TaxCorporate TaxBudget reaction: Small business

Budget reaction: Small business

SMEs need simpler taxes more than concessions argues profession

Today’s Budget saw a range of measure introduced to help out smaller
businesses, but many feel that the government could and should have gone much
further, especially when it comes to tax simplifiaction.

‘This seems to be largely a Budget of delaying tactics. Rather like the
Cheltenham racers, businesses are left waiting in the stalls by today’s
announcement,’ said Chas Roy-Chowdhury, head of taxation at ACCA. ‘We knew what
was coming for business, but the Budget still penalises entrepreneurs and SMEs

Richard Collier-Keywood, UK head of tax at PricewaterhouseCoopers, said:
‘Today’s Budget will be of some relief to UK business because it contained few
major surprises. This was particularly important given the amount of change
already in-hand. However, with 270 pages of supplementary Budget notes from HM
Treasury, it does not appear that there has been significant progress towards
tax simplification.’

Small businesses need clarity on their tax position and less red tape so
that they can focus on their business rather than additional paperwork that
might save them very little tax,’ said Lisa Macpherson, national director of tax
at PKF.

‘The tax position for small business has evolved to the point where it is now
hugely complex and in danger of becoming incomprehensible, sometimes even to HM
Revenue & Customs and the accountancy profession. The Government could shut
down tax loop holes far more effectively by simplifying the whole system and
creating a level playing field between businesses, sole traders and partnerships
rather than adding more regulations and red tape as they seek to shut down
practices they regard as evasion.’

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