Small business confidence bounces back

(2 minutes to read)

Confidence among the UK’s smallest companies has rebounded to 2015 levels, with the number of SMEs expecting sales to increase between April and June jumping by 13%.

Latest findings have revealed positive news for the UK’s smaller sized businesses, as confidence among SMEs hits its highest level in two years.

According to the latest SME Confidence Tracker from independent financial services provider, Bibby Financial Services (BFS), the overall confidence index rose by six basis points from 58 in Q4 2017 to 64 in Q1 2018, which is the highest reading since Q2 2015 when The European Union Referendum Bill was first unveiled in the Queen’s Speech.

However, despite rising confidence, more than two-fifths of SMEs (43%) say that the uncertain economic environment in the UK and further questions surrounding Brexit are holding back investment over the months ahead. Over a third (36%) of business owners would back calls for Britain to remain in the Single Market and Customs Union, despite the Government’s pledge to leave both.

With near record-low levels of unemployment, over a quarter (27%) of SMEs are also struggling to hire skilled workers, and 23% say they have had to increase wages to retain existing skills. With many firms reliant on overseas workers, there are concerns that the issue will be compounded when the UK leaves the EU next year.

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Edward Winterton, UK Bibby Financial Services CEO, “It is clear that even limited clarity over Brexit – and some compromise on behalf of both the UK and the EU following recent negotiations – has had a calming effect on SMEs. This has resulted in a marked increase in confidence, which is long overdue following two years of tumbling confidence and subdued investment”

He added, “With just under a year to go before the UK officially leaves the EU, SMEs are concerned about their ability to hire skilled workers both now and in the future. It is vital that UK PLC has clarity on this important issue sooner rather than later to enable investment to start to flow more freely again.

“While it is positive to see confidence return to the backbone of the economy, there are still underlying issues that could impact SMEs’ future investment and recruitment plans. The real learning here is how far a little Brexit progress can go in relation to small business confidence.

“Whatever comes of future Brexit negotiations, for now at least, it seems that SMEs are getting on with business, regardless.”

To find out more about contracting please contact Sophie on 01442 795 100 or email sophie.lewis@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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