It’s only 4 month since our last one, but a new government brings with it a new budget. So let’s cut to the chase and find out what Georgie boy has in store for you as a small business owner.
Firstly, investment in businesses is 31.9% higher than previously seen in 2010. In terms of developing businesses, the government is intending on creating 1 million jobs over the next 5 years and small businesses will see reduced NI contributions. This has been implemented to help offset the cost of a compulsory living wage. By 2020, Corporation tax will be cut to 18% and the Annual Investment Allowance has been set at £200 for the next 2 years.
Large firms have committed to creating 3 million new apprenticeships and, in order to ensure apprenticeships quality remains high, will have to pay levies. Any business with profits of over £20 million will be subject to accelerated corporation tax.
A Road Investment Fund has also been set up. This will be dedicated to improving the UK’s roads as part of wider infrastructure spending. In particular, the North and Midland’s infrastructure will see a great deal of attention, with £30 million being invested there.
From 2017, mumpreneurs and dadpreneurs will be entitled to 30 hours free childcare a week for their children aged 3-4. While inheritance tax has been reduced which means that as much as £1 million is free from taxation.
By 2016, it is expected that your Tax Free Personal Allowance will be raised to £11,000. The new high tax threshold (40p) has also moved up to £43,000. This coincides with an expected national living wage of £9 per hour to be brought in by 2020.
What are your thoughts on the budget?