Originally written by Anna Jordan on Small Business
The Conservatives’ landslide win marks their biggest victory since 1987.
However, experts are questioning the proposed review of IR35 for private contractors and freelancers. As the next Budget is planned for February 2020 and the changes in April 2020, the new Government don’t have much time to act.
Daniel Fallows, director at Gorilla Accounting, has mixed feeling about the result:
“Contractors and freelancers up and down the country can now get on with their business with a far clearer idea of how the regulatory environment for the self-employed will develop. However, there are still unanswered questions for the new Government on this issue, and we hope that its promised review of IR35 will be a key priority.”
Julia Kermode, chief executive of The Freelancer & Contractor Services Association (FCSA), said:
“February is simply too late for the off-payroll legislation to be properly implemented.
“If they don’t delay then the promise was nothing short of an arrogant and disingenuous move to secure votes. Many businesses have already invested heavily in preparing for the changes and given the legal requirement for reasonable care, it is unrealistic to press pause for a potentially meaningless review to take place. If the Government
Tag Archive for General Election
Hot Business News Today
Accountants alarmed by schoolboy howler in Labour manifesto for SMEs
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Accountants have raised their eyebrows at an unforced schoolboy howler in Labour’s manifesto, which the party has hurriedly gone in and fixed.
Labour has announced plans to increase corporation tax to 26 per cent for businesses, compared with today’s rate of 19 per cent.
Within this, Labour originally proposed that small businesses would pay corporation tax at a lower rate of 21pc if their turnover is over £300,000.
If kept in, this would have created an anomaly where a small business making a tiny profit on turnover of £300,000 would pay corporation tax, while a competitor making a fat profit on much lower turnover would escape tax.
However, after realising they had muddled up turnover and profit, Labour has since published a revised document outlining its plan to reintroduce a small profits rate for firms with profits greater than £300,000.
>See also: Sajid Javid warns Labour will extend inheritance tax to family businesses
Robert Salter, director at Blick Rothenberg, the accounting and tax advisory company, told The Times: “One must worry whether the initial communication in this regard indicates a potential lack of awareness about businesses and the difference between turnover and profit.”
Tim Walford-Fitzgerald, a tax partner at the
Hot Business News Today
Sajid Javid warns Labour will extend inheritance tax to family businesses
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Chancellor Sajid Javid has warned that Labour plans to stop sons and daughters from inheriting family businesses by charging them inheritance tax.
Currently, family businesses are exempt from 40 per cent inheritance tax when a business is handed down to a family member following the death of the owner.
Labour plans to increase personal inheritance tax; currently, parents can leave property worth up to £325,000 before inheritance tax kicks in.
Sajid Javid said: “Labour has said they’re against the principle of inheritance, that’s why they’re changing inheritance tax for individuals, that’s why they’ve cut the allowance. They have also said they’re going to review taxes – and when they use code words like review, that’s the tax that’s they’re most certainly going to hit.”
>See also: Labour pledges to scrap IR35 rollout to business … and then backtracks
Javid was speaking at a hustings organised by the Federation of Small Businesses (FSB) this week, alongside shadow chancellor John McDonnell and Liberal Democrats deputy leader Ed Davey.
McDonnell, putting his head in his hands, shook his head and repeated, “We’re not.”
However, McDonnell, giving his usual avuncular performance, was frank about Britain needing to pay for investment in infrastructure and society
Hot Business News Today
General Election 2019: small business policies that could win your vote
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The 2019 General Election is only a couple of weeks from now – and it’s one of the most heated votes in years.
Questions have been asked around who the real party for small business and what exactly is each one promising.
To help you de-fog these quandaries, we’ve sifted through the manifestos and pulled out key policies relating to entrepreneurs and small businesses.
The main areas we’ve covered are:
Late payments
Business rates
Skills and apprenticeships
Self-employed support
Employee rights
Finance
Other noteworthy policies
Links to each party’s manifestos are included in the table for you to take a further look.
