How to survive a recession

With gloomy economic forecasts in the news, Swoop is your partner in ensuring your business has the funding it needs to ride out the storm.

How to survive

Liz Truss has announced a price cap freeze on business energy prices  – at the same price per unit as households  – for the next six months.

See the Twitter thread here.

Economists around the world agree that a global recession is on the cards. As we emerge from Covid and face the new realities of Brexit, this downturn has come at a bad time.

At Swoop, we know that cash flow is the lifeblood of a business. Since Swoop was founded, we have been committed to helping businesses find funding for growth under difficult circumstances. Whatever is coming down the track towards us, our job has not changed.

This cost of living crisis information hub has been created to be your resource for funding through the coming downturn. As the situation develops, we’ll be providing insights and solutions here to meet the changing needs of SMEs in an uncertain economy.

The Swoop team will be adding to this page regularly over the coming months to ensure that you have the information you need to act in your business’s best interests.

What can my business do right now to protect cash flow?

There may be opportunities for you to switch to a better energy tariff, or other ways to protect cash flow – upload your energy bill to Swoop so our energy task force can check if there are savings to be made.

You should also ensure that you’re paying VAT at the correct rate. For some businesses, this is 5% rather than 20%. Check you are paying the correct amount as the difference this makes to your cash flow could be a game changer.

A message from Swoop Founder and CEO, Andrea Reynolds
Latest help

8 steps to cutting costs

ball1

Turn off all non-essential equipment when the business is closed

Even when not in use, ‘vampire’ machines and devices such as computers, printers, and copiers, continue to burn energy in ‘sleep mode’. Turn off everything you can at the end of the business day.

Conduct an energy audit of your business

You can’t make savings if you don’t know what is using what or where the wastage is. An energy audit runs a fine-tooth comb over the business, revealing all the areas where savings can be made.

Maintain steady heat and A/C

Don’t fiddle with the heating and A/C controls. Constant adjustment wastes energy and costs money. Set a comfortable temperature and let the thermostat to the rest.

Keep heating and cooling vents clear

Warm and cool air needs to circulate to be effective. Obstructing the air flow from vents with furniture or other obstacles will make your heating and A/C less efficient and consume more energy.

Switch from electric to gas for heating

Even with the cost of installation, it may work out cheaper in the long run to heat your premises with natural gas than higher priced electricity.

Cool down for less

Air conditioning is costly to use, with the typical central A/C unit consuming 3500 watts per hour when running. Other cooling methods, such as desk and ceiling fans run for a tiny fraction of this energy cost. A/C systems also need clean air flow for best efficiency. Changing filters every six months can cut 5 to 15% off your air conditioning’s energy consumption.

Reduce hot water use

It costs money to heat water. Consider ways to lower the hot water use in your place of business. This means everything from leaky hot water taps to over-filled kettles and unnecessary vehicle cleaning.

Switch supplier

It may not reduce your business energy consumption, but it could lower the price you pay per unit. If you can switch supplier without incurring a penalty, shop around for the best quote available.

ball1

Key dates to be aware of

19 October

Latest CPI inflation figures

The latest consumer prices index (CPI) figures will be released on 19 October, as inflation approaches the highest levels since at least 1990.

CPI is currently 10.1% and is expected to rise further in the months ahead.

November

Autumn budget delivered

The Autumn Budget normally takes place in November but may well be announced earlier Now Liz Truss has taken office.

Specific measures to tackle inflation and reduce energy bills will be top of the agenda, but a range of targeted support could also be announced for businesses.

1 January

New VAT penalty regime and corporation tax deadline for 2021/22

A new VAT penalty regime will come in effect on 1 January whereby any UK VAT returns will be subject to the new penalty regime for late returns and/or payment.

The deadline for corporation tax submissions for the financial year 2021/22 is also 1 January.

21 January

Deadline for capital gains tax for 2021/22

The deadline for capital gains tax to be paid on assets sold in the 2021/22 financial year is 21 January.

March

Budget 2023

The Budget normally takes place some time in March and sets out the government’s full plan for the year ahead, including its forecasts for the trajectory of the UK economy.

While there will be a slew of announcements by the new Prime Minister before Budget 2023, it is still an important date in the calendar for businesses.

31 March

Deadline for submission of 2021/22  company tax return

31 March will be the deadline for submitting your company tax return for the previous financial year (i.e., 2021/22).

Be sure to submit your return by this date to avoid penalties.

1 April

Business energy price cap could rise

On September 8th 2022, Liz Truss announced a six-month price cap freeze on business energy prices, at the same unit price as households. As the six month window finishes on March 8th 2023, it will interesting to see if this date is still important, as a business energy price rise was due for this date, prior to the September 2022 announcement. Watch this space.

5 April

End of 2022/23 financial year

The financial year 2022/23 will end on 5 April.

6 April

Beginning of financial year 2023/24

The new financial year for 2023/24 will begin on 6 April, hopefully bringing with it some respite for businesses after what will no doubt be a challenging winter.

19 october

Latest cpi inflation figures

The latest consumer prices index (CPI) figures will be released on 19 October, as inflation approaches the highest levels since at least 1990.

CPI is currently 10.1% and is expected to rise further in the months ahead.

If you’re worried about the impact of inflation on your business, check out our bundle of support.

November

Autumn budget delivered

The Autumn Budget normally takes place in November but may well be announced earlier once the new Prime Minister takes office.

Specific measures to tackle inflation and reduce energy bills will be top of the agenda, but a range of targeted support could also be announced for businesses.

1 January

Energy price cap to rise, new vat penalty regime and corporation tax deadline for 2021/22

The energy price cap will rise again on 1 January, following Ofgem’s decision to review the cap quarterly rather than bi-annually. A significant increase from the current average of £3,549 is expected.

A new VAT penalty regime also comes in effect on 1 January whereby any UK VAT returns will be subject to the new penalty regime for late returns and/or payment.

The deadline for corporation tax submissions for the financial year 2021/22 is also 1 January.

21 january

Deadline for capital gains tax for 2021/22

The deadline for capital gains tax to be paid on assets sold in the 2021/22 financial year is 21 January.

March

Budget 2023

The Budget normally takes place some time in March and sets out the government’s full plan for the year ahead, including its forecasts for the trajectory of the UK economy.

While there will be a slew of announcements by the new Prime Minister before Budget 2023, it is still an important date in the calendar for businesses.

31 march

Deadline for submission of 2021/22  company tax return

31 March will be the deadline for submitting your company tax return for the previous financial year (i.e., 2021/22).

Be sure to submit your return by this date to avoid penalties.

1 april

Energy price cap to rise

The energy price cap will rise for a third time on 1 April, with some experts predicting a hike to more than £6,000 for the average household.

5 april

End of 2022/23 financial year

The financial year 2022/23 will end on 5 April.

6 april

Beginning of financial year 2023/24

The new financial year for 2023/24 will begin on 6 April, hopefully bringing with it some rest bite for businesses after what is shaping up to be a challenging winter.

See if Swoop can help protect your business's cash flow by uploading your business energy bill

Click or drag the file(s) to upload

Sign up to our Swoop news

Receive relevant industry updates, news, partner offers and more when you sign up.

We work with world class partners to help us support businesses with finance

close
Looks like you're in . Go to our site to find relevant products for your country. Go to Swoop No, stay on this page