As small businesses come under pressure from tax hikes, are you paying too much?06/12/2021
According to the Federation of Small Businesses (FSB), recent tax hikes threaten to forestall the UK’s recovery from the COVID-19 pandemic. They say that the cost of business is higher than ever, putting small businesses particularly under “unprecedented strain”.
The Federation also said that it is not just tax which is dangerous to small businesses. Many of the woes plaguing businesses of all sizes, such as supply chain disruptions and rising costs (for example, of raw materials), are having an outsized impact on smaller businesses.
The Federation has been calling from more aid from the government in the post-Coronavirus Jobs Retention Scheme (CJRS) era. The CJRS was a lifeline for many small businesses during the pandemic, and the Federation would like to see more done to replace it. Specifically, they would like help creating jobs and a scheme aimed at filling skills shortages.
Mike Cherry, the FSB’s National Chair, told the press: “It’s disappointing to see that more is not being done to tackle employment costs, which are a huge drain on small businesses.
“Increasing the Employment Allowance would help protect the smallest employers who are being hit hard by the end of furlough and the NICs rise. The government should also expand Small Business Rates Relief to premises with a rateable value of £25,000, removing an additional 200,000 small firms from the scope of this tax.”
In an earlier blog, we wrote about the National Insurance Increase and Health and Social Care Levy, offering readers advice on mitigating the higher costs coming their way. We have also covered other stories about rising costs for British business, such as the latest Minimum National Wage increase. So, there is no denying that the FBS has a point: it is becoming more expensive to be a small business in Britain. As a result, it is absolutely vital, if you want to make your business as competitive as possible, that you do not allow it to pay more tax than it needs to.
At JW Hinks, our professional team of tax experts can ensure that you are operating legally and within regulatory guidelines, whilst also minimising the amount of tax you are due to pay. Call us on 0121 456 0190 to find out more about how we can help.