A leading Manchester accountancy firm has criticised the Government’s mixed messages on economic growth, warning that small and medium-sized businesses are being hit hardest by stealth taxes and shifting reliefs.
Adam Caplan, Partner at FFT Chartered Accountants, says that despite the political rhetoric around supporting British business, the reality for entrepreneurs is one of frozen thresholds, rising tax bills and increasingly complex relief schemes.
“Politicians love to talk about supporting entrepreneurs, but the numbers tell a different story,” says Caplan.
“Personal tax allowances are frozen, Corporation Tax remains high, and the so-called support for innovation through R&D relief has been made harder to access – and riskier too. Small businesses are left footing the bill while the Government chases headlines.”
Caplan believes that the current tax system actively discourages the very business owners who are creating jobs and driving innovation.
“Entrepreneurs take all the risk, create employment, and innovate – yet they are facing higher tax bills, more compliance headaches, and less certainty about the future,” he said.
“It is no wonder many are questioning whether Britain is still a good place to run a business.”
FFT is calling on the Government to deliver meaningful reform, not token gestures.
Caplan highlights the complexity surrounding R&D tax relief as a prime example.
“Research & Development (R&D) tax relief should be a straightforward incentive for innovation, but what we have now is a confusing, fragmented regime that is easy to trip up on,” he explained.
“Clients tell me they are scared to claim for fear of HMRC investigations. That is not how you create a pro-growth environment.”
Despite these challenges, FFT is helping its SME clients navigate the landscape, combining practical tax planning with long-term strategic advice.
“As accountants, we cannot change the Government’s tax policies, but we can help businesses get ahead of them,” said Caplan.
“That means smarter remuneration strategies, proactive Corporation Tax planning, and maximising what reliefs are still available – all while preparing for whatever U-turns the next Budget brings.”
Caplan argues that now is the time for entrepreneurs to take control of their tax planning, rather than waiting for clearer guidance from Westminster.
“The sad reality is that tax policy is now driven by politics, not economics. Business owners cannot afford to wait for sense to prevail. They need to act now to protect what they have worked hard to build.”
