The 2015 budget was announced by Chancellor of the Exchequer George Osborne on Wednesday.
DON’T MISS: Fact-checking the 2015 budget for Hackney
Among other things, the election budget included scrapping the annual tax return and lowering business tax. We asked local business owners in Hackney for their thoughts on the changes.
Mahmet Yemtur, owner of NV Barbers:
How do rates affect your business?
It’s expensive for a small business. It’s six grand for us. It all comes in one pocket and all goes out in another. It should be three hundred per month.
The annual tax return is being abolished – was the old system flawed?
The amount of paperwork is a lot, so all out it’s done by an accountant. You can’t deal with all that paperwork.
Krisz Borbely, owned Cycle Lab and Juice Bar for five years:
Do you think business rates are fair?
No, you get nothing for it. I can’t even put a board out there to advertise my business. They want you to pay more and they don’t help you in any way. [I pay] £10000 for the two shops.
Do you think business rates are discouraging start-ups?
If you had £10,000 in your pocket you wouldn’t consider yourself a rich man, but there’s a lot you can do with £10,000.
Corporation tax has dropped – will help new businesses?
No it doesn’t make a big difference. People don’t start up businesses because of corporation tax. It’s the last thing you think of.
Lino, owns Ruby Red Cafe:
What do the recent budget announcements make you think of the coalition government?
If they reduce [rates] it’s good, and I would vote Conservative! But I think they are going to go up.
Corporation tax has fallen again – it’s now 20 per cent. What does that mean for your business?
That’s unbelievable. That’s means I won’t get a salary, I’m going to get paid as a businessman. Wow, I will get 5 per cent? I didn’t know that!
You’re happy now, but what about the last five years?
Over the last five years it’s been a nightmare, but it’s getting better for everyone now. But, next budget, they are going to come heavily because they’ll see it’s getting good and people have jobs.
Annual tax returns are being abolished – will that make any difference to you?
Maybe now I can do my own paperwork rather than pay £200 for an accountant.
