Three in four small businesses in the UK feel that the Government favours big businesses, suggests a MarketInvoice poll conducted by Censuswide.
Last month’s Budget saw the announcement of several major initiatives to redress the balance between big businesses and SMEs, but these findings suggest the Chancellor will need to do a lot more to overcome the scepticism of UK SMEs.
Anil Stocker, Co-founder and CEO of MarketInvoice, said: “Small business owners feel cheated of their hard-earned profits when they see large corporations exploiting tax loopholes, whilst they have the taxman scrutinising every penny. The Budget went some way to righting this wrong, but actions speak louder than words.
“Until small businesses feel see the change in their own books, the Government’s reputation will remain tarnished.”
There are small signs that George Osborne is starting to address issues currently facing SMEs, however. When quizzed on their number one ‘wildest dream’ policy for the Budget, more than a quarter of small businesses said, “Scrap Corporation Tax for SMEs and make sure big business pays more”– and indeed in his Budget, Osborne announced that Corporation Tax for SMEs will be reduced.
He went one step further to address issues of imbalance with the announcement of fewer loopholes for multinationals and more tax breaks for SMEs. From April 2017, 600,000 small firms won’t have to pay business rates, while 250,000 will pay lower rates than they have been.
Robert Ellis, Principal at Ellis & Co, said of the figures: “The smaller businesses in the UK continue to suffer from too much legislation leading to increased administration costs and an inability to take advantage of tax incentives through lack of finance.”
For more information on the latest implications of the Budget for SMEs, please contact Robert Ellis on 01244 343504.