Following the warning from the Forum of Private Business (FPB that new small-firm audit regulations could put directors' homes at risk, Paymaster General Dawn Primarolo has offered a more optimistic assessment.
Increases in the thresholds for small- and medium-sized enterprises (SMEs), which came into force last week, will, she insists, mean a Ј400 million boost to smaller businesses over the next three years as the increases will double the amount of investment eligible for 40% first-year allowances (FYAs). Businesses falling under the revised small business threshold will also be eligible for the 100% first-year capital allowance for spending on information and communication technology up to March 31, 2004, she pointed out.
