Following our blog post on July’s ‘Emergency Budget’ we’re interested in how today’s autumn statement might affect small business owners like you.
Key announcements in the 2015 Autumn Statement for business owners
As he began his speech The Chancellor stressed the importance of economic and national security adding “nothing is possible without foundations of a strong economy” and promised the Spending Review was designed to make Britain “the most prosperous and secure of all the major nations of the world”.
Here are the seven main areas of today’s spending review that could affect you:
Digital Tax accounts
In a bid to save 18% of the HMRC budget every individual and every small business will have their own digital tax account by the end of the decade, to manage their tax online. This will give us “one of the most digitally advanced tax administrations in the world.”
Capital Gains Tax
From 2019 – once digital tax accounts are up and running – capital gains tax will have to be paid within 30 days of completion of any disposal of residential property.
The Chancellor announced he was abolishing the uniform business rate. Councils will have the power to cut rates in order to make the area more attractive to businesses and elected Mayors can raise rates provided they’re used to fund specific infrastructure projects supported by the local business community.
George Osborne said “We understand there is no growth and no jobs without a vibrant private sector and successful entrepreneurs. So this spending review delivers what businesses need.
Businesses need competitive taxes.”
With corporation tax at 18%, today he announced he was helping 600,000 of our smallest businesses by extending our small business rate relief scheme for another year.
From 2017, 30 hours of free childcare for working families with 3 and 4 year olds will be funded. This support will be available to parents working more than 16 hours a week and with incomes of less than £100,000.
Company car tax
A planned change to the tax treatment of diesel company cars, which would have removed the 3% surcharge from April 2016, will be deferred until April 2021.
From next year the basic State Pension will rise by £3.35 to £119.30 a week; making this the biggest real terms increase to the basic State Pension in 15 years.
George Osborne said “Taking all of our increases together, over the last 5 years, pensioners will be £1,125 better off a year than they were when we came to office.”