Nearly nine out of 10 financial advisers (87%) and accountants report that small business clients are struggling to pay advice fees and professionals reckon the situation is going to get worse.

Nearly three out of four, 74%, said they expected a rise in the number of small business clients finding it hard to pay fees over the next 12 months.

More than nine out of 10, 91%, said that clients not paying fees on time has been a factor in cashflow worsening, with 27% saying it has been the main factor.

The study, from business finance provider Premium Credit, found 70% of firms are now allowing some clients to pay fees monthly or over an extended period and 68% said they would consider allowing some clients to pay fees monthly or over an extended period.

The research found professionals were seeing increasing financial distress among small business clients. Two-thirds, 67%, estimated that up to 10% of clients’ businesses were on the verge of failing while half estimated that up to 10% of clients' businesses were in poor health.

Jennie Hill, chief commercial officer, Premium Credit, said: “Accountants and financial advisers are heavily reliant on clients paying fees and paying them on time so it is inevitable that when clients struggle to pay fees accountants and financial advisers suffer.”

She said using schemes which allow clients to spread the cost of fees can help both sides and ensure bills are paid on time.

Professionals were split over whether HMRC is getting tougher on tax arrears and debts with 41% saying yes and 46% saying it is becoming more supportive. They were also split on the potential impact of Employers’ National Insurance and minimum wage increases on the businesses they work with and the economy as a whole. 

More than half (52%) said the increased costs will lead to employers cutting staff and recruitment and 41% said they will hit profits. Around 35% worried the increased Employers’ National Insurance and minimum wage will cut jobs in the economy as a whole while 29% said it would contribute to reduced GDP.

• Independent research conducted by Pureprofile among 100 accountants and financial advisers who advise on corporation tax, VAT and income tax during April 2025 and April 2024.