Chancellor Philip Hammond has been told to follow up his dramatic Spring Budget U-Turn on proposed National Insurance increases for the self-employed by reversing planned tax rises on small business owners.
Regional accountancy firm Bishop Fleming, which has its largest office in Bristol, welcomed the Mr Hammond’s decision to scrap the NI self-employed increase, which came in the face of a potential Tory back-bench rebellion. 
But the firm wants the Chancellor to go further and perform a similar about-face on other measures it sees as anti-small business and a “body blow to entrepreneurs”.
Bishop Fleming managing partner Matthew Lee, pictured, pointed out that Mr Hammond said he would look to see how he could plug the £2bn hole from the NI U-Turn with new measures in his Autumn Budget.
“While I welcome the fact that unincorporated businesses will not have to pay more NI contributions, I remain very concerned about the extra tax to be collected from those who run their own companies,” he said.
“The announced £3,000 reduction in the dividend tax-free allowance from April 2018 is a body blow to entrepreneurs operating through a company.
“It means that business owners will be worse off by £225, £975 or £1,143, depending on whether they are basic rate, higher rate or additional rate taxpayers.”
For a couple sharing the running of a company, the tax impact would be doubled to £450, £1,950 or even £2,286 depending on their tax rate.
Mr Lee added: “Business owners, whether they are operating through a company or not, should be supported and encouraged by this government, not punished, as they generate many of the jobs and wealth that the UK needs. The means not taxing them unfairly.”
The NI increase for the self-employed was the main bone of contention in a Spring Budget that was otherwise roundly dismissed as “underwhelming” by Bristol business organisations.
