SMALL rural businesses affected by the current foot and mouth crisis are being urged by the Association of Chartered Certified Accountants (ACCA) to take advantage of special assistance being made available to them.
Among the measures announced by the Government, tax offices have been instructed to take a "very sympathetic approach" to firms experiencing financial problems and to use, as much as possible, the powers they already have to allow deferment of tax payments and NI contributions. A special tax help line has been set up on (0845) 3000157.
John Davies, head of business law at ACCA, said: "The Government has set in motion a number of measures designed to support businesses which are directly affected by the farming crisis. Banks, too, have indicated that they are prepared to take the exceptional trading conditions into account when dealing with their customers."
Rural firms with a rateable value of up to £12,000 which can show evidence of serious economic loss due to the crisis will qualify for a rate reduction of £1,290 for a three month period. Firms with properties above the qualifying level will be eligible for existing local authority hardship relief measures.
John Davies added: "In large parts of the country, small businesses currently need all the help they can get. In order to take advantage of available assistance, firms must first sit down and calculate the impact the crisis is having on their cashflow. They should then be prepared to approach their bank, tax office and, if necessary, trade creditors to discuss problems. What they must avoid at all costs is the temptation to borrow money at extortionate interest rates, as that will only make matters worse in the long-run."
Updated: 08:51 Thursday, April 12, 2001
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