Small businesses are the real winners from Osbourne’s March 2016 Budget, says Business Doctors’ co-founder Rod Davies.
“The new business rates relief alone stands to leave many British SMEs up to £6,000 a year better off,” he says, “with a raft of other changes also set to benefit the country’s estimated 5.4 million small businesses”.
Here’s Business Doctors’ round up of the carrots Osbourne is waving at small businesses in the hope of gaining their support:
- the Budget has more than doubled the threshold for small business rate relief, from £6,000 to £15,000. This means that an additional 630,000 SMEs will now pay no business rate at all.The higher rate has also been increased from £18,000 to £51,000.
- from April 2018, the self-employed will no longer have to pay Class 2 NICs, which leaves an extra £150 a year in the pot.
- the threshold for paying income tax will rise to £11,500 from £10,600 by 2017: a real helping hand for start ups and micro-businesses.
- from April 2017, higher rate tax will not kick in until an income of £45,000 is reached. This is up £2,000 from the current threshold.
- corporation tax rates have fallen and businesses with profits of £300,000 or less will only pay 17% from April 2020.
- the top rate of capital gains tax has been cut by 40 percent and from the start of the new tax year will stand at just 20%. The basic rate also falls from 18% to 10%.
- Osbourne’s Budget gave the go-ahead to the HS3 rail link, which will cut journey time from Manchester to Leeds to just half an hour.
- with an eye on roads as well as rail, an extra £161m will turn the M62 into a four-lane motorway and a pledge of £75m will help to improve other northern roads, including the A66 and A69.
- fuel duty has been frozen for the sixth year in a row
- commercial stamp duty reforms mean that no tax will now be paid on property purchases below £150,000. A rate of two percent will apply on purchases between £150,000 and £250,000 and a top of 5% rate after that.
Business Doctors can help your company to make savings throughout the year, not just at Budget time. Contact your local Business Doctor to find out how you could be operating more efficiently