Business news 9 April 2024
IR35 rules fuel crisis in self-employment. IMF warns BoE over interest rates & ‘fragilities’ in private credit market. Retail sales climb 3.5%, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
IR35 rules fuel crisis in self-employment
It has been suggested that HMRC’s battles with BBC stars over the controversial IR35 rules have contributed to a crisis in self-employment. A survey by the Association of Independent Professionals and the Self-Employed (IPSE) found that one in ten highly skilled freelancers is currently out of work due to the IR35 reforms. More than half of the respondents said they had turned down work because it was deemed “inside IR35″ by a company. The decline in self-employed workers has been significant, with the number dropping from 5m in 2019 to 4.2m in 2022. Analysis suggests that IR35 reforms have cost freelancers £1.5bn in taxes, double the original estimate. Andy Chamberlain of the IPSE said: “Having noted HMRC’s dogged determination to win high profile IR35 battles with TV stars – brushing off successive court defeats in the process – hirers are concluding that working with freelancers risks inviting too much hassle from the taxman.”
IMF warns BoE over interest rates
The International Monetary Fund (IMF) has warned the Bank of England about the risk of declining consumption, house price falls, and increasing defaults due to the high proportion of UK homeowners on fixed-rate mortgages. The IMF highlighted that many borrowers have been sheltered from the impact of higher interest rates until now, but tighter policy could finally have an effect. With over 80% of home loans in the UK being fixed-rate mortgages, more than 1.5m of these mortgages will come to an end in 2024. The IMF emphasised that keeping interest rates high for a long period could lead to households feeling the financial pinch and potential financial instability. The IMF also mentioned the rapid growth in house prices globally during the pandemic, which could correct if interest rates remain high.
IMF warns of ‘fragilities’ in private credit market
The International Monetary Fund (IMF) has warned of a “number of fragilities” in the global private credit market, saying the $2.1trn market may soon pose a “systemic risk” for the financial system unless regulators start taking a more active role in supervising it. The IMF’s annual Global Financial Stability report warns that with the recent rise in benchmark interest rates, “analysis indicates that more than one-third of borrowers now have interest costs exceeding their current earnings.”
First-time buyers more reliant on friends and family
Office for National Statistics data shows that first-time buyers are increasingly reliant on help from family and friends to get onto the housing ladder. Between April 2022 and March 2023, 36% of recent first-time buyers used gifts from family and friends to help buy a home, while 9% relied on inheritance. These rates far exceed these seen 20 years ago, when 20% of first-time buyers received financial support from family and friends and 3% relied on an inheritance.
Retail sales climb 3.5%
Data from the British Retail Consortium and KPMG shows that the value of retail sales was up by 3.5% in March compared to a year earlier. Despite the increase, total retail sales growth has slowed from 5.1% a year ago. Linda Ellett, head of leisure and retail consumer markets at KPMG, said an Easter increase in spending pointed to the possibility of “green shoots of recovery” for retailers but noted that the environment remained challenging and that consumer confidence was fragile despite the fall in inflation and the indication that interest rates had peaked at 5.25%.
Meanwhile, separate data shows that consumer spending on non-essentials increased by just 1.6% in March, the smallest rise since September 2022 as the wet weather dampened shoppers’ enthusiasm. In-store retail spending, excluding groceries, fell by 2.1%, according to data from Barclays. Pubs, bars and clubs experienced stronger growth than in February, at 3.2%, but restaurants took a hit, with spending falling by 12.6% year-on-year in March. Karen Johnson, head of retail at Barclays, said: “Retailers were braced for a more subdued start to 2024, and recent figures are in line with expectations.”
London AI Hub
Microsoft is opening a new AI hub in London in another boost as the capital returns to business. The artificial intelligence lab will be focused on developing the technology for consumers and will be led by Jordan Hoffman, a former scientist at Google’s DeepMind.
London fintech vacancies rise 88%
Technology-based job vacancies in London’s financial services sector increased by 88% in 2024 compared to 2023’s monthly average. Among these vacancies, employees with expertise in fintech and cyber security were among the most highly sought after. Data from recruitment agency Robert Walters also shows that the number of tech professionals entering financial services jobs in the UK was up 24%.
Markets
Yesterday London recouped about one quarter of Friday’s losses helped by a decline in Brent crude which retreated from $90 per barrel. US traders however were muted ahead of the US inflation figures due out on Wednesday.
Voters sceptical of Tory tax cut promises
Voters are sceptical of the Conservatives’ promises to cut taxes if they are re-elected. A YouGov poll suggests that 41% of voters think taxes will increase at the next election should the Conservatives win, while only 13% think they would go down. The survey also found that 47% would back Labour even if the economy improves, compared to 26% who would vote Tory.
Ted Baker
Ted Baker administrators revealed that 15 stores will be closing within the next few weeks as it looks to find a way for the brand to return to liquidity. Teneo, the fashion brand’s administrator, said it decided to shut 11 outlets by April 19, which will result in the loss of 120 jobs.
TSMC
The Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chipmaker, announced plans to build a third semiconductor factory in Arizona. They will receive up to $6.6bn in subsidies from America’s government; TSMC will increase its investments in America to $65bn.
Retiring in the sun?
