YOUR COMMENTS: The government is penalising small consultancies, rather than helping them
I am writing in response to the article on AccountancyAge.com entitled "Small Businesses: Patricia Hewitt speaks out."
I am writing in response to the article on AccountancyAge.com entitled "Small Businesses: Patricia Hewitt speaks out."
I was interested in her statements about what the government is doing to help small businesses. However, she neglected to say that this help is NOT available to the small business if it provides consultancy services for its clients.
Small independent consultants, far from being helped by this government, are being targeted with draconian and punitive tax measures, which are commonly known as IR35.
The effect of these measures, which will be finalised in the Finance Bill, will be to force small consultancies to treat 95% of their turnover as their salaries and related expenses bill, with only 5% allowed for running the company, research and development, growth and profit.
I would urge all your readers who provide consultancy services to read up on this to see if it affects them.
There is an excellent web site www.ir35update.co.uk with a wealth of information about IR35.
Yours
Bob Beattie
Small businesses: Patricia Hewitt speaks out
The numbers you crunch tell a story. Your expertis...
24yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleGlobal spend on accountancy outsourcing up by 40% in the space of five years. News comes as accountancy outsourcing specialist AdvanceTrack reports en...
View articleFollowing a profitability review, Deloitte has decided to scale back its UK deals business due to lower returns. This strategic shift could lead to jo...
View articleUK-based Dow Schofield Watts (DSW), a mid-market professional services network, announced the creation of a new division called DSW Principal Partners...
View articleEY has been undergoing significant cost-cutting measures and streamlining its operations since the abandonment of Project Everest. The firm has made t...
View articleTransitioning from an accounting firm to a consultancy model is only one part of the puzzle. The next, equally vital piece is making the market aware ...
View articleThis framework, while providing a top-line view, underscores the importance of strategic vision, operational excellence, and the spirit of continuous ...
View articleLooking ahead, the Big 4 firms face a challenging year, with ongoing cost-of-living concerns, slow economic growth, rising geopolitical tensions, and ...
View articleLast month it was reported that Deloitte would be cutting approximately 1,200 jobs in the United States, making it the latest of the Big Four accounti...
View article