How Taxation is Boosting The Nation’s Finances
With the Government raking in a surplus of £2bn, it’s clear to see that business paying their way in taxes is having a big effect.
When it comes to the UK and finances, we’re used to hearing pretty grim news. Whether it’s more talk of the struggling economy or the uncertainty of Brexit, it’s easy to feel a little disheartened. Finally though, there’s something to celebrate! Britain has just recorded the biggest Budget surplus since the Millennium, giving the Government more money to spend on vital public services. So how have they raked in so much cash? The good mood at the Treasury, it turns out, is largely down to successful businesses all over the UK making a massive contribution through taxation.
The story behind the surplus
The Office for National Statistics recently revealed that in July public sector net borrowing went into surplus by £2bn. This means that the government received more in tax income than they spent on public services. With the Autumn budget not too far away, the focus is now going to be on what the Government does with that extra money – with many saying that it will go to the NHS. In a time of overstretched health service, news of such a healthy surplus is cause for optimism for Philip Hammond as we head into autumn and then the winter months.
What caused it?
So why did the Government see so much money coming in? City analysts only predicted a surplus of £1.1bn, so the Government took in a lot more cash than anyone thought was possible. The figures obtained by the Office for National Statistics showed strong seasonal inflows of income tax receipts. So the surge in the surplus was largely down to one simple thing – honest business owners making their tax contributions.
Businesses paying their way
Recently, there has been a lot of focus on big businesses not paying a lot of tax. While there is no suggestion that they are breaking the law, it serves as an important reminder that no one is above scrutiny. While your business may not be on the same scale as Amazon or Facebook, you should still keep a close eye on your taxes. By working with a firm of trusted Rochford accountants like Accounting IT, you’ll be able to make sure that your books are always in order. So when the time comes to file your tax return you can be sure you’re paying exactly what you should be.
Every business is contributing
So what does this big surplus show? Well, it demonstrates that the Treasury can count on its enterprising spirit of UK residents to boost its finances. No matter the size of a Rochford business, they will be making a really valuable contribution to the public purse through the taxes that they pay. So whether you have just started a small marketing company or own a chain of local stores, you’re doing your bit to help.
What happens next then? After the Autumn Statement is released in a few weeks, we’ll have not only a clearer view of what any surplus finances will be spent on, but of any changes to taxation in the upcoming months. With the help of your accountant, you’ll be able to figure out how any new laws will affect your business – and how to pay the minimum amount those laws allow when the new financial year rolls around.