Originally written by Timothy Adler on Small Business
Thousands of online retailers who use Amazon to sell their products could find their businesses switched off in the event of a no-deal Brexit.
Sole traders who use platforms such as Amazon and Google to sell online could find themselves blocked because the EU would not recognise UK data protection standards in the event of no-deal.
Although the UK has already said it would accept EU data compliance in the event of a no-deal Brexit, the EU has made no such pledge, leaving online retailers stranded.
Both Amazon and Google host huge amounts of data from giant centres based in Europe.
It could take years for the EU to sign off a data compliance agreement with an independent UK.
Read: third party platforms – is it worth selling through the likes of eBay and Amazon?
“Data flow is so ubiquitous in our day-to-day lives that if it stops, [we don’t know exactly what will happen], Claire Edwards, a partner at law firm Pinsent Masons told the Sunday Times.
The potential aftershocks of a no-deal Brexit on October 31 have been laid bare in confidential details of Operation Yellowhammer, the government’s no-deal contingency planning for a no deal departure, which were
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Retailers call for Chancellor to fix ‘broken business rates system’
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Over 50 retailers have called for Chancellor Sajid Javid to fix the “broken business rates system”, which they say is key to boosting investment and revitalising the economy.
Some of the high street’s biggest names have written to the Chancellor, including national chains such as Greggs, Boots, Sainsbury’s and John Lewis.
“Retail accounts for 5pc of the economy but pays 10pc of all business taxes and 25pc of all business rates. The rate has risen by 50pc since business rates’ inception in the 1990s, and 20pc in the last decade alone,” said the letter, co-ordinated by the British Retail Consortium and backed by bosses of M&S, Iceland Foods, Primark and dozens more.
The letter asks for four fixes that would address many of the challenges posed by business rates:
A freeze in the business rates multiplier
Fixing transitional relief, which currently forces many retailers to pay more than they should
Introducing an “Improvement Relief” for ratepayers
Ensuring that the Valuation Office Agency is fully resourced to do its job
Implementing these four recommendations “could be undertaken quickly, would reduce regional disparities, remove barriers to the proper working of market forces, incentivise economic investment, and cut away at least some of the
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Michael Gove orders taxman to help small business if there’s no deal
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The taxman has been ordered to soften its revenue-raising zeal in event of a no-deal Brexit, Michael Gove – the cabinet minister in charge of no-deal planning — has told business groups.
Ministers have told HMRC to drop its usual tough guy tactics when small businesses get into trouble paying tax late and instead be supportive, according to Sky News.
That did not mean that HMRC would cease normal tax-collecting actions, Michael Gove said, but that it should prioritise measures to ease the burden on SMEs facing financial strain.
Business organsiations present included the CBI, Institute of Directors, Association of British Insurers and the British Retail Consortium.
Other ideas discussed at the meeting included the possibility of VAT and National Insurance contribution holidays for SMEs, high-street banks relaxing their lending criteria for small businesses and easing the regulatory burden on businesses by suspending any implementation of new rules.
Mr Gove was joined at the meeting by business minister Jo Johnson and Sir Edward Lister, the prime minister’s chief of staff.
Other business groups that joined the meeting with Mr Gove were the Creative Industries Federation, the Food and Drink Federation, Make UK, Tech UK, UK Finance and UK Hospitality.
Further
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SMEs say late payments are a greater issue than they were a year ago
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
A quarter (24pc) of SMEs are reporting that late payments are a bigger issue than they were a year ago.
This figure comes from the latest Independent Chartered Accountants of England and Wales (ICAEW) Business Confidence Monitor, which shows some worrying trends. Six out of nine industries (property, business services, manufacturing & engineering, construction, retail & wholesale and banking, finance and insurance) say that the problem of late payments is growing.
Tim Gardiner, finance director at Panton McLeod Limited, says that large corporates are still notorious late payers, particularly in the construction industry:
“A large part of the problem is where companies have complicated processes for the submission of invoices or claims for payment, combined with a lack of clarity as to who is the contracting company in relation to large scale projects. This arises from intermediaries acting on behalf of utility companies in my experience.”
Around two fifths of businesses report that regulatory requirements and customer demand are also rising problems.
Business confidence is still down
ICAEW’s results show that confidence remains negative this quarter at -10.3. However, this is still higher than Q2 2019 when it was -16.6.
Events like British Steel’s insolvency, evidence of a global shutdown
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Small business will be especially badly hit by no deal, warns CBI
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small and medium-sized firms are especially vulnerable in the even of a no-deal Brexit, the CBI has warned.
Four out of 10 SMEs that trade internationally have no contingency plans for Brexit, says the CBI. Fifty-six per cent of SMEs in Northern Ireland – the pinch point of Brexit negotiations – have yet to start planning. And 90pc of small architecture firms have found it impossible to start planning.
The CBI says that both the UK and the EU are unprepared for Britain crashing out of the EU on October 31, with Brussels surprisingly even less prepared than the UK.
Although businesses have already spent billions on contingency planning for no deal, they remain hampered by unclear advice, times, cost and complexity, says the industry body.
For hundreds of thousands of small companies, diverting precious resource – both human and financial – to Brexit preparedness measures is out of reach, says the CBI. They cannot hope to have access to anything like the in-house advice available to large companies, and government funds that can help them to do so have been poorly advertised and are now closed, says the business lobbyist. Eighty-seven per cent of CBI members
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KPMG urges SMEs to speak to banks before shock of no-deal Brexit
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses should speak to their banks about their debt facilities now, ahead of a possible no-deal Brexit, advises KPMG.
