Tier scheme cost-  business news 30 November 2020.

James Salmon, Operations Director.

The cost of the tier scheme, SME Confidence climbs, 1 in 4 SMEs had no savings before pandemic, tax break extension could boost non-essential shops ,vaccine will drive recovery, hospitality bosses call for greater support, crisis hits FDI, Brexit, 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.

Tier scheme will cost £900m a day

Analysis by the Centre for Economic and Business Research (CEBR) suggests the latest tier scheme of coronavirus restrictions will cost the UK £900m a day. The report says the tier scheme being rolled out across England this week will see the country’s GDP fall by 13% compared to December 2019, a decline of more than £20bn over the month. The forecast reflects the fact that 31% of England’s economy will be placed in Tier 3, while 68% will be in Tier 2. CEBR deputy chairman Doug McWilliams said: “My suspicion is that the shutdowns imposed by Whitehall will end up doing more economic damage than can be justified on medical grounds.” Elsewhere, Andrew Goodwin, chief UK economist at Oxford Economics, said it expects GDP to fall by almost 3% in the fourth quarter. Saying that the tier system “should be less damaging” to activity than November’s lock-down, he added: “Therefore, we should see a modest recovery in activity when we switch from lock-down to the tiered system.”

SME confidence climbs

A poll by Hitachi Capital Business Finance saw 55% of SMEs say they are borrowing to finance their 2021 plans, a two-percentage point increase on a year ago, while more than a quarter are predicting growth over the next three months, up from 13%. Hitachi Capital Business Finance’s head of insight, Joanna Morris, said: “Despite a bruising year for small business in the UK, confidence levels are starting to return among some sectors, not far off levels we saw before the pandemic outbreak.”

Britain’s small businesses deserve to be heard

The FT looks at concern over gaps in the Self-Employment Income Support Scheme which have left the recently self-employed, some freelancers and directors of limited companies without support amid the coronavirus crisis.

1 in 4 SMEs had little or no savings before pandemic

A poll by Nucleus Commercial Finance shows that a quarter of SMEs had little or no savings before the coronavirus outbreak, while fewer than two in five believe they have enough money to see them through the rest of the crisis. The survey of more than 1,000 small business owners shows that most believe their businesses will be affected by the pandemic for up to 16 months. Nucleus Commercial Finance CEO Chirag Shah said: “The effects of the pandemic have clearly had a significant impact on the UK’s SMEs. Not only has it brought about operational challenges, but the loss of income has been devastating for them.”

Tax break extension could boost non-essential shops

James Moore in the Independent considers the climate for retailers, suggesting Chancellor Rishi Sunak may want to consider stripping tax breaks from supermarkets while extending them for non-essential retailers that have been hit by lockdowns. He notes that a moratorium on rental payments comes to an end in December, while the business rate holiday draws to a close in April.

Vaccine will drive recovery, say Scottish firms

BDO ’s Rethinking the Economy survey shows that 56% of medium-sized firms in Scotland believe they will fully recover from the coronavirus crisis in less than six months once vaccinations are made available. However, 47% said they were less optimistic about the UK’s economic recovery compared to three months ago. Martin Bell, head of tax for BDO in Scotland, said: “News of positive vaccine trials has clearly buoyed Scottish businesses, in terms of their ability to recover quickly from the impact of Covid-19.” “However, there is still a degree of caution amongst Scottish businesses regarding the pace of economic recovery in the UK”, he added.

Hospitality bosses call for greater support

In an open letter to the Prime Minister, a number of Britain’s biggest hospitality companies have warned that financial support being offered by the Government is not enough to ensure the survival of the sector amid the latest coronavirus-related tier scheme of restrictions. Voicing concern that existing grants are not enough to compensate for sales lost under Tier 2 and Tier 3 restrictions, bosses across the sector have called on ministers to consider extending the business rates holiday and VAT cut for the entirety of next year

Amazon backs charity’s support for small firms

Amazon has signed up as a donor to the Tide Charity, which will provide grants of £1,000 to businesses hit hard by the pandemic. The charity, a partnership between small business bank Tide and the Federation of Small Businesses (FSB) has raised just over £200,000 since its launch earlier this month. John Boumphrey, UK country manager at Amazon, said: “These grants will help companies most at risk and provide access to much-needed funds.”

