Published on March 20th, 2014 | by Rob Stebbings0
Time To Get Your Tax Admin Organised
Described as the ‘working people’s budget’, we can all raise a glass to a cut in duty on a pint of beer and a freeze on cider and spirits as George Osborne delivered a speech focused on getting ‘Britain exporting more, selling more, manufacturing more and saving more.’
Good news for small businesses was revealed with the biggest upward revision to growth between budgets for at least 30 years when the chancellor stated the economy would grow 2.7% this year, more than the previous forecast for 2.4%.
An extra £85m in both 2014-15 and 2015-16 for over 100,000 grants to small business owners via the Apprenticeship Grants for Employers (AGE) scheme will help more young people into employment and The Federation of Small Businesses (FSB) has assessed that cheaper energy bills for manufacturers, supporting investment and road improvements will help small firms.
George Osborne also announced tax system reforms with the annual 100% tax allowance for investment doubled to £500,000. Whilst these tax changes will be welcomed, we learn that small business owners are nevertheless losing around 12 days a year keeping on top of their tax administration costing them half a billion pounds per year according to a survey by the FSB.
The FSB’s findings show that half of respondents already spend between two to eight hours per month understanding, calculating and completing tax forms which can be an unwelcome hindrance in their strive for growth.
More than three quarters (77%) of respondents in the poll also say they spend up to £5000 in addition to their tax bill paying professionals to manage their account books.