So, the eagerly awaited emergency budget has been delivered, and after much media speculation, the Chancellor has surprised many with his package of spending cuts and tax rate changes.
Herewith a brief summary of the main points with a brief comment of the impact on businesses and individuals:
There has been much written about the credit crunch. There can be no doubting that this has been a very challenging time for small businesses and many have not managed to survive the current economic downturn. Many firms that have continued to trade are only breaking even, or trading at a loss.
Whilst this climate has many negative implications, there have been some positives too. Many owner managed businesses who have not had the resources to allocate to every area of their business (which they have previously overlooked) are being forced to ensure that every area of their business is now being given sufficient attention:
HMRC have introduced a complete overhaul of their powers in relation to compliance of the tax system by business owners. These powers came into effect from 1 April 2009.
The new penalty regime relates to Income Tax, Capital Gains Tax, Corporation Tax, VAT, PAYE, National Insurance Contributions and CIS.
Whilst the new regime can drastically increase penalties, it is our view that the ideology behind it is the right one in that it seeks to assist taxpayers who make every effort to comply, whilst coming down hard on those who abuse the system. With the public coffers at such low levels, it will be much more beneficial for HMRC to target the abusers as this will result in substantially higher tax takes.
So, the eagerly awaited Pre-Budget Report has now been delivered and it’s content begins to be analysed.
Once again, henchmen Brown & Darling act as a modern day Ronnie & Reggie. Giving the illusion of lending money, you can be sure they will be demanding it back, with menaces, before you can say ‘protection racket’.
The headline grabber was the TEMPORARY reduction of VAT from 17.5% to 15% for a thirteen month period.
Baiju Solanki is a Performance Coach and is Managing Director of Performance Coaching and Training Limited. The company was formed with the objective of helping local businesses and individuals to fulfil their potential through understating what they CAN do to be able to perform at the best more often. Performance Coaching and Training act for numerous businesses in the Essex area including Southend Council – Teachers, BRS Associate, Southend Hospital, Liberty Hygiene and South East Essex College
Here, Baiju talks to Jason Dormer about challenges in business.
As is often the case, if the UK press predicts a recession then it may become a self fulfilling prophecy as consumers and businesses react accordingly.
After discussing our views on fixed fees, value pricing and time based billing, it became apparent that Hugh was a man after my own heart. Hugh kindly gave me a copy of his book ‘Life without Timesheets’ in exchange for my promise to review it on a leading accountancy website.
Welcome to the first of our regular blogs which we hope that you will find useful and informative.
I am going to kick off on a subject that is topical for many. There has been plenty of client feedback in recent weeks suggesting that the credit crunch is beginning to affect local business. Fewer sales, higher costs and decreased orders have all been mentioned along with the number one complaint: unpaid invoices. I am in no doubt that there will be challenging times ahead and that firms need to take action on this subject now whilst time is on their side.