A number of voices from within the business community are urging the government to abandon plans to hit UK businesses with an additional tax burden of £12 billion this spring.
Lord Bilimoria from the CBI lobbying group is one of those who are pressing them to scrap the plans for raising business taxes. While this would rake in a further £12 billion for the Treasury, Lord Bilimoria stated that it would be a disastrous error to pile more financial problems onto UK businesses that are currently trying to bounce back after the pandemic.
It would undoubtedly be a significant further headache for UK firms and shows why so many hire a business accountant in Goole or wherever they operate from to handle their tax. These financial experts can often find ways of cutting tax liabilities.
The tax increase planned by the government would take the form of raising contributions to National Insurance. These are set to go up 1.25% from April. However, companies in the hospitality sector will also have to pay 20% more VAT from then.
According to Small Business, Lord Bilimoria said in the Daily Telegraph that:
“This is absolutely the wrong time to have the highest tax burden for 70 years. We need to be helping our economy and businesses that have suffered so much. The Government must be incentivising growth and investment.”
Lord Bilimoria went on to say that while the UK business sector felt gratitude for earlier help, its recovery was still far too shaky to be risking tax rises.