×

Resources

The real impact of Covid-19 on owner managed businesses

A survey of over 1024 owner-managed businesses by the Association of Practising Accountants (of which Shipleys is a member), shows that the next 12 weeks will be critical to the survival of many.

Conducted over recent weeks across the UK, the study has revealed the real economy faces a critical challenge.  It presents a stark picture of the challenges facing this vital economic sector. Key findings included:

 

See the research findings showing the National picture here

See the findings just relating to London and the South East region here

 

Background to the survey

The Association of Practising Accountants (APA) is a network of leading professional and business service firms providing support to over 14,000 business across the UK. The survey reached out to the businesses that drive the real economy: the SMEs; the local and long-established firms that provide jobs and vital services to their communities. The research comprises responses from 14 business sectors across the 9 UK regions.

 

Key lessons from the survey

The figures underpin just how challenging the current trading climate is for many of our clients.  Owner managed businesses produce goods and services which help drive jobs and growth and it is vital that these businesses get the support they need over the coming months. 

The research suggests that furloughing, as well the HMRC’s Time to Pay scheme (including deferring VAT and related taxes) have been critical for the survival of many businesses and their staff and are working well. However, there remain real challenges with the various Government backed loan schemes on offer with many of the APA's clients report confusion over assessment criteria or unacceptable delays from participating lenders

Along with other APA member firms, Shipleys will be taking these findings to Government and policy makers over the coming weeks to ensure that they are prioritising resource where it is most needed to ensure the sustainability of owner managed business across the UK.

 

Take part in the survey

The APA will also continue to monitor the challenges owner managed businesses are facing in the coming weeks.  If you would like to take part in the survey, you can access it here.

Current Issues

New VAT penalty and interest regime could be more expensive for some businesses

A new VAT penalty and interest regime, confirmed in the Chancellor’s 2021 Autumn Budget, may come as a shock for many businesses.

HMRC VAT Teams Facing Significant Backlog

The Shipleys' team have been alerted that HMRC VAT teams across the UK are operating with significant backlogs of work.

Reclaiming VAT after deregistration

Business owners often think that, once a business has de-registered from VAT, it would no longer be able to reclaim any VAT – but this is not the case.