BUSINESSES are worried by the prospect of a National Minimum Wage set at £5 or £6.

The Association of Chartered Certified Accountants surveyed 500 of its members in the UK who represent around 10,000 small and medium-sized enterprises.

Growth

Nearly 80 per cent of the respondents felt that an increase to £5 or more -- as contemplated by trade unions -- would harm economic growth.

The current NMW rate of £3.70 an hour -- due to rise to £4.10 in October -- does not affect the majority of businesses adversely, the survey showed.

But 22 per cent of those quizzed said the NMW had been critical to the profitability of some clients.

It was said to have affected employment practices -- often for the worse.

Employers were now more likely to abolish paid breaks, cut working hours and increase workloads to re-coup costs.

Karen Woodburn, ACCA's regional spokesperson for Manchester, said: "This survey shows that there is a ceiling at which the NMW will become counter-productive.

"It also reveals that a significant number of firms have already been adversely affected, even at the lower rate."

Burdens

She added: "While most of us in the business community support the NMW, we are now beginning to see negative impacts on profitability and administrative burdens which will need to be monitored."

ACCA is also warning taxpayers that they could face hefty charges if they fail to meet the self-assessment deadline looming on July 31.

The Association says those most affected are people who were due to make a tax payment back in January.

If the July deadline is missed as well there will be a five per cent surcharge in addition to the one suffered in January. BUSINESSES are worried by the prospect of a National Minimum Wage set at £5 or £6.

The Association of Chartered Certified Accountants surveyed 500 of its members in the UK who represent around 10,000 small and medium-sized enterprises.

Growth

Nearly 80 per cent of the respondents felt that an increase to £5 or more -- as contemplated by trade unions -- would harm economic growth.

The current NMW rate of £3.70 an hour -- due to rise to £4.10 in October -- does not affect the majority of businesses adversely, the survey showed.

But 22 per cent of those quizzed said the NMW had been critical to the profitability of some clients.

It was said to have affected employment practices -- often for the worse.

Employers were now more likely to abolish paid breaks, cut working hours and increase workloads to re-coup costs.

Karen Woodburn, ACCA's regional spokesperson for Manchester, said: "This survey shows that there is a ceiling at which the NMW will become counter-productive.

"It also reveals that a significant number of firms have already been adversely affected, even at the lower rate."

Burdens

She added: "While most of us in the business community support the NMW, we are now beginning to see negative impacts on profitability and administrative burdens which will need to be monitored."

ACCA is also warning taxpayers that they could face hefty charges if they fail to meet the self-assessment deadline looming on July 31.

The Association says those most affected are people who were due to make a tax payment back in January.

If the July deadline is missed as well there will be a five per cent surcharge in addition to the one suffered in January.