NICs

Budget Must Simplify Business Taxes, says FPB

The Government has already pledged a “Budget for enterprise”, but for small firms to fill the economic vacuum the Chancellor must simplify the tax system, the Forum of Private Business (FPB) has said. The FPB has welcomed a recent report from the Office of Tax Simplification (OTS) which recommends that the Government should merge income tax and National Insurance (NI) payments – saying that the current system is unclear and time consuming for employers. “Having one figure instead of two would give the employer a clearer idea of the overall cost of employment and simplify their payroll.” said FPB research projects manager, Thomas Parry. “In the past NI has been used as a stealth tax and it’s not always apparent to the employer what they are paying and what the employee is ... »

National Insurance Exemption Begins for Start-ups

Start-ups outside London, the South East and east of England no longer have to pay employers’ National Insurance Contributions (NICs) in their first year of trading, following the launch of a tax exemption scheme. Announced in June’s emergency Budget, the Regional Employer NICs Holiday for New Businesses is aimed at encouraging enterprise growth in the parts of the UK which were worst hit by public sector spending cuts. “For the next three years, anyone who sets up a new business outside London, the South East and the Eastern region will be exempt from £5,000 of employer National Insurance payments, for each of the first ten employees hired,” said Chancellor, George Osborne when the scheme was announced. Under the three-year scheme, new businesses in all parts of the UK ? excep... »

Business Groups Welcome Chancellor’s Tax Relief for SMEs

Business Groups Welcome Chancellor’s Tax Relief for SMEs

Business groups have welcomed tax relief schemes announced in the Budget to help small firms, saying that the Chancellor has finally recognised the need to put small business at the heart of economic policy. However, they expressed continuing concerns about the UK’s Budget deficit and its impact on business activity. “After two years of economic downturn, the Chancellor has clearly recognised the need to place business at the heart of the Budget,” said British Chambers of Commerce (BCC) director general, David Frost. “Doubling the annual investment allowance, help with business rates, and allowing entrepreneurs to keep more of their gains will prove especially popular.” “However, the Chancellor could have done more to set out a clear plan for the reducti... »