News Article - 24 May 2012
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The chancellor needs to take the business health of small and medium-sized enterprises (SMEs) into account with this year's Budget, it has been claimed.

According to Tom McGinness, head of middle market tax at KPMG UK, "simplification and certainty" are the two key factors that SMEs are looking for this year.

He said that when it comes to changes in the tax regime, all companies are affected in a similar way but smaller firms are less well equipped to deal with the amendments, therefore losing their competitive edge.

In relation to the capital gains tax changes recently announced, all the minor details are yet to be finalised, meaning SMEs are being kept in the dark when it comes to future business plans, Mr McGinness added.

He explained: "It's important for business to know where it stands and to be confident that a decision based on today's environment will still make sense tomorrow. If the rules keep changing then it's almost impossible to keep up."

In addition to ensuring tax changes are simplified, SMEs would benefit from increased incentives for green actions, he concluded.

SMEs were recently advised to invest in online accounting software to keep up-to-date with certain business issues such as tax.

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