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The Forum of Private Business (FPB) has published its wish list for the Chancellor ahead of his Budget speech tomorrow (21 March).
The FPB, which represents 25,000 small and medium-sized businesses across the UK, is calling for action from Gordon Brown to help make the UK a country in which smaller businesses can survive and thrive. In particular, the FPB's is asking the Government to: - amend the Low Value Consignment Relief (LVCR) offshore VAT loophole - Goods worth less than £18, such as DVDs and CDs, are being shipped to and from the Channel Islands and then sold without the imposition of VAT, by using the LVCR mechanism. High street retailers are unable to compete with these artificially low prices and the FPB is calling for this loophole to be closed;
- re-introduce the nil rate starting band on corporation tax for the first £10,000 of profits - thousands of micro businesses are facing an additional liability of up to £1,900 a year. This is in addition to the extra bureaucracy necessary after registering with Companies House. These businesses are unable to revert to their prior business status without being subject to Capital Gains Tax;
- introduce a more efficient VAT registration process;
- integrate NIC with income tax for employed earners;
- link the National Minimum Wage to the Retail Price Index;
- combine VAT and Company Tax inspections to follow those recommendations already presented in the O’Donnell Review. In July 2003 the Government announced a major review of the organisations dealing with tax policy and administration. Subsequent recommendations included the creation of a new department, integrating Customs and Excise and the Inland Revenue, new policy-making arrangements between the new department and HM Treasury and a new accountability framework. The FPB wants VAT and Company Tax inspections to follow those recommendations to further simplify the process for smaller businesses;
- reintroduce tax exemption on computers for employees;
- give businesses more influence within skills initiatives - The Skills Sector Council (SSC) should be doing more to incorporate the needs and ideas of smaller businesses.
- focus further education on the needs of businesses;
- priorities must be set for the Small Business Service;
- set aside a percentage of public procurement contracts for smaller businesses; and
- control of the simplification agenda - The FPB would like to see the introduction of an independent control mechanism to monitor and evaluate the targets of the Government’s simplification agenda. This is vital because a fair and unbiased review will allow businesses to benchmark the progress of the Government in its commitment to reducing the regulatory burden.
Link Forum of Private Business
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About The Author
Sarah Laing
Editor, TaxationWeb News
Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences).
Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Tuesday, 20 March 2007 | 941 Hits
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