IN an attempt to simplify tax for small businesses, the Government has announced a new cash basis for calculating tax for small unincorporated businesses with a turnover of up to £77,000.
Ashley Mason founder of YorMed Independent Ambulance Service, said he was not convinced by the plans and would have preferred to see National Insurance merged into income tax, as the Chancellor previously suggested but has deferred again.
He said: “It’s fine if you’re a one-man band, but we’ve got quite a lot of employees.”
The business employs 20 to 40 part-time staff, with people doing the odd shift here and there, he said. “It needs some work to see how it will fall into place.”
Tina Boden, of Scarborough-based campaign to support micro-businesses Enterprise Rockers, said: “Yes it’s less administration for micro-businesses, and less for HMRC too, but it’s not a reduction in tax.
“There has been a reduction in tax for those earning over £150,000, but that’s not impacting on a lot of micro-business owners.”
She welcomed, however, student loan-style loans for young people wanting to set up in business.
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