The New Year has arrived and there’s debate as small business owners reject plans to increase the number of year tax returns from 1 to 4. However in good news, it has been reported that 2016 is to see an increase in expansion and confidence among UK SMEs, as greater market stability prevails.
Feature of the Week
100,000 SME owners fight new tax plans | Telegraph
Small business owners and self-employed workers are battling against recent government plans which would make them file tax returns four times a year instead of annually.
These new tax returns would end up costing these companies between 20-150% more in accountants’ fees. An online petition was set up in mid-December and has garnered a great deal of support in the time since.
UK businesses at heart of global sharing economy | Growth Business
It has been predicted that by 2025, the sharing economy could be generating a potential revenue of £228bn, with an estimated £9bn of this amount reserved for the UK.
This new, on-demand economy will force us to question how businesses and economies work in the future.
A revival in confidence among SMEs over the past year has boosted investment and customer spending. A relative stability on the political and financial markets has made small businesses optimistic for the future.
However the looming possibility of a potential EU exit is causing concern to some due to the economic uncertainty it could create, which would have an impact on business and consumer confidence.
Global financial regulation putting a stop to UK SME growth | Crowdfund Insider
New regulations, aiming to make banks more stable and less vulnerable, have affected SMEs negatively by decreasing lending opportunities to these companies. The prosperity of many SMEs has therefore come at the expense of macroeconomic stability.
Lending is essential to the growth of many SMEs, and a shortage of it could have a pronounced effect on the economy.
Falling UK demand a concern to many SME owners | This is Money
Despite the gathering pace of Britain’s economic recovery and the record lows in unemployment, many businesses are less confident than they were a year ago, with almost one in three citing weakening UK demand as the biggest threat to their organisation.
There is also concern for exporters over the negative impact of the strength of the pound against the euro and the US dollar.