7 days later....and time to reflect on the Autumn Budget! Having consumed a lot of reports following the Chancellor's Announcement on 30th October, we've had chance to take a breath and consider how the various announcements might impact the owner-managed business ('OMB') community, the wider economy and the insolvency market. The major announcement affecting most OMBs was the increase in employers' national insurance from 6.4.25. There was a double-whammy of a rate increase from 13.8% to 15% and a reduction in the earnings limit, meaning NIC will be paid 'earlier' than currently (employers will pay NIC on earnings above £5,000, reduced from £9,100). The additional costs may be softened slightly by an increase in the Employment Allowance (a reduction in the employer's NIC liability), from £5,000 to £10,500. These coupled with the increase in the rate of the National Minimum Wage from 6.4.25 will add significant cost pressures to most OMBs. The need for business owners to be 'all over' their cashflow projections only increases - the more aware and realistic a business owner is of the business's cash position puts them in a far stronger position to better manage the pressures. These announcements may well provide the proverbial 'last straw' for some businesses. The impact on the local and wider national economy could be profound, with some business owners choosing to 'hang up their boots', either by selling, going down an insolvency route (either insolvent or solvent) or orchestrating some other form of restructuring.

06/11/2024

“Business confidence rises significantly in Wales.” The most recent Institute of Chartered Accountants in England & Wales (ICAEW) survey reports some positivity for the local business community in Wales. The survey covers a range of industries, sectors and company sizes to give a feel for the wider economic feeling across the UK. The most recent survey ran to 20th September 2024 and perhaps reflects more relaxed attitudes after the uncertainty that naturally surrounds any general election. Interestingly, the survey suggests confidence in costs reducing slightly and stronger profit growth expectations (vs last year) but businesses are still reportedly looking to reduce the rate of their capital investment and spend on things like research & development. We’ll be looking out for the similar report for the North West when it is published later this month to see if there are any common themes. We’ll also be keeping a close eye on the wider impact on companies across the region, particularly those encountering financial distress. As always, it’s so important to us here at Parkin S Booth to understand the bigger picture, so that we can provide the best advice to each business owner.

15/10/2024

When a person or a company can’t pay their tax debts, they can, in some cases apply to HMRC to set up a Time to Pay arrangement (‘TTP’). This provides an extended amount of time over which the taxpayer can pay their debt to HMRC. In certain circumstances, a TTP agreement can be completed online, making it an easier and quicker process. The tax debts that are covered by the online application system are Self-Assessment (i.e. personal tax liabilities), Employer’s PAYE and VAT. At the end of 2023, the maximum tax debts covered by an online TTP application were increased to £30,000 for individuals and £50,000 for businesses. There are other conditions that need to be met before any application will be approved (e.g. up to date filing of tax/VAT returns, ‘age’ of tax debts etc) but in all cases, the debts must be cleared within 12 months and there must be no other payment plans or debts with HMRC. Whilst TTP arrangements often help with cashflow issues, we would always advocate that taxpayers do not use these to paper over cracks. A need for a TTP arrangement is sometimes an indicator of more deep-routed and longer term cashflow and business sustainability issues. As always, being ‘on-top’ of cashflows is essential for any individual or business owner – we would always recommend that understanding personal or business cashflow basics is the first step.

18/07/2024

What an absolute pleasure it’s been supporting Alzheimer's Society in their Trek26 Challenge. Saturday 1st June saw a group of us embark on a 13 mile ‘stroll’ in the most beautiful scenery of the Lake District and we enjoyed every minute of it (well almost every minute of it!). How lucky we are to have a fabulous team here at Parkin S Booth - we have raised an amazing £3,675 so far with still time for us to raise more for this amazing cause (justgiving.com). A huge thank you to all who have supported our efforts ❤️ Here’s to more of these events and a great opportunity to take breath and get some much needed fresh air out of our usual comfort zone of the office!!

05/06/2024