Budget 2013: Key points for SMEs

  • Economic growth is forecast to be 0.6% this year. Down from the predicted 1.2% made last December.

  • Public sector net debt will fall by 2017/18, the Office for Budget Responsibility forecasts.

  • Corporation tax will be reduced by a 1% to 20% in April 2015 to show "Britain is open for business". But the bank levy rate will increase to 0.142% to offset this reduction. This is the lowest business tax for any major eonomy in the world.

  • The first £2,000 to be taken off all employers' National Insurance bill. This will benefit 450,00 SME's.

  • New 'Employment Allowance' take the first  £2,000 of the Employer NI bill of every company in the country. 450,000 SME's affected - that's 1/3rdof all employers.

  • Income tax threshold to be raised to £10,000 by next year.

  • Planned fuel duty rise scrapped. Meaning Petrol will be 13p a litre cheaper than if the fuel duty had not been frozen over the last two years.

  • Chancellor George Osborne promises an extra £3bn a year for infrastructure from 2015-16.

  • Double the size of the loans that employers can offer tax-free to pay for items such as season tickets for commuters to £10,000.
  • Commit £3.5bn to shared equity loans. Government will offer equity at 20% of a value of a new home. Meaning if you can afford 5% of your deposit, the government will loan you 20%.

  • Osborne announced 'Help to Buy' homes. He proposed two components: £3.5bn in capital spending over three years to shared equity loans; and a loan of up to 20% of a home's value to be offered to people looking to move up the ladder.
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