Tommy McNally, Tax Expert and founder of Tommys Tax described the budget as “very bad.” He said,“Today’s budget is punishing successful businesses with the rise in corporation tax to 25%. This is a massive increase and much more than I was expecting. These are the companies that haven’t received any help from the government so far and I believe it will only encourage more big businesses to go offshore. Many big businesses were already on the verge of looking to move internationally because of Brexit and this will just push them over the edge.
“Where I believe they missed a trick was on a transaction tax on the digital powerhouses like Facebook, Google and Amazon. They avoid paying taxes in the UK because they make no profit at all here and they’ll continue to avoid paying taxes after today, while other big businesses suffer. I believe that on the point of sale these digital companies should pay corporation tax. In this form of transaction tax, they’re charged per item as at the moment we’re not going to capture any money from those big companies avoiding tax which is what we really need right now.
“The main positive takeaway from the budget that will help out the small businesses that I work with, particularly in my Self Employed Business Support Group on Facebook, is the continuation of the Self-Employment Income Support Scheme. This is really good news and business owners will breath a sigh of relief while many of those who were excluded up until now will be acknowledged at long last.
“I believe that the extension on stamp duty is also a huge benefit as this will boost the economy and support the construction industry as more people will be willing to invest in their homes.
“Overall, for the average person in the UK, who could be on furlough or running their own business, this was a good budget. But for the big businesses this was very bad news which will have wider, long-term repercussions for us all in the future.”
Tax and insurance specialist for freelancers, contractors and the self-employed, Qdos, have responded to the unveiling of the Budget today.
Qdos CEO, Seb Maley said, “On the face of it, the headline grabbing measures in this Budget seem generous – no immediate increase in Corporation Tax, a freeze on personal tax thresholds and more support for the self-employed will please many people working for themselves, in the short term at least. Dig deeper though and the cracks in this Budget become clear.
“The Chancellor reiterated that he will do ‘whatever it takes’ to support people and businesses. Yet millions of small business owners have been abandoned and left stranded without meaningful financial help for an entire year. The government must go further – these workers are key to the economic recovery.
“Delaying or, better still, scrapping IR35 reform in the private sector would have been the right thing to do for contractors. But I’m not surprised the changes will definitely go ahead next month – the government are desperate to roll out reform. My advice to contractors and businesses impacted is to prioritise IR35 compliance immediately. The reform can be managed with the right approach.”