Small companies face a series of new costs from Monday




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Small companies have been hit with "blue Monday" as new costs and tax reporting requirements kick in.

While some firms in England will benefit from cuts Business rates, other changes mean additional costs.

These include new rules on accounting under the Make Tax Digital program and auto-enrollment pension costs.

time when confidence is low, said FSB small firms' trade body.

From April 1[ads1], there is some relief for small retailers, pubs and restaurants who will share their business rate bills worth about £ 500m. ] In last year's autumn budget, the government announced a business rates discount scheme for small-sized high street properties in England which have a rateable value below £ 51,000.

Small firms will receive a one-third discount on their rates bills from Monday for the next two years.

According to the property services and software company Altus Group, the average shop will see savings of £ 3,292 in their business rates bills for 2019/20, while the average pub will save £ 6,052.

The average restaurant will receive a discount of £ 7,212, as a result of the new retail discount in England setting aside £ 502m this financial year to cover the cost.

VAT change

But it is not all good news , with local authorities in England still expected to rake in £ 25bn in business rates overall during 2019-20 – an increase of £ 206m.

Mike Cherry, FSB national chairman, said: "Business rates is an unfair, regressive tax that hits small, before they've made their first pound in turnover, let alone profit.

"The help won from government to support those hurt by the 2017 revaluation is now falling away, leaving many small businesses with a 20% hike. to their bills, plus an inflation-linked incre ie. "

The FSB also pointed to the fact that two million small businesses are hit with new reporting requirements due to HMRC's Making Tax Digital (MTD) programs.

HMRC is forcing VAT-registered businesses to comply with The initiative, with the software required to measure MTD bond cost companies, £ 564 each on average

Contraction

More than a million small employers are also grappling with a further increase in auto-retirement pension contributions to 3 % from Saturday.

Mr Cherry said the MTD was a "burden" that costs hundreds of pounds even "before the time and resource needed to negotiate new software".

And on the pension changes, he said: "Though small business owners are absolutely committed to helping employees save, auto-enrollment has already cost them significant amounts of time and money. When the 3% rate hits, the costs will be greater still. "

The government should rule out any further increases to the minimum auto-enrollment contribution rate for employers, he added.

Mr Cherry said:" For the first time since 2010, we saw a contraction in the size of the UK business community last year.

"All ministers and policy makers need to take note, and avoid bringing in new measures that would exacerbate this loss in 2019."



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