…coming up with my predictions in advance of next Thursday has not been easy, but here goes!
We would all like to see further provisions to support owner managed businesses which are undoubtedly one of the key drivers to economic growth. We already have one of the lowest rates of corporation tax, but what about the other taxes.
Employers NIC remains a significant cost to all UK business, however bearing in mind the pre-announced £2,000 NIC reduction for every business from April 2014 it is difficult to imagine that a further reduction will feature. A simplification of the many complex rules that apply to the taxation of employee benefits in kind would be a welcome, non-monetary benefit to many businesses.
There is likely to be some comment about green taxes in light of the continuing concern about rising energy prices, however I do suspect that any significant changes will be delayed until after the General Election…after all the carbon floor price, a tax on UK fossil fuels used to generate electricity, generates in the region of £1 billion a year for the Government!
The continuing onslaught against perceived tax avoidance is also likely to feature in light of the much publicised cases of UK tax erosion practiced by many of the biggest business names. None of these businesses are acting contrary to UK tax law and so some amendments to our current legislation are realistically needed if things are to change. I anticipate further comment and political posturing…however maybe the answer lies in additional resources for HMRC to enable them to better consider the application of the current tax legislation.
Anyway enough of the crystal ball…our comments on the actual content of the Autumn Statement will be available next Thursday so watch this space !