Changes on the way for small businesses are set to have a major impact, so we’d like to see the Chancellor offer some good news in his Budget.
Here are some of the measures now affecting SMEs.
- Auto enrolment, or workplace pensions, is compulsory legislation requiring employers to set up a pension and enrol qualifying staff. SMEs are now being drawn into the system which is inevitably increasing payroll, admin and advice costs
- The National Living Wage comes into force in April and for SMEs in particular it will have an impact on their ability to grow and take on staff, due to the increased wages bill
- More frequent reporting requirements for HMRC may take up valuable time which would be better spent on running the business
- Changes to the taxation of dividends will cost business owners money and reduce the incentive for them to take on the risks of running a small company
These are all potential disincentives to running a small business.
Our Budget wish list
So we’d like the Chancellor to show he is on the side of SMEs. On our Budget wish list are:
- A reduction in red tape and its associated costs
- The overhaul of business rates – long overdue
- Further National Insurances savings for employers
So come on Mr Osborne, why not give SMEs, which are the backbone of the British economy, some good news on Budget day.
Categorised in: IFAs
This post was written by Paul Verwoert