Will a lot of small domestic tree firms go bust?

[John Shutler]

23 minutes ago, Mark Bolam said:

Finance is a handy tool and I’ve used it a lot over the years.

 

I feel zero sympathy for anyone who has bought their whole outfit on the drip, though.

all my big kit is on tick and i’m probably in for 200k across everything but in 2-5 years depending on what it is il own it all (if i havnt upgraded in the meantime. 

 

my fall back setup is still a mog and chipper, two trucks, tow behind, mini digger and 50hp grinder plus all the ag trailers, yard telehandler etc 

 

[Mark Bolam]

That’s my point mate.

You’ve built up and paid off a fair backup setup.

 

Very fair, to be fair!

[Dan Maynard]

2 hours ago, John Shutler said:

my fall back setup is still a mog and chipper, two trucks, tow behind, mini digger and 50hp grinder plus all the ag trailers, yard telehandler etc 

'kin ell mate, my fall back setup is me and a topper, out subbing!

[treevolution]

Just been reading through this tread and wanted to ask would you not just want to be a Ltd company to be more tax efficient. 

 

Since going Ltd I'm able to control how much tax I personally pay. 

 

I wish I had done it sooner as I would have saved a fortune. 

 

 

[Bolt]

20 hours ago, Dan Maynard said:

'kin ell mate, my fall back setup is me and a topper, out subbing!

+1

[Mark Bolam]

34 minutes ago, treevolution said:

Just been reading through this tread and wanted to ask would you not just want to be a Ltd company to be more tax efficient. 

 

Since going Ltd I'm able to control how much tax I personally pay. 

 

I wish I had done it sooner as I would have saved a fortune. 

 

 

 

Who cares?

The bottom line is how much cash ends up in your pocket.

[doobin]

14 hours ago, treevolution said:

Just been reading through this tread and wanted to ask would you not just want to be a Ltd company to be more tax efficient. 

 

Since going Ltd I'm able to control how much tax I personally pay. 

 

I wish I had done it sooner as I would have saved a fortune. 

 

 

Tax burden on profits are pretty much the same whatever way you go. 

[Sutton]

Here's a snipnet from .Gov.uk about one of the new taxes coming in:

 

The previously announced small profits rate of Corporation Tax will be maintained. Smaller or less profitable businesses will not pay the full 25% rate, and companies with less than £50,000 of profit – the large majority – will not see any increase at all, continuing to pay Corporation Tax at 19%.

 

/assets/static/govuk-opengraph-image-dade2dad5775023b0568381c4c074b86318194edb36d3d68df721eea7deeac4b.png

Government update on Corporation Tax - GOV.UK

WWW.GOV.UK

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The government has today, Friday 14 October, announced that Corporation Tax will increase to 25% from April 2023 as...

 

[Mack]

I think there’ll be plenty medium to large firms going under. Small firms with fewer overheads with be more able to ride out the storm potentially, and possibly even sub out or take on part time work if it’s available.

 

there’s going to be plenty of tears to go round though  

[Clutchy]

On 01/11/2022 at 19:46, Mark Bolam said:

I feel zero sympathy for anyone who has bought their whole outfit on the drip, though.

Disagree, finance gets a lot of hate and more so now but if you can't meet you finance payments which lets be honest are a small portion of total running costs then your business is doomed anyway, for example wages are 12k a month, finance on 135k of mixed kit is 2.6k a month. In 5 years it will be all mine outright at probably 50% of this value, recently much higher. So the next lot of finance I can either drop a bigger deposit or finance the lot and keep the capital in the company to buy more money producing assets/things 

 

Finance also gives you nice consistent monthly out goings and therefore easier to keep an eye on your monthly/daily running costs. Can even chop it in every 3 years for warranty on the kit. 

 

However now that interest rates have increased so much it makes it less attractive of a full solution, glory days over