Small businesses should take advantage of a government scheme that would allow them to delay VAT payments.

The Forum of Private Business said that the government's cash accounting scheme, where small businesses can delay VAT payments until they've been paid by customers, would protect them against exposure from late payers and bad debtors.

'Many ideas are being put forward to help small businesses with their cash flow, but few can deliver instantaneous improvement,' said the FPB's chief executive, Phil Orford.

The FPB also want the scheme extended so more businesses can take advantage.
Currently only those with a turnover of less than £1.35m can join the scheme, and the FPB wants the level opened to £2m.

'Extending the [scheme] would mean that many more small businesses would not have to pay customs until they are paid themselves. It would be a form of bad debt relief, with little or no cost to the government.,' said the FPB's VAT adviser Andrew Needham.

Further reading:

Tories plan National Insurance giveaways

See the FPB's press release