The recession has torn up the traditional rules regarding landlord and tenant bargaining positions with, in most cases, the balance shifting to the tenant. As Shayne Foley explains, there are various tactics tenants can employ at the very outset of lease negotiations to ensure a good deal.
If you had the opportunity to set all, or at least most, of your company car car costs against the business, you would probably take it, wouldn't you, asks Ralph Morton. And if there was the chance to reduce the amount of VAT you pay, that would also be worth considering, too? Especially as the June 2010 Emergency Budget announced VAT would rise from 17.5% to 20% on 04 January 2011.
Well, here's how. It's called contract hire.
The average length of a small business lease has been reduced by more than 12 months in the last two years, as business owners looked to retain their flexibility, according to research from the British Property Federation (BPF).
A BPF study of 91,000 tenancies found the average lease length for a small firm dropped to 4.1 years in 2009-10, compared to 5.4 years in 2007-8. Cutting the length of business leases has been a trend since the early 1990s, when a typical lease length was between 20 and 25 years.
It is often extremely difficult for a small business based from home to know precisely when the time is appropriate to make the move from the convenience and low outgoings of a home office, to a professional, commercial office space.
John King suggests there may be many implications, both monetarily and strategically to take into account. Here are five very important points to ask yourself when deliberating over this often seen issue.