ACCA issues a response to the Chancellor’s economic update statement

ACCA’s head of UK, Claire Bennison says:

‘ACCA is encouraged the Chancellor has considered small and medium businesses in his statement. We welcome the extra time and flexibility in the way SMEs will be able to pay back their bounce back loans and Coronavirus Business Interruption Loan Scheme, and we hope to see a simple approach for applying for loans or converting existing loans.

‘Alongside this it is important the government promotes a responsible lending ecosystem and supports SMEs to access the necessary professional advice to properly plan for these long-term financial liabilities. 

‘The Chancellor has also acknowledged the pressure small firms are under in terms of cash flow and being able to extend payment of VAT bills over 11 months will be a relief to businesses. However, we’d like clarity on a deferral scheme for all tax payments, not just VAT.

‘While it is welcome that Government is seeking to find ways to help SMEs weather the next six months, it is important these new rules are explained to businesses and their advisors in a clear way, so that everyone knows where they stand.

‘The measures outlined today continue to leave out the two million limited companies company directors employing around 7.5m people. We understand that initial measures had to be rolled out quickly, but this new phase of support is a good opportunity to bring self-employed company directors onto an equal footing with those on the Self Employment Income Support Scheme.‘

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