No-deal Brexit? – business news 8 December 2020.
James Salmon, Operations Director.
No-deal Brexit looms, PM pledges to help ‘small businesses go global’, Rishi Sunak under pressure to set out no-deal Brexit stimulus plan, UK businesses face £7.5bn cost in post-Brexit paperwork, Lloyds calls for tailored regional recovery strategy, covid-19, market and other business news.
Here are CPA we want to share the business news stories we have seen that we think will affect our members and readers. Many of us are busy fighting to protect our businesses and therefore might have missed some of the news that could impact small businesses, their owners and those that sell on credit.
No-deal Brexit
PM pledges to help ‘small businesses go global’
With the country heading for a no-deal Brexit, Boris Johnson announced a shake-up of Government export finance on Monday as part of efforts to support small businesses looking to enter new markets after Brexit. The new scheme, to be run by UK Export Finance, will see the state provide an 80% guarantee on bank loans of up to £25m to help companies with general exporting costs. In a message to businesses posted on his LinkedIn page, the Prime Minister said: “This will free up crucial working capital to help you scale up your business operations and get exporting.” He added: “Small businesses are the lifeblood of our economy. As businesses bounce back from COVID-19, this new export finance guarantee will help bring new trading opportunities to companies in every part of the country.”
No-deal Brexit looms
A no-deal Brexit seems all the more likely as neither side looks willing to budge on the key issues up for discussion. Negotiators have failed to reach agreement on fisheries, competition rules and the governance of an agreement. UK negotiators have ruled out extending Brexit talks into 2021. PM Boris Johnson has clarified that the UK is prepared to continue post Brexit trade deal negotiations for “as long as we have time available although time was in very short supply”. EU negotiators have said Wednesday is the cut-off point for a Brexit deal. French President Macron plans to speak to Angela Merkel today on the remaining disputed issues. After a 90 minute phone call failed to produce a breakthrough, Johnson is today traveling to Brussels to intervene in talks and try and avoid a no-deal Brexit.
Rishi Sunak under pressure to set out no-deal Brexit stimulus plan
The Treasury should map out a new wave of stimulus in the event of a no-deal Brexit, the Institute of Directors has said. “A disorderly no deal could hurt British business on a number of fronts,” said Tej Parikh, the business group’s chief economist. “To ease these challenges, the Government should provide financial support to small firms with exposure to the fall-out. Vouchers to access specialist or legal advice on adjustments would be one option, as would making efforts to transition more tax efficient. Leniency on tax deadlines would also give businesses some room to manoeuvre.”
UK businesses face £7.5bn cost in post-Brexit paperwork
Jim Harra, the CEO of HMRC, has said customs paperwork will burden British businesses with an additional £7.5bn in costs next year. Due to the UK leaving the bloc’s customs union and single market, thousands of businesses trading with the EU after the transition period in January will be required to fill in customs declarations for the first time. Harra stressed that the costs will apply regardless of whether we sign a trade deal or have a no-deal Brexit.
Lloyds calls for tailored regional recovery strategy
A report from Lloyds Banking Group urges a regional approach to supporting business as the UK recovers from the pandemic and heads to a no-deal Brexit. António Horta-Osório, the outgoing Lloyds chief executive, said: “We need to build on the government’s levelling-up agenda by introducing regionally-focused strategies, shaped by local voices for local economies.” He added: “The plans we make as a country to promote future economic growth need to work for everyone. Coronavirus has exacerbated the regional, racial and socio-economic inequalities that existed before the crisis but it also gives us an opportunity to address those gaps and tackle the longer-term issues facing the UK.”
Retail
Retail Sales Growth in the UK was hindered by virus restrictions in Nov, the British Retail Consortium-KPMG retail sales monitor showed. Sales increased by 0.9% year-on-year in November, well below the three-month average of 3.9% and October’s 4.9% increase.
UK has world’s highest property tax
Britain has the highest property taxes as a percentage of total taxation in the developed world, according to new research. The Organisation for Economic Co-operation and Development (OECD) found that tax receipts generated from property climbed to £91bn in 2019, up from £88bn the previous year. Property tax receipts were worth 4.1% of GDP, ranking top for a second straight year and just ahead of France, a typically high-taxing country. The Government raises 12% of its revenue from taxes hitting homeowners and business premises, such as stamp duty, business rates and council tax, the OECD revealed. That is around double the levels of property taxation seen in the average OECD country.
UK house prices rising at fastest rate in 16 years
New data has revealed that house prices increased 7.6% in the 12 months to November, with valuations up some 6.5% since the housing market reopened in June. Russell Galley, of Halifax, which provided the figures commented: “The stamp duty saving of £2,500 on a home costing £250,000 is now far outweighed by the average increase in property prices since July.” He went on: “With unemployment predicted to peak around the middle of next year, and the UK’s economy not expected to fully recover the ground lost over 2020 for a number of years, a slowdown in housing market activity is likely over the next 12 months.”
UK housebuilders
UK housebuilders fell sharply yesterday in response to a Sunday Times article that claimed Barratt, Bellway, Berkeley, Persimmon and Taylor Wimpey have together made pre-tax profits of almost £10bn since the 2017 Grenfell Tower tragedy but have built developments where fire risks have made it difficult to sell homes due to non-compliant cladding. The lack of government solution to this £15bn problem could mean leasehold homeowners having to self-fund new cladding
Retailers do not yet know how to repay rates relief
Despite pledges by major retailers to repay business rates relief provided by the Government during the pandemic, there is as yet no mechanism for repaying it. It is understood that the Treasury is working on ways to process repayments, which could end up going via HMRC rather than the usual business rates channels. The news comes as Kingfisher reveals it expects to return £130m of business rates relief, equivalent to a bill of roughly £110m in the year to January 2021, and £20m for the following 12 months. Separately, MPs are pressuring bookmakers to repay tens of millions of pounds of business rates relief after online betting boomed in lockdown.
