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February 6, 2025 - February 6, 2025   


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Influences on small business – fiscal measures to encourage people to retain profits

Following a request from the European Commission’s Directorate-General for Enterprise, smallbusiness|europe would like to gather feedback from UK small businesses on the impact of fiscal factors on the retention or distribution of profits. If you are involved in a small business and have views on this issue, please be kind enough to complete the following questionnaire. Your responses will then contribute to work by the European Commission that will look into existing practices across the EU’s 25 member states and put forward non-binding suggestions for changes to fiscal regimes that may stimulate and encourage small business growth.

smallbusiness|europe would like to express its gratitude to the Association of Chartered Certified Accountants for designing this questionnaire.

acca

Question 1: What is the legal status of your business? (please tick the option that applies)

Sole trader (go to Question 2)

Partnership (go to Question 2)

Limited partnership (go to Question 2)

Limited company (go to Question 7)



Question 2: Are you likely to reinvest money in your business at the end of your current financial year?

Yes

No

Don’t know



Question 3: Is taxation an issue that affects your decision when considering whether to reinvest money in your business?

Yes

No

Don’t know



Question 4: Which of these tax factors would encourage you to reinvest money in your business? (please tick all that apply)

Tax breaks e.g. allowances on R&D expenditure

Capital Allowances

Neither of these

Don’t know

Other (please give details)



If you have answered “other” to the question above, please specify



Question 5: Which of these other factors influence you when you are considering whether to reinvest money in your business? (please tick all that apply)

Considering passing on the business

Considering expanding the business

Likely capital spend next year

Grants available

Don’t make enough money to reinvest

Pension requirement

Other personal investment

Advice from bank

Advice from accountant

Don’t know

None of these

Other (please give details)



If you have answered “other” to the question above, please specify



Question 6: Whose advice do you seek when considering whether to reinvest money in your business? (please tick all those that apply)

Accountant

Bank

Business Link

Business associates

Family

Don’t know

No-one

Other



If you have answered “other” to the question above, please specify



NOW PLEASE GO TO QUESTION 13



Question 7: Are you likely to retain profits in your company at the end of your current financial year?

Yes

No

Don’t know



Question 8: Is taxation an issue that affects your decision when considering whether to retain profits in your company?

Yes

No

Don’t know



Question 9: Which of these tax factors would encourage you to retain profits in your company? (please tick all that apply)

Tax breaks e.g. allowances on R&D expenditure

Capital Allowances

Tax charge on dividends

None of these

Don’t know

Other (please give details)



If you have answered “other” to the question above, please specify



Question 10: Which of these factors influence you when you are considering whether to retain profits in your company? (please tick all that apply)

Considering passing on the company

National Insurance cost of employees

Other personal investment

Likely capital spend next year

Advice from bank

Grants available

Advice from accountant

Don’t make any profit

Prefer to take salary

Prefer to take dividend

None of these

Don’t know

Other (please give details)



If you have answered “other” to the question above, please specify



Question 11: Has the tax on dividends for small companies influenced your dividend policy?

Yes

No

Don’t know

Not applicable



Question 12: Whose advice do you seek when considering whether to reinvest profits in your company? (please tick all that apply)

Accountant

Bank

Business Link

Shareholders

Board Members

Family

Don’t know

No-one

Other



If you have answered “other” to the question above, please specify



Question 13: Is taxation an issue that affects your decision-making re. the legal status of your business?

Yes

No

Don’t know



Question 14: On what day is the end of your financial year?



Question 14a: In which month is the end of your financial year?



Name



Company name



Email address



 

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Please note, any opinions expressed on this site are not necessarily those of Lloyds TSB.

smallbusiness|europe

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Brussels 1000

Belgium

 

t +32 2 503 1062

f +32 2 503 1586

www.smallbusinesseurope.org

 

 




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