Re-affirmation of Johnson’s Promise?PM Johnson, promised to let small businesses “focus on what they do best – spurring innovation, creating jobs, stimulating growth”, and it seems like this mantra has continued with government plans to “increase tax credits for research and development”. “We are delighted to hear Her Majesty specifically mention R&D Tax Credits in her speech this morning and that our new Government has committed to increasing R&D tax credits to help innovative businesses thrive,” said Sarah Collins, Director of RIFT Research and Development. While R&D tax credit regime remains lesser known that SEIS and Entrepreneur’s Tax Relief, it is a vital crutch for startups in gaining much-needed support.
What about the self-employed?It was also revealed that the government had promised to “clamp down on late payment more broadly and strengthen the powers of the Small Business Commissioner to support small businesses that are exploited by their larger partners.” “Late payment is the scourge of freelancers everywhere, and we have been calling for some time for the Small Business Commissioner to be given more powers to amend this issue” adds Simon McVicker, Director of Policy at IPSE. “We will be pushing for these powers to include naming and shaming and even fining for the worst offenders ” he continues to say. It is estimated that SMEs are owed £39.4bn as a result of late payments, effecting their annual cash flow greatly.
Plan for the futureThe Queen’s speech continued to highlight support for the self-employed when she addressed governments plans to “support pension saving in the 21st century and create a legislative framework for the introduction of a pensions dashboard. Such a development will allow freelancers to keep track of their pensions and bring together their different saving funds in one place.
High street salvation?2019 saw a continues slew of headlines regarding the death of the British high street. However, that could be set to change with the government promising to cut business rates in a bid to resurrect the city streets. Discounts for small businesses are expected to increase from 33% to 50%, with around half a million shops, restaurants and pubs set to benefit. Chancellor Sajid Javid said: “We want to reinvigorate communities up and down our great country, helping people put the heart back into the places they call home. That’s why we’re taking action to save our high streets and keep pubs, cafes and hairdressers open by slashing their business rate bills by half.”
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