RSS feedsSo has the chancellor fired the coals of the engine room as we all hoped?
It appears not. The reaction to the pre-Budget report has been underwhelming. Cutting VAT? A good idea, but for just one year – and as of now? Well that hasn’t really helped retailers. Others are feeling the administrative heat of the change and wondering whether it’s worthwhile.
A slew of funds were announced to help SME cashflow problems, but with several million small businesses and a couple of billion pounds to fight over, that may not be enough and it will be difficult to target those most worthy.
What seemed the best and most practical idea appeared to slip through quietly. Simply asking the taxman to go easier on ‘customers’ during these tough times makes sense and will save some businesses on the brink. Unfortunately, little detail was revealed on this.
And thank goodness income shifting rules affecting family businesses have been shelved. But be warned, when it suits the Treasury expect to hear about this topic again. As for the advisers bemoaning more tax complexity, particularly around NICs and personal allowances, well it pays your bills, eh? Perish the thought of it being simple. You’d be out of a job.
