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PKF gives a kick to Budget talk

While the East Anglian region is far from the 1978 Winter of Discontent, experts from accountants & business advisers PKF East Anglia say small businesses may welcome certain aspects of the budget.

The firm took a trip back to the 1970s in a presentation to clients that dissected the Chancellor's speech, as it was 1978 when Ipswich Town won the FA Cup against Arsenal.

The expected introduction of income shifting legislation is now delayed for a year and Peter Harrup, tax partner with the firm, says this postponement of the new rules will be welcomed.

But the Chancellor scored an own goal by not announcing it in his speech.

Mr Harrup said: "It is incredible that he didn't mention it. This delay, which we have been calling for since the impending legislation was first announced, is very important for the personal tax position of many small business owners and gives them time to put their tax affairs in order."

Income shifting is designed to stop SME owners reducing their tax bill by splitting income between themselves and their family.

However, PKF showed Mr Darling the red card as after nearly 11 years under a Labour Government the 13 million-strong small business community is more highly taxed, frustrated and overburdened by meaningless red tape than ever, says Mr Harrup.

On environmental issues Mr Harrup branded the budget merely pale green: "There was some tinkering around the edges with the proposed hike in vehicle excise duty on high-polluting vehicles and the inevitable charge on plastic bags, but neither of these changes appears to be driven by environmental issues, and other green measures are merely 'under consultation' or deferred for even longer periods."

Caption: 'Superman' Gordon Hopkins, 1978 Argentinean footballer 'Mario Kempes' Paul Gooch, 'Star Wars stormtrooper' Colin Downing, 'Brian Clough' Chris Ginn. Kneeling isVillage People construction worker Peter Harrup

Article by BDO LLP

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