Business news 23 October 2024
Some of business news today that we thought would interest our members.
James Salmon, Operations Director.
TAX
IHT receipts hit record high
HMRC data shows that the Exchequer pulled in £4.3bn from inheritance tax in the six months to September. This marks a 9% increase on the same period last year. For the three months to September, the Treasury received a record £2.2bn in IHT. The figures show that the IHT take for September came in at £736m and £749m was handed over in July, with these totals two of the three highest months on record. Alastair Black, head of savings policy at asset manager Abrdn, said: “As asset values continue to rise and thresholds remain frozen, more and more people are being caught in the inheritance tax net.” Nicholas Hyett, investment manager at Wealth Club, said IHT is “an absolute cash cow” for HMRC, adding that the levy “remains in the spotlight” ahead of the Budget. Chancellor Rachel Reeves is said to be considering a number of reforms to the levy. Meanwhile, data shows that stamp duty brought in £1.2bn last month, up from £1.1bn in September 2023. Stamp duty on shares raised £263m, an increase of £40m. Capital gains tax brought in £192m for the Exchequer in September, a 16% increase, year-on-year.
CGT concern over company share schemes
ProShare, a lobby group for employee share ownership, has warned that many workers who own company shares through the Save As You Earn (SAYE) scheme could be hit by unexpected bills when they sell up if the Chancellor raises capital gains tax. Murray Tompsett, head of ProShare, said: “The reduction of the capital gains tax personal allowance to £3,000 has already had a major impact on SAYE plans,” adding: “An increase in the amount of tax to be paid, along with the requirement to report gains to HMRC, will further undermine the usefulness of these plans.” Jonathan Watts‑Lay, of workplace finance specialists Wealth at Work, has voiced concern that even low-income workers “on the shop floor” were being caught out by CGT. Steph Court of RSM notes: “When it comes to capital gains tax, employee shareholders are largely along for the ride.”
Cross-party MPs call for tax on wealth
A cross-party coalition of 30 MPs have urged Rachel Reeves to implement a wealth tax, proposing a 2% tax on wealth exceeding £10m. They say this could generate £24bn annually. In a letter to the Chancellor organised by campaign group Green New Deal Rising, signatories say taxes on the wealthiest have barely increased since the 1960s, arguing that this is “deeply unfair and immoral.” They argue that wealth is under-taxed in the UK, adding that a new levy on the rich would generate a “large stream of revenue.” Recent polls indicate strong public support for such measures, with 62% of voters favouring higher taxes on the wealthy to improve public services. Paul Nowak, general secretary of the TUC, has called for for a fairer tax system, saying “Voters want those with the broadest shoulders to contribute more.”
Hunt: Employer NI increase would be a ‘disaster’ for economy
Shadow Chancellor Jeremy Hunt has warned that increasing employer National Insurance will damage Britain economically. He said: “From a government point of view this is a politically painless tax rise, but from an economic point of view it’s an absolute disaster.” Mr Hunt notes that Treasury officials suggested a NI increase on employers in 2022 but says that he rejected it “because of the damage it would do to business investment and job creation.”
Swinney refuses to rule out threshold freeze
Scotland’s First Minister, John Swinney, has has refused to rule out freezing income tax thresholds in the upcoming Scottish Budget. He said: “I’m not going to rule anything in or out about the Budget,” but noted that decisions will be significantly influenced by UK Chancellor Rachel Reeves’ upcoming Autumn Statement.
BUSINESS RATES
Rates review could deliver ‘Amazon tax’
The Chancellor is believed to be considering plans to impose higher taxes on Amazon, with a review into business rates potentially including scrutiny of the rates paid by online retailers. According to real estate intelligence company Altus, retailers with physical stores currently spend around 2.6% of their turnover on business rates, before any reliefs. However, large online-only retailers spend just 0.45% of their revenues on rates. Andrew Goodacre, the chief executive of the British Independent Retailers Association, said an overhaul of business rates “would be very welcome because online businesses managed to convince the previous government that the online sales tax was unworkable.” However, Tom Ironside, director of business and regulation at British Retail Consortium, cautioned against “pushing business taxes from one bit of retail to another.”
