Published: 06/07/2026 By Katie Drake
At Turpin Barker Armstrong, we are continuing to advise directors and businesses across a wide range of sectors. Against a backdrop of rising employment costs, ongoing tax pressures and continued economic uncertainty, a number of recurring themes are emerging in the matters we are handling and the enquiries we are receiving.HMRC remains one of the most significant sources of pressure. Increased enforcement activity, tighter Time to Pay arrangements and growing tax arrears continue to feature prominently in the matters we are advising on.
The recent increases in employment costs are impacting cash flow and profitability. Many businesses are still adjusting to higher wage costs and increases in employer National Insurance contributions, particularly in labour intensive sectors where staffing costs represent a significant proportion of overheads.
Cash flow challenges continue despite healthy turnover. We regularly encounter businesses with strong sales figures but insufficient working capital to meet day-to-day liabilities. Delayed customer payments, increased operating costs and accumulated tax debts often combine to place pressure on otherwise viable businesses.
Longer debtor payment periods are affecting working capital. Businesses are increasingly having to wait longer to collect debts, creating pressure throughout the supply chain and forcing some businesses to rely on short-term funding to bridge cash flow gaps.
Directors are seeking advice earlier. Encouragingly, more business owners are approaching us before creditor pressure becomes critical. Early engagement typically creates more options, whether through refinancing, restructuring, business recovery measures or, where appropriate, a formal insolvency process.
Whilst these challenges are not affecting every sector equally, they underline the importance of recognising financial difficulties early. Businesses that seek advice at the first signs of pressure generally have more options available to them and a greater ability to protect value for stakeholders.
If you are seeing similar issues within your business or client base, our Business Recovery and Insolvency team would be happy to have an informal and confidential discussion. Early advice can often make a significant difference and help businesses navigate challenges before they become more serious.