This year’s Budget has had a long build up with calls for more focus to be placed on small business funding in the wake of the poor economic climate. And, it would seem that on first glance, the Chancellor seems to have answered those calls.
‘A budget that doesn’t duck our nation’s problems. It confronts them head on. It’s a Budget for an aspiration nation’, George Osborne states he has created a Budget to tackle the UK’s problem and boost the UK’s economic recovery.
So what does this year’s Budget promise for small business?
- The Chancellor has scrapped the first £2,000 of employer’s national insurance bill from every company in the country which means that around 450,000 small business will pay no employer national insurance at all.
- The planned fuel duty rise, which was supposed to be implemented, in September has been scrapped.
- There is planned drop in the rate of corporation tax to 20% – meaning that the UK will have the lowest rate of business tax of any major economy in the world.
It has been said that this Budget is a victory for small businesses as more money is being made available for businesses to use to boost their growth and being creating vital jobs, all of which will ultimately help the economy.
There were tax cuts in other areas too, with the personal allowance each worker can earn rising to £10,000 by next year. Another piece of good news, the end of week drinks will be a little cheaper due to beer duty tax being cut by 1p per pint.
Here at 08Direct, we are really pleased with the promises that the Chancellor has made and think that this year is going to be a promising one for the small businesses, both new and old!