As the dust settles on the Budget 2023, here’s the Positive Accountants view on what it all means for small businesses and SMEs:
Positives:
- The partial reversal of the cuts to R&D Tax relief are undoubtedly welcome for start-ups and SMEs involved in innovation and technology, and we applaud the Chancellor for taking on board the concerns of this sector – many of whom are clients of ours with whom we have been in dialogue for a long time.
- If you have been put off thinking about R&D Tax Credits by the previous announcement of a cut to the rate, but you spend at least 40% of your expenditure on R&D activities – speak to us about our R&D Tax Credit service here.
- The announcement of 30 hours free childcare for one and two year olds will be a great boost for parents looking to return to work, and who may now be emboldened to set up or re-start their own Limited Companies. Get in touch with us about our Accounting Services for start-ups and SMEs, we take away all the hassle of accounting for your business, so you can focus on getting back to work.
- Full expensing of business investment is another welcome measure that will encourage investment, although it only partially replaces the previous 130% super-deduction that businesses had previously enjoyed. We work with all our clients to optimise tax planning and investment prioritisation – speak to us here for a free consultation.
Negatives:
- Still no change on the pernicious IR35 legislation that is a giveaway for big business and the unscrupulous – however the more generous pension allowances will benefit those coming back to work through their Ltd Companies – speak to us if this applies to you.
- No change to the 25% CT rate – it’s too high and is an anti-business anti-enterprise move – we can help you mitigate its worst effects though!
- No change to Employers Allowance or cut in Employers NI to make it easier to hire permanent staff, or even a return of the Kickstarter scheme that provided a boost to youth employment.
Overall this budget took some of the edges off the pummelling that small businesses have faced since the autumn, but the odds remain stacked in favour of big business. Positive Accountants can help you navigate the constantly evolving policy landscape, giving you the best chance for your business to thrive.
