Small biz quakes as Budget shadow looms
Nightstalker Osborne is not your friend
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Business expenses are already going up - even before expected tax rises in the emergency Budget come into effect.
The Forum of Private Business has joined the chorus of advice for George Osborne - but then he did ask the public to help him choose what to cut.
The group asked why, although there has been a suggestion of cuts to corporation tax, there has been no offer of cuts to the lower rate paid by most small firms.
An FPB survey held in May found 37 per cent of businesses said the costs of business, excluding tax, had gone up. Business confidence has been undermined by fears that tax changes will hit smaller firms hard.
It warned that public sector cutbacks - seen as inevitable given the scale of the UK's budget deficit - would have a knock-on effect for public sector contracts and business support measures.
Total employee numbers have fallen four per cent in the last year, although these were not all full-time positions. Many small companies told the FPB they were not taking on more staff until after the Budget.
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COMMENTS
This is a title. Honestly.
I don't know if the ratios are defined, as such, though when the rate was introduced there must have been some notion of how much is for petrol, etc. However, for the purposes of VAT, the company paying mileage at 40p can reclaim the VAT on the fuel element based on the cost of the fuel and the car's MPG - so, for all intents and purposes, that gives that aspect of what the mileage rate covers.
40p per mile
What price was petrol when this was set to 40p ????
Nuff said. Anyone know what the components of the 40p ratio's are, e.g. fuel, wear & tear ?
(Yes I know it covers wear and tear as well as fuel, now go add up your fuel receipts and compare them to your service bills over the same period...)
bit more complex
the car's MPG is not part of the calcs. but it is banded on what you can claim, I think it's about 45p a mile for he first 10k miles then 30p thereafter. Which I think averages to 40p/m (cant be arsed to work it out) but fuel costs have at least doubled since the rate was last changed. which feels a bit like I'm gettign screwed, but then again I still get about twice my petrol costs in mileage, so I cant really grumble, and the other costs of wear and tear, insurance servicing etc are somewhat moot, as if I didnt get the mileage, I'd still run a car... which would need servicing insurance tax etc
also the rules re: company cars have changed a lot too in the same time period.
confusing gov website fails to explain it clearly here.
http://www.hmrc.gov.uk/manuals/eimanual/eim31200.htm
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