Over 440,000 small firms at risk due to late payment crisis

10th January 2022 | News

More than 440,000 small firms could be forced out of business by the late payment crisis, according to the Federation of Small Businesses (FSB).

An FSB study of more than 1,200 business owners found that close to one in three has seen late payment of invoices increase over the last three months, with a further 8% experiencing other forms of poor payment practice.

As a result, 8% of small businesses say late payments are now threatening the viability of their business. This equates to 440,000 of the estimated 5.5 million small businesses in the UK.

FSB National Chairman, Mike Cherry, said:

‘After another frustrating festive season, small firms are facing flashpoint after flashpoint. Today, it’s a fresh wave of admin for importers and exporters – in three months’ time it will be a hike to the jobs tax that is national insurance contributions, a rise in dividend taxation, business rates bills and an increase in the national living wage.

‘On top of that, operating costs are surging – many will soon be trying to strike energy deals without the clout of big corporates, or the protections afforded to consumers.’

Internet link: FSB press release

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

Global Association

News

The Substantial Shareholding Exemption: A breakdown

The Substantial Shareholding Exemption (SSE) is designed to provide tax relief for companies when they sell shares in another company. Its primary objective is to encourage business investment and facilitate the efficient transfer of ownership. The SSE essentially...

What are the tax implications of hybrid working?

The ongoing transformation toward hybrid models in the world of work, catalysed by the enduring impacts of the coronavirus pandemic, necessitates a thorough consideration of employment tax implications. As employees increasingly divide their work time between...

© 2023 Williamson & Croft