Business news 7 June 2024

Small business owners fret over tax hikes. ICAEW calls for boost to R&D investment. UK economy is ‘picking up steam’. Construction, insolvencies, markets, politics & more business news that we thought would interest our members.

James Salmon, Operations Director.

Small business owners fret over tax hikes

A survey by the Federation of Small Businesses (FSB) found that 90% of small business owners are worried about a rise in business taxes under the next government, while 92% are concerned about the costs of employing people. Additionally, 53% expressed concerns about small business energy costs over the next five years, and 61% are worried about inflation levels. The survey also found that more than half of small business owners are open to changing their voting preference. The FSB is calling on political parties to demonstrate their commitment to small businesses through a Small Business Act to protect them on issues such as late payment.

ICAEW calls for boost to R&D investment

The Institute of Chartered Accountants of England and Wales (ICAEW) has released a manifesto calling on the next government to prioritise research and development (R&D) investment and help smaller firms access finance. The ICAEW is calling for an increase in R&D investment to above 3% of GDP and a new competition for regional hubs to target R&D incentives. They also recommend equipping the Small Business Commissioner to investigate the barriers firms face in undertaking R&D. The ICAEW’s manifesto highlights the importance of R&D incentives in improving the UK’s productivity and spurring economic growth. Alongside boosting R&D, the ICAEW also calls for measures to encourage more start-ups, such as reintroducing growth vouchers and increasing the threshold for loans from the British Business Bank.

CBI: UK economy is ‘picking up steam’

The UK economy is “picking up steam” as households start to feel better off, according to a new forecast from the Confederation of British Industry (CBI). The CBI has upgraded its GDP growth forecast for this year from 0.8% to 1% and for next year from 1.6% to 1.9%, nearing pre-pandemic levels. Falling inflation is expected to lead to a Bank of England interest rate cut in August, but the CBI stressed the need to do more to achieve sustainable growth. CBI lead economist Alpesh Paleja said: “On the cost of living, yes inflation is getting back to target and that’s very positive but the level of prices is still quite high.”

Construction activity rises

The UK construction sector’s recovery gathered pace in May as it grew at the fastest rate for two years, according to new data. Building firms reported increased workloads, leading to the hiring of more staff and the purchase of more materials. The latest S&P Global construction purchasing managers’ index (PMI) scored 54.7 in May, surpassing expectations. Andrew Harker, economics director at S&P Global Market Intelligence, stated that the rise in activity was broad-based, with housing projects seeing growth for the first time in over a year and a half. The survey also showed growth in commercial construction and civil engineering.

Markets

Yesterday, the FTSE 100 closed up 0.47% yesterday at 8285.34 and the Euro Stoxx 50 closed up 0.66% at 5069.09. Overnight in the US the S&P 500  closed flat at 5352.96 & the Nasdaq dropped 0.1% to 17,173.

The pound this morning is currently worth $1.279 and €1.174. Brent is at $79.80, Gold is at $2340. The FTSE 100 is down .5% at 8242 and the Eurostoxx 50 is down .47% at 5045.

The ECB surprised markets with a move to cut rates by 25 basis points to 3.75% from 4% despite forecasting an increase in inflation to 2.5% for 2024 in the Eurozone. Officials basically ruled out a further cut in July and a cut in September now appears also unlikely. The ECB chief Christine Lagarde urged caution over the pace of further rate cuts on the grounds that key wage measures held steady over Q1.

With the European Central Bank meeting now out of the way, markets are focused on the upcoming US jobs report for the latest on the state of the world’s most important economy. It is expected to show the US added 180,000 jobs in May while the unemployment rate remained flat.

Bitcoin price has hit $71,240 up 5% on the week moving closer to its record level of US$73,000.

Nvidia

Nvidia shares fell $11 per share in early trading on profit taking and positioning ahead of a 10 for 1 split that will be effective after the close of trading on Friday, having briefly held the world’s second biggest market cap behind Microsoft and ahead of Apple at $3 trillion. The market capitalisation of Microsoft, Nvidia and Apple together now surpass the entire value of the Chinese equity market.

Wealthy flee UK ahead of Labour victory

Wealthy UK residents, including foreign billionaires and City of London bankers, are rushing to protect their wealth and flee the UK ahead of a potential Labour victory in the general election. The super-wealthy fear paying significantly higher taxes under Labour’s plans, including the removal of preferential tax treatment for non-domiciled residents. Wealthy non-doms are particularly concerned about potential inheritance tax charges on their worldwide assets. Many are already preparing to leave the UK, with private jets ready to take them to countries with lower taxes such as Monaco, Dubai, and Switzerland. Labour’s tax plans could result in the loss of billions in tax revenue and harm the UK economy, says Harvey Jones in the Express. Ordinary Brits may end up shouldering a higher tax burden as a result.

