May 30, 2024
Money

Money blog: Millions being dragged into paying more tax – despite NI cut | UK News


Small business owners have had mixed reactions to the budget, with most disappointed there wasn’t more in it to help them.

Tax

“Groundhog day. A grey, dull and drab budget from a robot-like chancellor,” said financial adviser Samuel Mather-Holgate, one of 22 businesses that spoke to Newspage.

“The lack of stimulus to business and the wider economy is surely a sign the white flag of election defeat is waving.”

Jeremy Hunt missed an opportunity to raise personal allowances, cut VAT and introduce tiered corporation tax, he said.

But Amit Patel, adviser at Trinity Finance, said Mr Hunt was reducing pressure on small businesses by increasing the VAT threshold from £85,000 to £90,000.

The national insurance cut, which appeared to be the chancellor’s flagship policy, will be “swamped by pending increases to council tax”, said Ben Foster, chief executive at SEO Works.

Property

Kate Allen, owner of Finest Stays, said the government was deterring homeowners from renting out second homes, leaving properties unoccupied.

“Pulling the furnished holiday lettings regime out of the hat like a despondent bunny rabbit won’t raise anything like the sums intended, and will damage the tourism economy across our coastal communities,” she said.

Managing director at Corerco, Andrew Montlake, said the budget was a “damp squib” for property and especially first-time buyers – a view shared by Mark Robinson, managing director at Albion Forest Mortgages.

Borrowing

But perhaps the uneventful budget was a “blessing in disguise”, suggested Ben Perks, managing director at Orchard Financial Advisers.

“It seems this is a budget that focused on stability, and swap rates should react positively to this,” he said, adding this may result in better rates for borrowers.



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