Conservative ministers are going forward with plans to reduce tax to ease the burden on UK businesses to underpin the growing economic recovery.
Enterprise minister, Matthew Hancock believes the current pressures on businesses are too high and the coalition must look to do more to reduce costs for small firms keen to grow.
Mr Hancock, a close ally of Chancellor, George Osborne, understood calls from industry organisations to reduce business rates, levied on firms for local services.
It is thought the Chancellor is privately being urged to target any action to reduce business taxes on small firms ahead of next month’s Autumn Statement.
The extension of business rate relief for small companies, which is due to expire next spring, is something that may be considered. Any increase to business rates next year could add an average of £430 to companies’ tax bills.
Mr Hancock was quick to point out that business rate relief had been extended to even the smallest businesses “every year that we [the coalition] have been in office”, which may be viewed as a hint at a further extension to the current arrangements that expire in April 2014.
The coalition is also preparing to raise the tax-free personal allowance for low paid workers to £10,000 from 2014. Nick Clegg is also hoping to canvass support within the Treasury to increase it further to £10,500 ahead of the next election in 2015.
The Government is certainly doing its bit to raise awareness of the importance of the UK’s small business community. On Saturday 7th December, it is supporting the first Small Business Saturday in the UK, designed to encourage the nation to support SMEs on the day and beyond.
At TaxAssist Accountants we will be supporting the campaign ourselves by offering free business clinics for small business owners, with practical, useful, jargon-free advice to guide SMEs through any issues they may face.
Call us today on 0800 0523 555 or complete our enquiry form and we will identify your nearest TaxAssist Accountant in order to book a FREE initial consultation