EU flag for article on upfront vat liability to hit after Brexit.

Disastrous Upfront VAT Liability to Hit UK Firms After Brexit!

Posted: 6th February 2018

There could be disastrous consequences for SME businesses if new legislations affecting VAT bills set to be imposed after Brexit are put into place.

130,000 businesses across the UK could be hit with upfront VAT outlays on goods imported from the EU once the UK has left the European Union.

The Consequences

This will hit businesses hard, large or small, established or start-ups, when juggling their cashflow. Currently, businesses can import goods from the EU free of VAT. They register the charge but the tax is added to the price of the goods and ultimately paid by the customer.

If these legislations come into force, a business will have to find the money to pay its VAT import bill in advance. Many business officials are worried about the disastrous effects this will have on smaller businesses as they struggle to find the cashflow.

Thankfully, with our invoice factoring facility, it’s much easier for your business to manage its cashflow.   

Factoring is an effective financing service for SME businesses, providing peace of mind and reassurance in today’s turbulent times...

  • Your business isn’t borrowing money.
  • It’s simply drawing on monies owed from issued invoices. 
  • We pay you up to 90% of the invoice value within 24hrs of a client invoice been issued. 
  • The facility even eases the burden of credit control, as our trained team chase payment on your behalf, as if they were your own in-house credit control team.
  • Once payment is received we then pay you the balance. 

Your Ideal Solution

At a time when many high street banks are turning SME businesses down for costly overdrafts and inflexible lending, factoring is the ideal solution for SME businesses. It’s a finance solution that grows with your business, so you aren’t guesstimating how much you need to borrow or how much you risk going into the red for.

With over 40,000 UK businesses already using invoice factoring to manage their cashflow why not join them? These 40,000 + businesses don’t have the everyday stress and worry of late paying customers. They breeze through seasonal lows and their bank statements are never in the red.

Nicky Morgan, Chairperson of the all-party Treasury Select Committee, is to raise an urgent investigation into any planned changes, as well as writing to HMRC regarding contingency plans to protect UK businesses.

So, get in contact with our expert team at Calverton Finance today regarding invoice finance and see how it keeps your cash flowing, gives you access to working capital in a cost effective and efficient funding facility.