SMEs are facing increased financial pressures following the Budget. Key changes include rising dividend taxes and the extension of a freeze on income tax thresholds until 2030/31, which will push more workers into higher tax bands, thereby reducing their spending power. Analysts commented that these measures could deter passive investment. They also advised that “It is likely that freezing income tax brackets will put pressure on SMEs both on the demand side and by producing a need to pay higher wages”. The likely result is that margins will shrink and some businesses will become targets for opportunistic local competitors or trade buyers. Experts also suggest that the two percent increase in dividend taxes may deter people from starting a business. The Federation of Small Businesses is saying that “it makes investment in your own business one of the least tax-friendly things you can do with your money.”
iBOSS Comment:
If you are one of the many SMEs that is going to suffer even more as a result of the Budget and would appreciate some help and advice on the best options now available to you to get your business on the road to growth, then call us on 07876 503830. Or e-mail to Phil@theiboss.co.uk and ask for one of our free 2-hour ‘no-strings’ consultations. Alternatively review our web site www.theiboss.co.uk to learn about our services and complete the enquiry form. The same applies if you have been considering starting up a new businessand you’re not sure if it is now the sensible thing to do. Ask about our Interim Management Support services.