Small businesses, umbrella companies and limited company IT contractors will be in a state of ‘limbo’ until the emergency Budget is delivered on 22nd June.
This is the view of Jane Bennet from the Forum of Private Businesses, who has suggested that the majority of SMEs will delay key decisions on investment and staff retention until they have a better idea of how the proposed changes to corporation tax will affect them.
Talking after the Queen’s Speech this week, Bennet said that although the Budget is set to outline significant cuts in public spending in an attempt to reduce the deficit, most small businesses are on the whole pleased with the way the new government has set out it’s plan to rebuild economic stability to the UK.
The proposed increase in Employer’s National Insurance, or the “tax on jobs” as some political commentators were calling it, will be scrapped along with several other pre-election pledges from Labour.
The view from most umbrella companies is that it’ll be business as usual for the next 12 months, until which time we should have a better idea of how the agency workers directive will sit within the industry and, more importantly, how the new government plans to tackle the much criticised piece of EU-inspired legislation.
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