Non-EU (remember Brexit?) citizens looking to retire in the sun are facing further difficulties. Spain is the latest to say they plan to end their so-called golden visa program in a bid to control property prices. Last year, Portugal followed Ireland in shutting down a similar program linked to property purchases, while Greece is increasing its minimum qualifying property price.
Latest Insolvencies
Petitions to wind up (Companies) – STARCO PUBS LTD
Appointment of Administrator – C.C.& R.J.EMERSON LIMITED
Appointment of Liquidators – PATRICK PEARSON LIMITED
Petitions to wind up (Companies) – INNERVALUES LIMITED
Appointment of Liquidators – TILLWISE LIMITED
Appointment of Administrator – SES ELECTRICAL WHOLESALERS LTD
Appointment of Liquidators – JCS BUILDING & MAINTENANCE LTD
Appointment of Liquidators – PROFESSIONS FUNDING LIMITED
Appointment of Liquidators – SILVON SOFTWARE LIMITED
Appointment of Liquidators – KUDOS HEALTHCARE CONSULTING LIMITED
Appointment of Liquidators – LE VINE & COOPER LTD
Appointment of Liquidators – BLUE MARBLE AVIATION LIMITED
Petitions to wind up (Companies) – PAISLEY TOWER GLASGOW LIMITED
Appointment of Liquidators – THE ROUNDABOUT CLUB (GOOSEHILL) LTD
Appointment of Liquidators – SEQUIN ART LIMITED
Appointment of Liquidators – KOMAN INVESTMENTS LIMITED
Appointment of Liquidators – RG ANIMAL CARE LTD
Appointment of Liquidators – CORE HOME NATIONS LIMITED
Appointment of Liquidators – JACK SAMUELS & SONS LIMITED
Appointment of Liquidators – COMMUNITY OWNED RENEWABLE ENERGY LLP
Appointment of Liquidators – LIFTEC CRANE HIRE LIMITED
Appointment of Liquidators – CLOSE REACH CONSULTING LIMITED
Appointment of Liquidators – THE DERMATOLOGIST LIMITED
Appointment of Liquidators – TELFORD WAY (HOLDINGS) LIMITED
Appointment of Administrator – BROOKES DEVELOPMENT LIMITED
Appointment of Liquidators – H.MANSON LTD
Appointment of Liquidators – ATLANTIC CONTRACT INTERIORS LIMITED
Appointment of Liquidators – ADDEN LIMITED
Appointment of Liquidators – MORROW CONSULTING LIMITED
Petitions to wind up (Companies) – OCEANA BUSINESS PARK LIMITED
Appointment of Liquidators – POLLEN HOMES LIMITED
Appointment of Liquidators – AEB MANAGEMENT LTD
Appointment of Liquidators – CHESTERFIELD PROPERTY RENOVATIONS LIMITED
Petitions to wind up (Companies) – BWP (BBM) MANAGEMENT LTD
Petitions to wind up (Companies) – AVERTEC LIMITED
Appointment of Liquidators – HONOUR PROJECT HOLDCO LIMITED
Appointment of Liquidators – WOMEN WITH WADERS LIMITED
Petitions to wind up (Companies) – PROFESSIONAL PAVING SYSTEMS LIMITED
Appointment of Liquidators – LUNA CBK LTD
Appointment of Liquidators – VXI CONSULTANCY LIMITED
Appointment of Liquidators – ELLIS & EDWARDS OPTICIANS LIMITED
Appointment of Liquidators – CORINIUM CONSULTANCY SERVICES LTD
Petitions to wind up (Companies) – SAVE EXPRESS LTD
Appointment of Liquidators – HONOUR PROJECT MIDCO LIMITED
Appointment of Liquidators – HITRON LTD
Appointment of Liquidators – INDUSTRIAL ZEOLITE (US) LIMITED
Petitions to wind up (Companies) – FIRST CLASS INTERNATIONAL LIMITED
Appointment of Liquidators – INDUSTRIAL CHEMICALS (US) LIMITED
Petitions to wind up (Companies) – IDEAL UK WHOLESALE LTD
Appointment of Liquidators – ERG ENGINEERING LIMITED
Appointment of Liquidators – MIKANSO LIMITED
Appointment of Liquidators – VISION EASE LENS EUROPE LIMITED
Appointment of Liquidators – KINTSUKUROI CONSULTANCY LTD
Appointment of Liquidators – THOMPSON VENT
Appointment of Liquidators – PIBWORTH HOLDINGS LIMITED
Appointment of Liquidators – HONOUR PROJECT BIDCO LIMITED
Appointment of Liquidators – A.R.P. COMMS LTD
Appointment of Liquidators – EAST KENT ORTHOPAEDICS LIMITED
Appointment of Liquidators – BOVENEY ESTATES,LIMITED
Appointment of Liquidators – VENDING SOLUTIONS HOLDINGS LTD
Appointment of Liquidators – MAWLAW LIMITED
Appointment of Liquidators – INVICTUS GP2 LIMITED
Appointment of Liquidators – IRVIN & COMPANY LIMITED
Appointment of Liquidators – PADIN CONSULTANCY LIMITED
Appointment of Liquidators – VISION-EASE LENS LIMITED
Appointment of Liquidators – FUSEBOX COMMUNICATIONS LTD.
Appointment of Liquidators – FOOTIEDOC LIMITED
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 one will be particularly deadly for suppliers for some time to come.
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.