Small and medium-sized business in the UK are worried that the country's tax regime will hinder economic recovery, according to research from accountancy firm MacIntyre Hudson.
The research revealed that 80% of small firms think that the UK's tax regime poses a greater threat to the economy than cuts in public spending and, as a result of the tax penalties on high earners, 89% believe Britain will fall victim to a ‘brain drain', as top talent leaves for more favourable opportunities elsewhere.
One in five company owners said that it is unlikely they would have chosen to start a business under the tax regime of today and 69% describe the current system as less competitive than when they first set up their own business.
"The message from business is clear. What was once a celebrated, competitive tax and regulatory regime has become increasingly burdensome, particularly for those ambitious individuals who underpin the health of our economy," said Nigel May of MacIntyre Hudson.
www.ukba.co.uk
Showing posts with label business tax. Show all posts
Showing posts with label business tax. Show all posts
Friday, 18 September 2009
Saturday, 15 August 2009
Rate relief hit by red-tape delays
Small businesses are facing delays in taking advantage of the Government's rate relief scheme because of the complexities of the software needed to calculate the new rates.
The scheme - which allows firms to defer payment of 60% of the increase in rates bills - came live last week.
Although The Local Government Association believes most councils met the deadline in sending out formal notification to businesses about the scheme the complexity of calculating the rates has led to fears they will not be done in time.
"When the Government announced its business rates deferral scheme at the end of March it claimed to be helping businesses with lower rates bills during the recession," said Jerry Schurder, head of business rates at Gerald Eve.
"In the event businesses have had to continue paying full rates since April and it will not be until October at the earliest that they see any benefit."
www.ukba.co.uk
The scheme - which allows firms to defer payment of 60% of the increase in rates bills - came live last week.
Although The Local Government Association believes most councils met the deadline in sending out formal notification to businesses about the scheme the complexity of calculating the rates has led to fears they will not be done in time.
"When the Government announced its business rates deferral scheme at the end of March it claimed to be helping businesses with lower rates bills during the recession," said Jerry Schurder, head of business rates at Gerald Eve.
"In the event businesses have had to continue paying full rates since April and it will not be until October at the earliest that they see any benefit."
www.ukba.co.uk
Thursday, 9 July 2009
Claim back taxes by loss planning
Maximising the amount and speed of reclaiming cash does involve knowing the rules, they aren't as wide as MPs' expense rules, but they do have some flexibility which can be missed.
Individuals
Let's start with the rules for individuals in business trading personally, or in partnership but not through a company.
1.You can take £50,000 of losses back up to three years. This is a temporary measure with strict time limits.
2.You can offset losses against other types of income and gains in the year the loss happened, or the prior year.
3.If your business does cease to trade, losses in the twelve months before ceasing can be carried back up to three years.
4. Losses can also be carried forward against future trading profits.
If, for example, a business incurring losses of £70,000 in 2009 after several successful years, that loss could be carried back to 2008 in full, or to 2008, 2007 or 2006 capped at £50,000. It can be offset in full against other income or gains (say on a second home) received in 2009.
There is also the option to carry forward against future trading losses. Which will depend on two things:
- how desperate the business is for cash
- which year has the highest tax rate (it might be 41 pence in the pound for losses, or take 30 pence to get the cash now).
It is also often forgotten that if you carry back a trading loss or use it against other income, you can ALSO use it against future profits for Class 4 National Insurance purposes. A £20,000 loss could mean up to £1,600 off class 4 NI payments in the following period. Something definitely worth having!
Read more about Company and Group tax planning by clicking here.
Author: Duncan Montgomery is a tax partner at Whittingham Ridell, Shrewsbury, Shropshire and a member of the UK200Group tax panel.
Source: Forum for Private Business - www.fpb.org
www.ukba.co.uk
Individuals
Let's start with the rules for individuals in business trading personally, or in partnership but not through a company.
1.You can take £50,000 of losses back up to three years. This is a temporary measure with strict time limits.
2.You can offset losses against other types of income and gains in the year the loss happened, or the prior year.
3.If your business does cease to trade, losses in the twelve months before ceasing can be carried back up to three years.
4. Losses can also be carried forward against future trading profits.
If, for example, a business incurring losses of £70,000 in 2009 after several successful years, that loss could be carried back to 2008 in full, or to 2008, 2007 or 2006 capped at £50,000. It can be offset in full against other income or gains (say on a second home) received in 2009.
There is also the option to carry forward against future trading losses. Which will depend on two things:
- how desperate the business is for cash
- which year has the highest tax rate (it might be 41 pence in the pound for losses, or take 30 pence to get the cash now).
It is also often forgotten that if you carry back a trading loss or use it against other income, you can ALSO use it against future profits for Class 4 National Insurance purposes. A £20,000 loss could mean up to £1,600 off class 4 NI payments in the following period. Something definitely worth having!
Read more about Company and Group tax planning by clicking here.
Author: Duncan Montgomery is a tax partner at Whittingham Ridell, Shrewsbury, Shropshire and a member of the UK200Group tax panel.
