Believe me as a resident of Kent who has suffered at the hands of Operation Stack, often caused by French Industrial Action, I do not say this lightly but should we, as small business owners, behave more like the French?
Do we take things too lightly and put up with the sweeping changes imposed on us by government without raising a fuss?
For example should we have spoken out about the government’s decision to prevent employers reclaiming statutory Sick Pay (SSP)?
This change effectively makes the employer the benefits providers, for this particular benefit, in the wealth fare state. Any small employer knows how much of a struggle it is when an employee goes sick but they now have the additional burden of paying the sick pay as well.
I totally agree with SSP, we should support our employees when they are ill, but I disagree whole heartily that this should be another “Tax” on employers. What next making employers responsible for SMP as well?
Making employers responsible for SSP came in about the same time as the much welcomed Employer Allowance but we didn’t hear about the SSP changes in the letter from David Cameron.
Shouldn’t we protest about the changes to tax on dividends brought about in the summer budget, whereby most entrepreneurs trading through limited companies and living on the dividends it creates, will now be taxed at least an additional £2,000.
Paying tax on dividends in this way also brings thousands of people into the payments on account system, the system that means you have to pay next year’s tax in advance and no HMRC won’t pay you interest on this money but they will charge interest if the payment in advance is late.
Most people affected by this new measure are generating jobs and wealth, are now carrying the burden of SSP and, in my opinion, should not be squeezed in this way.
Should we stage a blockade about the fact that Corporation Tax has been falling for larger companies for years whilst smaller companies were stuck at 20%? (Yes I know there is now, finally, going to be a reduction but shouldn’t there be a lower small company rate?)
Should we not have said something as the basic rate threshold, the point at which tax payers are pushed into higher rate tax was reduced year on year?
Finally should we not have sent them packing for coming up with the Auto Enrolment Pension idea, yes we have a pension crisis, yes we need to do something about it but a compulsory employer contribution? Can anyone see a pattern emerging?
Maybe instead of a new scheme they should have just increased national insurance by a few percentage points instead of putting all the anxiety, costs and burden of running these schemes on business owners.
But no we will not riot, we will not blockade, we probably won’t even write to our MPs or the business secretary (hands up if you know his name by the way?), instead we will suffer all of this in silence with the occasional whinge to our mates down the pub or to our accountants.
But I wonder how far small business owners, who by the way, according to the Federation of Small Business employ 15.2 million people, can be pushed before we do say enough is enough.
Here’s an idea Sajid Javid MP (The business secretary by the way) why not support small businesses and recognise the contribution they play to our economy.
Scrap the proposed tax on dividends for companies with employees, bring back SSP reclaim and reduce corporation tax 10% for the smaller businesses. If not I might just march on Downing Street … who’s with me?