Small Business and the New Coalition Government – What’s in store?
With the new coalition government settling into its seats, how will your business fair in light of the proposed changes on the horizon? Many uncertainties are still lingering, so what can we expect from the new government and how will it affect the smaller business and sole trader? The best way to start is to look at what was promised prior to the election, and see what might be in store if they stick it their promises. A few Conservatives pledges included:
Cut Corporation Tax
This would be good news for businesses, as it means companies will end up paying less tax with the small business rate dropping from 22% to 20% and the standard rate from 28% to 25%.
Simplify Business Taxes
The Tories have pledged to reform the tax system for business, making it in theory a lot easier to calculate taxes and slackening red tape.
Access for SMEs to Government tenders
Under new rules, 25% of Government contracts could be awarded to small and medium enterprises to help stimulate growth and encourage recruitment.
Overall the Tories have pledged to create a new generation of small businesses. Whether this will happen remains to be seen, as the new Liberal Democrat influence may make pushing some policies through more difficult than imagined.
Make sure you keep up to speed with developments, as things could change quickly. Seek expert advice from your bookkeeper if you are unsure of any tax or VAT issues or what changing legislation and policies mean to your business.