Businesses could face insolvency solicitors

Published on 23 Jul 2010 under category: legal

UK businesses could face calling in insolvency solicitors if the government goes ahead with expected VAT rises.
More than eight in ten (87 per cent) businesses surveyed by uSwitchforbusiness.com said that they thought a rate rise would slow down business, as consumers become more cash-conscious.
According to the comparison site, VAT hikes last year resulted in an additional annual expense of £1,000 for around 18 per cent of businesses.
The expense could be too much for some firms who are still struggling with cashflow because of poor post-recession conditions.

Commenting on a possible rise, small business energy expert Jake Ridge said: "If a VAT hike is announced then SMEs will have no option but to carry on battening down the hatches and keeping a tight lid on costs.
"In the struggle to remain competitive no business can afford to be paying over the odds for the very basics such as their gas and electricity."

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.