TaxPersonal TaxBudget boost for e-commerce investment

Budget boost for e-commerce investment

E-commerce investment is set to rise among a quarter of UK businesses as a direct result of government incentives laid down by chancellor Gordon Brown in this year's budget.

A survey by top 20 accountants Kingston Smith found that 22% of small to medium-sized businesses contacted said they would increase investment due to budget measures, such as the 100% tax relief on new technology.

Nearly a quarter of businesses also said they would speed up their introduction of e-commerce because of the pro-e-commerce budget, while 27% said they were encouraged to expand their use of online business-to-business trading.

Senior partner Michael Snyder said: ‘If these percentages are repeated across the spectrum that means a huge additional injection of investment by companies into e-commerce and technology in this year alone.’

Over half of companies surveyed, however, said they did not know when they expected their planned investments in e-commerce to become profitable.

‘Companies are clearly placing high expectations on the development of e-commerce and although they are still ‘flying blind’ in some respects there are signs in this survey that they are adopting a more logical and business-like approach,’ said Snyder.

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

2d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter