Has the Budget helped your business?

Small businesses across Wolverhampton could benefit most from announcements made in this week’s budget, according to Steve Aston at Wolverhampton based accountants, ags.

Tax returns for half a million of the country’s smallest businesses will be cut and there will be more options for paying and managing VAT online. The changes are partly due to the integrated HM Revenue and Customs which will soon be created. A reduction in red tape was teamed with the aim of helping small businesses understand their tax liabilities more easily.

The key points stated that small businesses should:

Steve comments: “The Chancellor informed us that every working day another 600 new businesses are starting up, therefore we would expect some kind of help for these new companies. In a sense it was provided. Red tape is one of the biggest concerns for small businesses and the budget did state that measures are being taken to help reduce the burden.

“As always there were two sides to the budget. As expected The Chancellor also announced a range initiatives to tackle tax avoidance with the aim of protecting funds and creating a fair system. However businesses are sure to see this as an attack on tax planning which could result in higher costs.”

Another key issue related to International Financial Reporting and Accounting Standards (IFRS/IAS). Steve continues: “From the budget it seems these are not only causing headaches for businesses, but also the Inland Revenue itself.

“A Revenue Budget press release set out a series of minor amendments for the 2005 Finance Bill which goes some way to prove that the Government has recognised the potential problems identified by businesses.”

The main change is a concession allowing securitisation companies to be taxed as if they had continued to use UK GAAP. The government will include powers in the Finance Bill to pave the way for permanent regulations covering the taxation of these companies.

For details on how the budget will affect your business, call ags on 01902 717175.