Discussions around Darling’s eagerly anticipated Budget announcement continues, with the discussion boards and news sites putting forward a variety of predictions and wish-lists. The Association of Chartered Certified Accountants (ACCA), as reported on Bytestart, highlights the need to abstain from any significant tax rises as one of the key issues – a view that is echoed in our recent small business survey, which shows that small businesses are calling for further tax cuts to help them through the recession.
However, while our survey shows that small businesses want an extension of the VAT reduction, the ACCA stance differs somewhat. Instead, it suggests restoring the VAT rate to the original rate and using the savings to withdraw Stamp Duty Land Tax for six to 12 months in an effort to stimulate the housing market. Elsewhere, the Federation of Small Businesses (FSB) is calling for automatic rate relief for small firms, and an increase in the thresholds before Income Tax and National Insurance contributions are payable. With a reduction of employers’ National Insurance contribution rate top of the small business wish list in our survey, it seems to be one that cannot be ignored. With just a week left before the big day, small businesses will soon find out whether their expectations have been met...
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