FSB warns over April flashpoint for small firms The Federation of Small Businesses (FSB) says thousands of small firms and sole traders are at risk due to new administration requirements and cost pressures. The FSB has flagged concern over imminent changes that will see firms having to pay all VAT deferred in the period to June 2020 under pandemic reliefs, an end to the 12.5% VAT rate for the hospitality sector, and the 1.25 percentage point increase in NICs rates. These, it is noted, come just days after protection from eviction for commercial tenants came to an end. FSB research shows that 5% of small firms fear imminent collapse. Highlighting its concerns, the federation said: “This April flashpoint will push some firms to the brink. We are in the grip of a poor payment culture which has 400,000 small businesses worrying about the future, simply because clients refuse to pay on time.” It added: “By taking forward our proposal to make audit committees directly responsible for prompt payment practice, the Government can spur real change."