The high, and increasing, tax burden on UK businesses
By Mr Bankruptcy
25th January 2024
UK firms are currently having to manage the largest tax burden for decades, in conjunction with a whole host of other economic challenges. What does that mean for the future of Britain as a “nation of shopkeepers”?
The tax burden keeps on increasing
The current corporate tax burden is at its highest rate for 50 years, with the level of increased taxation imposed by the government over this parliament the highest than for any other parliament since the 1950s, according to the Institute of Fiscal Studies.
At the last general election UK tax revenues were at 33% of the national income, but by the time we’re likely to be going through the next one (November 2024 but who knows?) taxes are expected to account for 37% of national income.
This increasing tax burden is being attributed to the Government’s move away from austerity, its intention to spend more on public services and to long term trends such as the demands made by an ageing population on the public purse, along with many other reasons.
What’s been changing for business owners?
Over the past few years, some important changes have contributed to the increased tax burden faced by businesses in particular:
- Last year’s rise in corporation tax from 19% to 25%.
- A freeze on Income Tax as well as National Insurance thresholds. The failure of the Treasury to increase thresholds in line with inflation, along with a general growth in wages, has meant that more people, including the self-employed and those running small businesses, have been caught in higher tax brackets.
- Higher property taxes, such as business rates and council taxes; the UK’s property tax to GDP ratio is higher than average for the EU and G7 economies.
- Energy profit levies.
- The widening scope of what is now considered taxable profit and the ending of some allowances means that corporation tax now encompasses a greater portion of business profits than before. UK companies are now paying more tax as a percentage of profits than at any time since the 1970s.
How is the tax burden affecting your business?
For businesses owners, seeing more of their income and profits being consumed by taxes means that there’s less to spend elsewhere, impeding investment and subsequent economic growth. Businesses are also becoming more cautious in their spending, which impacts down the supply chain.
The current tax regime doesn’t just hit the pocket. It can also make life more difficult for smaller business owners trying to understand their tax obligations, for example the tiering of corporation tax to be paid based on the amount of profit earned; all of this adds to the bureaucracy and stress of managing a business.
The increasing tax demand is also likely to contribute significantly to the level of debt faced by business owners. HMRC has already reported an increase in the number of businesses struggling to pay their tax bills.
While bringing in expert advice from a tax specialist can give you peace of mind and help you make the most of your business income, it still consumes more time and cost, which the UK’s wealth generators can ill afford. And no matter what happens politically this year, it’s hard to see the situation changing drastically any time soon.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to business owners and directors, as well as individuals, who may be facing unmanageable debt or who are involved in civil or commercial disputes. Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
JD – Mediation Profile – Jan 2025
About Julian
Julian provides Civil and Commercial mediation with a particular specialism in debt, insolvency, banking and finance. He is also a debt counsellor and debt adjustor which involves providing debt advice to businesses and individuals and walking them through the solution (James Rosa Associates Limited are authorised and regulated by the Financial Conduct Authority FRN 665061).
Julian spent 9 years at a major high street bank and then moved to gain a wide variety of corporate experience in different sectors. At the end of 2009, Julian decided to start his own firm and James Rosa Associates Limited was founded in October 2010. Prior to attaining his mediation accreditation, the bulk of Julian’s work involved negotiating settlements on behalf of his clients with their creditors (this includes all types of bank debt, trade creditors, HMRC, and a lot of work with directors’ personal guarantees – to name but a few) as well as getting involved in formal insolvency processes.
Link to Clerksroom Profile: https://www.clerksroom.com/profile?type=mediators&fl=&pid=2201
Civil Mediation Council registration: https://civilmediation.org/mediator-search/?region_search=&expertise=&mediator_provider=Julian+Donnelly
Mediation Style and Approach
Julian is known for his relaxed and approachable demeanour which puts those around him at ease. His extensive negotiation experience gives him the ability to look objectively at opposing viewpoints and quickly get to the root cause of the dispute. He is highly empathetic which allows him to communicate efficiently and effectively with all manner of participants and their representatives whilst maintaining his professional neutrality at all times.
As a company owner/director, Julian is all too aware of how businesses operate and the day-to-day challenges that are faced. As a debt counsellor/adjustor, he all too often sees what happens when a settlement cannot be reached which provides him with a somewhat unique perspective which he uses to great effect when working with participants to find a solution.
