In what was labelled as a budget for an ‘Aspiration Nation’, there have been measures taken by the government that could potentially have a real positive impact upon the UK’s small businesses. The UK200Group of independent accountants and lawyers, which represent more than 150,000 small and medium sized businesses, have welcomed in many of these measures in the hope they can bring benefits to many SMEs who are currently struggling to cope.
George Osbourne has cut employer National Insurance contributions, by taking off the first £2,000 from NI bills from April 2014, which will lift 450,000 SMEs out of employer NI contributions altogether. Other business friendly measures include a further 1% cut to corporation tax to 20% by April 2015, while Stamp Duty is to be scrapped on shares traded on growth markets like AIM. There will also be an extension of the Capital Gains Tax holiday for investors in the Seed Enterprise Scheme, tax relief for social enterprises and further tax avoidance and evasion measures.
David Challenger, President of UK200Group, said: “As our members represent a large proportion of the UK SME market, these measures, particularly the employer NIC allowance, are most welcome. Lifting 450,000 small businesses out of employer NI will ensure that business owners are given extra confidence to take on new staff and invest in their businesses. While the Budget wasn’t a ‘giveaway’ Budget, Osbourne has certainly done the best he can in difficult circumstances to make life a little easier for SMEs.”
While the economy is still, obviously just recovering and growth forecasts have been downgraded for the coming year, it is still a step in the right direction that some changes have been made to help small businesses. How will these changes affect your company?