Late paymentsBusiness ratesSkills and apprenticeshipsSupport for the self-employedEmployee rightsFinanceOther noteworthy policies
ConservativeClamp down on late payments.‘Fundamental review of the system’ to reduce business rates.Introduce a £3bn national skills fund. This fund will provide
matching funding for individuals and
SMEs for high-quality education and
training.
Improve the working of the apprenticeship levy.
Invest almost £2bn to upgrade entire further education college estate. Will have 20 institutes of technology, connecting high-quality teaching in science, technology, engineering and maths to business and industry.
Launch a review into better support for the self-employed – improving access to finance and credit (especially mortgages), making tax system easier to navigate and how better broadband can boost
Hot Business News Today
Conservative Party 2019 manifesto deemed ‘pro-enterprise’ but lacking in detail
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The Conservative Party were the last to publish their General Election 2019 manifesto on 24 November.
Industry figures have praised the manifesto’s ‘pro-enterprise’ vision. However, there’s frustration over the focus on Brexit and public services coupled with a lack of detail around how the party would stimulate economic growth.
It has the smallest spending plans of the three main parties – £2.9bn a year compared to £82.9bn for Labour and £62.9bn for the Liberal Democrats.
Even still, experts are seeking more detail on what has been laid out in the document.
In his initial response to the manifesto, British Chamber of Commerce (BCC) director general, Dr Adam Marshall, said:
“While the Conservative manifesto strikes some of the right notes, business communities across the UK will be looking to see more substantial measures to boost growth, enterprise and investment from the Prime Minister and his party if they form the next Government.
“There are some welcome proposals in the Conservative manifesto on real-world business issues such as training, road maintenance and childcare, but businesses still need much more clarity on big-ticket items like HS2, how the UK’s future immigration system will work in practice, and how real power will be devolved to our towns and
Hot Business News Today
Labour reveals plans to increase corporation tax to 26pc in 2019 manifesto
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Labour became the third party to release it General Election manifesto on 21 November.
The document has had a mixed reaction from the public, industry experts and organisations.
One of the most contentious policies is the rise of corporation tax to 26pc (it will be a lower 21pc for businesses with an annual turnover under £300,000). The tax would be staggered over the next three years. It’s hoped that this will raise £23.7bn within five years, according to the funding section in Labour’s manifesto.
To the contrary, figures show that slashing corporation tax in recent years has boosted Government coffers. It might not be that clear-cut, though.
The Office for Budget Responsibility (OBR) states that the cut in corporation tax from 28pc in 2009-10 to 19pc in 2017 boosted revenue to £57.6bn from £40.1bn in 2009-10. However, the Institute of Fiscal Studies (IFS) shows that the reduction in headline rate since 2010 has cost £13bn.
The IFS said: “Corporation tax revenue has increased since 2010 even while the headline rate has been cut. But that does not mean that rate reductions have increased revenue.
“Much of the rise in revenue since 2010 is simply recovering from the effects of
Hot Business News Today
Liberal Democrats election 2019 manifesto: experts react to key policies
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The Liberal Democrats released their manifesto yesterday (November 20) in the run-up to the next general election on December 12.
The party have dubbed themselves as the “party of business”, pledging to get rid of business rates and tackle the ongoing issue of late payments.
Sifting out the central promises for entrepreneurs, we hear what the industry experts think about the Lib Dems’ manifesto.
Late payments
‘Require all government agencies and contractors and companies with more than 250 employees to sign up to the prompt payment code, making it enforceable’
The Lib Dems hope to take on the scourge of late payments by enforcing large businesses to adhere to the Prompt Payment Code (PPC). It’s been well received by the business community.
Paul Christensen, CEO at fintech Previse, said:
“Jo Swinson’s promise is a welcome step in the fight against late payments.
“For too long, SMEs have suffered from slow payments that stifle their growth and cut off their cash flow.
“Slow payments don’t just hurt SMEs, however, but also large corporate buyers. The expensive financing of SMEs has to be built into the cost of goods and services that the corporate buys. Put simply, it is a very inefficient way to