It looks eminently likely that Chancellor Rishi Sunak will aim to claw back some of the money spent by the treasury on keeping businesses and the economy afloat, by raising corporation tax in the March budget, a move that will not go down well in business circles.
Sunak Looking To Balance The Books
Around £400 billion has been spent by the government on measures to keep people in jobs and ensure that as few businesses go to the wall as possible, so it is inevitable that they will soon be looking to start balancing the books. This will certainly not be achieved for a long time of course and it may be the case that trying to balance the books too soon may put many more businesses in jeopardy of going into liquidation.
But Rishi Sunak will almost certainly push ahead with raising corporation tax, as he will weigh up the fact that companies have received a huge amount of taxpayer financial support over the last 12 months or so. Corporation tax is set at 19% at the moment, what it may rise to is anyone`s guess right now, but it is something for business owners to bear in mind when planning for the future.
Calls For Government To Deliver Existing Plans & Packages
Meanwhile the ICAEW has called for the government to “focus on delivering existing plans and Covid support packages”. In an article in Accountancy Today they are quoted saying:
“In the light of the continuing pandemic and leaving the EU, the theme of the budget needs to be ‘steady as she goes’ with any changes kept to a minimum.”
“We therefore recommend implementing only existing pre-announced changes, with the exception of coronavirus related relaxations, simplifications to reduce Making Tax Digital reporting burdens for businesses and property landlords from April 2023, and measures to facilitate cross-border trade.”
Support Must Come First For Our Beleaguered Business Community
We definitely agree that this is not the time to put any more pressure or financial burdens on a business community which has been under so much pressure over the course of the last year. Without businesses surviving the pandemic there will be less jobs and less money in the economy which will lead to further heartache for the country which is the last thing we need.
And by the way if you are not sure if there are any further support packages that your business could avail themselves of get in touch with us here at WHR Accountants and we can explore what funds are out there for you and how best to apply for them. Give our offices a call on 028 3752 2909.