Sheffield based accountants Hart Shaw has commented on what the Queen’s Speech means for local small and medium enterprises (SMEs).
Speaking at The State opening of Parliament on 27 May, the Queen announced a number of initiatives to stabilise the UK economy, including lower regulations for SMEs alongside a freeze on tax rises for the next five years.
She said: “Legislation will be brought forward to help achieve full employment and provide more people with the security of a job. Measures will also be introduced to reduce regulation on small businesses so they can create jobs. Legislation will be brought forward to ensure people working 30 hours a week on the National Minimum Wage do not pay income tax, and to ensure there are no rises in Income Tax rates, Value Added Tax or National Insurance for the next five years.”
Steve Vickers, Tax Partner at Hart Shaw said: “I am pleased to see that the Government is maintaining a focus on small businesses. There is a need to cut red tape and address key issues, such as the billions of pounds owed to small businesses in overdue payments. Furthermore, it is encouraging to see that measures will be introduced that allow SMEs to create jobs in our region.”
The Queen’s Speech also revealed that future increases in the income tax personal allowance will be linked to rises in the national minimum wage. For adults, the national minimum wage is due to rise by three per cent in October and Chancellor of the Exchequer George Osborne has said that it will increase from £6.50 to £8.00 by 2020. The personal allowance is currently £10,600 but this is due to rise to £12,500 by 2020. As a result, the government is promising that no one working for 30 hours a week on the national minimum wage will pay tax.
“This change will have implications on employers with staff that are paid the national minimum wage,” added Steve. “To ensure that SMEs are complying with the law, it is important that they have their payroll services in order. However, this can be outsourced to Hart Shaw, alleviating the worries of business owners.”
For further information please contact Steve on 0114 251 8850 or steve.vickers@hartshaw.co.uk.