Tax Incentives Point the Way

Up to 15 major corporations are looking to relocate back to the UK following changes in tax rules.

The identities of the companies are not all known but publishers UBM and Advertisers WPP are believed to be among the names. 

A treasury spokesman said the tax change was part of a package designed to create “the most competitive tax system in the G20”. …”at the budget this year, we cut corporation tax by and extra percentage 24% and by 2014 it will be 22% putting the UK within sight of a 20% business tax rate, helping us move closer to our goal of creating a tax system more competitive for business than that of any other major economy of the world”.

Surely, this is the way to attract the right companies and people into the UK who will pay UK tax rather than the increases in tax that we are seeing across the Channel in France. 

Written by Tim Corfield

Business Failure Rates Expected to Rise 10% Over the Next 2 Years

Business failures are set to rise by up to 10% over the next 2 years according to a study by BDO LLP recently.

Some 23,600 businesses collapsed in 2011. This is expected to hit over 25,000 in 2012 and nearly 26,000 in 2013 according to a BDO survey.

The pessimistic forecast is based on lower levels of consumer consumption arising from weaker earnings growth and rising unemployment.

Construction and property, business services and retail and wholesale are the three sectors to suffer the most during 2012.

Technology, media and telecoms and manufacturing are ear marketed as the sectors likely to grow.

A spokesman for BDO said, “Businesses that develop innovative products, distribution channels and a strong customer proposition will gain significant competitive advantage – irrespective of sector. Those who do not respond to the new normal are at a greater risk of falling into difficulty”.

The report also predicts that after 2013 failure rates will start to decline.

Tim Corfield May 2012