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Lack of Government Help Leads to Ineos Leaving the UK

I have read various stories recently concerning the positions of various companies that are looking to leave the UK due to the high amounts of tax they would have to pay if they stayed here.  In another example of how higher taxes could actually harm the country instead of helping it pay back its huge debts, Ineos – a chemicals group with a value of around £30 billion – has left the UK.

The business struggled hugely during the recession and went to the government to ask if they could have some assistance in paying what was due in VAT and tax.  This was a simple case of asking for a temporary deferral, and it was an active way of seeking to solve the problems the business found itself in after the effects of the recession.

However the government did not help Ineos, and this has led to the company leaving the country to put itself in a better financial position.  The company will now be based in Switzerland and it is expected that they will save almost £100 million a year in each of the next four tax years.

I think it’s a shame that British businesses are being forced to go abroad in situations like this.  The financial situation Ineos has found itself in apparently left it with no choice but to move abroad so it could cut its tax payments and plough that money back into the business.  In short, this move could be what saved the business.

The General Election could have an effect on how the country moves ahead from here.  But if you have any concerns over the liabilities your own business has with regard to tax and VAT, you may get in touch with us here at St Matthew for more information and advice.


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