Treasury allays fears over insolvency tax changes

Small and medium-sized companies that enter insolvency in 2020/21 should not be affected by a new measure, according to the Treasury. From 6 April 2020, payments to HMRC will be prioritised when a company enters insolvency and go towards the public purse before being...

New prompt payment rules take effect

Large companies that pay late will now be excluded from winning Government contracts, following new prompt payment rules that came into force on 1 September 2019. The policy, which was first announced in November 2018, applies to contracts worth more than £5 million a...

Most small firms absorb the cost of wage increases

Around 7 in 10 small business owners paid themselves less to absorb increasing employee wages this April, a survey by the Federation of Small Businesses (FSB) shows. Following the national living wage increase to £8.21 in April 2019, 71% of business owners said they...

Late payments are a ‘growing challenge’ for 1 in 4 SMEs

Late payments are a growing issue for nearly a quarter of SMEs, according to a survey by the Institute of Chartered Accountants in England and Wales (ICAEW). The survey of 1,000 ICAEW members found that 24% of small and medium-sized businesses experienced late...

Large businesses penalised for late payments

Several large companies have been suspended from the prompt payment code for failing to pay suppliers on time, the Chartered Institute of Credit management has announced. The prompt payment code sets out a standard for payment practices, requiring businesses that sign...