Home > Business Finance News > SMEs could be hit by personal account charge

SMEs could be hit by personal account charge

Published On 5 January 2007 at 14:17:41

Department for Work and Pensions (DWP) proposals for a personal account charge could hit small to medium-sized enterprises (SME) hard if they are implemented, experts warn.

Research by the Manchester Business School indicates that Britain's SMEs could face charges of £1.2 billion per annum if the proposals go through without amendment, reports Duport Associates.

Under the scheme, employees will be required to make a four per cent salary contribution to their personal account, while employers would be compelled to three per cent of a worker's salary.

Francis Chittenden, a professor of small business finance at the Manchester Business School, told the publication: "The DWP proposals risk substantially increasing the amount of work that small firms have to do on behalf of the government."

The school states that the personal account scheme could cost SMEs far in excess of the £254 million in the scheme's first year that has been estimated by the DWP.

 

Related Business Finance News:

• FPB urges SMEs to prepare for higher interest rates
  8 June 2007 at 12:21:42
  A group which represents the interests of small and medium-sized enterprises (SMEs) in the UK has advised its members to take advantage of the Monetary Policy Committee's decision not to increase interest rates, and look for good fixed-rate loans.
• Businesses welcome rate decision
  7 June 2007 at 12:46:24
  Business leaders have welcomed the Bank of England's decision not to increase interest rates again.
• SME tax case goes to the Lords
  6 June 2007 at 12:44:49
  The Federation of Small Businesses (FSB) has backed a small business as its case against HM Revenue & Customs (HMRC) is heard in the House of Lords.
• Rain dampens retail sales figures in May
  5 June 2007 at 12:14:59
  Bad weather during May was partly responsible for the poor retail sales figures which small and medium-sized enterprises (SMEs) in the UK recorded in the month, a new report argues.
• Further rate rises 'will hurt SMEs'
  4 June 2007 at 17:01:38
  Ahead of next week's meeting of the Monetary Policy Committee (MPC), a group representing the interests of small and medium-sized enterprises (SMEs) has urged the Bank not to increase interest rates again.
• Bank offers free services to SMEs
  4 June 2007 at 09:01:54
  A leading high street bank has unveiled a new offer to try to encourage small and medium-sized enterprises (SMEs) to switch their banking services.
• Bank offers advice to start-ups
  31 May 2007 at 12:23:30
  A leading high street bank has launched a new service designed to help entrepreneurs start their own small and medium-sized enterprises (SMEs).