No tonic (Budget)

The Budget appears to have been broadly neutral and our experts work their way through the smoke and mirrors to explain the main implications for owner managed businesses managed service companies personal taxes capital allowances VAT and the small practitioner.

SMOKE AND MIRRORS was how The Forum of Private Business described the Budget and you can see their point. In the context of a total expenditure of some £587 billion this year the net effect of the tax changes (after discounting some fiddling with reserves) is £125 million less tax collected next year an increase of £280 million for the year after that and an increase of £125 million for the year after that. As admittedly the Chancellor made clear at the start of his speech the Budget is broadly neutral so for example the cut of 2%...