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Recession To Claim One In 56 Uk Companies


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One in every 56 businesses is expected to collapse this year as the recession intensifies, a leading accounting firm has warned.

BDO Stoy Hayward says the rate of business failures will increase by 59 per cent by the end of this year to 36,000 companies, up from 22,600, or one in 87, in 2008.

As the UK economy contracts at its fastest rate since the second world war, the firm’s Industry Watch report predicts that more company casualties will follow in 2010. It says 39,000 businesses, or one in 50, are likely to fail next year.

Though all sectors will be affected, construction and property are expected to feel the worst effects of the downturn. The report predicts that 3.2 per cent of companies in the sector, as many as 10,300 businesses, will go under.

Manufacturing will be next worst hit, with 2,300 companies, or about 2.3 per cent of the sector, to close.

Link : http://www.ft.com/cms/s/0/117b034a-11b7-11...00779fd2ac.html

I don't Know about you lot but this begining to affect my family - brother-in-law now bankrupt his UVC Window company Limited after MASSIVE TAX BILL, recievers in, 10 people now unemployed.

My Sisters husband into shipbroking and importing timber from Latvia -Asked to take a 25% cut in wage and no bonus (145K to 0K). (now unemployed)

Brother - haulage company has gone under.

All these people have Mortages and Children, they did not conspire to the downfall.

NO ONE will be imune to this shit, I gave all my family relations all very fair warning about this shit, but no heed!

I'm hearing on a daily basis that friends are losing jobs.......,........... !

It's not funny anymore!

Stop! :angry:

Edited by tuggybear
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... - brother-in-law now bankrupt his UVC Window company Limited after MASSIVE TAX BILL, recievers in, 10 people now unemployed.

Massive tax bills can only ever be due to massive profits so that's not a convincing excuse for going bust. Wonder what the real reason is? You should ask your brother-in-law, sometime, but not now. The embarrassment at failing in business takes a very long time to get over. Some people never get to accept their total personal responsibility and they carry on blaming everyone else e.g. bank, customers, suppliers, credit crunch, tax man, weather, unfair foreign competition, etc. etc.

(I accept that, sometimes, there can be massive tax bills for other reasons. For example, a proprietor hanging on to money that was never his, like PAYE or VAT and being asked to hand it over, pronto - quite rightly.)

The truth is that, despite many business failures, the vast majority of companies will survive the recession/depression and will carry on. The weakest and least well managed will go to the wall. Nothing new in that. Just a few more of them, that's all.

p

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"One in every 56 businesses is expected to collapse this year as the recession intensifies, a leading accounting firm has warned."

Bet you at year end it is more than that. Sky News (08.00 Saturday) has just reported that we in the UK are completely in the dog mess.

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Massive tax bills can only ever be due to massive profits so that's not a convincing excuse for going bust. Wonder what the real reason is?

Got to agree, what you mean is that he has spent the tax :rolleyes: You have to set your tax and vat aside (It's not yours to spend) so a tax bill or vat bill that cannot be paid is the sign of a silly businessman or a failing business.

Sorry to hear about the other examples, we all know somebody now..........

1 in 56 sounds like good news to me as long as I am not a "1"

Edited by Markxjr
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But what this story and others like it miss is the number of business start-ups - tens of thousands of people made redundant will- faced with no work - take their small pile of redundancy money and become sole-proprietors (handymen, painters, burger stall, gardener, prostitute (escort) and so on).

Theses are business start-ups. ICI they are not but a stat is a stat and many of the business failure figures will also include sole proprietors. Much more telling is the number of jobs lost of employees of these companies - 10 companies closing down with 10 workers each is obviously not going to be compensated for by 10 window cleaners starting up

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One in every 56 businesses is expected to collapse this year as the recession intensifies, a leading accounting firm has warned.

BDO Stoy Hayward says the rate of business failures will increase by 59 per cent by the end of this year to 36,000 companies, up from 22,600, or one in 87, in 2008.

As the UK economy contracts at its fastest rate since the second world war, the firm’s Industry Watch report predicts that more company casualties will follow in 2010. It says 39,000 businesses, or one in 50, are likely to fail next year.

Though all sectors will be affected, construction and property are expected to feel the worst effects of the downturn. The report predicts that 3.2 per cent of companies in the sector, as many as 10,300 businesses, will go under.

Manufacturing will be next worst hit, with 2,300 companies, or about 2.3 per cent of the sector, to close.

Link : http://www.ft.com/cms/s/0/117b034a-11b7-11...00779fd2ac.html

I don't Know about you lot but this begining to affect my family - brother-in-law now bankrupt his UVC Window company Limited after MASSIVE TAX BILL, recievers in, 10 people now unemployed.

My Sisters husband into shipbroking and importing timber from Latvia -Asked to take a 25% cut in wage and no bonus (145K to 0K). (now unemployed)

Brother - haulage company has gone under.

All these people have Mortages and Children, they did not conspire to the downfall.

NO ONE will be imune to this shit, I gave all my family relations all very fair warning about this shit, but no heed!

I'm hearing on a daily basis that friends are losing jobs.......,........... !

It's not funny anymore!

Stop! :angry:

145k for bringing in timber from latvia. :blink:

pray tell, what did he do to command that type of bonues ? Is it another one of those jobs where watching charts and looking very animated on the blower net's you a small fortune ? We've got enough of those thanks.

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snip

All these people have Mortages and Children, they did not conspire to the downfall.

snip

nice to see you have your priorities right... clearly re-education has worked for you.

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Got to agree, what you mean is that he has spent the tax :rolleyes: You have to set your tax and vat aside (It's not yours to spend) so a tax bill or vat bill that cannot be paid is the sign of a silly businessman or a failing business.

Sorry to hear about the other examples, we all know somebody now..........

1 in 56 sounds like good news to me as long as I am not a "1"

I am a 1 after over 30 years paying substantial tax and NI bills. Now it's time to run down the savings earmarked for retirement.........(no means tested benefit). This is a lifetimes work down the shitter. It is 90% down to the property obsession and associated greed in this country. This disease found hosts in the incompetence of Gordon Brown and the greed of the bankers. It is now a pandemic. It strikes me as incredible that house prices are ONLY down 20% when the economy is being destroyed at the current rate.

Any business that made plans to remain viable for say a 60% drop in demand.......(e.g. what has happened the car industry), would fail in normal times. It would be considered paranoid, mental, and would not be able to compete with companies that did not anticipate financial armeggedon. I would not blame a business for having trouble meeting tax bills in this environment.

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It all depends on what the 1 in 56 is as to how bad it will be. If it's very small firms with 1-3 people it won't be that bad, now if it's load of big firms then we will be in trouble. 1 in 56 is a failure rate of less than 2% for all businesses, is that really horrific?

Agreed

There are 1.6m businesses in the UK of which 1.2. are sub 5 employees, with the next crucial segment being the 5 - 30 employees.

There are relatively few large businesses employing more than 250 employees.

If you buy marketing data from the big boys LBM/Experian and the like, it has to be refreshed every 9 months or so because of the amount of churn at the bottom.

I suspect that the churn rate will not increase significantly but the competitive 5 - 30 segment will become 5 - 20.

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  • 441 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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