Systemagic Boss Says Budget Continues to Squeeze Small Businesses

Bath business owner hits out at a Budget which ‘raids’ the small business sector to balance the nation’s books.

The boss of IT company Systemagic, said:

“For me it seems like the incentive to start, run and grow a business is reducing year on year given the continued requirement from lenders for personal security and guarantees and the reduction of the ability to prosper from a profitable enterprise.  

“When you then see no increase in duty on cigarettes and alcohol despite our health service being in crisis, it feels like the business community are being raided.”

James has run IT company Systemagic employing a staff of 13, said the Chancellor may have started his Budget by saying he wants to encourage people to start and grow businesses and make the UK an attractive place to start a business – but he delivered something else.

While the reduction in Corporation Tax by 1%, (and down to 17% by 2020) but a one per cent drop is barely enough to reinvest in anything worthwhile. 

James said: “ On a £100k profit this means an extra £1000 retained which is barely enough to purchase a new computer let alone invest in growth.   Sounds to me like a token opening gambit to get business owners onside.”

He said other stings for SMEs were:

*The reduction of the £5000 tax free dividend allowance to £2000 from April 2018.

*The living wage igoing up across the board so small business owners must find more money for staff wages which will undoubtedly result in job losses.

He said: “There’s almost zero encouragement for investors and business owners have no way of taking a meaningful reward for their risk and hard work over the previous year.  Investors will be more likely to use ISA allowances and SEIS schemes than invest in established private enterprise which is the stage at which most businesses see their best growth.”

Along with award-winning IT support, Systemagic provides business telephone systems, cloud computing and connectivity solutions to South West businesses, without typing anyone in to a long term contract. The 13-strong team is currently based on the Bath/Wiltshire border and celebrates 18 years in business this year. The company recently won the award of Commitment to Apprenticeships from Yeovil College in Somerset, the third award in 3 years for their apprenticeship programme. 

For more information visit https://systemagic.co.uk