Areas of Expertise
Insolvency
Consumer Credit
Banking and finance
Company and shareholder disputes
Partnership disputes
Commercial contracts
Costs disputes
Land and property claims
Employment (not workplace)
Matrimonial (not family)
Credentials
Associate of the Chartered Institute of Arbitrators (ACIArb)
Fellow of R3, the Association of Business Recovery Professionals (FABRP)
Fellow of the Chartered Institute of Credit Management (FCICM)
Member of the Society of Mediators (MSoM)
Member of Mensa
What does it take to become a mediator?
By Mr Bankruptcy
17th January 2024
Mediation can be a quicker, cheaper and less confrontational way of resolving a debt issue than taking the path to litigation. But who are you trusting with your future when you agree to let a mediator help find an equitable resolution to your financial problem?
What is mediation?
Mediation is a way of resolving disputes through the intervention of a neutral party who facilitates discussion and negotiation between the parties in a dispute to help them find a peaceful settlement or compromise. Both sides must agree to take part and be willing to compromise and work towards a binding resolution.
Mediation can be used in many disputatious situations, including relationship breakdowns, neighbours arguing over a boundary, commercial disputes, industrial disputes or even between two nations in armed conflict. It can also be a useful tool for finding a way out of a debt situation for both the debtor and creditor.
The neutral party is the mediator, an independent and impartial person who negotiates with all the conflicting parties to bring them to a mutually acceptable agreement.
Some skills required to be an effective mediator
Establishing the trust of both sides in a dispute is key, so the first quality that an effective mediator needs is the ability to stay calm and impartial in an argument, avoiding becoming sucked in and finding a workable solution acceptable to all.
Communication skills, combined with active listening and analytical questioning, enables an effective mediator to identify, understand and express the core issues to both sides in a clear way that avoids emotional argument. This logical approach can seem a little disconnected and “Mr Spock-ish” but a good mediator is also emotionally literate and patient, appreciating the emotional drivers underlying a dispute, while at the same time remaining objective while they negotiate with all sides.
Through their expertise, training and soft skills, an effective mediator establishes their leadership credentials allowing them to guide parties to a successful resolution.
That isn’t to say that anyone with a good set of interpersonal skills can set up as a mediator. In the UK, charities such as the Society of Mediators, or accreditation bodies such as the Civil Mediation Council, provide quality control over practitioners, most of whom will also have completed accredited training.
Experience doesn’t hurt either…
Alongside qualifications, extensive work experience is a must for the most effective mediators. At James Rosa Associates, Julian Donnelly provides Civil and Commercial mediation, specialising in debt, insolvency, banking and finance as well as being a debt counsellor and debt adjustor.
With a long history of working in the financial sector, Julian spent nine years at a major high street bank before moving d to gain a wide variety of corporate experience in different sectors, before founding James Rosa Associates in 2009.
Before he gained his mediation accreditation, Julian worked extensively in negotiating settlements on behalf of clients with their creditors, including bank debt, trade creditors, HMRC, and work with directors’ personal guarantees, as well as formal insolvency processes.
He also has an impressive array of professional qualifications including: Associate of the Chartered Institute of Arbitrators (ACIArb); Member of R3 the Association of Business Recovery Professionals (MABRP); Fellow of the Chartered Institute of Credit Management (FCICM); and Member of the Society of Mediators (MSoM).
As a company owner/director, Julian is very aware of how businesses operate and the day-to-day challenges they face. He also has personal experience of debt and has also seen what happens when a settlement can’t be reached, which is why he goes the extra mile to help clients come to the solution they need.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors offering a full range of advice and professional services, including:
Julian is known for his relaxed and non-judgemental approach, putting individuals and business owners/directors who face unmanageable debt at their ease. His extensive negotiation experience helps him to look objectively at opposing viewpoints and quickly get to the root cause of a dispute. His personal experience of debt gives him an empathy which allows him to listen and communicate effectively with all manner of clients and their representatives while maintaining professional neutrality at all times.
At James Rosa Associates we offer mediation services in:
- Insolvency
- Consumer Credit Banking and finance
- Company and shareholder disputes
- Partnership disputes
- Commercial contracts
We are also authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Are you entitled to a free consultation?
If you need to deal with unmanageable debt, or want to bring a dispute to a satisfactory resolution, then contact James Rosa Associates, ring 0845 6807217 or email us at enquiries@jamesrosa.co.uk to find out whether you qualify for one of our free consultations.