SMEs with tax burden to call in insolvency solicitors?

Published on 28 May 2010 under category: legal

The government needs to be more forthcoming about its taxation plans for small businesses, claims one industry expert.

It has recently been announced that the government will reduce the burden of regulation and simplify the system before introducing any new legislation.

In this week's Accountancy Age, David Jetuah writes that firms are confused about how such changes will affect them.

Two of the biggest expected changes on the agenda are IR35 tax and the plans to raise capital gains tax on non-business assets.

The latter move is expected to have the biggest impact on companies that need to invest in equipment.

Some firms could find themselves contacting insolvency solicitors if they are hit hard by additional costs.

According to Mr Jetuah, businesses could even be trapped by seemingly positive reductions in corporation tax.

He writes: "The Lib-Con coalition must show its full hand on small business taxation. If the situation remains unresolved, small businesses may find themselves caught out."

If you require advice on Insolvency please call us on +44 (0)20 7831 0101 and ask for Katy Sillett.