The end is nigh!
As we approach the end of the tax year, it’s time to check you’re taking advantage of the financial help available to your business, writes Complete Commercial Finance’s Michael Moore.
The Ides of March are almost upon us and while you may have heard the expression, did you know the date once signified the new year and in Roman times was notable as a deadline to settle one’s debts? Just goes to show, finances have always been part of the annual calendar and, with the end of the tax year just ahead, it’s definitely time for local businesses to focus on getting their proverbial house in order.
A recent survey by the British Chambers of Commerce of 5,500 businesses revealed that almost 60 per cent are planning to charge more for goods and services in the coming months as a result of rising inflation and supply issues, and many reported that they are running low on cash. With this in mind, protecting precious cash reserves is ever more important and there are a number of routes for companies to explore.
The Chancellor will deliver his spring budget on 23 March and while we can’t predict what support he will offer to businesses, there are already several opportunities not to be missed. First of these is this tax year’s relief for expenditure on plant and machinery which currently offers a super-deduction of 130 per cent on investments which ordinarily only qualify for 18 per cent tax relief, so it really is a super-saving! In a region where manufacturing is a key sector, there are undoubtedly many businesses which would benefit from tax deductions on upgraded equipment. Additionally there is a first year allowance of 50 per cent on most new plant and machinery investments, up from six per cent, so it is a bonanza moment for companies looking to expand or increase productivity. We are ready to help you navigate and fund an investment, if you are interested in taking advantage of these savings.
It’s also worth carefully examining what funding your business may be eligible for and a quick visit to New Anglia Growth Hub and King’s Lynn & West Norfolk’s websites will show several grants currently on offer to help support the construction, farming, hospitality and leisure sectors, in addition to funding for business mentoring, the introduction of sustainable practices and development of digital services. A recent Government report shows that £850m of COVID-19 support grants are still available and sitting with local authorities. Aimed specifically at helping businesses in need and offering up to £6,000 per premises, in the East of England the amount of funding left totalled more than £61m, so it is worth investigating this, if you haven’t already done so.
Finally, the Government’s Recovery Loan Scheme (RLS) which provides loans, invoice and asset finance of £1k-£10m for SMEs with a 70 per cent government guarantee, has been extended to 30 June. With no personal guarantee required on lending up to £250,000, this is a relatively low-cost way to borrow and retain more working capital in your business. Our team can help you to navigate the RLS, so give us a call if you wish to tap into this funding route before the summer deadline.
Think of March as a second ‘new year’ for your business and make a resolution to explore these opportunities this month, before time runs out.
