Hallidays: Announcements in the Budget do little to hide some uncomfortable truths
Announcements in the Budget do little to hide some uncomfortable truths & the 2,000 Million bombshell that will mean more pain for Stockport
Leading Stockport accountants Hallidays LLP are committed to help Stockport businesses get to grips with the problems and pain behind the Budget. Hallidays Managing Partner Nigel Bennett commented:
“On the surface there are some welcome headline grabbing announcements in this Budget, however this should not obscure far more significant underlying issues.
Firstly, public finances are still in a terrible mess. In fact, the bombshell is that the people and businesses in Stockport will be forced find an extra 2,000 Million just to pay back our share of the extra money the government is now going to borrow over the next 5 years. This is inevitably going to cause a great deal of pain in Stockport and the country as a whole as the country balances the books. The likely outcome will be even higher tax bills, low wage increases and fewer public services and benefits.
Now high earners could find the government taking up to 60p from every extra pound they earn, middle earners could have as much as 65p taken from them, while low earners can lose a staggering 73p once the claw-back of benefits is also taken into account. The headline income tax rates disguise the magnitude of these figures.
The current tax regime is also hideously complicated and contains a huge number of pitfalls for the unwary. The Budget and 2013 Finance Act will only add to the level of complexity. The good news, though, is that it now also allows the well advised to make some very big tax savings and to make sure that no-one pays a single penny more than their fair share of tax.
The brutal truth is that businesses and not Budgets offer us the best hope of putting things right by replacing the jobs and wealth lost, and generating the extra taxes needed to pay for everything. Despite countless promises of reductions in red tape for business the amount of legislative stricture placed on businesses continues to increase placing a significant burden on the region’s job and wealth creating businesses.
It is therefore essential that businesses in the region take responsibility and lead from the front in the creation of jobs and sustainable profitable businesses. ”
Hallidays will be offering five Stockport businesses a free business improvement and tax minimisation review. Please contact Jane Bennett at Hallidays, Stockport on 0161 476 8276.