We spoke to a range of small firms throughout the country to find out
their reaction to announcements made in the 2013 Budget. Here’s what
they said…
Neil Westwood of Magic Whiteboard
“Any budget that focuses on lowering taxes for working people has to
be a good thing, so increasing the personal allowances gives a strong
positive message.
"Also, lower Corporation Tax for businesses will be welcomed.
Freezing vehicle duty for haulage companies will also help lower costs
for businesses. Simpler tax processes for lifestyle businesses will also
be beneficial.
“Apart from that, I didn’t get a feel this was a budget for small
businesses (or large businesses). Will it help create jobs for one
million young people? To encourage employers to take the risk and employ
people National Insurance contributions should be reduced by 1% for
every person they employ for the first 10 people.
“Another good idea would be to offer entrepreneurs loans for young
people who don’t want to go to university but want to set up their own
new business, up to £2000. New businesses spend money and create jobs in
the economy; more needs to be done to encourage this. Marks out of ten?
6/10”
Helen McAvoy of ROCKTAILS
“The National Loan Guarantee Scheme is another Project Merlin, big
plans and big figures (£20bn) but it’s a damp squib. A 1% point
reduction on loan interest isn't much use if the majority of SMEs can't
get the bank loan approved in the first place. Enterprise Loans – if
they're properly managed and rolled out – should see significant
success. Young people may even get a better return on investment
compared to investing in a university education.
“The integration of NI and income tax should be pushed ahead ASAP. It
will help reduce confusion and admin for companies starting the
daunting process of hiring their first member of staff. No mention of
the NI holiday as yet, which has been an encouraging initiative.”
Andrew Milbourn of Kiss the Fish Ltd
“Reducing Corporation Tax is a welcome break and it will help to
provide income with which small businesses such as mine can more easily
employ staff. I’d have liked the Chancellor to have dropped the rate by
more and faster than promised.
“Simplifying tax for low turnover businesses is a sensible move,
although we’ll have to wait and see how it works. Certainly merging
income tax and national insurance is sensible and should cut down on
time spent on administration.
"The freezing of any further increases in fuel duty is a good, I
think it could have been very damaging if he’d increased it by any
amount. I’m not unhappy with this Budget. The chancellor has helped my
business – although not by much.”
Elaine Clark of CheapAccounting.co.uk
“After cutting through the puff and noise from the 2013 Budget
speech, what did it really contain for our micro business clients being
those who, in the main, have a turnover below £250K? The most leaked
budget to date is leaving me wondering why on earth I spent an hour
listening for what results in no immediate changes for the micro
business – we already knew what the tax rates were from April 2013, see our recent blog.
“So what of the proposed cash accounting system for businesses with
turnovers of less than £77,000? Yes this could mean some simplification
of the accounts preparation, but my guess is that many already operate a
cash accounting system. How many would know what the accrual system is
if you asked them?
"Plus, as usual, it’s jam tomorrow – a promise on something that may
or may not happen following a consultation that could take months or
years and could end after the term of this Government anyway.”
Ian Sharland of Baby Sensory
“The Chancellor alluded to a scheme whereby young people starting a
new business will be granted access to loans. Hopefully these loans
will be as readily available and similar to those attending university
and thus only repayable when their business can afford it. Many people
leaving university can’t find jobs and therefore they can’t repay their
loan. A similar loan to someone who starts their own business will place
the recipient in a job where they will be learning and paying tax long
before they would complete a university education. The more successful
young entrepreneurs will also in many cases create jobs.
“Young entrepreneurs who are uncertain about what business
opportunity to pursue could take on a franchise where they will, in many
cases, be supported while they develop business skills that will serve
them well throughout their working lives. Loans for young entrepreneurs
should not be subject to more rigorous inspection than loans to
students. Some new businesses will fail, but the entrepreneur will learn
and the loss will be no greater than that of a student who is unable to
find a job.”
Ruth Lopardo of www.loveitloveitloveit.co.uk
“My initial reaction, before the full details are winkled out, is
that this budget is a damp squib for small businesses. It’s a relief to
see that children's clothing remains VAT-exempt. I’m disappointed that
there's no real stimulus for small business growth. More details are
needed on tax simplification and the expansion of the Enterprise Finance
Guarantee.
"Changes to child benefit could be bad news for small business-owners
with children – the self-employed have no access to childcare vouchers.
For sole traders, it will be interesting to balance the increase in
personal tax allowance against the reduction in corporation tax to see
if an accelerated move to incorporate may be worthwhile.”
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