Entrepreneurs say government should reward SMEs with tax breaks
The report, entitled ‘Lonely at the Top’, is due to be released later this month, and has found:
• Many of the entrepreneurs surveyed saying that the tax system should do more to recognise the distinctive role played by them in the economy, with 77% in the north saying the abolition of the fifty per cent income tax band would do much to encourage new entrepreneurship.
• 55% of those surveyed in the north saying that entrepreneurs that employ more than 100 people should be taxed less, in recognition of the contribution they make to the economy.
• Thirty per cent of entrepreneurs in the north saying they felt the environment for entrepreneurs in the UK had deteriorated over the past three years, compared to the national figure of 40%. However, many still believed that the UK has a strong culture of entrepreneurship, high-quality business intermediaries and a positive international reputation.
RSM Tenon is also taking direct action with the Government to highlight the UK’s entrepreneurs’ important contribution in the fight to rescue the current, ailing economy
An online petition has been launched as part of a special Entrepreneur’s Manifesto to demand that UK entrepreneurs pay a lower rate of personal tax if their companies provide much-needed job opportunities.
RSM Tenon figures show that if less than 10% of SMEs currently employing up to 250 staff took on only one extra employee, then this would inject over £1 billion into the economy in tax and far more in total spending power.
Neil Sevitt, RSM Tenon Regional Director for the North, said: ‘More than half of all the entrepreneurs we surveyed in the north said that the Government should recognise the important role they play in the economy and reward them with tax breaks. Providing a reduction in tax would be a great way for the Government to acknowledge the important contribution by SMEs to the local and national economy, and further encourage entrepreneurship in the UK.’