The Budget - cutting through the cr*p

I listened to the Budget today and I will read the full text of the Chancellor's speech in tomorrow's Financial Times, just like I have for the last 30+ years.

The more I hear though, the more I realise small and micro businesses just don't feature despite what the politicians (of all parties) may say, hence the title of today's post.

If you're self employed or own your own limited company today's Budget isn't as good as George Osborne says it is. On the other hand it isn't as bad as Ed Balls says it is!

It just doesn't help most businesses.

The following measures were highlighted as being of help to business:

1. Corporation tax will be reduced to 20%.
2. Class 2 National Insurance (payable by the self employed) will be abolished.
3. No more Tax Returns.
4. A clampdown on tax evasion and "aggressive" tax avoidance.

The facts paint a different picture:

1. Limited companies with profits below £300,000 have paid corporation tax at 20% for years. Companies with profits larger than this have seen their tax rates fall from 28% to 20% in the last five years.
2.  Class 2 National Insurance is £143 per year. Contrast this with Class 4 National Insurance (also payable by the self employed) which on profits of £25,000 per year is more than £1.500.
3. If HMRC can ever make this work for the self employed and owners of limited companies then I'm a Dutchman. Accounts and tax calculations will still have to be submitted to HMRC and would your really trust HMRC to "get it right"?
4. This "new" clampdown is aimed at multinationals who will just find new ways to avoid paying tax. Don't think it will reduce the tax payable by the rest of us.