Every year the Chancellor announces the Autumn Statement and new Chancellor, Phillip Hammond, recently revealed his. (He also announced this would be the last Autumn Statement and unveiled plans for an Autumn Budget and Spring Statement from 2018).
Some key points from his first, and final, Autumn Statement included:
- A plan to honour a decrease in corporation tax to 17%
- £1bn for digital infrastructure
- £23bn on innovation and infrastructure over five years
- £2bn per year by 2020 for research and development funding
- £400m into venture capital funds through the British Business Bank
Whilst this may be something of a relief for those companies that are expanding at a rapid rate, it could be a different story for small businesses, freelancers and the self-employed.
Chris Bryce, Chief Executive of IPSE, highlighted the change in IR35 legislation as something that could mean irreversible damage to the public sector in terms of the use of contractors (something we’ve spoken about before here at Clarke Bell).
The Chancellor also announced a consultation regarding how to increase the tax take from the self-employed which would be a setback for those hard-working individuals in this sector.
Additional taxes on employers could also affect small businesses with Clive Lewis, Head of Enterprise at ICAEW, lamenting the lack of tax incentives for small to medium sized businesses to export.
There’s also the possibility of the VAT flat rate scheme, introduced to help small businesses, being shut down. This would be another blow to smaller companies.
What effects could this have on small businesses?
Already struggling businesses could see their climb to the top of the hill get that little bit steeper. Going it alone or starting your own business is a massive risk to take and those hard-working, innovative individuals who have taken the plunge may feel with this Autumn statement that the odds of success have been stacked against them.
If you are the owner of a business that is struggling and you’re looking for free, no obligation advice, contact the team here at Clarke Bell.
As Licensed Insolvency Practitioners and Business Re-start Specialists, we work with a wide range of small to medium sized businesses who are experiencing cashflow difficulties and other financial difficulties such as debt.
We’ll work together with you and your business to find the best solution to your individual business needs and an individual case manager will be dedicated to taking care of you.
Whether you want to find a workable solution to keeping your business afloat or you’re looking for the most cost-effective and correct way to close down your business, such as a Creditors Voluntary Liquidation (CVL) we can help.
Contact our team today for more information on 0161 907 4044 or [email protected]