PENSIONS
Chancellor’s tax plans threaten savers
Michael Summersgill, chief executive of AJ Bell, has urged the Chancellor to commit to a long-term pensions tax lock to ensure stability for savers. Highlighting that pensions are inherently long-term investments, he argues: “To pull the rug from under savers’ feet risks seriously damaging trust in the system.” He adds that recent proposals, including a single rate of pension tax relief and capping tax-free cash, have raised concerns about the potential impact on savers’ confidence.
SMEs
Small firms concerned over Budget uncertainty
SMEs have voiced concern that their growth ambitions could be at risk if the Chancellor does not address a number of issues in the Budget. A poll of over 500 SME leaders for specialist lender Simply Asset Finance saw 74% say the Budget will have a direct impact on their future growth plans. While a third highlighted action against rising energy costs as a priority, 27% flagged concern around tax incentives for innovation. Mike Randall, chief executive at Simply Asset Finance, said that while it is “evident that the Government does not yet have the full confidence of UK business,” the Budget presents “an opportunity for that to be tackled head on.”
ECONOMY
UK borrowing up in September
Official figures show that Government borrowing – the difference between spending and tax income – reached £16.6bn last month, with this representing the third-highest September since records began in 1993. The Office for National Statistics (ONS) said the increase in spending was partly due to higher debt interest and public sector pay rises. Alex Kerr, UK economist at Capital Economics, said that while September’s “disappointing” public finances figures come too late to influence the amount of headroom the Office for Budget Responsibility will hand Rachel Reeves in the Budget, “they do highlight the limited scope the Chancellor has to increase day-to-day spending without raising taxes.” Cara Pacitti, senior economist at the Resolution Foundation, said the ONS data “highlights the scale of the public finances challenges facing the Chancellor.”
IMF: UK economy set to accelerate
The International Monetary Fund (IMF) has upgraded its growth forecast for the UK economy, saying it expects GDP to climb by 1.1% this year. In a forecast three months ago, the IMF had said it expected growth of 0.7% for 2024. Looking further ahead, the economy is expected to accelerate further next year, with the IMF forecasting growth of 1.5% in 2025. The US is forecast to see the biggest growth of G7 nations, with its economy forecast to grow 2.8% this year and 2.2% next year. On inflation, the IMF predicts that the UK will see an average of 2.6% this year and 2.1% in 2025. Chancellor Rachel Reeves said: “It’s welcome that the IMF has upgraded our growth forecast for this year, but I know there is more work to do. That is why the Budget next week will be about fixing the foundations to deliver change.”
