The BCC surveyed nearly 8,000 members and their findings suggest that the economy has significantly weakened; but stopped short of forecasting an outright recession. They believe that whilst one quarter of negative growth was likely over the next six-months, a recession hinged on the government’s action to help businesses.
John Longworth, the BCC’s director general, said: “Britain's economy is at a critical stage – and now is not the time to shy away from the radical decisions needed to inspire confidence and increased investment for years to come.
“The results of our latest survey are a cause for concern and point towards stagnation in the first quarter of this year. Many of the balances are now at levels last seen in the third quarter of 2009, meaning improvements seen in the last two years have largely been cancelled out.
“Ministers need to move faster on promises made in the Chancellor's Autumn Statement. Measures to improve the flow of credit to businesses, reforms of our complex planning system, and investment in infrastructure projects are all needed now."
The British Chamber of Commerce’s forecast is almost identical to the view of the Bank of England and other economists, with the latest data from the retail, property and manufacturing sectors doing little to dispel this view.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 141 )Prime Minister, David Cameron, is set to abandon plans to scrap the 50p rate of income tax, amid increasing pressure from business leaders and backbench Tories.
Mr Cameron has come under increasing pressure from business leaders and backbench Tories to scrap the tax, which they feel is unfair on businesses, to help stimulate the economy.
Although David Cameron is sceptical that the tax raises money and believes it should only be temporary; he and Chancellor George Osborne have concluded that it would be politically impossible to abolish the tax, introduced in 2010 by the then Prime Minister, Gordon Brown, as they fear they would be accused of pandering to the wealthy.
Despite the scepticism from the Prime Minister, over the tax, HMRC are currently preparing a report, for the Chancellor, on the proceeds raised from the 50p rate and it is thought the report will show a surge in revenues – totalling hundreds of millions of pounds from the first year – undermining the economic case for scraping the levy.
A senior Government source, has said on the tax: “This is not now something we are moving on any time soon.”
Whilst a second source added: “We are repeatedly emphasising the need for those with the broadest shoulders to do more.
“So we can hardly turn around and start cutting taxes for them first. George Osborne said last year, that it was not the time to scrap the 50p rate and that is even more the case now as the economic situation has deteriorated.”
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3.1 / 129 )Her Majesty’s Revenue and Customs have announced that despite reviewing a controversial scheme, the Taxman will continue with its target to carry out 12,000 business checks by April.
Following criticism that the scheme unfairly targets small businesses, the HMRC announced that they would review the procedure, saying: “HMRC recognize that the launch of the BRC pilots has caused considerable concern to the tax profession and that the project would have benefited from more detailed consultation with tax professionals at an earlier stage.
“In the light of these concerns, HMRC will undertake a strategic review of the project in consultation with the professional and representative bodies.
“The purpose of the review is to consider the overall aims of BRCs, examine whether the current approach is the best way of achieving the policy objectives and identify what changes are needed to ensure that the objectives are achieved."
But, despite carrying out a review, the HMRC added: “In the meantime HMRC will continue with a limited number of BRC pilots and the results of them will be evaluated as part of the review.”
The Business Records Checks (BRCs) scheme was launched last year, and targets small businesses, as it is felt by the Government that this is a high risk sector in terms of non-compliance. As such, the scheme allows tax inspectors to visit business premises to ensure that adequate records have been kept to support income declarations and expenses claims.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 136 )The Government looks set to force the very rich to pay higher taxes in an attempt to allay public fears that its spending cuts are hurting those on low and middle incomes the most.
Earlier this week, during his New Year message to his constituents in the Scottish Highlands, the Liberal Democrat Chief Treasury Secretary, Danny Alexander, said: “In 2012, we need to redouble our efforts to ensure that those with the broadest shoulders bear the greatest share of the burden." Adding that the government is already "raising more from the wealthiest" but promised it would go further during the coming year.
Mr Alexander also warned the period of deficit reduction and cuts will continue until 2017, which he says will require further difficult spending decisions.
“With more austerity now needed, and with grossly excessive top pay awards showing total disconnection from reality, we will need to look at further steps to ensure greater fairness this year, too."
Liberal Democrat ministers look set to press the case for a “wealth tax” such as the so-called “mansion tax” which their party advocated during the 2010 general elections.
It’s also believed Tory ministers including the Chancellor, George Osborne, , are inclined to close tax loopholes rather than impose new taxes; with one target said to be rich individuals who invest in high value properties in London but evade taxes because ownership is registered offshore.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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( 3 / 128 )Her Majesty’s Revenue and Customs is cutting the time taxpayers have to reclaim overpaid tax by two years, between now and April.
Traditionally taxpayers had almost six years to reclaim any money that has been overpaid to HMRC, but by April 2012 this will be cut to just four years for all taxpayers.
Alistair Darling first introduced the changes to the tax deadline when he was Chancellor in the 2008 budget; with those in self-assessment having the four year deadline imposed from April 2010; whilst those who were solely in the PAYE system were given longer.
Under the new system money due from the 2008/09 tax year must be chased up by April 5, 2013. Although taxpayers who miss this deadline, may be able to fall back on the little-known Extra Statutory Concession B14.
HMRC have also introduced a four-year limit for it to issue tax assessments asking for underpaid tax; with a spokesperson for HMRC saying: “Four years strikes a balance between certainty for taxpayers, which would be provided by shorter time limits, and the need for HMRC to have sufficient time after receiving a return to check the tax position.”
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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