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Do online accountants’ clients need more help to grow?

Do online accountants’ clients need more help to grow?

Advisors have criticised George Osborne’s decision to restrict the 100% capital allowance to specific enterprise zones.

The Chancellor said that the 100% capital allowance would be available to companies in the Black Country, Humber, Liverpool, Sheffield and the Tees Valley. Firms in the North Eastern zone will also benefit and the relief might be extended to the Port of Blyth.

In his Autumn Statement last week, Osborne also announced a second enterprise zone in the Humber estuary and one in Lancashire to bring the total up to 24.

Stephen Herring from BDO said it was regrettable that the government has only granted the 100% capital allowances to less than a third of enterprise zones. He believes this tax relief targeting is unjust and all zones should be treated the same for tax relief purposes.

The 100% tax relief will only available on depreciation of plant and machinery expenditure, a measure that Harinder Soor from KPMG says is not as generous as enterprise zones in the 1980s and 90s received when tax relief was also allowed on buildings and structures.

The Chancellor also announced a National Loan Guarantee Scheme that should reduce the cost of borrowing for small businesses and an extension of the business rates relief.

Entrepreneurs welcomed the announcement of the National Loan Guarantee Scheme. The CEO of borro, Paul Aitken, said this was a positive step towards helping small businesses access much-needed finance. However, he was concerned that larger businesses would get the most benefit from the scheme, rather than small firms looking for immediate finance.

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Image: You can almost see the grass grow by aussiegall

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