Welcome to the September 2023 Newsletter from Walsh & Co

550,000 small and medium-sized enterprises (SMEs) are currently struggling to pay corporation tax and VAT bills, according to research published by finance provider Premium Credit.

Meanwhile, business group the British Chambers of Commerce (BCC) has warned that three 'key changes' must be made in order to help UK firms reach net zero.

More than 550,000 SMEs 'struggling to pay tax bills'

Research carried out by finance provider Premium Credit has revealed that over 550,000 SMEs in the UK are struggling to pay their corporation tax and VAT bills.

Around 10% of SMEs are currently struggling to pay their tax bills, according to the research, with the average bill value exceeding £45,000. An additional 10% said they have tax bills of £100,000 or more.

A quarter of business leaders admitted they will struggle to pay one or more tax bills in the next five years. 54% of SMEs polled said their main issue lies with corporation tax, whilst 35% have problems with their VAT bill.

Commenting on the research, Jennie Hill, Chief Commercial Officer at Premium Credit, said: 'SME finances are inevitably under pressure from the cost-of-living crisis and that has an impact on their ability to meet tax obligations but paying tax bills is a long-standing issue for companies and is certain to remain so.

'Failing to pay bills on time will lead to fines from HMRC so any company which is struggling should consider spreading the cost for up to a year to pay bills on time and improve cash flow when it is needed.'

Three 'key changes' need to be made to reach net zero, says BCC

Three 'key changes' are required to help UK businesses hit net zero, according to the BCC.

A report published jointly by the BCC and Lloyds Bank outlines three key changes that should be made to ensure firms reach the government's net zero target.

It recommends that the government review its support and advice to small and medium-sized enterprises (SMEs) on moving to net zero.

The report also calls on the government to 'demonstrate commitment and consistency in its net zero plans' and help large businesses to continue to drive behaviour change in their supply chains.

Shevaun Haviland, Director General of the BCC, said: 'All the businesses we spoke to understand the devastating impact climate change is having on our planet, and that sitting this out is not an option.

'But many smaller firms feel lost in a fog of conflicting information and are reluctant to invest in new technologies when they fear betting on the wrong horse. Mixed messages from the government on the importance of net zero are only compounding the problem, as well as a 'stick' heavy approach to enforcing change.

'In the midst of a cost-of-living crisis, firms are reluctant to sink their money into net zero technologies and energy efficiencies when the commercial pay off appears uncertain. We need a coherent system of free support and advice made available for firms across the country.'

ESSENTIAL TAX DATES FOR SEPTEMBER

1 September
New Advisory Fuel Rates (AFR) for company car users apply from today.

19 September
PAYE, Student loan and CIS deductions are due for the month to 5 September 2023.

30 September
End of CT61 quarterly period.

QUOTE OF THE MONTH

'We need an economy that delivers better living standards for all - not just those at the top.'

Paul Nowak, General Secretary of the Trades Union Congress (TUC), commenting on research from the High Pay Centre that shows that median FTSE 100 CEO pay rose from £3.38 million in 2021 to £3.91 million in 2022.

ON OUR WEBSITE

A wealth of resources for businesses
With topics ranging from the Bribery Act 2010 to the National Minimum Wage and the National Living Wage, the Your Business section of our site is a hub of essential information.

Useful information for individuals
For a comprehensive bank of guides covering Venture Capital Trusts, the dividend nil-rate and much more, please visit the Your Money area of our website.

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