Partner Article

Budget should tackle tax to help small business

The Forum of Private Business is calling for tax measures to help small firms drive job creation and economic growth.

Part of the proposal recommends changing the existing £5,000 National Insurance holiday for the first ten employees recruited by start ups, to apply to the first two new staff taken on by all firms.

According to the Forum’s Tax and Budget Panel Report, 54% of business owners feel the current deficit reduction programme is “about right,” while 44% called for wholesale changes to the structure of the UK’s tax system.

A third of tax and budget panel members believe that HMRC could use easier communication methods and reduce bureaucracy in the process.

53% of respondents believe HMRC is doing a poor job to support them and 45% believe it is doing a poor job in targeting tax avoidance schemes.

In advance of the Budget, business owners prioritised reducing fuel taxes, a VAT reduction for labour-intensive industries and removing barriers to employment, such as cutting employers’ National Insurance.

Phil Orford, the Forum’s Chief Executive, said: “The Budget is a real opportunity to remove the growth barriers for small firms created by the complexity of the tax system. It is clearly one that should not be missed.

“In particular, our members want a level playing field on tax, and the UK’s tax system to be conducive to business growth and success rather than a hurdle that is a struggle to overcome.

“It is also time to see genuine tax incentives to boost employment and investment in small businesses – including more encouragement for private lenders to compete with banks and stimulate funding for all firms.”

This was posted in Bdaily's Members' News section by Tom Keighley .

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