PracticeConsultingSmall practitioners threatened in Budget

Small practitioners threatened in Budget

Gordon Brown has unveiled a radical proposal to align the tax profits for small companies more closely with profit shown in their accounts, threatening the bread and butter work of small practitioners.

Budget papers described it as a ‘radical proposal to reduce regulatory burdens for small businesses through aligning their profits for tax purposes broadly with those reported in their accounts, providing scope to avoid dealing with the complexities of the tax system.’

The government said it would consult with small businesses on a system to produce a regime that ‘blends the twin aims of simplicity and fairness’.

Alastair Kendrick, tax director at Ernst & Young, said: ‘This will further threaten the small practitioner and could lead to more problems for small business as they try do-it-yourself jobs, which could lead to them getting hit with Inland Revenue penalties.’

ICAEW tax faculty manager Francesca Lagerberg described it as ‘an interesting idea’ and gave a ‘very cautious welcome’ to the proposal. She said it would be a good thing to consult on, but said the idea through up all sorts of practical issues.

Links

Budget 2001

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer