smallbusiness.co.uk: Helping your business think big

Tax cuts announced in the pre-budget report on Monday will be targeted to benefit SMEs, says accountancy firm Deloitte.

Bill Dodwell, tax partner at the group, says: ‘We believe that if cuts are introduced they will be carefully targeted, so as to aid primarily low earners and small businesses.’

The predication comes amidst calls from small business groups to reduce tax on SMEs and increase pressure on banks to lend.

John Wright, chairman of the Federation of Small Businesses (FSB) says: ‘Alongside new funds made available in new ways, we also need to see the Government act immediately to reduce the burden of small companies’ taxation.’

Dan Scarfe, owner of software development company Dot Net Solutions wants to see more bank lending following Monday’s announcement, to help his company grow.

‘We need money to hire new staff to service now we have begun to take on more work – just as all sources of credit are switched off.

He adds: ‘We now face almost the nightmare scenario where we have too much work coming in, a lack of working capital to deliver on it and ultimately may end up losing clients as a result.’

‘If we could get access to additional capital this would allow us to grow our business and take advantage of the current economic climate.’

The pre-budget report will be announced on Monday 24 November.