Call for rates action in autumn statement

Chancellor George Osborne outside 11 Downing Street
Chancellor George Osborne outside 11 Downing Street
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Businesses across the Fylde coast are asking for more support for small firms in the Chancellor’s autumn statement tomorrow.

The announcement of investment into the Fylde’s roads system by George Osborne has been welcomed, but firms want to see help on business rates, VAT and funding.

Damian Broughton, managing director of accountancy group Danbro said: “Key points that would be helpful are no further changes to tax legislation that affects contractors and freelancers.

“Last year we had two major pieces that affected the whole industry, causing panic until HMRC made it clear that the umbrella market and limited company contractors were not affected.

“However, this has put an additional burden on our recruitment agency partners so we would hope no further changes in legislation are made that may affect them.

“Reducing the complexity of the tax system would help immensely in acknowledging the major part that entrepreneurs and SME companies play in helping the UK progress economically.”

Colleague Neil Ormesher, said: “Corporation tax for large companies now equals that for small companies – so I would like to see a reduction in corporation tax that would give something back to smaller businesses - without affecting larger businesses.

“It would also encourage new business to start up.

“Another burden for smaller businesses is VAT. Currently, the threshold for compulsory registration is £81k, increasing each year in line with inflation. I would like a one-off increase to £100k.

Richard Evans, senior partner at KPMG, said he predicted few, if any, surprises.

He said: “Nevertheless, we do expect there to be some good news for small and medium-sized companies with both the Chancellor and Vince Cable recently dropping heavy hints that an announcement will be forthcoming regarding an overhaul of the much-maligned business rates regime.

“Access to funding for SMEs remains an area of red hot debate. Greater clarity around or a simplification of the myriad of schemes and incentives would be welcome.”

John Cridland, CBI Director General, said: “We want to see the Government encourage innovation and enterprise by reforming the outdated business rates system, which is a disincentive to company expansion, alongside expanding the R&D tax credit to encourage development, as well as research activity, in the UK.”