HMRC has announced that it is extending the support it offers to medium-sized enterprises. “Medium-sized” refers, in this instance, to businesses with an annual turnover of £10 million or more, or with at least 20 employees. It is worth noting that a business need only meet with one of these two criteria in order to qualify, and so can become eligible based on employee numbers alone. This is also based purely on headcount and therefore includes part-time workers. Here at Phebys, Accountants in Cambridgeshire, we’ve explained just what the new support is and who it is offered to.
“Growth Support Service”
The support offered by HMRC to medium-sized businesses is expected to be much like a scaled-down version of the support it currently offers to large enterprises. HMRC has previously been accused of showing favouritism towards large businesses. Whilst all businesses who meet one of the two criteria will qualify for some level of support, particular attention will be paid to companies exhibiting “certain types of growth”. These firms will receive special support and, namely, their own dedicated tax specialist, who will aim to aid their understanding of tax issues, governance risks and access to incentives and reliefs.
What constitutes “certain types of growth”?
- A significant increase in turnover – a company whose turnover has increased by 20% or more in the last 12 months, where this increase is at least £1 million
- Growth-related mergers and acquisitions – any company that has recently undergone a merger or acquisition resulting in the growth of business
- Group re-organisation – a company, or group of companies, that has undergone a re-ordering or the change in composition for the purpose of business growth (excluding insolvency)
- Stock market listing
- A significant introduction of capital – a company whose recent introduction of capital has increased their balance sheet total by more than 20%, where that capital is at least £1 million
- Notifying HMRC and submitting a Senior Accounting Office (SAO) certificate for the first time
- Making quarterly installment payments for the first time
- Entering the VAT Payments on Account (POA) regime
- Exporting goods or services for the first time, or any other way in which the firm has established a presence in a new territory
HMRC has stated, however, that it would also consider companies that are displaying meaningful growth in ways outside of these pre-defined parameters to receive the relevant special support.
It is believed that this new support has come as a direct result of government policy, wherein a desire to make growth a simpler goal for British companies has been openly expressed.
Phebys – Accountants in Cambridgeshire
Here at Phebys, professional and proactive accountants in Cambridgeshire, we are more than happy to assist you in finding out whether or not you qualify for the new support. Furthermore, if it transpires that you do not qualify, we will be more than happy to instead offer our own support on tax guidance matters, as we have extensive experience on helping businesses achieve the growth that they desire. To get in touch, please do not hesitate to call us on 01480 896267, or email email@example.com, and we will be more than happy to meet with you to discuss how we can help your business grow.