George Osborne is facing increased pressure as the Budget approaches to cut the 50p rate of tax. Industry leaders are supporting the calls to scrap the controversial higher tax rate, while Labour party members and trade unions are firmly opposed to the abolishment of the 50p tax rate.

According to the trade unions and Labour politicians, it shouldn’t be a priority to cut the rate of tax for the one percent of taxpayers who are wealthy. Recently released data showed that the Chancellor is ahead of his schedule to reduce the budget deficit, being ahead by £7 billion. The 50p rate of tax is more likely to harm the economy, according to more than 500 owners of small businesses, with claims being made by supporters that the government may find that tax receipts are lower as a result of the higher tax rate.

David Ruffley, Conservative MP said:

“If you punitively tax hard work, aspiration and wealth creation, you will get less of all three. It sends the message the UK is no longer open for business.”

Supporting this statement, Simon Walker of the Institute of Directors says that businesses would be encouraged by the tax rate being scrapped, increase tax receipts and ease the burden on people with lower incomes. Trade unions argue that the Chancellor should concentrate on creating jobs and reinstating services which have been cut.

As the arguments rage on, outsourcing to a low cost accountants will minimise tax bills in a legitimate manner, while maximising tax reliefs and allowances.

The Accountancy Partnership

We are a national firm of accountants that specialise in small and medium sized businesses. We have been trading since 2006 and have more than 1,000 clients across many different industries and areas of the UK.

Our staff has a wealth of experience and qualifications from the major accountancy and tax associations such as ACCA, AAT, ICPA, IFA, FTA.

Our clients receive many benefits including:

• Unlimited help and advice throughout the year — We offer our clients unlimited ongoing support for their business. We often find that new clients have lots of questions about running a business and about how the tax system works. We have heard every possible question many times before and therefore can offer new clients the very best advice.
• Free representation in the event of a HMRC investigation — If one of our clients is selected for a HMRC investigation then we will offer representation at no additional cost. We fight our client’s corner and ensure that our clients do not pay a penny more than necessary on the conclusion of the investigation.
• Dedicated Accountant — Our clients have their own dedicated accountant in which they can contact anytime. We feel this is important because it means our accountants can get to know their clients and build good relationships. All our accountants work from our main office and we never outsource work.
• Recommendations — With every piece of work we carry out for clients we look for recommendations that can be made. These recommendations can be anything from structuring the business in the most tax efficient way to recommending an insurance quote to reduce costs for clients.
• Free business guides — When a new client joins us we send them a free business guide. These guides outline in simple terms how the tax system works along with key dates and deadlines. Most clients find the guides to be extremely useful.
• Financial advice — We have a very reputable financial advisor who helps our clients to structure their finances in a way that best suits their needs. We always look out for circumstances where we think clients can benefit from financial advice and add it to their recommendations.

Please click here for a quotation for your business. Please also feel free to contact us if you have any questions or would like further information; 0800 0430 007, info@theaccountancy.co.uk.

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Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.