A Federation of Small Businesses (FSB) survey of nearly 1,500 small business owners and sole traders warns that thousands of small businesses could be at risk of closure. This is due to declining revenues and rising tax bills. The survey shows that 30% expect to either contract, downsize or collapse over the coming year. The poll revealed that 55% of companies say that their income fell over the past three months, with a £25bn tax raid having an impact. This came after changes in last year’s Budget saw the main rate of employer National Insurance contributions climb from 13.8% to 15%. In addition the earnings threshold reduced to £5,000 from £9,100. Tina McKenzie, policy chair at the FSB, said: “Millions of small businesses shrinking, closing or selling up instead of growing means a vicious cycle of a lower tax take, higher unemployment. Inevitably greater demands on the state will all exacerbate each other in a downward spiral.”
iBOSS Comment:
Yet more arguments for politicians to concentrate support on the growth and economic wealth-earning potential of the Uk’s SMEs rather than taxing them to death and imposing onerous employment laws! Getting the economy back into the black must be the priority!
If you are struggling to maintain the viability of your business; if cash-flow is a serious problem or you are struggling to carry out all of the tasks necessary to grow your business then call us at Independent Business Owners Support Services Ltd. (iBOSS) to discuss your options. We offer a 2-hour free consultation with no strings attached. Just e-mail us at enquiries@theiboss.co.uk or call Phil on 07876 503830 and let’s see how we can help!