Having weathered the storm of uncertainty which surrounded Brexit and a general election, Britain has found its feet again and a future is bright and clear. Particularly in terms of business and finance, companies and organisations in a variety of industries and sectors have navigated their way through these political landmarks and are well on course for a successful 2018. Startups, and small and medium sized enterprises, are next in line to enjoy the commercially fruitful Britain, and here is why:
On the backdrop of the snap election, a budget was called and businesses of all shapes and sizes waited on baited breath to see if they had been dealt a good hand or not. Small and medium sized enterprises, for the most, saw some solace. With a tax relief scheme in place to aid innovation and development, smaller businesses and startups were given a pushstart by the government. The decision to postpone the ‘Making Tax Digital Initiative’ for a year has been lauded as one of the most landmark tax movements in British history, as it gives SME’s below the VAT threshold some respite from taxation for at least a year. This absence of taxation will give smaller businesses one less thing to contend with, allowing effort, energy and concentration to be channeled into the business itself, rather than the finances and bookkeeping which coincides with any business. Once this year long delay ceases, businesses which have benefited from this movement should have evolved into a much healthier entity, allowing them to cope better with the financial strain of taxation.
With the majority of small and medium sized enterprises occupying the research and development sector, the 2017 election made for pleasant reading. With each and every party emphasising the importance on R&D, along with an increase in funding, SME’s now have a solid platform and foundation from which to push off. With an increase in funding and a proactive governmental support, the commercial environment for small and medium sized enterprises in the research and development sector is arable to say the least. This governmental backing will be conducive to more innovation, which will subsequently allow creative and pioneering businesses to grow and to succeed.
Now what about small and medium sized enterprises outside of the research and development sector? Although they will not receive the same level of support that companies in this sector will receive, a certain degree of help is still available. A small business funding scheme has been established by the government to help companies with loan applications; this new movement will make banks direct unsuccessful applicants to other providers if they reject their application. Despite being small in comparison, this movement is still a much needed step in the right direction in terms of support for smaller businesses.
For the financial and commercial wellbeing of companies and organisations in the UK, the future is bright, and with extra funding, guidance and support from the government, the essential elements for success should allow any business to flourish in 2018.
For companies expanding and seeking financial support for commercial properties, Bloomsmith VAT Funding Solutions are able to provide funding to cover the full VAT relating to their property purchase. For more information, contact us today on 020 3488 3411 to speak to a member of our team, or use our online form to leave us a message.