Budget will hit UK plc for 8.3 billion [pounds sterling] in tax and admin costs.

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The increases in national insurance contributions and employment costs announced in the latest Budget will fail to create a more competitive environment, writes David Hoskins, tax partner at Smith & Williamson. British business will be worse off by around 8.3 billion [pounds sterling].

The rise in the employer's class 1 NI contribution to 12.8 per cent will cost an extra 4 billion [pounds sterling], according to the CBI, which may lead to job losses. On more a positive note, extending the credit system for R&D costs from SMEs to large companies means that they will be entitled to an extra deduction from taxable earnings. For every 100,000 [pounds sterling] spent on R&D, a deduction of 125,000 [pounds sterling] from taxable earnings may be...

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