7 remix of Radiohead though. Along with some Spritualized, Portishead, Cocteau Twins, and loads more dreamy stuff.
Podcast 🎙
Another podcast recommendation from Glyn, Chief Customer Officer at Bionic, is My Wildest Prediction. The science fiction of pocket-sized devices, hands-free tech, and driverless cars have all become science fact over the last decade. But what comes next? We’re all still waiting for those flying cars…
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🚫 STOP
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