rtmark
LearnBonds.com

UK Budget 2020 Preview: Firms favour higher taxes in return for simpler rules

Just under two-thirds of UK firms say they would accept a tax rise in exchange for a simpler tax system, according to a report released today.

The survey comes ahead of new Chancellor Rishi Sunak’s March 11 Budget, where reports say, he plans to scrap entrepreneurs’ tax relief worth £2.7bn in order to increase spending on public services, which is criticised among some business circles as an attack on entrepreneurship.

Sixty-six per cent of firms said they would accept higher taxes in exchange for a less complex programme, a rise of 18 per cent among companies since the 2018 budget, according to accountancy group BDO. Only Only 12 per cent of firms said they did not find UK tax complex.

The UK’s tax code is famously complicated running to around 17,000 pages, by contrast, Hong Kong’s tax system has a tax code that runs to fewer than 300 pages.

 

UK-EU trade talks begin today

However, almost a third of firms, or 29 per cent, say are “reluctant” to see government investment from higher business tax rises until final Brexit negotiations are concluded between the UK and the European Union (EU).

Talks between the UK and EU aimed at reaching a trade agreement, scheduled for the end of the year, kick off in Brussels today.

Separate trade discussions between the UK and the US are set to begin later this month. Britain said a deal with the US would boost the UK economy by £3.4bn and would particularly benefit Scotland, England’s north-east and the Midlands. Boris Johnson’s administration added that any deal with the US would maintain food standards and protect the NHS.

Talks between the UK and the EU and the US are important to UK small businesses who might want to take out loans to capitalise on new opportunities. Britain’s 5.9 million small firms employ 16.6 million staff and turns over £2.2trn a year, according to the Federation of Small businesses.

 

UK plans to ‘supercharge the economy’

Following the government pledge to “supercharge the economy”, just under half, or 43 per cent of companies say “transport infrastructure improvements in all major cities should be the priority”, according to the BDO report.

Paul Falvey, tax partner at BDO, said: “Businesses are looking for the government to show that it will deliver on its promises to make the economy prosper post-Brexit.”

He added: “The UK tax system has its roots in the 19th century and has grown by adding taxes, reliefs and complex rules. Now is the time for the government to make business easier by simplifying tax. It requires progressive steps to be taken and an end to back door tax increases engineered by changing the rules for tax reliefs and allowances.”

The BDO survey that is based on a survey of 671 business leaders.

Trusted & Regulated Stock & CFD Brokers

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.