Budget 2017: Not A Positive Budget For SMEs, Freelancers & Micro-Businesses

Ed Molyneux, CEO and co-founder of FreeAgent – who make award-winning cloud accounting software for freelancers, micro-businesses and their accountants said: 

“I don’t believe that this is a particularly positive Budget for the micro-business sector. Rather than actually offering real support or meaningful legislation to people running their own businesses in Britain, the Chancellor has simply kept the status quo.

“While it’s pleasing to see that the VAT threshold has not been lowered – which would have added a significant new administrative burden to millions of UK business owners – this is hardly cause for celebration. Neither is the exemption of ‘white van men’ from diesel charges, which is the very least that the Government could have done to protect the country’s army of self-employed tradespeople. 

“It’s also disappointing that there are still a number of issues including digital tax that have not been expanded in this Budget. I would have preferred to see the Chancellor provide clarity on those issues, as well as introducing new legislation to curb the culture of late payment that is plaguing the micro-business sector and further simplifying National Insurance, VAT and other business taxes. 

“It’s important to note too that the UK’s growth forecast has been slashed, which is a clear indication of the economic uncertainty we are currently facing as we get closer to our exit from the EU. Our own research has found that 70% of UK micro-businesses think that Brexit will have a negative impact on the economy – with half believing the economy will get worse over the next 6 months – so there is obviously a lot of concern within this sector. The Budget is, therefore, a missed opportunity to provide some much-needed relief and reassurance to these 5-million business owners, who make up the backbone of the economy.”