FSB outlines recommendations to Chancellor as many firms face reopening costs

(3 minutes to read)

FSB: ‘The fundamental question facing small businesses today is: can I open in a way that’s both commercially viable and safe?’.

The Federation of Small Businesses has written to Rishi Sunak outlining measures needed to enable small firms and the self-employed to bounce back from the current recession.

The FSB says that mechanisms to help the small business community have been central to the government’s programme of emergency business support, and their letter calls for them to have a similar place in recovery plans.

The business group’s research has found that of those that are across their respective government’s guidelines, 60% say it would cost up to £1,000 to reopen in-line with the relevant guidance – more than a quarter (28%) say it would cost more than £1,000. One in five (20%) small firms that have remained closed during the lockdown say they cannot reopen while current guidance is in place.

FSB National Chairman Mike Cherry, said, “The fundamental question facing small businesses today is: can I open in a way that’s both commercially viable and safe?

“Among those for whom the answer is yes, the majority will face additional costs as they adjust their operations. The Government should step in with back to work vouchers so firms doing the right thing can recover this expenditure.

“Our hope is that the gradual unwinding of the furlough scheme coincides with a gradual return of more normal levels of economic activity.

“But the job market has already taken a hit. To ensure opportunities exist for those who’ve lost work, or are looking for the first time, the Chancellor will need to take an ambitious and holistic approach to employment interventions.”

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The letter warns that ‘revenue has collapsed’ among small businesses, with the FSB calling on the Chancellor to shore-up cashflow, balance sheets and investment by:

  • Ensuring discretionary grants reach those who have fallen through the cracks of support schemes – such as suppliers to the retail, leisure and hospitality sectors, company directors, and the newly self-employed – and making sure “that any lack of support is reflected in future policy development.”
  • Taking a student loan-style approach to state-backed emergency loans for small businesses, allowing firms to start repayments once they are making a profit.
  • Widening access to R&D tax credits and introducing digital vouchers to encourage new-to-firm, not just new-to-market, innovation.
  • Considering a temporary reduction in VAT and other measures to jump-start the economy.
  • Suspending or delaying reforms to IR35 and the introduction of the reverse VAT charge in the construction sector, set to take effect in April and March respectively.

Cherry added, “Millions of small firms and sole traders have been helped by emergency support mechanisms but hundreds of thousands have not.

“As we look to recover, the Chancellor should ensure that those who have fallen through the gaps are not punished further with tax rises or exclusion from new stimulus measures.

“Many have secured bounce back and interruption loans to cover fixed costs as revenue disappeared through no fault of their own. What we have to avoid is a situation where small firms have one eye on repayments so hold fire on investment and hiring at a moment when we need them most. A guarantee that they wouldn’t have to start repayments until they’re turning a profit would allow them to crack on without fear.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
  • Same day payments- We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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