New figures from HMRC show that close to one in three employers will be hit by changes to the furlough scheme from July, the same moment at which repayments of deferred VAT start to fall due and business rates exemptions for hardest-hit firms are lost.
A wider ONS business survey, released yesterday, shows that more than one in 10 firms are not currently trading after a shifting of England’s unlock date, most exporters are still struggling with new bureaucracy – added to with the launch of a new EU VAT scheme for small businesses – while of the smallest firms carrying debt, one in ten had to make repayments last month which exceeded their monthly turnover.
Responding to the figures, Federation of Small Businesses National Chairman Mike Cherry said: “The Government significantly shifted the reopening date in England at short notice, but did not update its financial support measures to reflect that fact – measures which have proved to be lifelines for millions of businesses.
“Today’s changes to the furlough scheme will hit small employers hardest, many of which are still not able to reopen, or are barely breaking even due to operating restrictions.
“We need to see
link source - East Midlands Business Link General