Companies return over half a billion pounds worth of furlough cash
Officials yesterday revealed that UK companies have returned more than half a billion pounds worth of furlough cash that they should not have claimed or did not need. Penny Ciniewicz of HMRC told the Treasury select committee: “We’ve had around £504m made in terms of voluntary disclosures and corrections, including people who were entitled to the grant and decided to pay it back.”
Pension savers turning to ESG
Research reveals 47% of AJ Bell Youinvest customers plan to invest more of their pension in companies with a positive environmental impact in 2021. Furthermore, 44% of savers believe their pension savings can be used to protect the environment, while over a third (34%) say they would increase their pension contributions if they thought it would be good for the environment. Tom Selby, senior analyst, AJ Bell, said: “While investing in a pension is, of course, primarily about building a pot of money to fund your lifestyle in retirement, it is clear there is significant appetite to invest this money in a socially responsible way.”
Environmental, Social, and Corporate Governance (ESG) refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (return and risk)
Covid-19 general news
The UK is set become the first nation today to begin administering doses of the Covid-19 vaccine from Pfizer and BioNTech. The massive program is getting underway at 50 hospitals
The government also announced that it plans to test the Pfizer shot in combination with the vaccine from AstraZeneca.
The UK has ordered a total of 357 million doses of seven different vaccines, including 40 million doses of the two-shot Pfizer vaccine, 100 million doses of the AstraZeneca and University of Oxford vaccine and 60 million doses of the Sanofin and GSK vaccine.
Markets.
The FTSE 100 was flat yesterday and the 250 dropped over 1% as the pound dropped on no-deal Brexit concerns.
No-deal Brexit fears pushed the pound to 1.10 Euros and 1.33 US dollars.
The S&P 500 dropped 0.19% yesterday while the NASDAQ climbed 0.45% in response to worsening covid numbers in the states.
Oxfam wants higher taxes on private jets and SUVs
A new report by Oxfam and the Stockholm Environment Institute indicates that the richest 1% of people in the UK produce 11 times the amount of carbon emissions as those in the poorest half of society, or 7% of the pollution over a 25-year period. Those in the wealthiest 10%, with income after tax of at least £41,000 per year, have a carbon footprint more than double the national average and four times the poorest half of the population. Oxfam is now calling on the government to curb the emissions of the top earners through higher taxes on private jets and SUVs.
Don’t let Covid-19 bust your business!
It will if your cash flow dries up, either sooner or later.
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 sometime to come.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. Above all tactfully, because maintenance of goodwill is paramount.
To meet the needs of creditors in the current crisis, we have designed a “critical care” package especially tailored for the situation.
- The annual package costs start at very low rates
- A minimum performance warranty is provided
- Several complimentary services included
Clients instruct CPA on-line via their PC or phone, completely user-friendly. Your late paying customers are told to pay you direct (not to us).
A very recent report shows a 23% increase in the number of unpaid invoices since March 11th THIS YEAR – are you getting a build-up of late payers?
Right now, overdue accounts must be a concern and CPA has a great track record of encouraging slow-payers to pay their suppliers quickly.
It takes less than 17 minutes to see how you would benefit, do you have the time now?
No face-to-face meeting required – 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.
Do you sell on credit?
With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.
Those customers will look for the easiest option to boost their cash-flow. Don’t let it be you.
You can’t just assume your customers can and will pay you eventually, no matter how big their name is.
It is essential to have credit management systems in place to monitor and check your customers credit worthiness.
It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.
About CPA
The Credit Protection Association can help!
Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.
At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.
We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
If you supply on credit, help us help you identify the risks.
Why use a third party collector?
As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When your customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
Over the years we have collected billions in overdue invoices for our customers.
Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.
You might be hesitant about contacting a debt collection agency. What are they going to be like?
Can they help your particular type of business?
There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.
Debt collection agencies are not all alike.
Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!
At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.
The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.
We are polite, firm and efficient when it comes to recovering outstanding debt.
“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire
“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
CPA is passionate about late payment
The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.
We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs, with cash flow difficulties being the single biggest killer of Britain’s small businesses.
If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.
As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.
Under little used legislation, you are entitled to compensation for those late payments.
You put up with the PAIN – now claim the GAIN!
Now you can boost your own cash-flow.
CPA can help unearth the those hidden treasures.
We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.
Did you know that your business is entitled to a minimum of £40 for every commercial invoice paid late to you over the past 6 years?
How many of your invoices are paid late each month – 20, 50, 100 or more?
At £40 per invoice that’s claim of £57,600, £144,000, £288,000 plus interest. The more invoices the bigger the claim!
At £100 per invoice it’s £144,000, £360,000, £720,000 plus interest.
For over 20 years, CPA has calculated and recovered Late Payment Compensation on behalf of Clients!
Yes, CPA can help you boost your business cash-flow.
Don’t let your bankers control you, contact CPA today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Do you realise you could be sitting on a fortune?
Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.
If you sold B2B on credit then there may be a hidden source of capital you can call on.
If you fancy an extra bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.
Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.
We can help you uncover the pile of gold, you didn’t even know you were sitting on.
If you trade with other businesses and were often paid late then you could be entitled to significant compensation.
Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.
Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.
You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.
That compensation could provide the cash boost your business needed.
But don’t delay, that compensation evaporates if not claimed within six years of the late payment.
How can CPA help?
CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.
We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.
Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.
CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.
The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit. You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.
We do the work, you receive the cash.
If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.
We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.
We are helping business owners who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.
Those former clients who regularly paid you late can finally be made to pay.
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Keep up to date with the latest news by following us on social media:-
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.