Small Business Taskforce Outlines Priorities ahead of the General Election

By 5th June 2017 June 9th, 2017 Latest News

The Taskforce has outlined key priorities ahead of the General Election this month

The Small Business Taskforce, which is made up of 14 organisations, including the Institute of Chartered Accountants in England and Wales (ICAEW), Enterprise Nation and the Entrepreneurs Network, has set out six key recommendations in its election manifesto that focuses on ‘building a positive and progressive business case for Britain’.

The organisation also recommends that the next government should provide a business environment that ‘champions the role of small businesses and creates a tax system that supports businesses of all sizes.’ Furthermore, they also call for the next government to provide an advantageous pensions and benefits system, to supply beneficial procurement opportunities and create a workforce that is equipped for enterprise.

The Head of Enterprise at the ICAEW, Clive Lewis, stated “Whatever the outcome on the 8th June, the incoming government must provide a solid platform for small businesses to flourish and grow.”

Understandably, businesses are cautious about what the future holds and are holding back on investment, therefore, it is vital that all political parties make clear how they plan to encourage businesses to invest in long-term growth.

How the call for a General Election has affected small businesses 

Since the unexpected announcement of the General Election, small business owners have dodged a number of legislation’s that have been dropped in the governments ‘U-turn’, which could have had negative repercussions on many businesses.

Alistair Bambridge, partner at Bambridge Accountants stated “Within days the Chancellor’s National Insurance plan was dropped in an embarrassing U-turn and now the snap election has come to business owner’s aid by knocking in to the long grass that planned change in the tax on dividends.”

Continuously, many of Britain’s small business owners choose to pay themselves through dividends rather than their salary as it is more tax efficient. Currently, the first £5,000 of dividends are tax free, but under the Chancellor’s plan this would have been cut to £2,000 from next April.

They will also be pleased to know that deadlines for the ‘Making Tax Digital’ legislation, which could have been a time-consuming and confusing process, has been postponed.

For more in depth information, please contact one of our tax experts  today.
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