5th March 2020Accountancy firm HW Fisher calls for the Chancellor to “keep it simple and don’t stifle entrepreneurship”  

Ahead of the budget next week, top 30 accountancy firm HW Fisher outlines three areas of focus for the Government. HW Fisher explains why the government must provide organisations with clarity over the impending IR35 regulation, urges the Chancellor to think about the UK’s small businesses and avoid any moves that will stifle entrepreneurship. HW Fisher is also calling for urgent simplification of the tax system and to minimise changes that will add complexity to our byzantine tax code. As entrepreneurs grapple with the impacts of the Coronavirus and preparations for Brexit, now is not the time to add to their burden.

• IR35 needs a serious review  – Delays or a “gentle” approach to implementation aren’t helpful. The Chancellor needs to take a serious look at whether IR35 will ever be fit for purpose. As it stands, ensuring compliance with IR35 reforms will be a significant cost to businesses and being tied up by more red tape will not help anyone. Too many questions remain unanswered and a “soft” introduction to the regulation does not address the crux of the problem.  

• Don’t stifle entrepreneurship – Abolishing support for entrepreneurs in the UK completely would be a huge mistake. While a sensible change – following proper consultation – would be welcomed, this is a step too far. There are almost 6 million small and medium sized businesses in the UK who will potentially be impacted by the Treasury’s decision. By cutting the relief completely, the chancellor could be accused of stifling UK entrepreneurial spirit.

• Avoid adding complexity to our byzantine tax code – Every year, successive governments bring increasing amounts of detail to tax laws, regulations and administration, and results in ever more confusion among taxpayers and those who interact with HMRC on their behalf. The Chancellor has an opportunity to conquer this once and for all and show that he is committed to a straightforward tax system.