Businesses Urge Chancellor To Reverse £12 Billion Jump In Tax Burden
by Liz Seyi Digital marketing managerMore
than a few clients of our tax
compliance services at
TS Partners are likely to be doing the sums right now on what their obligations
to the Treasury will be in the months and years immediately ahead.
The
results of those calculations might not make pretty reading for many. This, in
turn, makes it unsurprising that key figures in UK business are presently asking
the Government to help lower their burdens, especially amid uncertainty brought
by the recent resurgence in COVID-19 cases.
What are key business figures saying
to the Government?
As
reported by smallbusiness.co.uk, the President of the Confederation of British
Industry (CBI) – Lord Bilimoria – has described the present moment as
“absolutely the wrong time” for Chancellor of the Exchequer, Rishi Sunak, to
impose heftier taxes on businesses.
He
was referring to the UK Government’s plans to put up such taxes by £12 billion
from April 2022, as firms across the country see a stop-start recovery, instead
of the stronger and more sustained one that had been hoped for.
Recent
news headlines have also centred on the quick spread of the Omicron variant of COVID-19,
which has prompted many firms to ask for greater financial support from the
Government to aid their efforts to survive the next few months.
At
the time of typing, however, Mr Sunak intends to hike National Insurance (NI)
contributions in the spring, in addition to putting up corporation tax in
2023.
“The Government must be incentivising
growth and investment”
Lord
Bilimoria said to The Telegraph: “This is absolutely the wrong time
to have the highest tax burden for 70 years. We need to be helping our economy
and businesses that have suffered so much. The Government must be incentivising
growth and investment.
“Business
is grateful for the support so far; it has saved millions of jobs. But the
recovery – which was meant to be a ‘bounce back’ recovery – has ended up being
a very fragile recovery.”
Recently
voicing similar sentiments has been ukactive chief executive Huw Edwards, who
called for the Treasury to suspend business rates for all gyms and fitness
businesses for 2022’s first quarter, in addition to reducing VAT rates and
putting in place new grants to compensate for lack of trade.
Smallbusiness.co.uk
said that the UK fitness sector had urged the Government to make available
“urgent financial packages”, on the basis that home-working guidelines
imperilled the crucial January sign-up period for city-centre gyms, which
depend on commuter footfall.
Another
worry for the sector is that in March, the commercial property rent moratorium
that protects firms in rent arrears from eviction is due to end.
It
has been reported that business lobby groups recently met with Business
Secretary Kwasi Kwarteng to call for additional government financial
support.
The Telegraph said
it understood that groups including the Federation of Small Businesses (FSB)
and the Institute of Directors (IoD) were pushing for the intended rise in
National Insurance from April to be delayed or cancelled.
Talk to our team about how we can help
you negotiate the evolving tax landscape
During
these continued times of often rapid change and lingering uncertainty, it could
not be more important to have the right chartered tax advisers by your
side.
Contact TS Partners
now about our tax compliance
services that could help give your UK business fewer worries as you look to
navigate the next phase of the coronavirus pandemic – and beyond.
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Created on Feb 24th 2022 01:35. Viewed 55 times.