Guarantees From Government Needed In Autumn Statement For SMEs

Guarantees From Government Needed In Autumn Statement For SMEs

Ed Molyneux

CEO and Co-Founder at FreeAgent

Views 223

Guarantees From Government Needed In Autumn Statement For SMEs

21.11.2016 09:15 am

I would like to see more guarantees of support for freelancers, contractors and the smallest micro-businesses - those who have traditionally been overlooked by UK chancellors at Budget time. That means less red tape for them to deal with, an easier tax system to navigate and more opportunities to maintain a healthy cash flow and let their businesses thrive.

Late payment, in particular, is a huge issue for freelancers and micro-business owners. The vast majority of them have experienced clients that are chronic late payers, or who don’t pay at all, so I would like to see legislation introduced that specifically targets this problem. Despite the government planning to introduce a small business commissioner in the near future to look into this issue, the reality is that this will likely be a toothless position with severely limited powers. I would like to see the commissioner given the ability to actually penalise late payers with financial penalties - not just to name and shame them."

For contractors, I’d like to see a complete overhaul of IR35 legislation, which has a real, detrimental effect on small 1-2 person businesses and IT contractors who run their business as a limited companies and take short-term contracts. Instead I would replace it with simpler, more robust and fairer rules around small businesses’ employment status.

Finally, it would be good to see some further clarity about the government’s Making Tax Digital plans - especially with regards to the smallest freelance and micro-businesses. Ideally, I would like to see businesses making between £10,000 and the VAT threshold of £83,000 given an additional year to prepare for MTD, and for the turnover threshold for the cash-basis reporting scheme raised to £166,000 - double the VAT threshold - to make digital tax easier for more UK businesses.

Latest blogs

n/a n/a

Tips on How to Successfully Trade CFDs

A CFD or contract for difference is a financial product that allows a trader to speculate on asset classed without owning a portion of the underlying asset. A CFD trade is not an investment but high-risk speculation that carries the risk of losing Read more »

Patrick McKinney and Joe Fuchs Wolters Kluwer Finance, Risk & Regulatory Reporting

Building an Integrated Data Management System: A Guide for Digital Banks

Digital banks and other FinTechs are emerging as more nimble competitors to established legacy banks. The digital banks that are on their way to becoming fully chartered have the opportunity to setup fully automated processes and systems without Read more »

n/a n/a

How COVID-19 Is Ushering In a New Era of Cashless Technology

  Image source: https://www.pexels.com/photo/person-shopping-online-3944405/   Cashless technology isn't a completely fresh concept. People have been using credit cards for decades, and the market for fintech services has been Read more »

Jean Shin tyntec

Using WhatsApp for 2FA is the Future of Banking

From user authentication and password resets to transaction verification, two-factor authentication (2FA) offers basic but useful protection for consumers. The 2FA process typically sends an SMS sent to the customer with a one-time password (OTP). Read more »

Amir Ghodrati App Annie

The Role of Fintech Apps in Navigating This Period of Financial Insecurity

Economic instability has been ricocheting throughout the stock market in the wake of the global coronavirus pandemic. Its effects have been felt across all industries, with winners and losers’ across different sectors. So, how has fintech Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel