When he delivered his budget speech last week, the Chancellor announced that 21 enterprise zones were to be created rather than the originally planned 10. Businesses moving into one of these will receive discounts of up to 100% on their rates, superfast broadband and enhanced capital allowances where the zone focuses on manufacturing.
A group of MPs has said that tax professionals should be given the opportunity to scrutinise how policy changes will be implemented during the legislative phase.
Tim Denison from Synovate believes that the VAT increase which will come into effect next January could be the first of a range of changes.
HMRC is set to increase its investigations into tax avoidance and contractors not operating via an umbrella company may wish to get advice from a specialist accountant to ensure that all their tax matters are in order.
IntaPeople, an IT recruitment company has warned that key IT personnel, including those working through umbrella companies, will resign from the public sector and secure better opportunities elsewhere.
Both the BCC and the CBI have hit out at the coalition’s proposal to abolish the default retirement age from April 2011. The BCC’s director of policy, Adam Marshall, says this will restrict the ability of businesses to manage their workforce.
The government has announced that they will once again look at whether a general anti-avoidance rule should be introduced as a measure to deter limited company tax evaders.
The British Chamber of Commerce has warned George Osborne to tread carefully with his plans to increase taxes in today’s budget. UK umbrella companies will also be watching with interest.
Freelancers and contractors who rely on the public sector for contracts could find themselves struggling to find work according to the CIPD.
Small businesses and umbrella companies should plan ahead in order to cope with the changes that are likely to be introduced in next week’s budget.
The last budget before the general election will be presented on March 24th, the Treasury confirmed yesterday. It is thought that the Chancellor will unveil his plans to cut the growing public deficit by 50% over the next 5 years.
