SMEs set to get help with late payments

Late payments are a headache for small businesses and the Government has estimated that if they were paid on time it could boost the economy by an estimated £2.5 billion annually. Nicola Roby, Director at CHW Bolton accountants looks at what the Government is doing to tackle the problem.

The Government appointed Paul Uppal as Small Business Commissioner in October 2017. His role is dedicated to supporting the country’s 5.7 million small businesses, and assisting them to resolve disputes around payment practices.

Government statistics indicate that, a third of payments to small businesses across the UK are late and 20% of all small businesses have encountered cash flow problems as a result.

As well as appointing Paul Uppal, at the end of last year, the Government launched a complaint-handling website, providing guidance to companies on payment issues and how to take action if a payment is overdue.

Margot James, Small Business Minister has commented that whilst over the last five years the amount owed to smaller businesses has more than halved from £30bn to £14bn, she added that the appointment of a commissioner will empower small businesses to take action and clamp down even harder on the problem.

Mr Uppal said that his mission is to “help all small businesses nurture positive and lasting relationships with their customers that work in the best interests of both”.

He also said, “Having run my own small business for over 20 years I am well aware that integrity and trust are key to running and building a successful business.”

Nicola Roby, Director at CHW Small Business Accountants in Bolton says “The UK is gripped by a poor payments crisis which impacts the small business and its owner and is also damaging the wider economy. The Small Business Commissioner could prove crucial to turning the tide on this late payments culture and we will be encouraging our SME clients to use the service where appropriate.”

She adds that “Whilst funding is an option to bridge the gap in cash flow when debtors are slow to pay, it is far better if businesses can tackle the problem. There are numerous cloud-based software providers which provide tools to assist in debt collection on which we are able to advise our clients.”

Our Bolton Accountants look forward to continuing to work with our SME clients both existing and new and it will be interesting to see the impact these steps taken by Government will have on the market.

To discuss any issue relating to small business accounting contact Nicola Roby at CHW Bolton Accountants either by calling 01204 534 031 or by filling out our enquiry form.


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

DID YOU FIND THIS USEFUL?

Share it with your network:  

Want more great content?
Sign up to our newsletter

Follow us

Tweets by @CHW-accounting

CHW-Accounting
@chw-accounting


Twitter: chw_accounting

Read enough?

Want to find out how we can help you and your business? Get in touch today and let's have a chat.

WHAT'S THE NEWS?

Grab a biscuit and a brew and read our latest news.

11 November 2019

HMRC Enquiries – beware if you have a cash...

by

Even in this digital age some businesses remain heavily reliant on cash transactions. HMRC views these as high risk and as a result targets cash businesses with VAT enquiries, using special techniques to justify investigating them.


Read more >

6 November 2019

Did Making Tax Digital for VAT (MTDfV) pass its...

by

The first big deadline for MTDfV is history and whilst there was a fairly high failure rate, it was not as bad as originally feared.


Read more >

29 October 2019

Business property relief (BPR) don’t let it disappear

by

BPR shelters the value of your business from the HMRC. The trouble is though, when you retire from your unincorporated business, the relief disappears immediately. CHW explain how you can preserve it.


Read more >

22 October 2019

How to enhance tax and NI-free termination payments

by

New rules will apply to employment termination payments from 6 April 2020 meaning that some settlements will be subject to NI in addition to tax. With this in mind, CHW look at how you can you improve the tax and NI efficiency of a termination settlement.


Read more >

14 October 2019

Paying a non-executive director

by

You’ve engaged the services of a non-executive director (NED) who has experience in growing companies. The NED is freelance and has asked for her fees to be paid free of tax and NI. CHW explain whether that’s ok or if trouble with HMRC is on the horizon.


Read more >

YOUR CHALLENGES

No matter what your challenge is, we’ve probably dealt with it before.



Need an Accountant?

Get in touch >


Need an Accountant?

Get in touch >


Tax issues?

Find out more >


Tax issues?

Find out more >


Trying to grow your business?

We can help >


Trying to grow your business?

We can help >


Managing cashflow?

We can help >


Managing cashflow?

We can help >


Starting a business?

We can help >


Starting a business?

We can help >


Looking for funding?

Need help with funding? >


Looking for funding?

Need help with funding? >


Buying or selling a business?

We can help >


Buying or selling a business?

We can help >


Adopt the cloud?

We can help >


Adopt the cloud?

We can help >


What else can we do for you?

We can help >


What else can we do for you?

We can help >
CONTACT US

Get in touch, no hard sell, just a brew, a biscuit and a chat.