TaxAssist Accountants believes business owners are planning to invest significantly in their companies in 2021.
According to TaxAssist Accountants, which has scoured data from a recent Virgin Money report, 27 percent of firms will invest more in 2021 than they would in a typical year. In fact, 35 percent of small businesses expect to put between £10,000 and £10 million back into their companies in 2021.
What’s more, nearly half of SMEs intend to expand their workforce soon, and over a quarter want to recruit more employees once the economy gets up and running again. In the fourth quarter of 2020, the average annual business growth rate in the UK rose to 8.3 percent.
But it’s not just existing businesses showing impressive signs of growth; the number of new companies reached record highs at the end of last year. More than 90,000 more start-ups emerged in 2020 than 2019 - the biggest increase since we started collecting data in 2014.
Although just 19 percent of employers with staff on furlough think they’ll be able to retain their workers when the scheme ends, there are signs of hope for businesses.
Gavin Opperman, Virgin Money’s Group Business Director, said,
“It has been an incredibly challenging environment over the last 12 months, but our latest Business Pulse shows that many firms have adapted with incredible pace to the new environment, demonstrating extreme resilience and innovation to navigate through the difficult landscape.
“While there are undoubtedly significant challenges ahead, many businesses remain optimistic and intend to invest for the future as the economy recovers.”
TaxAssist Accountants can support entrepreneurs and start-ups as they navigate the tax system and reporting requirements. Book a free initial consultation with the accounting franchise on 0800 524 4341 or get in touch using its online enquiry form.
Alternatively, you can find out how you can get involved with the brand on its Point Franchise profile page.
Alice Tuffery, Point Franchise ©