Alibaba Announces Flotation on New York Stock Exchange Later this Year

The Chinese e-commerce giant, Alibaba announced plans to float on the New York Stock Exchange later this year in what could be one of the largest tech IPO’s in US history. The IPO is expected to raise $15 billion and a recent Reuters report estimates that Alibaba could reach a valuation of $140 billion. Ali Baba has over 500 million customers and is the Chinese equivalent of Amazon, Ebay and paypal combined.

Alibaba announced that it was listing in New York rather than Hong Kong to make it a more global company and enhance its transparency. The IPO offers an exciting prospect for investors.

UK Recovery Sparks Demand for UK Contractors

The Chancellor announced his 2014 Budget on Wednesday and forecasts the UK economy to grow by 2.5% in 2014. The UK economy is already showing signs of recovery in the first quarter of 2014 with a significant rise in new contract roles. The demand for IT contractors has soared in March 2014 together with demand for interim accountants and contractors in the construction industry. However, the most significant demand for contractors this year has arisen in the procurement industry. If you are a procurement specialist there are significant opportunities in the contracting market.

If you are considering a move into contracting you will benefit from setting up as a Limited Company Contractor rather than through an umbrella company or as a PAYE contractor. The tax savings can be significant and a number of our clients have significantly increased their take home pay as a result.

Belsize Accountancy Limited specialise in working with contractors across a range of industries. We assist our clients in managing their Limited Company set up and provide accounting, company secretarial and payroll services to Limited company contractors. Our specialist advice will help you to manage your financial affairs effectively and enable you to focus on your business.

2014 Budget Highlights

Treasury Chancellor George Osborne has announced his 2014 Budget. Here is the summary of the key changes in the Budget:

• Personal Allowance increased from £9,440 to £10,500.
• ISA Allowance increased from £11,520 to £15,000.
• The Annual Investment Allowance for Companies will increase from £250,000 to £500,000 from 6 April 2014.
• The Seed Enterprise Investment Scheme (SEIS) to be made permanent.
• The 10% starting rate tax for savers in the low earnings threshold is to be abolished from April 2015.
• The Chancellor’s most sweeping reform was to the pension system. From April 2014 pensioners will be allowed to withdraw some or all of the funds from their pensions when they retire. This removes the need to buy annuities which have performed poorly of late and means that individuals over 55 will with a defined contribution scheme will be permitted to withdraw their pension funds as a lump sum.
• The 15% stamp duty threshold will be reduced from £2m to £500,000 for properties purchased through the use of Limited Companies. Buy to let investors will not be affected by the change.
• The government’s Help To Buy Scheme has been extended by four years to 2020.

A more detailed analysis of the Budget will follow. Please monitor the website for updates. Belsize Accountancy are specialist accountants for contractors and small businesses.