Welcome to our round-up of the top business and finance news stories that had small business owners talking this week. Starting with the delivery of George Osbourne’s budget, and finishing up with struggles from SMEs who are experiencing difficulties with the new ‘real time’ PAYE system. Read on for more…
Feature of the Week
The end of March saw Chancellor of the Exchequer, George Osbourne, announce the Budget for 2015 – so what’s in store for small businesses? While it’s been received as a mixed bag in general, this piece from City AM claims that it’s good news for start-ups.
Entrepreneur’s Relief will be remaining mainly unchanged, with the addition of extending Entrepreneur’s Relief to cover shares held by academics in university spin-out companies.
Plans have also been announced to remove annual personal and business tax returns, and move to digital tax accounts over the next five years. To see what else was added, have a read of the round-up in the link above.
HMRC are underestimating the number of tax reliefs, not counting their cost, and not checking to see if the reliefs are being abused, says a report from the Public Accounts Committee (PAC).
MPs are issuing their concerns for HMRC’s accounting of tax reliefs, with their list numbering just 398 reliefs but the Office of Tax Simplification counting 1,140 – amounting to £100bn a year in missed tax.
Social media site Facebook has announced a new batch of updates and additions to their popular online services, including the introduction of a Messenger app that will allow businesses to send personal messages to Facebook users’ inboxes.
It also might mean big things for businesses using ecommerce – see the article above to find out more…
Bad relationships between big businesses and small businesses mean that SMEs are suffering, according to a poll of 4,000 UK small and medium enterprises. Nearly half of SMEs claimed their big business counterparts are not interested in fostering long-term relationships or open to negotiating payment terms.
On top of these stats, 70% claimed that late payments from big businesses had been a problem in the last 12 months. See more of this report in the news piece above.
Any businesses with 50 employees or fewer will now be fined £100 or more if they don’t submit any payroll information to the Revenue in ‘real time’, to enforce more businesses to comply with ‘real time’ reporting of PAYE.
However critics are saying that the Revenue needs to find a way to distinguish between deliberate avoiders of paying tax on time and those who are experiencing faults with the new system. Find out the problems some companies have been experiencing in this story.