As part of Menzies commitment to sharing #BrighterThinking, our teams of accounting and business advisors have been providing their opinions on some of the leading hot topics raised within some of the UK’s leading national, regional and specialist press titles.
Here follows a summary of Menzies in the media for February 2020.
The future of Entrepreneurs’ Relief
Ahead of the 2020 Budget Business Tax Partner Stephen Hemmings, evaluates the UK Government’s decision to review the long-term future of Entrepreneurs’ Relief and the potential impact any changes might have upon the SME business community.
“While such reforms might be viewed by some business owners as relatively minor, the impact on serial entrepreneurship and the economic value such activity generates over a sustained time period, should not be underestimated.”
Access to low skilled workers
Hospitality & Leisure specialist Dave Gosling’s comments feature as part of a review the UK Government’s decision to o deny visas to low-skilled workers and the knock-on impact this is likely to cause for the UK hospitality sector.
“Reassuring noises from Government had led to some expectation that low-paid, skilled workers would continue to find it relatively easy to enter the UK under the new points-based system. However, this is not the case and employers will be deeply concerned that they will not be able to fill jobs and wages could start to rise, due to the shortage of supply,” he said. “At a time, when many pubs and restaurants are already struggling to manage rising costs in an intensely competitive market, this immigration plan will force costs to increase further and add to cashflow pressures. To mitigate the impact of this immigration plan, which will take effect from the end of 2020, businesses in the sector will need to review their employment strategies and ring-fence skilled staff.”
Landlord tax changes
Property & Construction specialist Lucy Mangan’s comments are features as part of the iNewspaper’s evaluation on the changes to tax relief and how this tax change may impact property investors.
“If you have an existing property portfolio, and you want to transfer ownership to a company, then you may have to pay taxes. If you are running a buy-to-let portfolio as a partnership, and it is genuinely being run as a business, then you may be able to incorporate without any capital gains tax and stamp duty. Bear in mind that yes corporation tax is lower, but that if you are taking money out of the business to live on then you’ll have to pay income tax on this. So you’re not always better off.”
Attracting and retaining talent through wage rises.
Martin Atkins and Ed Hussey evaluate why the rise in weekly wages – whist great for employees – is more challenging for employers
as employment-related costs increase.
“The most common problem for employers is finding staff who are highly skilled and versatile. Whilst traditionally, highly-skilled workers in large organisations have had a lot of bargaining power when it comes to salary, rapid technological changes affecting many sectors of industry have meant that some workers have been unable to keep pace.”
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