Banks have been putting small businesses under the microscope, figuring out which ones would be most vulnerable if Britain were to crash out of the European Union without a deal.
SME lending could be tightened up as the shock of a no-deal Brexit reverberates around the economy.
“Credit could be a little squeezed in the interim. If you haven’t had that conversation with your high-street bank, best have it now,” said Richard Bernau, director at KPMG.
Small businesses should ensure that their working capital facility remains intact should the UK suffer a disorderly exit from the EU, check the employment status of European Union nationals, and make sure their international supply chains are robust.
Although the Bank of England believes the banking sector is well prepared for a no-deal Brexit, SMEs could still find their access to credit dry up in a sudden downturn.
“Any bad or malign economic impact will have an impact on their ability to lend and the terms they are prepared to do so,” Andrew Pilgrim at EY told the Daily Telegraph.
Bernau said that banks
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Government fails freelancers as it presses for IR35 rules
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The Government has released its Draft Finance Bill, taking a step further in cementing changes proposed in this year’s Spring Statement.
We take a look at the measures which affect freelancers and small businesses.
IR35 to hit freelancers in private sector
The most controversial of the proposals is IR35, also known as ‘off-payroll’. This means that HMRC can tax sole traders if their role is akin to that of a full-time employee. In April 2017, these rules were implemented within the public sector and it looks as if they’re going to be brought in for the private sector from April 2020.
Freelancers are worried as if they’re classified as full-time employed they’ll be hit with PAYE while missing out on vital employment benefits such as sick pay and holiday entitlement.
The Federation of Small Businesses is calling on policymakers to delay implementation. It’s warning that it would be risky to bring in the changes following a sustained period of uncertainty, citing that it’ll cause ‘significant disruption’ to a quarter of a million sole traders.
FSB national chairman, Mike Cherry, labels this as a ‘reckless’ move:
“Left unamended, this bill could easily usher in an environment where firms in need of
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Carney: UK would automatically be hit by export tariffs after no-deal Brexit
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The Bank of England’s governor, Mark Carney, says that the UK would automatically be hit by tariffs on exports to the EU in a no-deal Brexit.
Earlier this week, however, Boris Johnson said that tariffs wouldn’t necessarily have to be paid if the UK left the EU without a deal. The Tory leadership candidate added that the UK could count on article 24 of the general agreement of tariffs and trade (Gatt).
Some have claimed that the Gatt, a treaty under the World Trade Organization (WTO), would allow a standstill where tariffs are avoided, even without a deal. Others say this can’t happen without an agreement from both sides.
Talking to the BBC, Carney said: “Gatt 24 applies if you have an agreement, not if you’ve decided not to have an agreement or have been unable to come to an agreement.
“Not having an agreement with the EU means that there are tariffs automatically because the Europeans have to apply the same rules to us as they apply to everyone else. If they were to decide not to put in place tariffs they also have to lower their tariffs with the United States, with the rest of
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UK Small Business Events and Exhibitions Calendar
by jezbooker • • 0 Comments
Originally written by jezbooker on Small Business
With the aim of bringing our readers an extensive business events, exhibitions and trade fairs diary, Small Business will be continually updating this page as new events come onto our radar. If you notice any events we have missed, or would like to feature your event on our list, please get in touch with Ibrarr Khan on ibrarr.khan@bonhillplc.com
Event month:
2019 – June | July | August | September | October | November | December
2020 – January | February | March
June 2019
Event: Business Showcase South West
Date: 19 June 2019
Location: Ashton Gate Stadium, Bristol, BS3 2EJ
Website: www.businessshowcasesouthwest.com
Brief: Biannual B2B exhibition with over 250 exhibition stand spaces. Free keynotes, workshops from the likes of Google and Facebook + seminars and speed networking sessions.
Event: The Northern Franchise Exhibition
Date: 21-22 June 2019
Location: EventCity, Phoenix Way Off, Barton Dock Rd., Manchester, M41 7TB
Website: franchiseinfo.co.uk/the-northern-franchise-exhibition-2019
Brief: Over 30 free presentations, one-to-one advice sessions, meet over 40 franchise brands from a mix of business sectors, including food and drink, property, domiciliary care, retail and fitness. Speak to the teams behind the brands, as well as existing franchisees, and find the right franchise to suit you.
Event: Women in Finance Awards
Date: 26 June 2019
Location: Grosvenor House, 86-90 Park Lane, London, W1K
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Tory leadership hopefuls propose major tax reforms for small businesses
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
As Theresa May prepares to step down as Prime Minister, two MPs have come out in support of small businesses in their bids to succeed her as the Conservative leader.
Health Secretary Matt Hancock is pledging to save the high street by scrapping business rates. The £1.5 billion-a-year pledge would exempt hundreds of thousands of businesses from the hated tax. He would also introduce an Amazon Tax for social media platforms, internet marketplaces and search engines. The tax was first mentioned in last year’s Budget.
“I would end business rates for small businesses on high streets altogether, and I would pay for it by an increase in the new digital services tax,” Hancock told the Daily Telegraph.
He added that he would access cash from the £26 million Brexit buffer set aside by Philip Hammond as well.
Hancock’s business rates proposal is part of a wider economic policy including a rise in the National Living Wage to £10.21 by 2022.
Rival candidate, Sam Gyimah, has also said that he will reform business rates, replacing it with a commercial land tax. It’ll be one of five tax reforms to stimulate economic growth. In addition, he would make the tax