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Business tax: Who gets your vote?

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Conservatives:

  • Any new business started in the first two years of a Conservative Government to pay no Employer National Insurance on the first ten employees it hires during its first year. The tax break will encourage new entrepreneurs and is predicted to generate around 60,000 additional jobs over two years.
  • Want to reform the system of taxing the self-employed (Mark Prisk quoted in the Sunday Telegraph).
  • Will review IR35 (Mark Prisk quoted in Daily Telegraph).

Labour:

  • Cut business rates for eligible small businesses occupying properties with rateable values of up to £6,000 to nil for one year from October, with reductions for those occupying properties with rateable values of up to £12,000.
  • Support small businesses. Continue the Time to Pay scheme for deferring payment of tax.
  • Make further progress in cutting the costs of regulation on growing businesses, especially the smallest, with a new goal to cut the cost of regulation by a further £6.5bn by 2015 (£1.5bn in unnecessary paperwork and record-keeping, and £5 billion in the wider regulatory costs that impact upon business).
  • Retain the Annual Investment Allowance of £100,000 for the next Parliament and index-link the allowance.

Liberal Democrats:

  • Cut red tape to ease the burden on smaller businesses.
  • Cut business rates for smaller businesses and base rates on site values, rather than total rental value, which penalises businesses that invest in improving their premises.
  • Make it easier to contract with government so that smaller firms are not disadvantaged.
  • Encourage the creation of Local Enterprise Funds to connect local private investors with local entrepreneurs.
  • Reform Regional Development Agencies to devolve power to local authorities and focus support on where it is most needed.
  • Overhaul competition powers to reduce the power of monopoly organisations both nationally and local, and to encourage innovative businesses to thrive.

Which party has the most business-friendly policies? Let us know your views!

Full a full analysis and comparison of the three main parties’ tax manifestos, click on Smith & Williamson‘s report below.

Tax brief.pdf

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