Crisis set to hit Foreign Direct Investment

Analysis by EY suggests that foreign direct investment (FDI) in the UK’s financial services industry is set to slow over the next 12 months, with the impact of the coronavirus crisis on the global economy affecting investment plans. Just 25% of overseas financial services firms plan to invest in the UK in the next 12 months, down from a 10-year high of 31% in April. Only 10% of global financial services companies plan to establish or expand operations in Britain in the next year, down from 45%. It was also shown that 20% of financial services firms are planning a substantial decrease in investment in the UK over the next 12 months due to the pandemic, with 28% planning a minor cut and 18% putting plans on hold. Just under a quarter of respondents (23%) expect no change to their investment plans, while 10% plan to increase investment. In regard to long-term investment, 53% of financial services companies surveyed expect the UK to be more attractive for FDI in three years’ time – up from 40% earlier in the year and 17% in 2019.

London leads Europe on job ad decline

A report from Indeed shows that London has suffered the biggest fall in job opportunities among Europe’s biggest cities. It also joins Berlin, Madrid, Paris and Rome as large cities that have recorded a larger drop in new job adverts than elsewhere in their respective countries. The analysis shows that job postings in London fell by 50% in the 12 months to November 6 compared to the same period a year ago. This compares with a 42% decline for the rest of the UK. Madrid suffered the second-biggest decline, at 46%, while job postings elsewhere across Spain were down by 39%. Pawel Adrjan, economist and head of European research at Indeed, said: “’Office workers’ staying at home is sucking the life out of these major cities. They’re not ghost towns yet, but risk becoming shadows of their former selves”.

Are you feeling the strain of remote work?

A PwC poll of US executives has found that 31% are worried about the effects of the coronavirus-prompted shift to remote working on their workforce.

Economy suffers despite high Covid spending

FT analysis shows the UK has spent more money battling coronavirus than countries of equal stature but remains at the bottom of league tables for economic performance and Covid-related deaths.

Carmakers call for clarity over Brexit

With uncertainty remaining over the UK’s post-Brexit trade relationship with the EU, carmakers are moving cars and parts both ways across the Channel to ensure they are not hit by tariffs if no trade deal is agreed. Michael Woodward, UK automotive lead at Deloitte, comments: “There is concern that Brexit may cause short-term disruption in supply of cars and parts.”

Covid-19 general news

The UK added 12,155 new cases yesterday to bring the total to 1.62 million. 215 additional deaths were recorded to bring the total to 58,245.

These numbers were well  were below the weekly averages as we prepare to emerge from a month long lockdown on Wednesday.  The 12,155 infections reported were below the average of more than 16,000 over the past seven days. The deaths  – 215 – were less than half the weekly average of 487.

Globally 486,545 cases were added to bring the total to 62.7 million and deaths rose to 1,461,049.

Cases of coronavirus in England fell 30% after lockdown measures were rolled out in November, according to a study by Imperial College London and Ipsos MORI U.K. Ltd.

On Friday, U.K. government scientists say that the virus has stopped spreading exponentially and estimate nationwide transmission rate, or ‘R’ number for Covid outbreak is 0.9-1.0.

Boris Johnson defended his decision to place 55 million people in England into the two highest tiers of Covid restrictions, arguing the country needs “simplicity and clarity”. The PM said measures due to come in when lock-down ends on Wednesday were more “relaxed” but would “drive” Covid down until a vaccine is available.   He has, however, agreed to publish the health, economic and social data behind England’s new tier scheme later, as he seeks to avert a Commons rebellion. MPs will vote on the measures on Tuesday, and numerous Conservative MPs have demanded to see the evidence government is basing its new system on.

The U.K. is poised to approve BioNTech and Pfizer’s Covid vaccine as early as this week. Foreign Secretary Dominic Raab told the BBC he hopes a roll-out can begin before Christmas, with life returning to something “akin to normal” by spring of next year.

