Milsted Langdon is advising business owners that this year’s Autumn Statement includes a number of measures which could benefit them.
Chancellor George Osborne said that while “Britain’s economic plan is working”, there was still work to do to ensure the economy’s long-term security. He also unveiled a raft of measures aimed at business owners, saying: “We are backing Britain’s businesses all the way.”
Key measures included a £1,000 reduction on business rates for smaller retailers with a rateable value of up to £50,000, including smaller shops, pubs, cafes and restaurants. The temporary doubling of small business rate relief will be extended by another year to April 2015, while the rise in general business rates will be capped at 2% rather than being linked to RPI inflation.
The Chancellor is also hoping to encourage businesses to move into empty high street retail premises by offering a 50% reoccupation relief. Employer National Insurance Contributions (NICs) will be scrapped for under-21s, lifting around 1.5 million jobs out of employer NICs completely.
The Government will also expand its start-up loans scheme, with the aim of helping 50,000 more people to start their own businesses.
Mr Osborne’s announcement also included measures for individuals, with an increase in the income tax personal allowance to £10,000 from April 2014. The Chancellor also confirmed details of the much-publicised tax allowance for married couples and civil partners which will be introduced in April 2015 and will allow £1,000 of personal allowance to be transferred from one spouse to another, provided neither is a higher-rate taxpayer and one is earning less than the personal allowance.
Tax partner Rob Chedzoy said: “Business rates remain a serious burden for many small and medium-sized businesses so any moves to reduce them or increase opportunities to claim relief are to be welcomed.
“Of course, it remains to be seen whether this will provide a long-term solution to the problems many business owners are facing, but these latest measures are encouraging.”
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