What do small businesses want from Budget 2005?

*** For an overview of what actually happened on Budget Day 2005, and small business reaction, click here ***

National Insurance exemption, 100% first year capital allowances and a freeze on other new tax legislation for two years is what small businesses really want from this year's Budget, says PKF, accountants and business advisers.

Toby Stephenson, a PKF partner specialising in growing business, said: "If Gordon Brown is serious about helping small business, he should listen. With SMEs accounting for more than half the employment (58.2% in 2003) and turnover (52.4% in 2003) in the UK, the Chancellor may well be looking at the business vote this year and there are many ways in which he could give them a helping hand." With this in mind, PKF has drawn up a wish list for smaller businesses.

If Gordon Brown really does see growing businesses as the key to future economic strength in the UK, the following changes might make the 2005 Budget one that will encourage business owners to vote Labour in this general election:

• National Insurance exemption for new employees for the first year to allow small businesses to increase their workforce without facing additional NIC on top of salary costs.
  
  
• 100% first year capital allowances for all investments in plant and machinery – allowing small businesses to immediately write off the full cost of business investments.
  
  
• Freeze all other new tax legislation affecting small and medium sized businesses for at least two years, enabling the Inland Revenue and Customs and Excise to concentrate on their merger with minimum impact on the taxpayer.
  
  
• Level the tax playing field for companies and the self-employed by making clear proposals and using the two-year break to enable consultation with taxpayers, rather than rushing in changes.
  
  
• One point of contact for business to be created through the reorganisation of Government departments.
  
  
• One online form for all business tax returns would save time and make the process less confusing for small and growing businesses.

*** For an overview of what actually happened on Budget Day 2005, and small business reaction, click here ***