Capital Economics upbeat about vaccine impact on economy

Capital Economics has posted bullish economic forecasts for the UK, saying “game-changer” vaccines will wipe out the damage of coronavirus by the middle of the decade, meaning tax rises will be unnecessary. Capital’s chief UK economist, Paul Dales, said that “by this time next year much of our lives may have returned to normal”, while the consultancy is unconvinced that Covid will cut the economy’s growth potential. He said: “Permanent hits to supply are most likely to happen after recessions associated with financial crises and wars, as they reduce the supply of credit or destroy large parts of the capital stocks. Neither of those things have happened this time.”


Michel Barnier said “significant divergences” remain between the United Kingdom and the European Union in Brexit trade deal talks, as the EU chief negotiator holds crunch talks over access to Britain’s fisheries. UK officials believe a Brexit trade deal could be reached within days if both sides continue working in “good faith” to resolve what the UK sees as the last big obstacle in the talks, fishing rights.

EU sought to control UK tax policies

A leaked memo suggests the EU wanted to control Britain’s tax policies after the Brexit transition period, with a document written by the European Parliament’s TAX3 secretariat – the EU’s special committee on taxation – in 2018 stating: “The objective is that the UK will abide by the tools adopted at EU level to fight tax evasion/avoidance.” The Sunday Express’ Martina Bet says the desire for alignment on tax reflected a fear in Brussels that Britain could become a low-tax economy and a magnet for business and investment.

Four in five businesses worry they are not ready for Brexit

An EY poll of more than 1,700 businesses shows that four in five are not ready for the end of the Brexit transition period, with 80% saying they did not “know the full extent of Brexit risks” or “have sufficient preparations in place”. Sally Jones, EY’s Brexit strategy and trade leader, said: “There is an alarming number of businesses expecting ‘business as usual’ after the transition period ends, despite the inevitability of significant disruption and upheaval”. Meanwhile, businesses have been warned there will be significant disruption and bureaucracy, even if a trade deal with the EU is agreed, with Deloitte analysis showing that a company moving goods around the single market will have to fill in 54 forms rather than the current nine. Elsewhere, the Sunday Times looks at the impact of Brexit on several sectors, with Tim Sarson of KPMG offering insight into what the pharmaceutical industry can expect.


US stocks rose on thin trading on Friday and the UK markets responded positively, having been down most of the day, to end up 4.65 points or 0.07% at 6367.58.

Asian Markets were broadly lower as coronavirus cases across the region continued to rise, and investors booked profits at the end of a stellar month of gains underpinned by optimism about an effective COVID-19 vaccine.

The pound also dropped on Brexit trade talks to 1.113 Euros and 1.33 US dollars. Gold dropped to below 1800 while oil was mixed ahead of this weeks OPEC meeting.


Unilever said it had completed the unification of its British and Dutch businesses into a single UK-based parent company. Unilever said it would now trade with one market capitalisation, one class of shares and one global pool of liquidity, whilst also maintaining listings on the Amsterdam, London and New York stock exchanges

Arcadia on brink of collapse

Sir Philip Green’s Arcadia Group, which owns Topshop, Topman, Miss Selfridge, Burton, Dorothy Perkins and Evans, is understood to be on the brink of administration, putting 13,000 jobs at risk. The retail group, which has been working with advisers at Deloitte on survival plans for months, is expected to formally appoint them as administrators as soon as Monday. Arcadia said it been “working on a number of contingency options to secure the future of the group’s brands,” but added that stores would be open again as soon as the Government COVID-19 restrictions are lifted next week. It is thought that the administration will lead to a break-up of Arcadia, with the fashion brands sold off individually. The collapse of the group would leave a pension deficit estimated to be as much as £350m by John Ralfe, a pensions expert.

Arcadia could owe suppliers £250m

There is concern that Sir Philip Green’s retail empire Arcadia, which is on the brink of collapse and could appoint Deloitte as administrator as early as today, may go bust owing over half a billion pounds to pension scheme members and suppliers. Insurance firm Nimbla estimates that around £250m worth of invoices from suppliers could go unpaid should Arcadia collapse, while Arcadia’s pension fund has a black hole of as much as £350m. Stephen Timms, chair of the Work and Pensions Select Committee, says he will write to The Pensions Regulator “to underline the importance of securing the interests of pension scheme members.” While Arcadia’s pension scheme is eligible to enter the Pension Protection Fund, the value of members’ retirement pots could shrink by up to a quarter. Meanwhile, likening Arcadia to the outsourcing company that went bust owing nearly £7bn , Federation of Small Businesses chair Mike Cherry said: “We are concerned that Arcadia is starting to look like the Carillion of retail”. Separately, HMRC could miss out on revenue if Arcadia enters administration today, with crown preference rules elevating the tax office’s claims above those of other creditors not coming into force until Tuesday.

