5 Financial Challenges Facing SMEs in London in 2017
It is going to be a year of considerable upheaval for small and medium businesses in the capital. The year 2017 is certainly not going to be straightforward, with a number of financial and other challenges on the horizon. SMEs in London that are better prepared for the challenges ahead will be more equipped to meet them head-on. Here are a few things to look out for when making long-range financial plans and dealing with the economic climate in 2017.
- Rise in Business Rates
Business rates in the capital have been rising for many years now but the biggest hike is set to come in 2017. It is difficult for some SMEs to survive if business rates increase and this is one of the biggest issues facing small businesses in the capital right now.
- Security Concerns
The impact of wider global events like terrorist attacks cannot be underestimated, and it is also true that they can create financial problems for SMEs in indirect ways. For example, members of staff may be afraid to travel to work in London. It only takes one incident for people to become nervous about travel on the buses and trains. If this happens, it can cause a considerable financial headache for small businesses in terms of lost working hours and missed appointments.
- Cost of Real Estate in London
This affects SMEs in two main ways, according to accountants in central london. Firstly, businesses find it difficult to afford the rent on offices or work space in the capital since the cost of these buildings is constantly rising. Secondly, they find it harder to attract people to work in the capital because many of these people cannot afford the rent on their homes, or cannot afford to buy their own property. This is driving talented people from London, which is bad news for SMEs.
- Issues with HMRC
As more and more tax processes are automated, businesses are struggling to get their tax returns in on time and accurately without being able to discuss issues with someone at the HMRC. Penalties are also becoming tougher and there are increased demands for tax filing. Many businesses are struggling to complete their own taxes without the help of a specialised accountant.
- Difficulties with Lenders
It is becoming harder for London SMEs to access funds as the criteria for loans are tougher and there is more competition for limited finances, which makes it difficult for some businesses to grow.
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