Businesses react to LibCon tax plans

News Article - 08 June 2010
Category: Business

Business leaders have heavily criticised taxation plans outlined in the new Government's official manifesto. The criticisms centred on dangers to small and medium sized companies, concerns over entrepreneurs' exposure to Capital Gains Tax relief, and the complexity of non-dom legislation and its effect on British industry.

The Conservatives pledged to cut corporation tax early on in the campaign trail, and although this has been labelled as a positive sign for larger British companies it is expected to bring little benefit to smaller firms. Less profitable companies will make far smaller savings and those with annual profits below £300,000 are likely to miss out entirely.

Concerning non-dom legislation, critics have called the plans 'unworkable' and consider non-domiciled business owners to have a significant advantage over British businesses, which may limit the country's ability to compete internationally. The debate has been made more public by media exposure over the status of Dragon's Den star James Caan, who operates a number of UK businesses but does not pay tax to HMRC.

The speed at which the new Government came together has resulted in taxation plans being pushed through relatively quickly; business leaders have now called for clarification on key rules and regulations that will have significant affects on companies in the near future. Without greater clarity it will become increasingly difficult for businesses to plan future growth strategies with confidence.

As the Government falls under further pressure to resolve the budget deficit, it is likely to use the taxation system to enhance recovery efforts. In recent months the department has developed a reputation for more aggressively pursuing tax take: businesses must ensure full compliance at all times to prevent crossing paths with the HMRC.

Access business auditing software is built modularly and offers a range of system-wide benefits to small and medium sized companies. Regular updates ensure organisations keep ahead of changes to tax legislation and that returns are fully compliant. By keeping companies one step ahead of tax plans, businesses can avoid falling foul of HMRC and can dedicate resources to more mission-critical tasks, such as growth strategies.

For more information, please call Access on 0845 345 3300.

 

Article keywords: Access, Government manifesto, small business, medium sized companies, Capital Gains Tax relief, non-dom legislation, corporation tax, HMRC, budget deficit, taxation system, Access business auditing software, tax legislation

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