10 November 2017
Small and medium-sized enterprises (SMEs) in the Midlands need more incentives in Chancellor Philip Hammond’s November Budget, to get them exporting, according to national audit, tax and advisory firm Crowe Clark Whitehill.
That’s just one of a series of measures that Johnathan Dudley (pictured), Midlands managing partner and national head of manufacturing, is calling on the Chancellor to address on Wednesday 22 November.
He said: “There is a recognition that not enough UK SMEs are exporting, which was one of the key themes to emerge at the recent British Chambers of Commerce Export Summit in Birmingham.
“To help SMEs, the Chancellor should consider introducing an SME export tax credit system to mirror that for research and development (R&D).”
This, according to Johnathan, could be achieved either by introducing an enhanced tax credit, or through tax relief, which would support SME export campaigns.
Additionally, Johnathan is also predicting that the proposed increase in dividend tax, to bring it closer to National Insurance Contributions (NIC) will go ahead, a move that will not prove popular with owner-managed businesses.
Tax relief on pensions is another area under consideration in the Budget.
Johnathan Dudley said: “There is support for the restriction and removal of higher rate reliefs, but we are unlikely to see any changes before the end of the tax year.
“That said, when and if changes are introduced, we need to ensure they don’t make it less desirable to save for retirement. We don’t want people to be under the illusion that they don’t have to save and are then solely reliant on the national state pension.”
Finally, in his Budget wish list, he would like to see more clarity over the revised timetable for Making Tax Digital which is continuing to cause stress and uncertainty for both businesses and their advisers.