Unless you have been hidden away from all media over the past week, you will know that the Budget was announced last Wednesday. As always, it is a nail-biting times for small businesses, so how did it measure up on this occasion? The Chancellor called it a Budget for Growth and critically, there are a number of measures that do seem to help the small independents get long, but is it real assistance or just political smoke and mirrors ahead of the impending European Referendum?
A welcome announcement in the 2016 Budget, and somewhat unexpected, was an increase in the business rate threshold from £6,000 to £15,000, and also the higher rate rose from £18,000 to a whopping £51,000. The Chancellor suggested that this would mean that around 600,000 UK Based businesses would pay no business rates at all!! If you are a small business, and would like to find out if this helps with your taxes, or if you are unsure if this helps you, our small business tax specialists here at Newton Magnus would be happy to advise you further.
Good news also for the self-employed, well, by April 2018 at least, when Class 2 National Insurance payments will be phased out for that group, meaning more savings. Tax allowance will also increase from April 2017 to a start at £11,500, so there’s no tax to pay until you reach this threshold. Additionally, from the 2017 tax year, the higher rate of 40% won’t apply until you earn £45,000. While announcing savings for the small business, the Chancellor also had big corporations in his sights, and announced measures to stop them manipulating the system and paying close to nothing in taxes.
Additionally, there will be a change to capital gains rates from 6 April 201. Reducing the 18% rate of CGT to 10% and the 28% rate of CGT to 20% for chargeable gains, except in relation to chargeable gains accruing on the disposal of residential property (that do not qualify for private residence relief), and carried interest. There was also a reduction on stamp duty on commercial buildings announced. A great range of helpful measures for a range of businesses.
Many industry leaders applauded Mr Osbourne’s actions, claiming that these measures alone would make an impact on how small business operate and ease the way in which they operate. It was, as agreed by many industry leaders and entrepreneurs, a budget for growth and made the futures of many of the countries smaller and more vulnerable companies much brighter.
For advice on any aspect of managing your business accounts, tax and expenses, our friendly, experienced team at Newton Magnus offer sensible, down to earth advice you can trust. Call us today to make an appointment,
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