1. Registered Enterprises
These are estimated from Scottish extracts of the IDBR taken in March of each year (prior to 2005 the November extract was used).
1.1 Time Period Covered
The estimate of registered enterprises is based on a snapshot from the IDBR in March of each year (prior to 2005 the November snapshot was used). A count of the IDBR enterprises that were "live" at the snapshot date is achieved by referring to each enterprise's recorded start date and, where appropriate, its closure date. The reporting of these dates is subject to a number of time delays. For example when an enterprise closes there may be a delay before HMRC, who collect VAT, are informed. Closure of the VAT record may then be delayed until all liabilities are settled. There may also be lags in recording PAYE data.
1.2 Employment
The employment information on the IDBR is drawn mainly from the Business Register Survey (BRS). Because this is based on a sample of enterprises, estimates from previous returns and from other ONS surveys have also been used. For the smallest units, either PAYE jobs or employment imputed from VAT turnover is used.
Companies with only one employee (who is also the employer) are treated as a self-employed person working in a firm with zero employees unless the enterprise is part of an enterprise group. As these companies provide no employment for others it is more consistent to classify them as enterprises with no employees.
1.3 Turnover
Turnover, on the IDBR for registered enterprises, for the majority of traders is based on VAT returns for a 12 month period. For 2009 these relate to a 12 month period ending in December 2007, or January/February 2008, according to the reporting pattern of the trader. For other records, in particular members of VAT group registrations; turnover may relate to an earlier period or survey data. For traders who have registered more recently, turnover represents the estimate made by traders at the time of registration. The turnover figures on the IDBR generally exclude VAT but include other taxes, such as the revenue duties on alcoholic drinks and tobacco.
1.4 Exclusions
Enterprises with no UK activity or dummy enterprises created to help with clerical procedures are excluded. Enterprises which have zero employment and zero turnover are also excluded as they are holding companies whose activity is recorded elsewhere or are enterprises not contributing to the economy at the time of the estimates.
There were a few instances where several registrations for a single company (usually VAT registrations) occurred at the same address. This may be a result of a legal loophole created as a result of changes in legislation. The Office for National Statistics now exclude these from their publications as the figures would overstate the actual number of businesses in existence and their associated employment in local area tables. Please note the tables up to and including 2001 have not been amended to reflect these changes.
1.5 Comparisons with other analyses
All tables (excluding Table A and Table 4) focus on the business sector - that is companies, sole traders, partnerships, public corporations/nationalised bodies and not for profit organisations - and exclude central and local government. This differs from the ONS publication "UK Business: Activity, Size and Location" which includes the public sector.
1.6 Reclassifications
Primary Care NHS Trusts and all remaining NHS Trusts were re-classified by the Office for National Statistics to the public sector in 2001 and 2003 respectively. This was done to bring 2003 Standard Industrial Classification in line with international guidelines for National Accounts. The change transferred 54,200 and 95,530 jobs from the business sector to the public sector in 2001 and 2003. This has led to a discontinuity between tables as previously, tables included this employment.