“The lack of a growth strategy is the biggest concern”
Mark Campbell is a 45 year old, married father with one child, who runs a small consulting and training business and is also a part-time lecturer.
He mostly agreed with the Four Year Plan, but is very worried about how the combination of public sector cut-backs, increased personal tax and a fall in consumer confidence could negatively impact small businesses such as his:
The retention of the 12.5 per cent corporation tax and the extension of the three year exemption for start ups is welcome as are the retention of the current VAT rates of 13.5 per cent and 21 per cent for the next two years. The Minister for Finance mentioned in the four year plan that there may be a a ‘rebalancing of the VAT system and the application of the zero rate of VAT’, however, and this remains uncertain. The concern is that some zero-rated services we currently provide may become liable for VAT at the 13.5 per cent or even 21 per cent rate over the next few years – resulting in either a price increase for our clients or a hit on our margin.
Mark says that the most significant concern for his business overall is the lack of a growth strategy in Budget 2011, particularly in the area of education and training. He also says that increases in property-related taxes will have a significant effect on both his business and family – as they work from home to keep overheads low.
Finally he says that increases in excise duty and carbon tax will be burden as his work involves extensive travel and transporting of equipment to and from client premises.
The widening of the lower rate tax band, the narrowing of the bands, reductions in personal and employee tax credits, the increase in the Class S PRSI rate and the new ‘universal levy’ on both pay and pensions will reduce our take home pay by approximately 5 per cent in 2011 alone.
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