Despatches news - Money News
Prompt payment code -
The Code of Good Practice, recently launched by the government and developed with the Institute of Credit Management and supported by major businesses, aims to establish a clear and consistent policy in the payment of business to business bills. It focuses on three main areas: paying suppliers on time (within the agreed terms, without changing payment terms retrospectively and without changing practice on length of payment on unreasonable grounds); giving clear guidance to suppliers (on payment procedures, on complaints and disputes and prompt response); encouraging good practice (by requesting that lead suppliers sign up).
Local rates ‘stealth tax’ slammed -
A proposed law to give local authorities the power to levy supplements on business rates has been roundly criticised by small business leaders. The Business Rate Supplement Bill was not included in the last Queen's speech but was announced as part of 2009's legislative programme. It proposes that local authorities are allowed to charge additional rates of up to 2p per £1 above the national business rate. The Despatch Association says that if the bill is passed it will represent a considerable barrier to growth for small businesses and we make no bones in calling it a ‘stealth tax’.
Small business inflation hike -
Small business inflation was 9.4%, double the UK's consumer inflation rate, during the third quarter of last year, according to recent figures. The Business Inflation Guide, produced by insurance firm More Than and Warwick Business School, measures the price of 20 essential goods and services for small firms. It found that inflation was highest among manufacturing businesses at 11.3% and stood at 9% for firms in the service sector.
Hidden tax insight -
Internet traders, the self-employed and buy-to-let landlords have been singled out by the Public Accounts Committee (PAC) as contributing to the lost £2 billion in undeclared taxes every year. A report from PAC has highlighted that two million individuals are creating a 'hidden tax economy' and claims that HMRC is having little success in combating the 'cash-in-hand' culture.

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