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07 Mar 2008
Mike Lawrence, managing director of BentPenny, was typical in his views. “There are so many rules and regulations that employment rates will have to drop.
“It is killing businesses, which are ending up as a one-man band running out of a back room, because it is safer,” he said.
The Forum of
Private Business (FPB) recently warned that the budget is likely to heap an
unfair tax
burden on smaller firms, with the proceeds being passed on to large
corporations.
Darling indicated in his Pre-Budget Report and Comprehensive Spending Review
that small firms’ corporation tax would rise from 19 to 22 per cent from April.
Larger firms will see their contribution cut from 30 to 28 per cent.
The FPB is also concerned about planned changes to the capital gains tax
system.
Shaune Parsons, managing director of reseller
Computer
World Wales, said: “Whenever there is a budget announcement it seems as if
SMEs are working for the government, but it should really be the other way
around.”
Adam Harris, managing director of VAR Bear IT, said: “The government wants to encourage entrepreneurship, so it should relax corporation tax for those that are trying to help.”
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