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Category Archives:Lee Davy-Martin

SMEs still seem willing to invest

UK businesses have shown their resilience in the wake of the EU referendum some six months ago, new analysis has suggested.

The recent SME Confidence Tracker report, which covered the third quarter of 2016, demonstrated that, while business confidence has been affected by the vote for Brexit, many enterprises had responded far better than expected.

The survey found that more than a third of business owners (37 per cent) did not think that Brexit has impacted on their firm, with a similar number arguing that it is too early to say for certain.

Encouragingly, three in four businesses invested in new products and services in the three month period from July to September. This would seem to challenge reports that investment has faltered as a result of the referendum’s outcome.

HMRC consults on changes to clearances

HM Revenue & Customs (HMRC) has launched a consultation into proposals which it has claimed will streamline clearances for those firms making use of venture capital schemes and various tax reliefs. Read More

We need to help start-up businesses

I have, for a long time now, been promoting the case for simplifying the UK’s tax system, arguing this would make it far easier for start-up businesses to expand.

A study – Britain Unlocked: a tax code for global ambition – warns that the current regime creates too many obstacles for those who have launched an enterprise and are keen to grow. A sentiment I wholeheartedly agree with.

Businesses are deterred from hiring more staff, moving to a bigger premises or pursuing larger contracts because of the daunting framework of tax requirements. We need to be releasing these shackles rather than tightening them.

Among the report’s proposals include raising the cap on the Seed Enterprise Investment Scheme (SEIS), merging income tax and National Insurance, returning the Annual Investment Allowance to £500,000 a year and enabling companies with profits of less than £5million to pay Corporation Tax annually. All of these are very sensible measures.

The report also proposes an increase in the capital gains tax annual exemption which I am not sure is necessary given the already generous Entrepreneurs Relief treatment available.

Institute argues that a review of R&D tax relief must not ignore smaller businesses

The Chartered Institute of Taxation (CIoT) welcomed last week’s announcement that the Government would be conducting a review into Research & Development (R&D) tax credits. Read More

Chancellor’s plans won’t be a “silver bullet” for tech sector challenges

Plans to pump £400million into the capital’s tech start-up industry will not solve some of the sector’s most pressing concerns, leading figures have warned. Read More

Chancellor pledges £400m injection to support start-up and expanding businesses

During yesterday’s Autumn Statement announcements, Chancellor Philip Hammond said that the UK Government would commit to a £400million funding injection to support start-up and small businesses. Read More

EISA reacts after report admits a lack of awareness about tax relief schemes

The Enterprise Investment Scheme Association (EISA) has once again pressed the importance of politicians doing more to make businesses aware of key tax reliefs. Read More

EISA joins business lobby group

The Enterprise Investment Scheme Association (EISA) has confirmed it is joining the lobby group Enterprise Nation. Read More

Report concludes that more must be done to raise awareness of tax reliefs

A new report has set out a series of recommendations for overhauling the tax system, which the authors believe would deliver massive improvements for the UK’s entrepreneurs.

In its study, The Prelude Group outlines a number of suggestions which it believes could boost job creation, business growth and investment nationwide.

The organisation concludes that HM Revenue & Customs (HMRC) need to do more to promote awareness of the tax reliefs available to businesses and include details on how companies can take advantage of the rules in correspondence.

A number of changes to the existing regime have also been suggested. These include extending National Insurance Relief, increasing the SEIS threshold to £300,000 and removing the cap on Entrepreneur’s Relief.

The group has also called for a consultation on whether to replace Corporation Tax with a more straightforward small business levy.

Stephen Herring, the head of taxation at the Institute of Directors (IoD), was among those to contribute to the report.

He said: “There is no such thing as a perfect system, but in this report we put forward measures which will help a wide variety of entrepreneurial businesses become job-creating machines, increasing economic growth and revenues for the Treasury.”

Concerns many small businesses may still be oblivious to R&D relief

Start-up businesses are being encouraged to check whether they are eligible to claim R&D tax credits. Read More

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