Businesses Urge Chancellor To Reverse £12 Billion Jump In Tax Burden
Posted by Liz Seyi on February 24th, 2022
More than a few clients of our tax compliance services at TS Partners are likely to be doing the sums right now on what their obligations to the Treasury will be in the months and years immediately ahead.
The results of those calculations might not make pretty reading for many. This, in turn, makes it unsurprising that key figures in UK business are presently asking the Government to help lower their burdens, especially amid uncertainty brought by the recent resurgence in COVID-19 cases.
What are key business figures saying to the Government?
As reported by smallbusiness.co.uk, the President of the Confederation of British Industry (CBI) – Lord Bilimoria – has described the present moment as “absolutely the wrong time” for Chancellor of the Exchequer, Rishi Sunak, to impose heftier taxes on businesses.
He was referring to the UK Government’s plans to put up such taxes by £12 billion from April 2022, as firms across the country see a stop-start recovery, instead of the stronger and more sustained one that had been hoped for.
Recent news headlines have also centred on the quick spread of the Omicron variant of COVID-19, which has prompted many firms to ask for greater financial support from the Government to aid their efforts to survive the next few months.
At the time of typing, however, Mr Sunak intends to hike National Insurance (NI) contributions in the spring, in addition to putting up corporation tax in 2023.
“The Government must be incentivising growth and investment”
Lord Bilimoria said to The Telegraph: “This is absolutely the wrong time to have the highest tax burden for 70 years. We need to be helping our economy and businesses that have suffered so much. The Government must be incentivising growth and investment.
“Business is grateful for the support so far; it has saved millions of jobs. But the recovery – which was meant to be a ‘bounce back’ recovery – has ended up being a very fragile recovery.”
Recently voicing similar sentiments has been ukactive chief executive Huw Edwards, who called for the Treasury to suspend business rates for all gyms and fitness businesses for 2022’s first quarter, in addition to reducing VAT rates and putting in place new grants to compensate for lack of trade.
Smallbusiness.co.uk said that the UK fitness sector had urged the Government to make available “urgent financial packages”, on the basis that home-working guidelines imperilled the crucial January sign-up period for city-centre gyms, which depend on commuter footfall.
Another worry for the sector is that in March, the commercial property rent moratorium that protects firms in rent arrears from eviction is due to end.
It has been reported that business lobby groups recently met with Business Secretary Kwasi Kwarteng to call for additional government financial support.
The Telegraph said it understood that groups including the Federation of Small Businesses (FSB) and the Institute of Directors (IoD) were pushing for the intended rise in National Insurance from April to be delayed or cancelled.
Talk to our team about how we can help you negotiate the evolving tax landscape
During these continued times of often rapid change and lingering uncertainty, it could not be more important to have the right chartered tax advisers by your side.
Contact TS Partners now about our tax compliance services that could help give your UK business fewer worries as you look to navigate the next phase of the coronavirus pandemic – and beyond.