Government Called to Introduce Export Tax Breaks for Small Businesses
Forum of Private Business appeals to chancellor George Osborne as National Export Week begins
The Forum of Private Business (FPB) has called upon chancellor George Osborne to introduce a tax break scheme to facilitate small businesses trading in overseas markets.
Coinciding with the start of National Export Week (NEW), the FPB has stressed that exporting must be made easier for small and mid-sized businesses, with the forum proposing that the government introduce a tax scheme similar to corporation tax’s research and development relief.
The FPB, which lists its proposals in its autumn statement submission, suggests reducing an eligible entrepreneur’s tax bill or providing export activity tax credits, which would increase along with the business’ overseas sales.
This, the FPB believe, will encourage more small and medium firms to begin exporting and increase the probability of the government reaching its export target of £1tn by 2020.
Phil Orford MBE, chief executive of the FPB, discussed the proposal:
“The answer lies in encouraging our wealth of small business talent to look to foreign shores. However most small firms we talk to still see their growth coming from the UK, and there’s still a limited appetite and few incentives to move into exports.
“The research and development relief has proved both popular and effective, and a similar relief for export activity could be the carrot to encourage small business owners to consider overseas trade.”
For more information on small business exporting, check out our export section here.