Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

Tory tax planners woo small firms. By Dan Martin

by
22nd Aug 2006
Save content
Have you found this content useful? Use the button above to save it to your profile.

The merger of national insurance and income tax into one system is among the small business friendly measures included in the Conservatives' new policies aimed at boosting UK SMEs.

Shadow chancellor George Osborne said although small businesses are the "lifeblood of the economy" they are often neglected in the political debate by discussion of tax levels and big companies.

Launching his party's new plans during a visit to the headquarters of lobby organisation the Forum of Private Business (FPB), Osborne said the Tories would examine the feasibility of aligning income tax and national insurance administration as well as improving awareness of the civil service culture over the impact of regulations on small businesses.

The party also plans to establish a taskforce to communicate the concerns of SMEs to Tory policymakers and make it compulsory for government departments to list all contracts online so smaller firms can grab a share. It also intends to get small businesses better involved in adult education policies to make training and qualifications more appropriate to their needs.

"I believe that government should be helping those running small businesses, not making their lives harder as this chancellor has done," Osborne said.

"A new direction is needed - one that helps small companies grow, instead of strangling them at birth."

Len Collinson, FPB national chairman, added: "There is no doubt that over recent years smaller businesses feel burdened by regulation in all aspects of the economy. They are beginning to show a reluctance to employ people because of the increasing red tape. There is a strong case for a new direction."

Tags:

Replies (2)

Please login or register to join the discussion.

avatar
By User deleted
23rd Aug 2006 11:55

VAT
Your point on VAT is interesting though but it is a very complex area. Small business (or even medium business) in UK are hit by:

(a) For virtual services, we are 17.5% less competitive compared to US, Russia, Asian etc firm. It is true that when these companies sell online services etc to UK residence, they have to add VAT, but as to how we can apply our law to a Russian website is another question. This will become more interesting in the wired world when, say even accountancy (tax return) services is provided to UK residence by a Indian entity.

(b) I heard of a small business with turnover just over the threshold and know that if they account for VAT, they will be nothing leave to eat or for the fact, the business will not exist..

But we cannot blame the government for VAT, blame the EU for that...

Thanks (0)
avatar
By armstrm
29th Aug 2006 13:49

CT Threshold
It may also be useful to raise the small companies CT treshold. This has remained the same for many years. It should at the very least be raised in line with inflation, but should really be earnings.

Thanks (0)