Budget 2016 – What does it mean for your business?
Business rates are one of the biggest costs for small business, and consequently one of the biggest difficulties. The latest budget announced the reduction of business rates – with businesses in properties of a rateable value of £12,000 or less paying no business rates. There will also be allowances for properties rateable up to £15,000.
Corporation tax – this was previously cut for large companies from 28% in 2010 to 20% now, the same rate as small companies. This will now be cut to 19% in 2017 and 17% in 2020
Capital Gains Tax is also changing with a rate reduction of 28% – 20% for the higher rate and 18% to 10% for the basic rate, although there will still be some exclusions for these new reduced rates, primarily the sale of residential properties that are not a main home.
Lastly National Insurance is the final element that businesses or self-employed workers will see changing – Class 2 National Insurance payments will no longer be payable for self-employed workers from 2017.
There will also be an increase in anti-avoidance measures including a crack down on foreign firms operating online in the UK without paying VAT and personal service companies being used to avoid personal tax liabilities to be abolished – just 2 examples highlighted that will be tackled.
If you would like to know more about the changes announced and how they may impact you – why not get in touch with our team of business experts today, who will be on hand to answer any questions. Call 01743 462604, email [email protected] or make an appointment at our Shrewsbury based office today.