Source: Forum for Private Business - www.fpb.org
www.ukba.co.uk
Sunday, 3 May 2009
Leading entrepreneurs have warned that the Chancellor's new 50% tax on those earning more than £150,000 could lead to an exodus of talent
"Higher taxes may be politically attractive in the short term, but I think that this could be a real hindrance to the next wave of UK entrepreneurs and international companies looking to invest," said Sir Richard Branson.
Michelle Mone, the lingerie tycoon, revealed that she was withdrawing her support for Labour and branded the forthcoming top rate a "disgrace" that would damage the economy.
The director of the Confederation of British Industry, Richard Lambert, said that he had already spoken to some businesses that were considering relocating because of the tax increase.
Source: newbusiness.co.uk
www.ukba.co.uk
Michelle Mone, the lingerie tycoon, revealed that she was withdrawing her support for Labour and branded the forthcoming top rate a "disgrace" that would damage the economy.
The director of the Confederation of British Industry, Richard Lambert, said that he had already spoken to some businesses that were considering relocating because of the tax increase.
Source: newbusiness.co.uk
www.ukba.co.uk
Thursday, 23 April 2009
Budget Summary - Alistair Darling presented his second Budget on Wednesday 22 April 2009.
Read a summary report here.
Having acknowledged the depth of the recession, he hinted that the Budget measures would enable the UK economy to begin to grow 'by the end of the year'.
As always the timing of the changes needs to be carefully watched – some are immediate but some are delayed to 2010 and beyond.
Our summary focuses on the issues likely to affect you, your family and your business.
Main Budget proposals
:: Introduction of a 50% top rate of tax for those with income over £150,000 from 2010 and phased reduction of personal allowances for those with income over £100,000.
:: Increases in ISA limits from October this year for those aged over 50 and for everyone from April 2010.
:: Enhanced relief for trading losses extended by a further year.
:: Short term increase in capital allowances on most plant and machinery.
:: Extension of the furnished holiday lettings scheme to properties in the EEA but then the removal of the scheme completely from April 2010.
:: Names of deliberate tax defaulters to be published where default was tax in excess of £25,000.
Previous announcements
Many of the changes detailed in this summary have been the subject of earlier announcements. Here is a reminder of some of the more important ones:
:: removal of the £12,000 'expensive car' limit for capital allowance purposes
:: availability of non-repayable tax credit on overseas dividends received by any individual
:: removal of tax charge for companies on overseas dividends
:: extension of HMRC compliance powers across all the taxes dealt with by HMRC.
For more details in the different areas the budget covered - click on the relevant link below:
Introduction
Alistair Darling presented his second Budget on Wednesday 22 April 2009.
Personal Tax
Details of the changes to personal tax.
Corporate and Business Tax
Details of the changes to corporate and business tax.
Employment Issues
Details of the changes to employment issues.
Capital Taxes
Details of the changes to capital taxes.
VAT
Details of the changes to VAT.
HMRC Powers
Details of the changes to HMRC powers.
Other Matters
Details of Child Trust Fund, Charities: substantial donors, Landfill tax and the Business Payment Support Service.
Source: Faust Loveday Bell
www.ukba.co.uk
Having acknowledged the depth of the recession, he hinted that the Budget measures would enable the UK economy to begin to grow 'by the end of the year'.
As always the timing of the changes needs to be carefully watched – some are immediate but some are delayed to 2010 and beyond.
Our summary focuses on the issues likely to affect you, your family and your business.
Main Budget proposals
:: Introduction of a 50% top rate of tax for those with income over £150,000 from 2010 and phased reduction of personal allowances for those with income over £100,000.
:: Increases in ISA limits from October this year for those aged over 50 and for everyone from April 2010.
:: Enhanced relief for trading losses extended by a further year.
:: Short term increase in capital allowances on most plant and machinery.
:: Extension of the furnished holiday lettings scheme to properties in the EEA but then the removal of the scheme completely from April 2010.
:: Names of deliberate tax defaulters to be published where default was tax in excess of £25,000.
Previous announcements
Many of the changes detailed in this summary have been the subject of earlier announcements. Here is a reminder of some of the more important ones:
:: removal of the £12,000 'expensive car' limit for capital allowance purposes
:: availability of non-repayable tax credit on overseas dividends received by any individual
:: removal of tax charge for companies on overseas dividends
:: extension of HMRC compliance powers across all the taxes dealt with by HMRC.
For more details in the different areas the budget covered - click on the relevant link below:
Introduction
Alistair Darling presented his second Budget on Wednesday 22 April 2009.
Personal Tax
Details of the changes to personal tax.
Corporate and Business Tax
Details of the changes to corporate and business tax.
Employment Issues
Details of the changes to employment issues.
Capital Taxes
Details of the changes to capital taxes.
VAT
Details of the changes to VAT.
HMRC Powers
Details of the changes to HMRC powers.
Other Matters
Details of Child Trust Fund, Charities: substantial donors, Landfill tax and the Business Payment Support Service.
Source: Faust Loveday Bell
www.ukba.co.uk
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