Get help to deal with business debt
HOME / / Get help to deal with business debt
If you’ve borrowed some money and are struggling to pay it back, help is available when you know where to look.
With the help of some of our trusted partners, we’ll show you where to get professional support, identify the problem area(s), and start lightening the load.
Things you can’t control
Tide surveyed 1,000 of their members, to better understand how the cost of living crisis is putting more financial pressure on small businesses across the UK.
Their survey found that 32.2% of small businesses felt energy price reductions would be the single biggest help for their finances. This was closely followed by 23.8% saying a reduction in inflation would make the biggest difference.
If you’re feeling overwhelmed, here are our tips on how to stop it.
While we wait for the government’s latest plan to get the economy back on track, there are steps you can take to make a significant difference to your circumstances.
Things you CAN control
Who you ask for financial advice
If you don’t currently have an accountant in your corner, we’d recommend you have a chat with our expert partner Crunch.
They provide free accounting software that makes it faster and easier to send invoices, track expenses, and file your tax return. But it’s the practical in-person support that really makes Crunch stand out.
Once you’re signed up, there’s an experienced team available to help you with your small business accounts and take some of the stressful money-related tasks off your hands.
If you’ve previously put off hiring an accountant because you thought it was too expensive, remember that the majority of accountancy costs are considered allowable business expenses.
Who you bank with
If you’re currently paying fees each month on a business current account, you could switch to a free business bank account with Tide and get set up in minutes. No credit check required.
Tide offers you business banking without monthly or annual fees – just a tiny fee when you move money between accounts (which is free for one year with Smarta’s exclusive deal*) or move cash .
You’ll get:
A Tide Mastercard
Scheduled payments
Accounting integrations
Zero charges for creating and sending invoices
Get your tax sorted
It can be daunting if you’ve not yet filed your first return, but waiting until the last minute will only add to your stress. Instead, read this free resource from Smarta on which gives you six ways to take your first Self Assessment in your stride.
Ian Straker, one of Transmit Startups co-founders and our Operations Director, says:
“When I first started out, my impression was that accountants were expensive and wouldn’t be worth the money, so I did all the Self Assessment stuff myself. How wrong I was!
When I finally approached an accountant they took all the hassle and worry away from doing the Self Assessment, and saved me more money in tax than it actually cost to pay them, because they knew how to do it properly."
If your debt worries stem from the fact that you’re in arrears on your tax, Crunch can help with that too.
If your business falls behind on its tax payments (including VAT, corporation tax, PAYE, or National Insurance contributions), HM Revenue & Customs (HMRC) will contact you to start the process of recovering that money. Our advice is: take a deep breath and open your post!
Don’t delay opening mail addressed to your business. HMRC send warning letters and payment demands which sometimes give you only seven days to respond and pay the money you owe.
To take some of the stress out of the situation, talk to an accountant at Crunch. They’ll advise you to contact HMRC if you cannot pay your tax bill on time. It’s best to do this as soon as you realise you’ve missed a tax payment, or know that you won’t be able to pay on time.
You may be able to set up a Time To Pay Arrangement which allows you to pay your debt to HMRC in monthly installments, giving you longer to pay what you owe. The length of your repayment period can be negotiated based on what you can reasonably afford.
Be careful though: failing to make the payments set out in your Time to Pay Arrangement on the dates they are due can lead to HMRC terminating the arrangement and insisting you pay all debts in full immediately.
Behind on your Bounce Back Loan repayments?
If you took out a Bounce Back Loan in order to see your business through the pandemic, you won’t be the only one still struggling to pay it back.
The government introduced the ‘Pay As You Grow’ (PAYG) scheme in 2020 to give businesses more flexibility over how they pay back their loan. Options available on the PAYG scheme include extending the length of your Bounce Back Loan from six years to 10 years and requesting a six-month repayment holiday.
Money in vs money out
If your business is your only income stream, could you consider taking a part-time job to supplement what you make from self-employment? Tide’s survey found that almost a quarter (24.1%) of the small business owners they asked had taken on another job elsewhere.
Could you reduce your energy consumption, at home or at your business premises? There are various ways to use less electricity and gas, including these energy-saving tips.
Take care out there
Trying to clear your debt under the current economic circumstances is undeniably hard and we know that you’re facing hard choices. If you’re managing a team of people, check out Workplace Mental Health: Supporting Staff.
If we haven’t covered the problems your business is facing, you can get practical advice on your next steps from Business Debtline. It’s a charity providing free and independent debt advice over the phone and online.
And if you need to talk to someone about the stress and anxiety you are currently experiencing, visit MIND who have resources to help you look after your mental health when you’re worried about money.
*See the full offer T&Cs for further details. Transfers to non-Tide accounts are free for one year, 20p per transfer thereafter. Tide offers bank accounts provided by ClearBank. ClearBank Ltd is Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 754568). Registered Address: 4th Floor, Prologue Works, 25 Marsh Street, Bristol, England, BS1 4AX.
"We’re delighted to be the 2000th loan recipients!"