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With the world’s leading professional body for Accounting Technicians citing the current business rates system’s negative impact on businesses and the economy, it’s calling on the government to make changes.

The AAT believe immediate changes in the short-term are needed, whilst a long-term review is required to bring wholesale reform.

Responding to the Treasury Select Committee’s Inquiry into the impact of business rates, AAT has highlighted that the retail sector is suffering significant problems, with ever increasing rates in a highly competitive environment.

According to the report, years of tweaking the existing system will cost the taxpayer £13bn between 2019-20 to 2023-4.

As a result, the AAT has made the following recommendations for the immediate issues:

  • To immediately move from revaluations every three years to annual revaluations, as take place in other countries such as Hong Kong and the Netherlands. This would provide increased certainty and accuracy for business whilst hugely reducing time consuming and costly appeals.
  • Plant and machinery should be immediately removed from business rates calculations. Including them represents a tax on manufacturing investment and arguably damages productivity by discouraging investment in new plant and machinery.

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Give us a call on 01442 795100 or email jaime.thorpe@dolanaccountancy.com

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  • In the longer-term, the government should establish a cross-party, consultative approach to agreeing a fairer, simpler alternative to business rates, using the forthcoming Treasury Select Committee report into this issue as a starting point for action. Issues beyond business impact should be considered too, including the amount of revenue to be generated, the ease of collection, and the level of political, as well as economic, acceptability.

AAT Head of Public Affairs & Public Policy, explained further, “The system is creaking at the seams, it’s a 20th century system trying to deal with 21st century problems and needs wholesale reform.

“A cross-party consensus on reform would maximise the chances of long-term success and recognises that irrespective of political persuasion, most politicians genuinely want what’s best for businesses, large and small. An outcome that allows businesses to thrive is generally good for employment, consumers, and the British economy.

“The forthcoming Treasury Select Committee report into this issue could therefore be used as a starting point for a complete overhaul.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Thousands of Contractors Choose Dolan Accountancy

With over 25 years experience in contractor accountancy helping thousands of contractors, freelancers and the self employed, Dolan Accountancy has the specialist skills, reputation and credibility you can trust.

Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £105 + VAT. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795 100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours
  • Free use of Contractor Umbrella – With IR35 Legislation changes we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams
  • Free Access to FreeAgent – We offer all of our clients access to FreeAgent, free of charge
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few
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