It’s not just the prices paid by clients and contractors that cuts into margins; CN’s panellists were also angry at the increasing generic business costs such as VAT and corporation tax. There was strong agreement that SMEs were being hit especially hard.
Steven Hale “It’s the VAT I find most frustrating. If you’re not getting paid in 30 days you’re having to pay the VAT from your balance sheet. If you’re a labour-intensive
business rather a materials one, the VAT appears to penalise small businesses.”
Kevin Ellis “This tax year the government introduced a penalty for the late payment of PAYE, which seems outrageous when the economy is struggling to come out of a recession.”
Clive Madden “Being a developer as well, our biggest gripe are the banks and the lack of funding or terms that are making viable developments unsupportable.”
Nick Baster “One thing the government could do is corporation tax relief against apprentices. If taking on apprentices became a benefit and you got an apprentice’s
wages back in corporation tax then that would definitely kickstart getting apprentices back into the industry.”