Ashley offers Arcadia a rescue loan

With Arcadia said to be preparing to appoint Deloitte as administrators, Mike Ashley’s Frasers Group has reportedly offered a rescue loan of £50m to Sir Philip Green’s retail empire. Meanwhile, former CEO Lord Rose believes breaking up Arcadia – which owns Topshop, Topman, Burton, Dorothy Perkins, Miss Selfridge, Wallis and Evans – is “the only way” forward. He told BBC Radio 4’s Today programme the while people will “come and pick over the carcass”, not all Arcadia brands are likely to sell. Elsewhere, Sir Philip has been urged to ensure Arcadia’s pension scheme is fully funded if administrators are called in, with Lucy Powell, shadow minister for business and consumers, saying he “should do what is right” and cover Arcadia’s pension deficit to ensure “hardworking people don’t pay the price.” Separately, Oliver Shah in the Sunday Times looks at Sir Philip’s career, noting that issues which arose at BHS under the tycoon saw PwC fined £6.5m.

JD’s Debenhams bid uncertain

JD Sports is considering backing away from a proposed rescue of Debenhams, with the retailer’s chairman Peter Cowgill understood to be concerned over uncertainty around further pandemic-prompted restrictions in the new year. Restructuring firm Hilco has been lined up to liquidate Debenhams if a buyer for the entire business cannot be found. JD, which entered into exclusive talks with Debenhams adviser Lazard and its administrator FRP Advisory last week, is expected to clarify its intentions in the coming days.

Firms hand bosses £45m in dividends following tax breaks

The Daily Mail’s Tom Witherow says businesses that saw a strong performance amid the coronavirus crisis should hand back tax breaks, highlighting that five ‘lockdown winners’ paid £45m in dividends to executives while benefiting from business rates relief handed to retailers and hospitality firms. Analysis by the Mail shows that the boards of retailers Tesco, B&M, Pets at Home and Morrisons elected to pay £1.3bn in dividends to shareholders – including £44.6m to bosses – despite receiving a combined £1bn in rates relief, while Sainsbury’s has paid £231m in dividends since March despite receiving rates relief worth £460m. Labour MP Kevan Jones commented: “This is just greed but shows the shambolic way the Government have handled the financial support in the pandemic. It can’t be right multi-millionaires are lining their pockets at taxpay ers’ expense.”

Netflix to declare revenues to HMRC

Netflix is to start declaring the revenues it makes from British subscribers to UK tax authorities, a change that is likely to increase the amount it pays in UK corporation tax. Netflix’s UK-generated revenue has gone through accounts at its European headquarters in the Netherlands since the streaming service launched in Britain in 2012. Netflix received a €57,000 tax rebate from the UK government in 2018, despite making £700m from UK subscribers, and declared just €48m in UK revenues in 2018. Revenue from British subscribers is estimated to have hit £1.14bn this year. The Observer says Netflix’s move is “likely to ramp up pressure” on tech firms which funnel revenues through overseas tax jurisdictions.

Brussels raises doubts over City access

Diplomats were told in a behind-closed-doors meeting in Brussels that the British Government’s failure to offer assurances over the future regulatory outlook for the City of London after January 1st was holding up decisions on equivalence. Additionally, the UK had not revealed what new regulators would be established, making understanding of future policy more difficult. Chris Chapman, a partner at the international law firm Mayer Brown, points out that the equivalence mechanism is seen by some as protectionist and that even if it was granted, the EU can unilaterally revoke it, providing Brussels with leverage on an ongoing basis. The Guardian notes that the European Commission has agreed time-limited equivalence for clearing houses, and a decision was made in favour of continued access to the European market for UK-based central securities depositories on Wednesday owing to concerns over Europe’s financial stability.

