Accountants call for restraint in the Budget

Accountants at small firms have urged restraint from chancellor George
Osborne in his first Budget on 22 June in order to avoid damaging the fragile
economic recovery.

While members of MGI UK and Ireland are anticipating tax rises, especially in
CGT and VAT, as the government attempts to address huge debts, they are hoping
for some help to counter any damaging consequences of the moves.

“I would like to see the complete abolition of employer’s national insurance,
which would encourage employment and the loss of revenue would be more than
compensated by increased income tax and reduced benefit payments in relation to
the hundreds of thousands of formerly unemployed individuals who will find work
as a result,” said Andy White, tax partner at Carter Backer Winter.

Simon Denton, tax partner at Milsted Langdon, said: “I’d like to see
corporate tax rates cut, especially the small company rate, a drastic overhaul
of the unworkable IR35 legislation and the extended use of consultation groups
to address the complexity of legislation.”

“I hope higher-rate relief for pension contributions will not come under any
further attack and while an increase in VAT to as much as 20 per cent has
already been factored in by many people, I certainly wouldn’t want it to go any
higher as that really would kill off any potential recovery,” said Peter Bond,
tax partner at Midgley Snelling.

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