Arctic Systems, The Fall-Out

Jason has a great story “Arctic Systems Victory leads to a change in the law” about this “current” governments continued attack on small business in the UK. He laments the governments policies and make the following point:

“…. Well, again we see this government punishing small business, yes there is a tax advantage in this method over and above that of say an employee, but unlike the employee the self employed get no paid holiday entitlement, SSP, SMP, no employer to pay for their bupa, car etc. …”

If labour carries on this way, it will single handedly bring the next recession around, remember small business produces over 50% GDP. These policies will make harder for small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, to make a reasonable return for the risk and efforts they take.

There is no tax-compensation for the month, weeks and hours spend by small business owners without paying themselves, but then when it all pays off, Labour is there to take it from them. ST.

4 Responses to “Arctic Systems, The Fall-Out”

1. Jason Holden
   http://www.holdenassociates.co.uk/blog
   
   Said on October 17th, 2007 at 10:10 am

   Thanks for the links Stefan. This story is only a small part of what I personally see as a government that really has no idea about small business needs and wants.

   This is further evidenced by government departments like the Revenue, who with cases like Arctic have shown how aggressive they are towards small business and I would go as far as to say it’s a sign of contempt!

   The highest court in the land supported the way the owners had structured their tax affairs yet the fact that HMRC took the case that far I find worrying, where is the accountability of these departments?

   This government has had 10 years, and at the start they had the good fortune to ride the ‘good times wave’ that the previous government had started, since those early days they have rode the ‘prosperous wave’ of the worldwide economic climate, but now its changing, it will be interesting to see where we end up, any policy idea’s Gordon or Alistair? (hint: ask the Tories what they would do!)

   I personally see more legislation and regulation which will make the UK one of the hardest and least forgiving countries to operate for small business, while larger concerns will no doubt cement their relationships with government departments, further evidence of this was the press release made in August:

   ‘It is ridiculous to suggest that business does not pay its fair share of tax. Businesses are using the capital allowances and deductions that government has put in place.

   ‘These are not loopholes ¬ but are properly policed business relief’s,’ an HMRC spokesman said.

   And then for smaller business we have Arctic Systems, IR35 etc. need I say more.

2. Stefan Töpfer
   http://www.winweb.com
   
   Said on October 17th, 2007 at 10:35 am

   I agree! ST.

3. Jeremy Jacobs
   http://www.jeremyjacobs.com
   
   Said on October 17th, 2007 at 11:40 pm

   “This story is only a small part of what I personally see as a government that really has no idea about small business needs and wants”.

   Labour never has and never will. Besides,IMO,they’re in too deep with the corporates!!

   Some of your listeners may enjoy listening to Geoff Burch. Geoff is a brilliant speaker and business guru. He can be heard at Viewpoint Business

   Stefan, hope you don’t mind the plug but Geoff has, I’m certain, helped many small businesses in the UK.

4. Andrew Ivey
   http://www.timetomarket.co.uk
   
   Said on February 8th, 2008 at 12:34 am

   Well it’s not over. The Treasury has now come up with proposals to tackle any future Arctic Systems. Details are not yet clear but they will probably include a method in which a ‘fair’ salary can be adjudged for a company’s employee directors on the share register. And once Treasury bureacrats start to determine pay scales in the private work place we might as well all pack up and go.

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