Latest Insolvencies
Petitions to wind up (Companies) – DAM TASTY LTD
Petitions to wind up (Companies) – SSS CONVENIENCE LTD
Appointment of Administrator – DALE (MANSFIELD) LIMITED
Appointment of Administrator – NIKAL LTD
Appointment of Liquidators – WEIR PROPERTY LTD
Appointment of Liquidators – TYNULA LTD
Appointment of Liquidators – WELLER FINANCIAL MANAGEMENT LIMITED
Appointment of Liquidators – GAS TURBINE SERVICES LIMITED
Appointment of Liquidators – MORMOR LIMITED
Appointment of Liquidators – PEPPER RAILWAY CONSULTANCY LTD
Appointment of Liquidators – COLVESTER HOMES LIMITED
Appointment of Liquidators – A ROBINSON LTD
Appointment of Liquidators – PAPAG CONSULTANTS LIMITED
Appointment of Liquidators – PPR PIPEWORK SERVICES LIMITED
Appointment of Liquidators – S.SMITH & SONS(BUILDERS)LIMITED
Appointment of Liquidators – GLOBAL HOTELS & LEISURE CONSULTANCY LIMITED
Appointment of Liquidators – M D LITTLEJOHN LTD
Appointment of Liquidators – BIRD ROCK HOLDINGS LIMITED
Appointment of Liquidators – FASTENER TOOLS (BIRMINGHAM) LIMITED
Appointment of Liquidators – BRIDGWATER WAREHOUSING COMPANY LIMITED
Appointment of Liquidators – LOCK 19 LTD
Appointment of Liquidators – PHC PHIL HUMPHREYS CONSULTANCY LIMITED
Appointment of Liquidators – WINCHESTER UROLOGY LIMITED
Appointment of Liquidators – PURBECK ACTUARIAL LTD
Appointment of Liquidators – ATWELL ENGINEERING HOLDINGS LIMITED
Appointment of Liquidators – ZORIN AVENUE LENDCO 4 LIMITED
Appointment of Liquidators – KFL MORTGAGE SERVICES LIMITED
Appointment of Liquidators – WITAN INVESTMENT TRUST PLC
Appointment of Liquidators – CHOUDHARY R LIMITED
Appointment of Liquidators – WEST CONSTRUCTION LIMITED
Appointment of Liquidators – BUXWORTH HOMES LIMITED
Appointment of Liquidators – CODE ENDURANCE LTD
Appointment of Liquidators – OSBORNE & CO SOLICITORS LIMITED
Appointment of Liquidators – ALUMINIUM SUPPORT SERVICES LIMITED
Appointment of Liquidators – JULIET FERRIS CONSULTING LIMITED
Appointment of Liquidators – ONE4 SOLUTIONS LIMITED
Appointment of Liquidators – FMF CONSULTING SERVICES LTD
Appointment of Liquidators – JASHIC LIMITED
Appointment of Liquidators – ARCACHONAIS IT LIMITED
Appointment of Liquidators – DUDSBURY INTERIORS LTD
Appointment of Liquidators – JSB CONSTRUCTION CONTRACT SERVICES LTD
Appointment of Liquidators – CVBP HOLDINGS LIMITED
Appointment of Liquidators – STOURBRIDGE TURNING & GRINDING (HOLDINGS) LIMITED
Appointment of Liquidators – RETAIL INSIDEOUT LIMITED
Appointment of Liquidators – C.M.F. CANTERBURY LIMITED
Appointment of Liquidators – INBROOK PROPERTIES LIMITED
Appointment of Liquidators – B2B ELECTRONICS LIMITED
Petitions to wind up (Companies) – WITHAMBROOK CONSTRUCTION LTD
Appointment of Liquidators – ACTION 4 EQUALITY (SCOTLAND) LIMITED
Appointment of Liquidators – GREENLEAF NORTHWOOD LIMITED
Appointment of Liquidators – DWYER CONSULTANCY LIMITED
Appointment of Liquidators – ROSE-ANNE THOMAS
Appointment of Liquidators – C & G MOBILITY LIFTS LIMITED
Appointment of Liquidators – MANOR NOTTINGHAM LIMITED
Appointment of Liquidators – SANDY POINT CONSULTING LTD
Appointment of Liquidators – CREATIVEDGE TRAINING & DEVELOPMENT LIMITED
Appointment of Liquidators – MILLS MEDICAL LTD
Appointment of Liquidators – LYRADOG LIMITED
Appointment of Liquidators – CHERWELL VALLEY BUSINESS PARK LIMITED
Appointment of Liquidators – TINI EYES LIMITED
Appointment of Liquidators – VECTOR-N LIMITED
Appointment of Liquidators – TP MEDCON LIMITED
Appointment of Liquidators – LPE PROPERTIES LIMITED
Appointment of Liquidators – SILVERFERN HOUSE LIMITED
Appointment of Liquidators – SIL (CAMBRIDGE) LIMITED
Appointment of Liquidators – CF SPARKS WAKEFIELD LIMITED
Appointment of Liquidators – HORSEMAN PARTNERS LIMITED
Petitions to wind up (Companies) – PC (NORTH) LIMITED
Appointment of Liquidators – CREAN BUSINESS CONSULTANTS LTD
Appointment of Liquidators – T P KEATING LIMITED
Appointment of Liquidators – INTEGRAL DESIGN SERVICES LIMITED
