FSB looks for Brown to grant IT budget rebates
Channel urges Chancellor to speed up small business proposals for IT equipment rebates
The Federation of Small Businesses (FSB)is urging Chancellor Gordon Brown to address the concerns of small businesses, including reinstating accelerated capital allowances for IT equipment, in his Pre-Budget Report, due to be delivered on 5 December.
The FSB, along with the channel, had hoped that the tax break on IT equipment for SMEs would have been included in this year’s Budget in March, but the Chancellor failed to reinstate it (CRN, 21 March).
Stephen Alambritism, FSB chief representative, told CRN: “At the moment, small businesses can write off 25 per cent of an IT purchase they make, but we want this changed to 100 per cent capital allowance on IT purchases. We’re quite hopeful that this time around the Chancellor will take notice of our request.”
The 100 per cent first-year allowance used to give tax breaks which encouraged SMEs to upgrade their IT infrastructure, but this was removed in the 2004 Budget.
“We estimate that there are still 40 per cent of small businesses that are non-computerised so this tax-break would be beneficial to them,” added Alambritism.
Victor Dauppe, partner at accountancy firm MacIntyre Hudson, said: “The Inland Revenue is pushing for all businesses to do online filing and as of next year is launching a new tax return form online, but only those with up to date PCs will be able to access it. Therefore if the Inland Revenue wants everyone to use its wonderful new online filing system it should encourage small businesses to invest in new PCs by offering them an incentive in the form of the tax break. Small businesses tend not to upgrade until their IT equipment stops working.”
Leanne Gravil, branch manager at VAR CBC Computer Systems, said: “Anything that helps businesses invest in IT is good news for the channel. It would also benefit us as we are a fairly small company and have to invest regularly in the latest technology for our offices.”
The FSB also asked for the IR35 legislation to be abolished; for HM Reve-nue & Customs forms to be simplified and a review of the inspection regime.