South West-based chartered accountancy firm Milsted Langdon has welcomed measures in this year’s Budget aimed at helping smaller businesses.
Although George Osborne’s 2013 Budget brought few surprises, a key – and unexpected – announcement was a new employment allowance which will reduce National Insurance bills by £2,000 for every employer from April 2014. As a result, 450,000 small firms will no longer have to pay National Insurance.
Mr Osborne announced that he was reducing the amount of Corporation Tax that large businesses have to pay from 21% to 20% from April 2015. The current main rate of Corporation Tax in the UK is 23%, which was already due to fall to 21% next year. The small companies rate will remain at 20%.
The Chancellor also announced that the Capital Gains Tax holiday for the Seed Enterprise Investment Scheme (SEIS), which is designed to encourage investment in start-up businesses, would be extended for a limited period.
There was also good news for individuals with the announcement that the tax-free personal allowance will be increased to £10,000 from April 2014, a year earlier than planned, while the Government is also introducing tax-free childcare vouchers worth £1,200 per child.
Plans were unveiled for a new ‘Help-to-Buy’ scheme, introducing interest-free loans of up to 20% of the value of new-build properties, and bank guarantees underpinning £130 billion of new mortgage lending for three years from 2014.
Rob Chedzoy, a tax partner at Milsted Langdon, said: “This year’s Budget included a number of measures which will be welcomed by business owners and families alike.
“However, as always, the devil is in the detail, so it is always best to seek professional advice at the earliest opportunity to find out how these changes will affect you.”