ACS

 In response to the budget, there have been several new policies announced from Government that will impact on small businesses.

Alistair Darling had originally planned to set down details introducing a Family Business Tax in the budget but this will now be delayed for another twelve months whilst further consultation and any subsequent changes are made. The tax, if brought in, will mean that when family members or friends start businesses together, but do not perform the same function within the business, they will no longer be entitled to be taxed on an equal share of the profits. This tax has been criticised because it would increase administrative burdens on small business as well as being inconsistent with capital gains tax and divorce law.

The Government has stated that the new UK Border Agency will publish a comprehensive tobacco smuggling strategy. The health campaigning charity ASH has said that “substantially reducing tobacco smuggling must be a key plank of any policy to tackle health inequalities as research shows that low income smokers are much more likely to buy smuggled tobacco.”

The Department of Business, Enterprise and Regulatory Reform published Enterprise: Unlocking the UK's Talent. Proposals impacting on small business include;

• Exempting or simplifying enforcement of new regulation for small firms where possible.
• An independent review, to recommend ways of giving small businesses greater certainty on how to comply with legislation, initially focussing on employment law.
• Extending lending and funding schemes including allocating a 20 per cent increase to the Small Firms Loan Guarantee Scheme, extending eligibility to growing businesses more than five years old, and, committing £12.5m to co-invest in a £25m capital fund investing in women led businesses.

To view ACS’ press statement on the budget follow this link; http://www.acs.org.uk/en/Press_Office/details/index.cfm/obj_id/7206684E-CF82-4F9A-98A63CE39493D321