It was a Budget for votes but with some useful initiatives for business, according to international accountancy firm Mazars.
Alistair Wesson, East Midlands managing partner, said there was hopefully good news for the self-employed and small businesses with the move from annual paper tax returns to a digital process.
HM Revenue and Customs will automatically collate the tax affairs of millions of Britons from employers, banks and investment firms into a single “digital” tax account which can be checked at any time online.
“Tax bureaucracy can be something of a nightmare for sole traders and small businesses,” commented Mr Wesson.
“By early 2016, the Chancellor estimates all five million small businesses and the first ten million individuals will have access to digital tax accounts. Wisely, many will still want their accountant to advise on what they can claim, how best to minimise payments, and how to take the business forward, to give them a running picture of where they stand.”
Though well leaked in advance, he noted the promised review of the business rates scheme would also be of benefit to traders, both small and large.
He said: “This has been something of a running sore. Most businesses simply want a fair system which is regularly updated. Thankfully the Chancellor has agreed that it needs far reaching reform.
“So it will be interesting to see what proposals they come up with. The reform of stamp duty has been widely welcomed by the housing sector; it should equally be possible to address the business rates issue. In the interim the extension of small business rate relief will help.”
With Mazars having a strong not-for-profit arm, Mr Wesson hailed the increase from £5,000 to £8,000 a year in the amount in small cash donations on which charities can claim a gift aid top-up, benefiting over 6,500 small charities.
“Anything which can help charity funding has to be a good thing.”
Stephen Fuller, Head of Tax at Mazars for the East Midlands, added a few points of caution: “Of course, given the General Election in May, many of the Budget initiatives will have to await the outcome. For the moment you might as well flip one of the new look 12-sided £1 coins complete with rose, leek, thistle and shamrock.
“To that extent it is almost a phantom Budget, although full of talking points for the next few months!
“The most sensible advice to business owners is to concentrate on their own plans and not be distracted by political rhetoric. There is a lot of money out there at the moment available for investment, and those who would like to be at the front of the queue shouldn’t delay – those who do could get left behind.”
