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The budget 2016 – what does this mean for small businesses?

For the people who may have missed it George Osborne delivered his third budget in the last 12 months.

This is a Budget that puts the next generation first and delivers security for working people, but still making the necessary steps in the government’s long-term economic plan. The 2016 budget reduces the deficit, achieves a surplus and the reforms needed for Britain’s future.

With this being said, what does this mean for small businesses?

Many small businesses can have a “breath of fresh air” as the chancellor announced a new £15,000 threshold for small businesses paying income tax. This is more than double the previous level of £6,000 for small businesses. On top of that the chancellor will also increase the higher rate from £18,000 to £51,000, and said the changes mean 600,000 small firms will pay no business rates at all.

For the people who are self-employed you will no longer have to pay class 2 national insurance as this will be abolished from April 2018.

Corporation tax

This is also going to be a change for the better, as it was announced that there would be a range of measures to stop companies avoiding payment. However, he also announced that corporation tax was to be to cut to 17% by April 2020, Estimated that this change will benefit one million companies.

If you have any questions about how any of this could affect you personally, or you business, then please do not hesitate to call us on – 01159 985245 and speak to a member of our friendly team.