Credit Crunch: Business advice

The current recession has seen a dramatic increase in the number of BVRLA members seeking advice on issues including early terminations, repossessions, late payment and companies going into administration. The BVRLA provides free business and legal support which can be accessed by calling the BVRLA's legal team on 01494 434747.

Alternatively, the Business Link website and BIS's Action for Business site are great sources of advice and information.

Here are a few other useful tips and links:

Tax

Need more time to pay your tax bill?

If you're worried about being able to meet tax, National Insurance or other payments owed to HMRC, or you anticipate that payments coming due will cause you problems, you can get in touch with HMRC's Business Support Service to discuss payment options to help you deal with temporary cashflow difficulties. You can call the HMRC Business Payment Support Line on Tel 0845 302 1435. The helpline is open seven days a week.

HMRC staff will review your circumstances and discuss temporary options tailored to your business needs, such as arranging for you to make payments over a longer period. They will not charge additional late payment surcharges on payments included in the arrangement, although interest will continue to be payable on those taxes where it applies.

Can you improve your tax efficiency?

You can examine quarterly tax payments which you have previously made and seek to recover any rebated due to you. It is not necessary to wait until a tax return is filed before claiming relief for any losses carried back to the previous year. Also new tax relief is available, enabling losses of up to £50,000 to be carried back for three years.

Small business rate relief

The Budget 2010 announced a temporary increase in the level of small business rate relief in England, so that eligible small businesses occupying properties with rateable values up to £6,000 will pay no business rates for one year from October 2010. Small businesses that benefit from the rate relief taper (rateable values up to £12,000) will receive significant reductions.

Extending Entrepreneurs’ relief

The Budget 2010 announced an extension of Entrepreneurs’ Relief for Capital Gains Tax from the first £1 million to the first £2 million of qualifying gains made over a lifetime, effective from April 2010. This will provide support to business owners and those investing in businesses with growth potential.

Debt recovery

If you are having problems collecting payment, both the Business Link website and BIS provide advice on recovering your debt and how to calculate late payment interest.

Unfortunately, businesses may go into administration and you may wish to recover your vehicles from your customer at this stage.  Provided you have the relevant clause in your agreement relating to your rights to recover your vehicles when a customer goes into administration there should be no problem. However, we are aware that some administrators can be difficult, so we recommend that you have copies of any relevant paperwork to back up your claim.

Our fact sheet for members on the VAT treatment of a vehicle when it is early terminated may also be helpful along with the V5 at relicensing fact sheet which provides detail on how to get a V5 quickly in circumstances where a vehicle has been repossessed. 

How can other people in the industry help?

Conferences and forums can help you find the answers to coping with recession. By far the most successful and dynamic way that businesses have traditionally ensure they are prepared for an uncertain future is networking. Meeting with peers and discussing issues with industry experts can often inspire the solutions that make a difference in difficult times.

Being able to focus on a subject at length and often hear an overview provided by an industry expert can put the future in perspective and inspire the ideas you need. It is made all the more effective by spending time away from your business and understanding the views of the rest of the industry. See more information on the BVRLA's latest seminars and forums using the quick links on the right.