In less than a weeks time, the chancellor will announce his budget, no doubt he is still making last minute adjustments to balance the books and appease probable objectors, and the opposition leaders will already have their ‘responses’ written.
It is said that austerity has ended, which would raise hopes for some good cheer in the budget, especially given the impending Brexit. Perhaps would now be a time to give some encouragement to the hard hit self employed and entrepreneur sector?, after seeing Dividend tax credit removed, followed by the softener for this impact the dividend tax allowance being slashed from £5000 to £2000, then the back tracking on the promise to remove class 2 NIC, it is easy to feel the Small and Medium sized Enterprises were being targeted as a non unionised soft option, let us not forget these businesses employ over 16 million people and turnover £1.9 trillion, their contribution in respect of National Insurance,VAT,Income and Corporation Taxes and in tax collection and management of the economy should not be under estimated, these businesses have to fund and administer the Auto Enrollment pension contributions that will again rise in April from 2% to 3%, the minimum and living wage increases for little or no thanks or reward.
Of course the Pension contributions increase will also affect the employees own contribution rising from 3% to 5% and the tax relief on Buy to Let mortgages continues to reduce alongside the imposition of a ‘licence’ for homes of multiple occupation, so perhaps the ending of austerity is to be financed by SME’s!
These pressures on time and finances are what we are here to help with where we can, so don’t hesitate to give us a call on 01977 797979 to arrange to discuss ways in which we can help.
Austerity is not the only thing to end this month of course, so does British Summer Time and the clocks go back on sunday 28th October.