Small UK businesses set to benefit from 2013 Budget

By: Plug and Play Southampton
 
April 8, 2013 - PRLog -- The announcement of the government’s Budget for the coming year has been met with a degree of approval from small business owners in the UK. George Osborne began his speech by outlining his on-going commitment to supporting people running a business, and proceeded to underpin this commitment with a number of measures to take effect over the coming three years.

To address the prohibitive cost of taking on a new employee, the Chancellor presented what he referred to as “the largest tax cut in the budget”. National Insurance contributions employers are required to make on behalf of their employees are to be slashed by £2,000 from April 2014, allowing businesses to hire someone on £22,000 (or up to four people on minimum wage) without having to pay tax. This will mean that almost half a million small businesses (which equates to a third of employers) will not pay any National Insurance.

Corporation tax payments will also be lowered from 24% to 21% in 2014 and again to 20% in 2015, in an effort, the Chancellor said, to continue to promote international confidence in UK businesses, encourage economic growth and make it clear that “Britain is open for business”.  

Furthermore, in an attempt to make it easier for start-up enterprises to secure funding, a small business tax relief scheme was introduced to allow investors to benefit from a 78% tax relief when they invest a minimum of £100,000.

Andrew Rosler from Crown Debt Rescue says, “It has been pleasing to see the Chancellor’s commitment to supporting this country’s business owners, who are arguably among the most critical organisations in terms of who is helping the country to get back on its financial feet. Firstly, the fact that the proposed 3p fuel duty increase which was due to take effect in September has been scrapped is a very welcome relief to business owners under huge financial pressure from ever-escalating fuel bills.

“The numerous measures the Chancellor has introduced provide small businesses with a great deal of opportunity for growth and in turn for the creation of new jobs. I believe they are, on the whole, far greater than what most people were expecting. Additionally, the housing measures announced will breathe new life into the construction sector, in which many small business owners are currently struggling.  

“What has been met with disappointment is firstly the lack of action in relation to business rates, and secondly the proposed change to the inheritance tax rules, both of which have the potential to cripple small businesses in this country. Many business owners will now face an uphill struggle to budget for inheritance tax bills. Many were also hoping rates would be addressed in the Budget, as after the expected rise in April of 2.6% rates will have increased by 13% in three years. A freeze on rates could have made a significant difference in the number of businesses which will inevitably be forced to seek our services or even close over the coming months, in spite of the range of beneficial measures introduced.”

Find out more about Crown Debt Rescue by visiting http://crowndebtrescue.co.uk/
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Source:Plug and Play Southampton
Email:***@plugandplaysouthampton.co.uk Email Verified
Tags:Tax Debt, Tax Arrears, Corporation Text Debt
Industry:Accounting, Business
Location:England
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