Budget predictions for small businesses

With the Treasury’s autumn budget statement set for October 27, SME accounting expert, The Accountancy Partnership, is hoping to see the government ramp up support for small businesses as the country recovers from the coronavirus pandemic.

Lee Murphy, managing director at The Accountancy Partnership, said: “The focus of the Autumn Statement will be the ongoing economic recovery following Covid, so the announcement will detail what will happen as emergency support is phased out and whether recovery support will be introduced.

“We would hope to see financial support for small businesses in some form introduced, whether that is a revised approach to business rates, grants or investment schemes. Rebuilding from the pandemic is not going to be instant, and with ongoing adjustments following Brexit, the government needs to recognise the importance of the small business community’s contribution to the overall economy and allocate budget accordingly.

“The usual tax rate and threshold changes will likely be announced. With the debt generated by the pandemic, these are likely to be higher than ever, reinforcing the need for small businesses and their owners to be supported.

“The ending of the furlough scheme may present issues for businesses that are struggling to meet pre-Covid levels of demand, but hopefully this will alleviate some pressure on the employment market. Currently, there are over a million unfilled jobs, but not nearly enough people to fill them.

“The tax basis period reforms have been delayed, as well as the rollout of Making Tax Digital for Income Tax, which has now been pushed back to April 2024. We expect that the Chancellor will give further details on this and updates on Making Tax Digital for Corporation Tax, which will allow small businesses to start to explore how this will affect their business.”

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