Tax changes 'more important than enterprise initiatives'
Apr 03 2008
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Changes and simplifications to the current tax system would do more to encourage new business in the UK than the government's enterprise strategy, according to an accountancy firm.
Andrew Jupp, Tenon's national head of tax, describes tax complications as the 'fundamental problem stopping entrepreneurship and innovation'.
Capital gains tax taper relief was introduced to encourage enterprise, but its disappearance has caused a ‘huge outcry’ among businesspeople, he says.
He adds that a period of potential recession is the most dangerous time to place restrictions on entrepreneurship.
Government policy is also discouraging innovation by 'taking away the incentive from people to make entrepreneurial decisions', he believes.
'I would have thought that now would be the worst time for businesses to be thinking about setting up from scratch and trying to raise finances, or expand,' he says.
The government has set up numerous initiatives to encourage business spirit in the UK, including a £12 million fund for female entrepreneurs, tailored support for the over 50s and more business education.
Comment by Michael Moor
Wednesday 9th April 2008I have been in business for over 20 years, and have joined various small business oranisations over this period. I soon became disillusioned, because they all asked the wrong question; they asked, "What is government doing to help us?" When in fact it should be,"What is government doing to make it easier to do business?" If I needed convincing, the 2001 Foot and Mouth outbreak, which was made far more severe by government action, confirmed this. As an agricultural engineer, business was severely disrupted, making a profit of less than £7000.00 pounds for each of the two years affected, yet despite all the trumpeting, have a guess how much help I qualified for from our greedy government? Nil!!! Just take less and leave us alone is all I ask. I'll just mention pensions, or lack of one, in case one of the pigs pokes his nose out of the trough long enough to realise its them I'm talking about. Mick MOOR
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