Messrs Brown and Darling will be out to replace reduced tax income, say Bishop Fleming’s tax experts
The Chancellor’s Autumn Statement, due to be delivered in October, is likely to contain a range of concealed new or increased taxes for business, according to the accountancy firm with the widest spread of offices in the South West.
Head of the Business Tax Planning team at Bishop Fleming, Andrew Browne, said: “At a time when the Government has been spending and borrowing, the economic downturn is hitting company profits and reducing the money they are sending to the Treasury in corporation tax.
“In some of the worst-hit sectors the Treasury is having to repay huge sums of tax cash. For example, our sector specialists for the property and development industry are helping many construction clients to reclaim taxes they have already paid”, said Mr Browne.
“So my name-sake, and his Chancellor, are seeing tax inflow from business drying up at the very moment when they most need to see a hefty boost in tax income. Given their pole-ratings, they will be reluctant to announce overt tax increases in October’s Autumn Statement.
“Over the past decade, Mr Brown has been a master of ‘stealth taxes’, and slipping in new taxes that can take a year to spot – like his removal of the 10p tax-rate,” said Bishop Fleming’s Andrew Browne.
“When Mr Darling stands up to deliver his Autumn statement, we’re unlikely to hear bold announcements of big new business taxes, or tax increases. But the devil is always in the detail with this Government, so my team will be ferreting through the mountain of post-statement papers, where we expect to find a raft of new stealth taxes for business”, he added.
“Our aim is to secure early warning of anything that own-managed businesses need to do to avoid the worst effects of any new or extra taxes”, said Mr Browne.