Members of the UK200Group of independent accountancy and law firms have today commented on the opinion that exempting SMEs from paying the National Living Wage would send out the wrong message. Writing in The Independent, David Prosser comments: “If we decide that all workers should receive a certain minimum income, it would be odd to suggest that those working for smaller employers are not equally deserving.” Prosser suggests that a more progressive tax framework based on an ability to pay would benefit small firms, adding that recent cuts in corporation tax have only benefitted larger companies.

Jonathan Russell, Partner at UK200Group member firm ReesRussell:

It would be a nonsense that small businesses should have some exemption from applying the National Living Wage. Just because businesses are small does not mean that they should or do pay lower wages, and the large business would have yet another argument to drive down supply prices from small businesses by saying they don’t have to pay such high wages! If support is needed by small businesses as regards employment costs, it is more to assist with the ever increasing compliance costs including sick pay, maternity pay and other similar costs which not only have a disproportionate impact on a small employer but are also complex areas to handle.

David Whiscombe, Director of Tax at UK200Group member firm BKL:

It’s difficult to see how a case could be made for SMEs to be exempt from paying NMW/NLW. But abolishing or reducing employers’ NIC for SMEs would be a balanced and proportionate response to the contribution that the sector makes to job creation.

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Established in 1986, UK200Group is the leading mutual professional association in the UK with some 150 offices of quality-assured member accountancy and lawyer firms throughout the UK totalling over 550 partners, 150,000 business clients and global links in over 50 countries. UK200Group provide services and products that are designed to enhance the business performance of its members. Telephone 01252 401050, email admin@uk200group.co.uk or visit www.uk200group.co.uk.

Disclaimer:

UK200Group is an association of separate and independently owned and managed accountancy firms and lawyer firms. UK200Group does not provide client services and it does not accept responsibility or liability for the acts or omissions of its members. Likewise, the members of UK200Group are separate and independent legal entities, and as such each has no responsibility or liability for the acts or omissions of other members.

 

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