EY said in a report last month that the 7,500 roles and 1.2 trillion pounds in assets that have moved already may just be the beginning. It expects further shifts in personnel and assets once the U.K.’s transition period officially ends.

The outlook is bleak for the U.K., where finance employs more than one million people, makes up about 7% of the economy and accounts for more than a 10th of all tax revenue. Despite that, the industry has received little of the focus given to fishing, which makes up just 0.1% of the U.K. economy, in the protracted Brexit negotiations.

HMRC probing 5,000 furlough fraud cases

Tax officials are investigating more than 5,000 cases of suspected furlough fraud, with these including cases identified as high risk at the time of payment and a number stemming from 1,033 calls made to a hotline between August and October. While HMRC has 5,079 Coronavirus Job Retention Scheme fraud investigations running, just 58 have been concluded with formal requests for repayment. The HMRC data, which was revealed following a Freedom of Information request by OnePoll, shows that Birmingham has the most live investigations, with 188, followed by Belfast (141), east London (115), west London (114) and Manchester (104).

HMRC and ASA launch action to disrupt promoters of tax avoidance schemes

HMRC and the Advertising Standards Authority have today launched new action to cut out misleading marketing by promoters of tax avoidance schemes. The joint enforcement notice aims to disrupt the activity of promoters and protect people from being presented with misleading adverts which may tempt them into tax avoidance. It requires promoters to be clear about the potential consequences of tax avoidance in any online adverts. Immediate sanctions include having their paid advertising removed from search engines and follow-up compliance action, which can include referral to Trading Standards.

Fraudsters jailed for £29m R&D tax relief claim

Three men involved in a fraudulent £29.5m claim for tax relief on a bogus IT project have been jailed for a total of 21 years. Matthew Sutherland, Mohammed Zeb Zaheer and Mohammed Iqbal Khan were prosecuted for Research and Development (R&D) tax relief fraud. Sutherland was the architect of the crime and used his company, Convergica (Clinical Information Systems) Ltd, to claim tax relief of £29.5m against a purported £137m spend on developing an IT healthcare system for two countries in the Middle East. Zaheer and Khan were the frontmen for companies used to carry out the fraud, which came to light when HMRC requested supporting documents for the claim.

90% home loans trickle back

First-time buyers’ hopes of getting on to the property ladder have been boosted as banks have started to relaunch 90% mortgages. Moneyfacts analysis shows that the number of 90% loans available fell from 779 in March to 56 at the start of November but with smaller lenders testing the water in recent weeks, larger lenders including TSB and Yorkshire Building Society have started to expand their offerings, with 80 deals requiring a 10% deposit now available.

Landlord tax campaign hauls in less than hoped

Efforts by HMRC to chase unpaid tax from landlords, begun in 2013 with its Let Property campaign has fallen way short of its target but has persuaded overseas owners to come clean about what they owe, writes the Times’ David Byers. Landlords are more likely to be expats who still have property in the UK than foreign citizens. Luci Parry, a partner at Moore Stephens, said: “The tax affairs of buy-to-let landlords has been a key area of focus for HMRC and it shows no signs of letting up. HMRC’s latest initiative involved thousands of letters to landlords asking them to declare their income.” HMRC originally estimated that up to 1.5m landlords had underpaid or failed to pay up to £500m in the tax year 2009-2010. But in August, the taxman revealed that 58,779 landlords, including those living overseas, had come forward and paid a total of £163m since the start of the campaign.

New tax-free shopping regime carries economic risk, says OBR

The Office for Budget Responsibility (OBR) has warned that scrapping duty-free shopping will lead to tourists abandoning Britain whilst only raising £195m a year – £300m less than original estimates. The Treasury has said that as of January 1, tax savings on goods bought by outbound travellers will apply only to alcohol and tobacco. Ministers are also abolishing the VAT rebate scheme for tourists, which will hit shopping centres across the country and put up to 70,000 jobs at risk. A spokesman for the UK Travel Retail Forum commented: “The OBR’s analysis of the Treasury’s decision to remove airside tax-free sales shows the Treasury can expect to recover only a very minor amount of revenue – and almost certainly less than the combined economic impact travel retail could have had on the economy if tax-free sales had been extended to travellers after Brexit.” More than 40 Conservative MPs have urged Chancellor Rishi Sunak not to push ahead with the change to duty-free shopping after the transition period ends. Heathrow Airport is challenging the plans in court, saying: “Failure to introduce a new tax-free shopping regime will jeopardise the Government’s global Britain ambitions”.

