Entrepreneurs contest claims that the 2004 budget was small business friendly
One out of five successful small businesses feel that the 2004 budget has had a negative effect on their business according to a recent study
With five months past since the budget, a survey released by Tenon, the nation-wide small business accountants and advisors, shows that little difference has been made to two thirds of businesses.
Results show that out of 500 UK businesses polled, a mere 7 per cent claimed to have benefited from the budget.
In his 2004 financial statement, chancellor Gordon Brown closed a tax loophole that allowed incorporated company bosses to benefit from incoming dividends.
Andrew Hubbard, Director of Taxation at Tenon, said, “The long awaited attack on the tax advantages of small companies was launched this march.
“Although it didn’t seem to be as bad as we had initially anticipated, this could be one reason why small businesses are speaking out against the budget, as it has affected thousands of small enterprises across the country.”
Those most affected by the budget include the motor trade and the transport industry. Within these sectors 25-30 per cent of people questioned claimed that the budget had a negative effect on their business.
Overall the survey shows that new tax measures have impacted worst on companies with a turnover of between £250,000 to £500,000, with 32 per cent claiming it has affected them negatively.
The negative effects of the budget were felt by only 18 per cent of business with annual earnings between £500,000 and £1m and 14 per cent of businesses with a turnover of £101 to £250,000.
On a regional basis, 22 per cent of businesses in the Midlands and Wales felt most adversely affected compared with 20 per cent in the South and 16 per cent in the North.
