New R&D tax credit could leave lots to be desired for struggling UK SME’s

On the 1st of April 2023, the Chancellor’s reforms to Research and Development (R&D) tax reliefs took effect, including an increase in the Research and Development Expenditure Credit (RDEC) rate from 13% to 20% for UK businesses.

However, latest research from Nucleus Commercial Finance finds: comments: “Against a backdrop of stagnant productivity and absent growth, business investment is in the doldrums. The promise of 12 new UK investment zones in a bid to reignite local economies, create new jobs, and boost investment opportunities could prove to be incredibly impactful. But in the shorter term, the government is pinning much of its hope on the Research and Development tax credit changes.

• Half of UK SMEs (49%) have had to borrow or raise any money due to the current energy/ inflationary crisis.

• Nearly a quarter (23%) have delayed planned investment in new technology or infrastructure due to rising costs.

“And while those larger businesses working on innovative projects in science and technology will receive a boost to their growth ambitions, the reality is that SMEs up and down will likely see little benefit.

Investors are being advised to remain calm with their crypto and act with caution as inflation rates rise to 10.4% in the UK.

Inflation in the UK has risen 0.3% since January as a result of the hike in food, clothing, hospitality prices and several other factors.

Experts at crypto trading guide, Trading Browser, have provided investors with some insight into what the rising inflation rates could mean for their crypto portfolios and future investments.

Why do crashes happen?

Crypto crashes have mainly to do with insufficient liquidity from coins on cryptocurrency exchanges during larger sell-off periods. Once the price starts to fall, the lack of buying support amplifies the fall. Since there are no buy orders to absorb the sell orders, the coins will free-fall until the bulk of the sellers has sold, causing a crash.

Try not to panic

Turbulence in the crypto market can lead a lot of people to panic and sell their coins. This action can cause values to drop heavily which causes a conundrum for many investors.

Investors can either decide to sell more or buy into the dip and reap the rewards in the future. It’s best to consider the options before trading emotionally. Think about whether the personal crypto journey is for the long-term or the short-term, and access any decisions accordingly.

Cryptos as commodities

Just like precious metals, Bitcoin and some other cryptos can be viewed as commodities. The price of these particular coins is driven by supply and demand. This is useful to know when analysing the market when supply is low, demand is high - this may appear to be common knowledge but it can often be forgotten.

Seeking security

As a general rule, during times of uncertainty in the market investors seek out security in order to protect their assets. It’s important to remember this because people are likely to pull money out of cryptocurrency or sell up completely, which can in turn drive the value of the cryptocurrency down. Cryptocurrency doesn’t yet have a long-standing history alongside inflation.

Staying

On Top Of The General News

as well as crypto news is the key to helping investors make more informed decisions about their crypto. Cryptocurrency doesn’t yet have a long-standing history alongside inflation, so many people can become worried about losing money during these times. Seeking security in more stable investments like diversified index funds might be advisable if this worry is consistent.

• 15% of SMEs are calling for more tax incentives for innovation and investment to help boost their businesses.

Chirag Shah, CEO and Founder of Nucleus Commercial Finance,

“To put it simply - more must be done. To stay competitive in the global market, attract foreign investors, and power up the UK economy, Britain’s SMEs need to be able to enhance their offering.”

Small businesses lose 680,000 days of trading per month as impact of strikes bite

With signs that strikes may be abating for the time being, new data from small business lender iwoca reveals that SMEs have lost out on 680,000 days of trading per month, due to industrial action. Cumulatively, this amounts to four million days of trading over the last six months, with trading slowdowns set to continue as unions warn of further action.

Strike action has taken its toll on the day-to-day running of businesses. A third (31%) of companies taking part in the analysis said strikes were having a negative impact on their business, with over a fifth (21%) reporting that customer orders had been delayed due to postal strikes. Nearly a fifth (18%) also had to change their work plans due to industrial action.

While the strikes have had a negative impact on some small businesses, one in three (34%) SME owners side with striking workers, agreeing that employers should agree to the demands of workers who are striking.

Since the summer, SMEs’ views on strikes have largely been solidified: two in five (43%) SME owners have not changed their views on strikes in the last six months, with action becoming more commonplace towards the end of the year and into 2023. While a fifth (22%) of small businesses have felt more supportive of the ongoing striking workers since summer, a third (32%) find their support has fallen.

As some transport, healthcare and teaching unions suspend strike action after accepting new deals, SME owners welcome cooperation between employers and workers. In fact, more than eight in ten SMEs (82%) believe that employers and workers should come to an agreement without the need to strike.