Commenting on the Budget, Simon Warne, Tax Partner at Crowe Clark Whitehill, a leading national firm offering audit, tax and business advisory services with local offices in Tunbridge Wells and Maidstone, said:
Everything the Chancellor gives he takes away with the other hand – making for a rather neutral and modest budget. Although he has provided relief to the lower paid, he has introduced measures elsewhere to recover those funds. The rise in personal allowances for the lower paid can only be a good thing.
Businesses will be giving a small cheer that corporation tax is being cut and I believe cutting the 50% tax rate is a step in the right direction. However, if the Chancellor is going to cut taxes, he should do it immediately; deferring only causes further problems as entrepreneurs will delay paying themselves until the rate changes. That said, there will be a real incentive to keep wealth within companies and the case for incorporation will be increased.
I am very pleased that the Chancellor has simplified the tax system, which will definitely help small businesses.Those with a turnover of up to £77,000 will be reviewed for tax on a cash basis from April 2013 – reducing the amount of red tape that companies have to deal with.