Economic recovery could delay tax rises

Christopher Hope in the Sunday Telegraph reports that Treasury ministers hope that the economy will start to recover by mid-2021, delaying any consideration of significant tax rises until the following year. He says senior ministers want to ensure the worst of the coronavirus pandemic has passed before considering increasing taxes, adding that this realistically pushes any large-scale increases to March 2022 at the earliest. A senior Treasury source told the paper that people would have to wait “a bit longer” than the spring Budget to see whether tax increases are required. Mr Hope also highlights comments from Rupert Harrison, an executive at fund manager BlackRock and one-time adviser to former Chancellor George Osborne, who says: “Serious measures which probably will come at some point around taxation and on spending restraint are going to be in a year’s time at the earliest.” Meanwhile, a poll by ORB International for the Sunday Telegraph shows that 38% of people agreed that tax increases should be used to pay for the pandemic, while 31% disagreed and the remaining respondents were unsure.

Government warned over Crown preference

The Sunday Telegraph’s Michael O’Dwyer looks at the reintroduction of Crown preference, which puts HMRC ahead of other creditors waiting for payment. He notes calls for the change to be halted, with critics saying it may undermine Chancellor Rishi Sunak’s efforts to support businesses. Crown preference, which was abolished in 2003, means taxes collected by bust companies on behalf of third parties must be paid off before any funds can be repaid to banks that have given loans backed by a floating charge over assets. Nicky Fisher of insolvency and restructuring trade body R3 comments: “The Government is putting more than £1bn of floating charge finance at risk with the introduction of this policy.” She adds: “The Government could easily receive less in tax as a result of this measure, where firms fail because they haven’t been able to secure the funding they need to support expansion or rescue plans.”

Pandemic boosts pension funds

Actuaries predict that excess deaths as a result of the coronavirus outbreak and a recession-induced slowdown in the growth of life expectancy are set to give Britain’s traditional pension funds a boost, with XPS Pensions Group forecasting that the liabilities of UK defined benefit schemes will be cut by between 1.5% and 3.5% – or £25bn to £60bn. The Times’ Patrick Hosking says the impact on many defined benefit schemes could be “significant”, pointing to Pension Protection Fund analysis showing that aggregate deficits amounted to £168.2bn as at the end of October.

Taxpayers set to cover coronavirus costs

Harvey Jones in the Sunday Express says the British taxpayer “will ultimately foot the bill” for the Government’s coronavirus-related spending and looks at what taxes may be targeted as ministers look to balance the books. As we look at the cost of the tier scheme above, the quuestion of who pays it all the more important. He says Chancellor Rishi Sunak “has little room for manoeuvre” as the Conservative Party’s manifesto pledged that there would be no increase in income tax, National Insurance or VAT. He goes on to suggest changes to capital gains tax, inheritance tax and pensions tax relief may be possible targets. Elsewhere in the same paper, Kate Andrews reflects on the Chancellor’s Spending Review and says tax hikes seem to be “off the cards” for now. She says the absence of tax rises suggest Mr Sunak “is mindful that extra cash brought in by a tax hike wouldn’t outweigh the costs of slowing our economic revival.” Meanwhile, Katherine Denham in t he Sunday Times looks at proposals that would see higher-rate tax relief on pensions removed, saying future middle-income families would be the hardest hit.

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


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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.

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

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.

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.

Read our blog here on how to crack down on the late payment culture.

Read our blog here on how to give late payers the slap they need.

The “Why” of the late payment culture.

New PM should walk the walk and back small firms over late payments

Paying late is “crack cocaine” to big business.

Late payment culture risks “spiraling out of control”

visit our late payment compensation page

See our full blog and FAQ on late payment compensation

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.