THE owner of an award-winning accountancy company says that she feels ‘lulled into a false sense of security’ following the government’s Autumn Statement.
Bev Wakefield – owner of Derby-based Vibrant Accountancy – says that, as a small business owner herself, she is disappointed with the announcements made by Chancellor Jeremy Hunt that included business rates being frozen for a further year and an increase in the National Minimum Wage.
“For me, the Autumn Statement was hard to watch,” said Bev.
“It was branded as being the Chancellor’s biggest business tax cuts in ages and I believe that small business owners were lulled into a false sense of security. This, however, was nonsensical from a small business owners’ perspective.
“Don’t get me wrong, there is great news for the East Midlands with updates on Freeports and Advanced Manufacturing areas being given 10 years of “financial incentives” plus simplified changes for R&D but, overall, the tax rate cuts he eludes to are full expensing which, unless you were ever going to spend £1m on business assets over the next year, are in no way beneficial to you as a small business owner.
“Mr Hunt opened up the session with high spirits and high hopes, and 110 growth measures up his sleeves by discussing levelling up and cutting business taxes, maybe lulling us into a false sense of security.
“Inflation, growth and debt levels were discussed, and electricity incentives if you live near the infrastructure. Tobacco duties for roll ups is increasing, and veterans’ employee national insurance has been frozen.
“There is a focus on higher productivity to increase investment but again the government managed to elude to measures to unlock investment and back British Businesses.”
There was better news for those who are self-employed with reforms to the way national insurance is paid to save around two million people an average of £350 per year.
Employees, meanwhile, will also see a deduction in national insurance from January 6, 2024. Those earning more than £12,570 a year currently pay 12% national insurance on pay up to £50,270 and this will fall to 10% in the new year.
There is also an increase in the national minimum wage, which will rise to £11.44 an hour from April.
Bev said: “I’m pleased that the hospitality and retail sector, which is still struggling post-covid, will see business rates frozen for another year with a 75% discount but, other than that, there was no other big reveal in the Chancellor’s statement.
“Confidence is at an all-time low and the economy is still struggling. Now, more than ever, small businesses need to stick together and the best piece of advice I would give is to check in with your accountant if you’re not sure what all these changes mean for you.”
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