Rents

Rent increases slowed to 6.6% in April, down from 10% a year ago as lower mortgage costs eased pressures.  Although it is still way above inflation.

Britain foolish for vilifying the wealthy

In a piece for the Telegraph, James Quarmby, a private client partner at the international law firm Stephenson Harwood LLP, busts some myths about the super-rich, including claims they pay a lower effective rate of tax than their cleaners. As an example, dividends are taxed twice, at 25% corporation tax then again when received by the shareholder, resulting in an effective rate of tax of up to nearly 55%. Quarmby goes on to explode myths around loopholes, which he describes as an unintended gap in tax legislation, of which there are few, and HMRC can claim abuse if they are found anyway. The idea that non-doms pay no tax is also wrong – non-doms paid almost £8.5bn in UK income tax, NI and CGT. This excludes the additional corporation tax, VAT and other business taxes generated by them. Overall, the top 1% of taxpayers pay nearly 29% of all income tax, and the top 10% pay a full 60%. So, perhaps it’s time for Britain to celebrate the wealthy instead of vilifying them, Quarmby suggests.

PM accused of ‘profoundly failing’ pensioners

The Labour Party claims that the freezing of income tax thresholds and the need for people to work later in life have led to a rise in the number of pensioners paying income tax. According to the party, the number of over-65s paying income tax has almost doubled from 4.5m in 2009/10 to 8.5m in 2023/24. Shadow pensions secretary Liz Kendall accuses Rishi Sunak of failing pensioners and worsening the quality of retirement. The Labour Party warns of a new threat to pensioners’ living standards due to reckless unfunded spending commitments and a £46bn tax black hole.

Mike Lynch cleared by US jury of all charges

Former Autonomy chief executive Mike Lynch has been acquitted of all charges in the fraud case brought by Hewlett-Packard. Dr Lynch and former finance executive Stephen Chamberlain, who was also acquitted, were accused of conspiracy and attempted fraud over the £8.3bn sale to HP. The American technology firm accused Dr Lynch of deliberately overstating the value of Autonomy before it was acquired, leading HP to write down £5.5bn from Autonomy’s value within a year of completion. A successor company, HPE, brought a civil claim against Lynch in 2022 and is seeking over £3bn in damages. Lynch argued that he was not closely involved in the company’s accounting or sales operations and that HP mismanaged Autonomy after the deal was agreed. Legal counsel for Mr Lynch, said: “We are thrilled with the jury’s verdict [which] closes the book on a relentless 13-year effort to pin HP’s well-documented ineptitude on Dr Lynch.”

TSMC

Taiwan Semiconductor Manufacturing Co reported sales during May jumped 30% to $7.1bn due to high demand from Nvidia and high consumer product demand.

Raspberry Pi

The Raspberry Pi IPO is expected to be priced at the high end of it range possibly at 280p per share after very high demand for shares. The company is expected to raise £179m from the IPO.

Latest Insolvencies

Appointment of Liquidator

LV SITE LIGHT LIMITED
SAUNDBY HOLDINGS LIMITED
GREEN DOOR CONSULTING LTD
CANNOCK INDUSTRIAL CENTRE LIMITED
YEANDLE HOLDINGS LIMITED
ARCHON HOLDINGS LIMITED
OGILVIE COMMUNICATIONS LIMITED
CASTLERED ENTERPRISES LIMITED
VANILLA SOLUTIONS LIMITED
COLOURFUL SOLUTIONS (STOTFOLD) LIMITED
STREET COUNTY (SECURITIES) LIMITED
MALT, THE BREWERY LIMITED
THE CULTURE PRACTICE CONSULTING LIMITED
JAZZ-WORKS LIMITED
BLISS PROPERTY DEVELOPMENT LIMITED
PITCH32 LIMITED
AN SOLUTIONS LTD
MJHLEGAL LIMITED
STUDENT FINANCE PLC
JH LEGAL CONSULTANCY LIMITED
LONGDIN & BROWNING (SURVEYS) LIMITED
PEMBROOK PROPERTIES LIMITED
QEXI CONSULTING LIMITED
ROSEBERRY SPECIALIST CARE CENTRES LIMITED

