Tax relief scheme discriminates against small businesses, says ICAEW
Institute presses government to extend tax relief scheme aimed at helping businesses through the downturn
The ICAEW is lobbying government to ensure that the self-employed and
partnerships don’t miss out on a cash rebate scheme aimed at helping businesses
through the recession.
New rules announced in last year’s pre-Budget report let businesses suffering
losses this year offset them against profits in previous years, up to the value
of £50,000, and could see companies receiving up to £20,000 in cash rebates from
HMRC.
However, this relief is only available for the 2008-09 tax year, meaning that
some small businesses whose accounting year ends in the first half of 2008 could
miss out as they will not yet have felt the full impact of the recession on the
books, according to The Telegraph.
The ICAEW is pressing government to extend the relief for a further two
years, and let companies decide which year they wish to claim the relief in.
‘The period as it is currently set out appears to discriminate against
unincorporated businesses, which is surely unintended,’ said Anita Monteith, tax
adviser at the institute.