This year’s Autumn Budget delivered by Chancellor Philip Hammond had some interesting benefits for small businesses and sole traders. New spending measures will be created that will help businesses in various sectors.
Personal Allowances Going Up
The basic rate was raised to £11,850 in April this year. In 2019 it will be pushed up to £12,500. For higher rate taxpayers it will go up from £46,350 to £50,000. Raising these tax thresholds is an effective tax cut for many people. Get in touch with DLR Accountants, who can help you with your self-employed accounts.
Business Rates Going Down
The Chancellor said that he will be cutting the business rates bill for small businesses. Businesses with a rateable value of £51,000 and below will see their bill cut by one third over two years. This is calculated to result in up to £8000 of savings for SMEs.
Despite talk of the £10m allowance being done away with, the recent budget merely involved a slight revision to Entrepreneurs’ Relief; the initial holding period has been lengthened to two years instead of just one. This will only affect those wishing to set up and sell a business within a two-year time frame, who will no longer be able to claim the relief, however most small business owners understand that it takes time to establish a successful company. For help and advice with your new business start-up, the professional team at DLR Accountants are on hand to provide accountancy services across the United Kingdom. Get in touch to discuss your needs in a free consultation.
Retailers Get Help
Britain’s high streets are having a tough time, with people feeling poorer and not spending, as well as heavy competition from online retailers. The Future High Streets Fund is designed to assist local councils with £675 million of co-funding to enhance retail shopping.
Digital Services Tax Will Only Affect Big Players
Some digital small businesses have been worried that a tax on digital services will affect them, but Hammond made clear that this was only aimed at businesses that collect over £500 million in digital revenue – large corporations such as Amazon, Ebay and Facebook would be impacted, rather than local businesses.
Fuel Duty Frozen
For the ninth year running, there was no increase in fuel duty. This should assist with the costs of running a vehicle for both ordinary car use and business transport. The saving is estimated to be £1000 for a car and £2,500 for a van.
Mancunians to get a Boost
The Greater Manchester area will see a new fund to assist small businesses in that area.
Obviously the state of roads matters a lot to small businesses, whether their product is goods or services. Most need to travel to meet clients or deliver things to customers. Philip Hammond promised a £30 billion package for improvements to England’s roads including major routes and local roads, with repairs to bridges and potholes.
Full Fibre Broadband
The Chancellor understands that technology is vital for SMEs: “For the 21st century broadband is to roads in the 20th, railways in the 19th, and canals in the 18th. It’s the network infrastructure that will make this country work.” He will ensure that a full fibre broadband network will cover the entire country to increase productivity.
Increasing the Annual Investment Allowance
The Chancellor increased the Annual Investment Allowance, from £200,000 to £1m for two years, delivering on a long standing request from the British Chambers of Commerce.
Overall, the measures detailed above will assist small businesses and sole traders in different areas to keep their trades and activities competitive in a Britain that is changing fast and with an economic climate that is a little uncertain.