The 2016 Budget for Small Businesses and Entrepreneurs
We’re now more than a month in to the Government’s 2016 budget and the changes and announcements have had some time to permeate the business landscape of the UK. These are the points which we believe are the key ones to note if you are a small business owner or an entrepreneur.
Small Business Rate Relief
Getting right to the heart of the budget for many people, the Chancellor announced that small business rate relief will be more than doubled from £6,000 to £15,000. This change will come into effect from April 2017 so there is still a way to go, but this change has a significant impact on the decision making of anyone considering taking their first steps into the world of business in the near future. 600,000 small businesses will now be below the threshold and pay no business rates at all, and a further 250,000 will see their rates fall. Over the next five years this amounts to £6.7 billion in savings for small businesses. There has never been a better time to flex your entrepreneurial muscles.
Of course, just because the rates have fallen doesn’t mean you shouldn’t take advantage of the various forms of small business rate relief available, especially as the Chancellor announced that the doubling of rate relief would be extended through to 2017. If you think you might be eligible for small business rate relief, contact us at Financial Saviour and we will be able to guide you through every step of the process.
This year was no exception to the pattern established in 2007, and the Chancellor has announced that corporation tax will be lowered again to a new low of 17% by 2020. This cut is more than initially announced and is expected to have a far reaching impact, particularly on start-ups, who will now be able to reinvest more profits into growth and expansion.
The above two changes are the main ones which have caused waves through the British business sector, but they are not the only things from the budget which will benefit UK firms. The announcement of a planned High Speed 3, which will cut journey times between Manchester and Leeds nearly in half, opens up a broad scope of opportunity for businesses based in the North.
There have also been further moves to assist microbusinesses, with a few new ‘digital tax breaks’ which will allow ‘bedroom entrepreneurs’ the chance to expand, with a new £1000 allowance.
Mike Cherry of the Federation of Small Businesses has said; “The Chancellor has listened to our calls for the tax system to be made simpler for small businesses and the self-employed and taken important action to make Small Business Rates Relief permanent and to take many small firms out of the system altogether. The combined measures announced on business rates – the single biggest tax cut in today’s Budget – will be viewed by our members as a welcome and important step on the road to fundamental reform.”
Having a clear picture of the financial landscape and a path forward planned out is vital, and understanding how the budget affects you and your interests is key to seeing success in 2016 and beyond. To find out if you could benefit from small business rates relief, entrepreneurs’ relief, or for advice on any other financial matter, contact Financial Saviour today at firstname.lastname@example.org for safe, secure, confidential help.