SMEs brace yourselves: New tax year, new tax burdens
With the new tax year just around the corner and the small business community due to be hit by a 5% rise in business rates after ministers reject reprieve, this year, now more than ever, small business owners and managers must ensure their business finances are in order.
According to research from leading independent financier Bibby Financial Services over 382,000 business owners (25%) see the current economic situation as a chance to develop their understanding of financial management and get their business cashflow working harder for them.
In order to ensure their business survives the recession almost a quarter (22%) are now having to offer staff a four-day week or other part-time or flexible working arrangement. And over half (51%) are cutting down on taxable benefits like company cars or un-necessary IT equipment.
As such, business owners may find their current tax burden changes, and therefore need to pay careful attention to how they manage this and all aspects of their company’s finances.
Edward Rimmer, Bibby Financial Services chief executive for UK and Ireland said:
“Any increase in tax will need to be absorbed at the worst possible time as increased costs are almost impossible to pass on when sales are declining. So, as UK banks continue to operate restrictive lending practises and higher charges., small businesses are being attacked from every angle Taking the time now to investigate alternative funding options to ensure you don’t over-extend yourself can mean your business has access to the funds it needs to survive the downturn.
“With seven in 10 firms experiencing a deterioration in their ability to access finance*, it’s easy to see why more and more businesses are turning to invoice finance as an alternative form of funding to help manage their cashflow. Indeed, new research from the Asset Based Finance Association (ABFA) reveals that the invoice finance industry is now servicing 48,152 businesses across the UK.”
Edward continued: “The end of the financial year is always a stressful time but owners and managers must ensure they are fully armed for the coming tax year. Cashflow is the lifeblood of business so by taking the opportunity to speak to those companies out there who specialise in alternative funding solutions will not only give you a strong basis for the coming year but could keep you in business for many to come.”
Bibby Financial Services is in a strong position to be able to help firms improve their cash flow situation and weather the economic storm as it has recently secured a significantly enlarged funding facility. What this effectively means is that unlike many other institutions and banks which are tightening their belts to cope with the current economic climate, Bibby Financial Services’ doors are very much open for business.