David Bywater comments on the announcements to support SMEs and privately owned businesses.
Commenting on the announcements to support SMEs and privately owned businesses, David Bywater, KPMG Private Enterprise Tax Partner observed:
“The Chancellor announced a number of giveaways and a huge support plan for private businesses and entrepreneurs designed to help them protect and grow their businesses. From huge investments to stimulate our already world-class innovators, to measures to protect and champion farmers and Scottish food and drink manufacturers, the Chancellor put the UK’s SME community at the heart of his “brave, bold plan for the future”.
“Recognising the huge impact that the coronavirus outbreak could have, the Chancellor announced a series of measures designed to protect small and privately owned businesses including statutory sick pay support, business rate suspension for some and a new loan scheme. Freezing of fuel duty and retention of red diesel tax reliefs are good news for hauliers and agricultural businesses across the country providing some respite from what the Chancellor himself described as the significant economic impact of coronavirus. For many these measures could be a lifeline to help them get through a potentially crippling few weeks ahead.
“The Chancellor is betting on innovation to lead the UK out of a sustained period of uncertainty announcing billions of pounds being invested in R&D, combined with changes to R&D tax reliefs and capital allowances which are all welcome measures for UK entrepreneurs and key ingredients to support the tech-powered Industrial Strategy going forward. Against the backdrop of these changes, the much anticipated reform of Entrepreneurs’ Relief took place and whilst there was relief that it wasn’t scrapped, it has been scaled back significantly. There was also noise that EMI share plans are to be reviewed going forward.
“Following today’s announcements small and privately owned businesses should ensure that they are aware of all the new support on offer and how to access help if they need it, during what could for many businesses be a critical period. Hidden in the noise and raft of announcements to support SMEs the Government did announce further investment into HMRC to crack down on tax avoidance – so more than ever, privately run businesses and their owners need to make sure their tax governance frameworks are robust.”
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