NEW CENTURION TRUST LIMITED
SHORE STREET (INVESTMENTS) LIMITED
TRUST SOLUTIONS LIMITED
CONSERP LIMITED
VINE SOLUTIONS LIMITED
ST. PHILLIPS GARDEN PROPERTIES LIMITED
PHOENIX TREASURY MANAGEMENT LIMITED
ABARY LIMITED
TINSEL STRIP (OVERSEAS) LIMITED
STRATHURST LIMITED
TIMES SEVEN LIMITED
GEDELA CARDIO-THORACIC IMAGING LIMITED
SM FINANCIAL MODELLING LIMITED
LEAN EFFICIENCY LTD
STREET COUNTY (AGENCIES) LIMITED
CAUSEWAY 24 LIMITED
SJD HUMAN FACTORS LIMITED
LEWISHAM MODEL MARKET LIMITED
DIGITAL PROPHETS LIMITED
KIENINGER PENDULUMS LTD
JUCUNDUM LIMITED
CLINOTHERM LIMITED
AYMARA CONSULTING LIMITED
JOANNA HOUSE (HOLDINGS) LIMITED
SHAPED WIRES LIMITED
JOANNA DAI LIMITED
SKS EYE CONSULTANCY LTD
STREET COUNTY (INVESTMENTS) LIMITED
UBILIX LIMITED
ALVARIUM CODING LIMITED
CARSHALTON PROPERTIES LIMITED
STREET COUNTY ESTATES (SURREY) LIMITED
RSK TWELVE LTD

Appointment of Administrator

OLD HOUSE GROUP LIMITED
A T PROMOTIONS LIMITED
BALBY HEALTH-CARE LTD
CHRYSALIS HEALTH LTD

ISTIDAMA LIMITED
G.E. STARR LIMITED
KINGS OAK MIAMI LLP
J.H.STARBUCK(BAKER AND CATERER)LIMITED
BOWIE CONSTRUCTION LTD
PERKINS STOCKWELL & CO,LIMITED

Winding Up Petitions

WANS REMOVALS LIMITED
MERCY GLOBAL PROPERTIES SOLUTIONS LTD
ANJALI’S BEAUTY LIMITED
DSB LOGISTICS LTD
COVENTGATE LAW LTD
PTS (SA) LIMITED

DRAGONFLY BIOSCIENCES LIMITED
MS BUILDING & PLUMBING LTD
N CAMPBELL DEVELOPMENTS LTD
R AND C LIMITED

Winding Up Order Notices

GR DEVELOPMENT GROUP LIMITED

ALTAI DIGITAL LTD
MANGO INT LIMITED
CRAFTOVATOR LTD

BANKHEAD CONSTRUCTION LIMITED
SCORPION PRESS (LONDON) LTD
PLATINUM ENERGY SOLUTIONS LIMITED
HEALEY DEVELOPMENT SOLUTIONS (DULWICH) LIMITED
GORSMITH ELECTRICAL LTD
T S KINGSBURY LIMITED
HARRISON BUILD & DESIGN ASSOCIATES LTD
RIDE TRADING LTD
FIVE PILLARS CAPITAL LTD

Why should you become a CPA member!

The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have seen many financial crises, this last one was particularly deadly for suppliers fand we are still seeing elevated insolvencies as businesses struggle.

CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers.

Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the debt value maybe!

Just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.

When you see your money come in, you will be so glad you used CPA.

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections

Do you have a commercial late payer that is causing you grief? Use CPA’s no-win, no-fee, commercial debt recovery service!

If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA for purchase on recourse?

CPA’s collection department will then pursue the debt. We will be liable for any costs incurred and then when we have recovered the debt, we will pay you the net principle debt recovered less our percentage.

Once you have enjoyed that success then you can consider the more cost effective membership which includes our Overdue Account Recovery service and Status/Credit reports as well as a range of other complimentary services.

Just call  020 8846 0000 and ask for Godfrey Nelson or Cris Shirley (business hours) or email debtpurchase@cpa.co.uk today.

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.

Get compensated for previous late payments

Have you been paid late by business customers in the last six years?

Maybe you no longer work with them. Under legislation, you are entitled to  compensation you for those late payments you have suffered.

You put up with the PAIN – now claim the GAIN!

Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!

CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients

Check our compensation calculator to see how much your business could be owed!

Discover NOW the potential value of late payment compensation hidden in your sales ledger!

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.