Tax rises a disaster for entrepreneurs – business news 10 February 2021.
James Salmon, Operations Director.
Tax rises would be a disaster for entrepreneurs, lower migration threatens recovery, Ocado chief slams online sales tax, 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.
IoD: Tax rises ‘will be disaster for entrepreneurs’
The Chancellor has been warned off increasing taxes on entrepreneurs with Jonathan Geldart, director-general of the Institute of Directors, saying they need to be put “at the heart of the recovery” instead of being burdened with higher taxes.
Mr Geldart said: “Tax hikes risk choking off the economic recovery before it has even got started. It is paramount the existing package of grants, loans and reliefs is extended. A cliff-edge in support would be disastrous for business.”
The IoD’s proposals for Rishi Sunak’s budget include a temporary cut in employers’ national insurance contributions, targeted business rates relief for the hardest-hit companies and extending the present measures such as furlough “as long as restrictions continue”.
Investment reliefs should be enhanced and Brexit adjustment vouchers issued to help businesses with the disruptions and costs of trading with the EU.
Commenting on the Government’s current agenda, Matt Kilcoyne, deputy director of the Adam Smith Institute, said: “The Government has shuttered the shops, the Chancellor is threatening to put up taxes on firms that survive this bleak winter, the Business Secretary is lining up to make directors liable and prosecutable for actions that they knew nothing about. It is economically unsound.”
Sharp fall in global migration threatens economic recovery
The global collapse in skilled migration resulting from pandemic-driven border controls will hamper the economic recovery, particularly in countries whose growth was fuelled by high levels of net immigration.
Online retailer chief slams plans for online sales tax
Tim Steiner, the co-founder and chief executive of Ocado, has described plans for a sales tax on online retailers as “inappropriate”. His remarks come after it emerged that the Treasury is considering a new online sales tax as part of a business rates review as well as a windfall tax on firms that have seen profits surge due to COVID-19.
Mr Steiner said: “We already have sales tax in the UK, it’s called VAT. It’s applied equally to whoever sells the product based on the products. I don’t think it’s appropriate for anyone to put a sales tax on a retailer because they operate from a different type of premises or they’re a more efficient operator.”
Chancellor could target IHT to raise funds
In a piece considering the possible tax changes Rishi Sunak could make to pay for the pandemic spending, Finn Houlihan, the Managing Director at ATC Tax, told the Express he believes that inheritance tax could be targeted, suggesting the rate could be raised from 40% to 80%. His comments echo the views of other experts, but Paul Johnson, director of the Institute for Fiscal Studies (IFS) suggested earlier this month that pensions tax, council tax, inheritance tax and capital gains tax should all be reformed before extra levies are imposed.
Covid-19 general news
There were 12,364 new cases in the UK yesterday (total 3.97m) with 1052 more deaths (total 114k).
Globally 427,555 new cases brought the total to 106.9 million with 2,342,218 deaths.
138 million vaccine does have now been given worldwide.
Health Secretary Matt Hancock said all passengers returning to the UK and Ireland from “red list” countries from Monday must quarantine at a hotel for 10 days at a cost of £1,750 per person. “Any returning citizens will have to quarantine at an assigned hotel room for 10 days, or for longer if they test positive for Covid-19 during their stay,” Hancock told MPs. Dodgers could face fines of up to £10,000 or even prison.
The World Health Organisation concluded that the SARS-CoV-2 virus could have been transmitted to humans by an unknown “intermediary host species”, an animal host, or frozen wildlife. At the end of a contested visit to China, its experts said it was “extremely unlikely” the coronavirus had escaped from a lab.
The U.K.’s immunization drive has shown one dose of the Pfizer-BioNTech vaccine gave two-thirds protection against covid.
Belgian microbiologist Peter Piot said “We are only at the start of this epidemic, unfortunately,”. “We have to start thinking in terms of society living with Covid.” While vaccines will likely allow a return to a semblance of normalcy, there will be flare ups from time to time. Peter Piot, the director of the London School of Hygiene and Tropical Medicine said “We must also continue the distancing measures for a period long enough for there to be a good suppression of the virus,” who helped isolate the Ebola virus in 1976 and now advises Ursula von der Leyen.
Markets.
Yesterday the FTSE 100 closed at up 0.12% at 6531.56 and the 250 Closed up 0.12% at 21,112.94. The Eurostoxx 50 fell 0.12% and the 600 fell 0.09%. While the UK finished marginally higher on the day, European shares dipped from early highs today as the recent rally powered by hopes of a swifter global economic recovery and vaccine roll-outs showed signs of cooling. Overnight, the S&P 500 fell 0.11% and the NASDAQ rose 0.14% as US investors to a breather after hitting highs as focus turned to Washington and the impeachment trial. The US Senate has found that the impeachment trial of former President Donald Trump is constitutional, allowing full proceedings to begin. Mr Trump’s defence team argued that he could not face trial after leaving the White House.Asian shares were up this morning, ignoring the stall on wall street’s rally.
The pound has enjoyed strong support in recent weeks, as UK’s vaccination program has been a success and the Bank of England’s dismissed the near term chance of negative interest rates. The pound as risen from 1.12 euros to 1.14 and against the dollar is at eight month highs. Sterling is at 1.1416 Euros and 1.3836 US Dollars.
Brent Crude is at $61.44 and Gold is at $1839.
Arcadia administrators earning £1,200 an hour
The Mirror reports on documents detailing how accountants handling collapse of Sir Philip Green’s Arcadia are earning up to £1,200 an hour. Deloitte was appointed as administrators for more than two dozen Arcadia-linked businesses at the end of November and is thought to be in line for £25m in fees once the fashion retailer is would down. A spokesperson for Deloitte said: “This is one of the largest and most complex retail administrations in UK history, which spans eight brands and 27 separate companies.” Separately, two legal firms say they have already gathered almost 200 potential claimants who they say may not have been properly consulted before losing their jobs at Arcadia.
Brexit red tape drives JD Sport to open warehouse in EU
The executive chairman of JD Sport has said the company will set up a new warehouse in Europe, employing about 1,000 people, because the costs of exporting to the EU have soared due to Brexit red tape. Peter Cowgill also warned that an overhaul of business rates and rents are needed for UK high streets to recover.
Dune issues CVA proposal
Footwear and accessories firm Dune has launched a Company Voluntary Arrangement (CVA) proposal which includes a number of shops moving to a turnover-based rent model. Will Wright and Chris Pole from KPMG’s restructuring practice are the proposed nominees of the CVA.
UK Government pension liabilities surge £1.3trn in three years
According to figures from the ONS, the UK Government’s pension liabilities have risen 22% in three years, raising questions about the profitability of public pension schemes. The data showed that the Government’s liabilities had grown by 22% between 2015 and 2018 to reach £6.4trn. State pension liabilities amounted to £4.8tn, or 224% of gross domestic product. Former pensions minister and LCP partner Sir Steve Webb said not too much had changed with regard to private sector DB and DC schemes. The total figure has grown roughly in line with growth in the economy.
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.
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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.