{"id":41335,"date":"2020-09-15T07:06:06","date_gmt":"2020-09-15T07:06:06","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=f57328dc874a0dcce2929eaefad171a0"},"modified":"2020-09-15T07:06:06","modified_gmt":"2020-09-15T07:06:06","slug":"xero-urges-uk-gov-to-introduce-digital-tax-relief-for-smbs","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/xero-urges-uk-gov-to-introduce-digital-tax-relief-for-smbs\/","title":{"rendered":"Xero urges UK gov to introduce digital tax relief for SMBs"},"content":{"rendered":"


\n Sabina Weston<\/a><\/span>
\n <\/span><\/p>\n

\n
\n
15 Sep, 2020<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

\n

Xero<\/a>\u00a0has urged the UK government to step and encourage\u00a0SMBs<\/a>\u00a0to use digital tools to their fullest potential\u00a0in a bid to help the economy recover\u00a0from the impact of the\u00a0COVID-19<\/a>\u00a0pandemic.<\/p>\n

According to a new report from the cloud-based accounting software provider, smaller businesses have been more dramatically\u00a0impacted by the current\u00a0financial crisis than larger enterprises, with job losses estimated to be almost twice as big.\u00a0<\/p>\n

By analysing 300,000 customers\u2019 anonymised and aggregated data, Xero found that resilience and recovery of SMBs is significantly influenced by their digital skills.<\/p>\n

<\/p>\n

\nSMBs that\u00a0used\u00a0business management apps before\u00a0the financial crisis<\/a>\u00a0had 12% smaller revenue declines as well as 12% less job losses. Moreover, businesses with at least five apps connected to their account suffered from losses a third smaller than other SMBs during the crisis,\u00a0and had 40% fewer job losses.<\/p>\n

The findings from the report have resulted in Xero calling on the UK government to encourage small businesses to use digital tools to their fullest advantage. The company\u2019s policy recommendations include a digital tools tax relief, improved regional internet access, as well as an offset of technology expenses against tax\u00a0in order to aid small businesses in digitising and\u00a0building resilience<\/a>\u00a0for future economic challenges.<\/p>\n

Managing director of Xero, Gary Turner, described the economic recovery as\u00a0<\/strong>\u201cat a crossroads now as furlough and eating out schemes come to an end\u201d.\u00a0<\/p>\n

\u201cAs unpredictable as this year has been, one certainty is that digitally-enabled businesses are likely to recover faster than those who aren\u2019t,\u201d he said.<\/p>\n

\u201cWe\u2019re calling on the Government to support business recovery with funding for tech adoption and the introduction of a tax offset for expenses against technology implementation. Driving digitisation will help countless small businesses to get back on their feet.\u201d<\/p>\n

The message to the government comes as Xero announces\u00a0changes to its Starter Plan, aiming to facilitate cash flow management and growth for SMBs during the pandemic.<\/p>\n

Xero users can now send up to 20 invoices a month and make as many bank reconciliations as they need. The company has also announced the launch of a new Xero Projects’ profitability dashboard, aiming to simplify the overview and management of projects and their profitability by showing total profit margin, all work invoiced, and costs.\u00a0<\/p>\n

Xero\u2019s chief product officer Anna Curzon said that the company wants \u201cto help these new businesses that are starting off now\u00a0to be set up for a digital environment right from the start by lowering the barriers of entry\u201d.<\/p>\n

\u201cWe also know that with COVID-19, being paid on time and controlling cash flow has become more important than ever,\u201d she added. \u201cWe want to do all we can to ensure businesses stay strong by providing deeper cash flow insights and creating seamless experiences to help them get paid faster.\u201d <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Sabina Weston<\/p>\n

15 Sep, 2020 <\/p>\n

Xero\u00a0has urged the UK government to step and encourage\u00a0SMBs\u00a0to use digital tools to their fullest potential\u00a0in a bid to help the economy recover\u00a0from the impact of the\u00a0COVID-19\u00a0pandemic.
\nAccord…<\/p>\n","protected":false},"author":627,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-41335","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/627"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=41335"}],"version-history":[{"count":2,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41335\/revisions"}],"predecessor-version":[{"id":41337,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/41335\/revisions\/41337"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=41335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=41335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=41335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}