Although the government spending cuts may not have a direct impact on everybody, it’s worth bearing in mind the underlying message that the coalition is trying to get through.

The UK can no longer afford to carry on spending and getting into yet more debt, and this applies just as much to individuals as it does to government departments.

Making the most out of any cash left over at the end of the month should become a priority for freelancers. There are lots of savings products currently on the market but the trick is finding the one with the best returns, whilst at the same time ensuring you can get hold of the funds in case of an emergency.

Fixed-rate ISAs can pay better interest rates than those available on other savings accounts. For example, the Post Office offers a two year fixed-rate ISA at 3.1% while the Halifax is currently offering a rate of 2.8% on a variable rate ISA with unlimited withdrawals.

In fact ISAs generally offer the best interest rates, but it’s worth bearing in mind that although the returns are exempt from capital gains and income tax, you are currently only allowed to invest £5,100 per year in an ISA. Another fact to bear in mind with ISAs is that some providers only guarantee their current rate for 12 months, after which it will be reduced and consumers may well find it worthwhile moving their money elsewhere.

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Due to recently discovered errors, HMRC has sent out its first round of approximately 45,000 letters to taxpayers, potentially including umbrella company contractors, informing them that their taxes were wrong. The total number of letters sent out should top 6 million by the end of this year.

The last two income tax years are the ones in question, and could have resulted in people either paying too much or not paying enough towards taxes, though any taxpayer who did both will receive notification of such an event, which would most likely even out in the end.

In a statement regarding the new notices, HMRC tried to allay taxpayer fears by instructing those who face difficulty securing the additional funds to pay off any incorrectly assessed taxes to contact a tax officer to make a payment arrangement.

Chartered accountancy firm HW Fisher & Company’s Tony Bernstein commented on the new tax developments, stating that under no circumstances should taxpayers ignore any letters sent by HMRC, which tends to be aggressive debt chasers.

It is completely possible to negotiate repayment terms with them, Mr Bernstein continued, stressing the need to not panic in the event if anyone cannot immediately afford to repay any additional taxes in full; HMRC has broad discretionary powers to negotiate with individuals in regards to working out a payment plan instead of needing the cash in one lump sum.

Mr Bernstein also counselled taxpayers to compare their payslips against their coding notices in an effort to ensure their employer did not make any errors in regards to coding. He said that studying the PAYE codes is also important by double-checking that taxpayers’ circumstances are reflected properly in their codes. Finally, Mr Bernstein stressed that if a taxpayer does discover any errors or mistakes that they should immediately get in contact with their tax office and bring it to their attention.

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The latest public body to come under fire for late payment of invoices is the police force.

Despite repeated directives from the government, suppliers to some of the UK’s police forces have to wait over 2 months for settlement at a time when some SMEs are still facing insolvency threats, according to the FPB.

The best police forces settle their invoices within days but there is a huge gulf between them and the worst performers. The FPB say that some manage to settle over 75% of invoices within 10 days and virtually all are paid within 30 days. On the other hand, some forces settle less than 1% of their invoices within 10 days and more than 50% are still outstanding after 30 days.

Meanwhile it has been revealed that SMEs are now accepting excuses for late payment rather than chasing customers with outstanding debts.

A survey conducted by positivecollections.co.uk found that almost three quarters of SMEs accept late payment excuses. 10% of businesses don’t like chasing debts at all in case they lose business in the future and 17% would like to chase up debtors but think it is too expensive to start legal action.

Micro businesses fare reasonably well in the debt recovery stakes with 45% saying they always receive payment on time.

Although there has been an increasing trend towards late payment since the recession took hold, there are major concerns that SMEs cannot afford to suffer this kind of disruption to their cash flow and some may be forced out of business.

Whilst there will always be instances where late payments are unavoidable, this should never be accepted as the norm and businesses and contractors should try and implement measures to keep their credit control in good shape.

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