Recession - fact finding
We are based in Yorkshire, North East England, and recent events have sparked my curiosity (again!)
First, a building contractor client is getting badly squeezed. His housing association contractor doesn't ask for tenders anymore. He has been told he can have a contract for 20% less than the previous one, or do without. Also, the same contractor has extended payment terms from 30 days to 60 days. Like most businesses, our client wants to keep his many workers in employment, and in any case, he can't reduce his workers and still meet the deadlines set in the contract. He has put out feelers, and all other housing associations are doing the same thing.
Secondly, a specialist consultant who works exclusively for USA companies has had his contract terminated without notice. Reason given was the economic climate in the USA. They cannot foresee any new contracts in the foreseeable future.
Over the last few weeks, we have seen a massive upsurge in the newly self employed. Most of these are people made redundant from employment, and cannot find new employment. They see self employment as a way to keep a reasonable standard of living and avoid benefits. Also, we have seen potential clients (budding entrepreneurs) debating whether to buy the many struggling busineses that are for sale at knock down prices, in the hope they can 'turn them around'.
We have many businesses just holding on, and if the recession does deepen I fear the worst.
I am not particularly interested in playing the blame game, as to who is responsible for the crisis. We are in this situation now and have to deal with it. What I am interested is in knowing whether the recession is worsening across the country, or is it very local to us?
- Pattern for CTA 252 6
- PAYE versus Dividends 173 4
- Very Difficult to type on Aweb again 147 3
- Employee or partner 39 1
- Dormant company owns shares in another company 190 5
- The Cotter Case 190 2
- The complete uselessness of the British banking system 141 3
- HMRC Accounts Office - waiting an hour! 153 2
- Under Cash Accounting rules how do I account for a credit note issued outside the Corp Tax period? 82 1
- Fee agreed but client disagrees on amount 945 16
- Sole Trader business 157 1
- Transfer of sole trade to ltd co 155 1
- How will the taxation of non-residents landlord work? 148 1
- Giving a seminar 687 36
- Tax position on lease extension 181 1
- Boffin of the Year 310 10
- deleting customers on Sage 50 226 8
- Using Director's bank account to receive payment from customer 243 4
- Sage Depreciation 89 1
- Non sequitur 261 2
- Desperately seeking Susan, Sam or anyone with any other name 1,310
- Experience with Islamic investor following Sharia-compliant rules? 644
- Darwinpay Partnership Assessment 427
- S464A Charge to tax: conferring benefit & BIK 336
- Quirky thread of the year: Community Awards 266
- Alphabet shares 222
- Agent fees to sell business 216
- ACCA continuity of practice arrangement needed 210
- Office recharges 171
- How to reclaim VAT for a non-EC UK visitor 156