What West Midlands small businesses need to know
George Osbourne’s latest Budget made the headlines primarily for the change in tack on tax credits. Improved forecasts on the state of the public finances have allowed the planned cut in credits and some of the proposal to reduce police spending to be dropped.
There were still some areas of particular interest to small businesses however – let’s take a quick look at what might affect you.
- The doubling of small business rate relief will be extended for another year, until April 2017.
- An apprenticeship levy will be introduced in April 2017. This will be set at 0.5% of the wage bill where it exceeds £3m.
- Restrictions will be imposed from April 2016 on tax relief for travel and subsistence expenses for workers working through personal service companies where intermediaries legislation applies. There is no final guidance on this matter and we will keep an eye on what the exact arrangements will be.
- An extra 3% on stamp duty will be levied on buy-to-let properties and second homes from April 2016. This does not apply to corporates or funds making large investments in residential property.
- The 3% differential between diesel and petrol engined cars, applied to bands of CO2 emissions, will now be retained until April 2021.
- A National Living Wage (NLW) for workers aged 25 and will be introduced from April 2016 at a rate of £7.20 an hour.
- The Chancellor announced plans to consult next year on a major update to the tax system. The outline plan is that most businesses will have a digital tax account which will give them oversight of all relevant taxes in one place. In return HMRC will expect them to provide updates at least quarterly.
The details of many of these points have not yet been worked out. Lewis Smith & Co. will be keeping track of the actual changes in legislation and reporting requirements and making sure its clients comply with what is needed.
If you are unsure how the latest Budget affects you or your business then contact Lewis Smith & Co. to arrange a no-obligation discussion. Call 01384 235549 or email info@lewissmith.com today.
Lewis Smith & Co. – Accountants for West Bromwich start-ups
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