 |
|
| CURRENT SECTION :: Money News | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
|
 |
Gordon Brown’s constant tinkering with small business tax is “unhelpful” in delivering the consistency that company owners need to make decisions in order for them to thrive. The verdict is not from a small business lobbyist but from an influential Lords committee, which was tasked to discuss the increase in the SCR, which the Chancellor unveiled in March. According to the measures in the Budget and the Finance Bill 2007, small company owners will see tax on their profits, under £300,000, rise 3 per cent by 2009. The economic affairs committee said the change had undermined Britain’s international competitiveness, echoing industry fears that it will inhibit small companies from growing. “Too many decisions have been taken with tax in mind and this must be seen as a weakness in the tax system,” the committee said last week. “In this context the frequent changes in the small companies rate of corporation tax have been unhelpful.” The committee also acknowledged arguments from small business groups, such as the British Chambers of Commerce, that the introduction of a Capital Allowance, coupled with the SCR increase, does not represent tax simplification. They recommended a government review of taxation of small businesses, employees and individuals who operate through companies – a move that has been repeatedly called for by The Professional Contractors Group. “One approach towards reducing complexity and the distortions which tax considerations may bring to business decisions would be to stand back and review the issue as a whole in conjunction with the sector,” the Lords said. Yesterday, Gordon Brown was reported to be awaiting a 20-point wishlist, authored by members of the Institute of Directors, aimed at making life easier for businesses. The chancellor, who takes over as prime minister on Wednesday, will receive the series of demands to advise him how to “maximise economic growth and wealth creation,” The Sunday Times reported. But Miles Templeman, the institute’s director-general, told the paper that reforms, including those to the tax system, should not be implemented for the sake of it. He said: “We’d emphasise the need for some changes but continuity is also very important. What we don’t want is a whole raft of new initiatives.” Asked about the tax burden on the business, six out of ten managing directors quizzed by the IoD said it was still unacceptable. The group’s post-Budget survey, results of which were published this month, also found that 70% believe the tax burden is cause enough not to start-up a company. Mr Templeman added: “In every respect we asked about, more respondents viewed the tax system negatively than viewed it positively. Whilst people are never going to love paying tax, these results need to be taken as a serious warning.” Jun 25, 2007 Email this article Printer friendly page Previous Page
|
|
  
|
||||||||||||||||||||||||
| All content © Contractor UK Limited | [Register for News Letter] | [Privacy Statement] | [Terms of Use] | [Top of Page] |