July 21st, 2015.
Post-Budget Reflection: What It Means For Business
George Osbourne has delivered the Budget of the new Tory Government, but what does it mean for businesses? Here you can find out everything you need to know on this matter.
Benefit from a Better Personal Allowance
As it stands, you can earn £10,600 a year before getting taxed. However, in 2016-17, this figure is set to rise to £10,800 and £11,000 in 2017-18.
The higher rate threshold will be increased to £42,385 in 2015-16, the first increase in five years, and by 2017-18 it will go up to £43,300.
The Chancellor said: “This year’s increase means 138,000 fewer people will pay the higher rate than would otherwise be the case. And it is a down-payment on our commitment to raise the higher rate threshold to £50,000 by the end of the decade.”
Launch of Business Rates
A comprehensive business rates review is being launched to positively impact business rates on small businesses. According to Phil Orford of the Forum of Private Business, 55% of the members at this organisation see business rates as a significant barrier to business growth.
The Budget states: “The Government wants to ensure that the tax system provides stable and sustainable revenues to fund public services in the least distortive way,” therefore a review will be put in place for business rates to ensure they are still appropriate within the current economy.
Local Authorities have business rates discretionary relief powers which they are encouraged to use in order to back the Sharing Economy.
Improved Access to Finance and Markets
The Government intend to unlock the potential of the sharing economy, improve access to finance and boost exports. The Budget 2015 also included funding for a series of trade missions focused on regional strengths.
There are plans to force the banks to share their SME credit information with other lenders and to offer to share the details of those that were rejected for a loan with online platforms that are able to match them to alternative finance providers.
The main lenders in the UK will soon be required to share the financial information of the small businesses to ensure that these companies are given the best chance of securing loans. Finance will be more available to high potential firms thanks to the request that the British Business Bank has put in to pilot its Help to Grow scheme. The Government will also do more to inform SMEs about the support and options available to them with regards to accessing finance.
Better Education and Support for SMEs
SMEs will be in the know on how to gain additional information on accessing and using legal services. This will be included on the Citizens Advice and the GREAT business websites.
The Budget will provide £4 million to extend the existing Skills Investment Fund, offering match funding for training and development in film, television, visual effects, video games and animation.
So, now you know how the Chancellor’s Budget will impact businesses, but do you still need a point in the right direction with financial advice? Well, look no further than Pure Commercial Finance. We have an experienced team of finance experts who will be more than happy to help. Call 02920 766 565 today.