Wednesday, 20 May 2015

Will the 'small business'package boost the economy?

I have to say I have yet to meet anyone who actually understands what the small business package means to either small business or to the economy.
My own experience from last Saturday when my youngest boy played football at meadowbank park is most people thought the government was giving away 20,000k to every small business.

Not so.
ROSS GITTINS has it right.

There will be a slight positive effect on the economy. The capacity to rort is minimal as you must earn income to claim against.

A person working from home could make improvements to their home BUT there is little flexibility here. If for example. you work in a home office at your home and it around a quarter of your house that is all you can claim.
You could certainly update all the computers at home if you have the income.To claim a new car or used car you need to show it is essential to the business as it is to a tradesman for example.

Overall I suspect when people in small businesses talk to their accountants and realise what the policy is all about then the present 'exuberance' will subside.