VAT cut provided little help, say SMEs
SMEs unimpressed by VAT cut effect
Only 14% of SMEs felt that the VAT cut had helped their business, with over
half concerned that the corporation tax rise would impact their motivation to
grow their business.
The survey of more than 600 clients by
Haines
Watts (HW) found that one in four were being asked for personal
guarantees against bank loans.
“There needs to be far more emphasis on measures that help businesses with
cash flow such as staggering PAYE contributions,” said HW partner David Maultby.
“The VAT reduction was of little help to most business owners but was the
main tax stimulus deployed by the Treasury.”
Only 10% of respondents would use their bank to ‘sense-check’ business
decisions, preferring to turn to other business owners (53%) or their
accountants (48%).
Further reading:
HMRC
issues PAYE return warning