Many of our clients are small businesses and members of the FSB and other similar organisations. These can be helpful for SMEs as they give them a larger voice when acting together. So it is good to see that the Federation of Small Businesses has urged Chancellor Philip Hammond to use the upcoming Budget to “reduce cost burdens for small businesses”.
As we continue to pass through this period of uncertainty caused by the Brexit negotiations, small businesses are critically important to local and national economic activity.
Within its Budget wish list, the FSB has proposed the creation of a £1,000 ‘business rates discount’ for small shops, cafes and pubs, in order to help them to continue trading. It has also called for additional support for the self-employed, and has recommended the implementation of a statutory Adoption Allowance.
The Chancellor has responded with proposals for some rates relief and we think that the FSB will be pleased to see that its message appears to be being heard.
In addition, the FSB warned against changes to the Dividend Allowance, VAT and Insurance Premium Tax (IPT) amid ‘spiraling’ compliance and employment costs for small firms. Not only have they had rates increases but many have had to absorb rises in the minimum wage and raw material increases too.
Concerns have also been raised by the business group in regard to the potential extension of IR35 public sector rule changes to the private sector, with the FSB warning that it is ‘impossible to accurately predict the impact’ of this move.
Commenting on the wish list, Mike Cherry, National Chairman of the FSB, said: ‘Warm words from the government are welcome, but they need to translate into action.
‘With our small retailers trying to keep their heads above water – and the self-employed community left demoralised by the failure to end Class 2 national insurance contributions (NICs) – this is the Chancellor’s opportunity to show he really does back business.’
If you need any advice on small business accounting issues, we cover Salford and the whole of Greater Manchester so please feel free to get in touch for a first discussion.