Appointment of Liquidators – MARLBOROUGH FARMS LIMITED
Appointment of Liquidators – B.I.P.J. (PROPERTIES) LIMITED
Appointment of Administrator – OVERGATE FACADES LIMITED
Petitions to wind up (Companies) – ST MACHAR PROPERTIES LIMITED
Appointment of Liquidators – JUNELYN LTD
Petitions to wind up (Companies) – SHER BROTHERS (GROUP) LIMITED
Petitions to wind up (Companies) – J.A.K.E. LOGISTICS LTD
Petitions to wind up (Companies) – KP PLANT HIRE LTD
Appointment of Liquidators – P T MCDONALD LTD
Appointment of Liquidators – BBA PROPERTIES LIMITED
Appointment of Liquidators – BOLINGBROOK PARK FOODS LIMITED
Appointment of Liquidators – PFC INDUSTRIAL SERVICES LIMITED
Appointment of Liquidators – E.J.BOOT LIMITED
Appointment of Liquidators – BG SOLAR HOLDINGS LIMITED
Appointment of Liquidators – BEWES FARM LIMITED
Appointment of Liquidators – CARN TO COAST HEALTH LIMITED
Appointment of Liquidators – PR BRADFORD ON AVON LTD
Appointment of Liquidators – H.& J.PROPERTIES LIMITED
Appointment of Liquidators – CATHERINE CARE HOLDINGS LIMITED
Appointment of Liquidators – WHI STOCKBROKERS LIMITED
Appointment of Liquidators – BOWU LTD
Appointment of Liquidators – DIMENSIONS DESIGN LIMITED
Appointment of Liquidators – INTERNATIONAL GEOSCIENCE LIMITED
Appointment of Liquidators – LIQUID-SCENT LIMITED
Appointment of Liquidators – HANWELL PROPERTY LIMITED
Appointment of Liquidators – J W ELECTRICAL (YORKSHIRE) LTD
Appointment of Liquidators – REDITUS MANAGEMENT LIMITED
Appointment of Liquidators – IGNIS BIOMASS 3 LIMITED
Appointment of Liquidators – LAMA4 LTD
Why you should become a member of CPA!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have supported our members through all sorts of difficult trading environments. With high interest rates and a struggling economy and elevated insolvencies, our services can help your business navigate these difficult waters.
Unlike other credit management and debt collection companies, we offer a range of services to our members that are all included as part of a fixed annual subscription, tailored to your needs.
Under your annual subscription you will have access to our main services:
- Our Creditcare credit reports provide credit ratings and limits along with a host of detailed information on your potential customers to enable you to trade with confidence and set appropriate credit policies for new customers.
- Our monitoring service will alert you to any significant changes in the status of those customers.
- Our Overdue account recovery service can be used to chase up payment on any invoices to those customers that have not been paid on time. Unlike other debt collection companies, this service directs your customer to pay direct to you and allows you to maintain your goodwill with them, rather than inserting ourselves into your relationship with you customer and insisting they pay CPA instead. Our Overdue account recovery service resolves over 80% of accounts referred to us.
All of the above services and other complimentary services such address verification, are included in your subscription!
And for the small minority of debts not resolved through our Overdue account recovery service, you can refer the debt to our collections department to escalate the late payment collections process.
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 and be warned of any potential risks. CPA has been improving business cash flow for over 100 years, by tackling late payers and campaigning against the late payment culture in the UK.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the value of their debts maybe!
Rather than to borrowing more money to improve your cashflow, CPA suggests that business owners tackle the problem at its source. If late payments are a strain on your cashflow, then talk to CPA about how we can help you reduce those late payments.
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’s collection department 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.