Tax increases could force thousands of small business closures
Increases to business tax rates could force thousands of small business owners to shut up shop, a new survey has found.
Ahead of the Autumn Budget on 17 November, Purbeck Personal Guarantee Insurance surveyed 1,000 small business owners and found that almost one in five had already considered closing in the past 12 months due to financial difficulties.
Just over half (52 per cent) said that they were treading water financially and hoped to survive the next year.
Purbeck warned that any increases in taxation could lead to thousands of businesses shutting down, which could pose a risk to any business owners who have taken personal guarantees against their business loans.
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“Life is already very tough for many small business owners and it is a particularly worrying time for those who have signed personal guarantees for business loans, putting their homes on the line for their businesses,” said Todd Davison, managing director for Purbeck Personal Guarantee Insurance.
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“The Chancellor needs to find ways to boost the engine room of our fragile economy or risk mass business failures and all the fall out that will entail.”
Purbeck has asked the Chancellor to reduce business rates and keep National Insurance down to stop eroding the pre-tax profits of small businesses. It has also called for more tax incentives to encourage growth and investment.
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