UK's growing insolvency – Building greater resilience in your business

Rising costs seem to be coming at UK businesses from all directions, resulting in many difficult financial decisions needing to be made.

New research by the Liquidation Centre found that some employers are opting for job cuts to manage these expenses and 315,605 jobs have already been flagged for redundancy this year.

Times are tough right now for many businesses, but redundancies aren’t the only way to ease the pressure of these expenses.

Building greater resilience can become your biggest competitive advantage and help you avoid making decisions that could do more harm than good for your business.


Review your day-to-day costs


The most resilient businesses we see are the ones that know their operations and costs inside out.

You need to be clear on where your time and money are being spent and where any potential inefficiencies or unnecessary costs can be cut.

It could be that something as small as automating admin tasks or tightening internal processes could ease some of the pressure.

Renegotiating supplier contracts, reducing overheads or outsourcing functions can also help cut back time and money that could be spent more productively elsewhere.


Budget for the future


While getting a handle on your current costs is vital, you also need to be ready for the months and years ahead.

Forecasting ongoing costs and modelling the impact any increase may have on your margins can show if your business will cope with upcoming expenses or need to make some changes.

We are living in uncertain times, so it is important that these estimates have a substantial buffer to allow for further unexpected twists and turns.

Cloud-based accounting and real-time reporting can help to give you up-to-date information on your performance and allow you to make more informed decisions.


Let us help protect your business


The most resilient businesses are planning ahead and seeking expert advice to prepare for rising costs.

Our team can advise you on processes to help improve your cash flow, such as building a cash flow reserve and forecasting the impact of potential cost increases.

We can help protect your margins and allow your business to keep on growing. 

For further advice or support on building resilience, get in touch today.

What Does ICAEW Chartered Accountant Mean?

What Does It Mean to Use an ICAEW Chartered Accountant? Quick Answer

By Dexter Stevens • August 24, 2026
Discover what it means to use an ICAEW Chartered Accountant, from professional qualifications and regulation to insurance, accountability and client protection.

Invoice financing - Liberating cash tied up in late payments

By Charlie Flockhart • August 21, 2026
SMEs in the UK have struggled with late payments for years and cash tied up in unpaid invoices can put pressure on your business’s ability to operate effectively. Invoice financing can release funds locked up in late payments, giving a business an instant cash flow injection until the outstanding balance is settled. Consistent late payments can significantly stunt business growth, especially for SMEs with thinner cash reserves. What is invoice financing? Invoice financing works by a lender using unpaid invoices as collateral for funding. Lenders can advance up to 95 per cent of an invoice’s total value almost immediately, instead of waiting 30 days, 60 days or longer for payment from a customer. The remaining balance of an invoice’s value can be settled once the customer has paid and lenders will deduct a service charge and discount depending on the value of the loan. This means SMEs can instantly access capital that would be otherwise trapped, allowing them to offer more payment flexibility to clients. When is it worth it? This method of securing working capital is a great fit for firms that experience long waits for payment, either due to contract terms or overdue invoices. Invoice financing helps keep cash flow healthy to cover running costs, begin new projects and reinvest money into business growth. However, invoice financing is not a silver bullet. Businesses with narrow margins might not be able to use these services, as the fee structures can sometimes dent profitability. Likewise, businesses with a small volume of invoices that are high value might face disproportionately high costs for advancing payments. Also, if a business typically receives quick payment turnaround, a short-term overdraft loan may be more appropriate. Seeking advice Whether invoice financing is the right choice for you will depend on a number of factors, so getting a second opinion from a specialist can help you decide. Our accountants can assess your position and advise which options will work best, helping you overcome the frustration of late payments. Get in touch to find out more about invoice financing.

I have received a HMRC enquiry letter – What do I do now?

By Charlie Flockhart • August 21, 2026
HMRC enquiry letters are sent to individuals to notify them that HMRC has chosen to formally investigate their tax affairs. While some enquiries are carried out randomly, the majority are selected based on a risk assessment of a business. These checks should not be seen as accusatory, as they are often a routine procedure to make sure your business is compliant and the correct amount of tax is being paid. If you’ve received a letter, you need to know what to do. Why are there more enquiries? It is no surprise enquiries are on the rise when the UK’s estimated tax gap for 2024 to 2025 sits at £59.2 billion, up £6.4 billion on the previous year, according to HMRC. The largest component of the tax gap by customer group is small businesses, accounting for 62 per cent of lost liabilities. HMRC is feeling the fiscal squeeze and small businesses have been identified as a key target for closing the tax gap. How should I respond? After receiving an enquiry letter, you have 30 days to respond from the date printed. Your first step should be to speak with your accountant and gather all the relevant documents and information that has been requested by HMRC, making sure each requirement is reasonable. Next, the information should be reviewed to understand the context and implications of the information HMRC has asked for. If you believe there is anything that might need to be disclosed, it is important that a disclosure is made as early as possible. HMRC reviews the timing of any disclosure when deciding on penalties. Finally, when you are ready, respond to HMRC with the information alongside any explanations or clarifications. If the deadline is not realistic, it is important to request an extension before a response becomes overdue. How can an accountant help? Accountants can help distinguish between information that is ‘reasonably required’ by HMRC and that which goes beyond their scope. It is not uncommon for HMRC to ask for a response that is broader than what is required, but an accountant can explain where and when disclosure is needed. Throughout the process, accountants can oversee communication with HMRC to minimise inconsistencies and handle extension requests properly. HMRC enquiries can feel overwhelming. If you have received a letter, speak with our team at the earliest opportunity.