"I want the message to go out that we are backing our exporters – so that wherever you are around the world you can’t fail to see: Made in Britain." - George Osborne
There was a real focus this year on helping UK businesses to invest, export and grow. Essentially the government want to help us reach emerging markets like BRIC (Brazil, India and China), and MINT (Mexico, Indonesia, Nigeria and Turkey). Drop those neologisms next time you’re out to impress your friends at a dinner party.
The UK export finance is doubling its lending to 3 million and cutting lending rates to make it more enticing to get finance to trade abroad. For more info how the budget affects exporting, click here.
"I am capping the Carbon Price Support rate at £18 per ton of CO2 from 2016-17 for the rest of the decade.This will save a mid-sized manufacturer almost £50,000 on their annual energy bill."
Energy costs are being reduced so that it’s cheaper for UK manufacturers to produce goods. These cuts are designed to reduce costs and improve output, again echoing earlier statements on helping the UK export more goods. The government don’t want UK manufacturers leaving to set up elsewhere. George talked about America, whose industrial energy prices are half the price of ours in Britain, and said we should be following in their footsteps. For more about the energy saving costs, click here.
"I want to send a message to anyone that wants to set up business here, or create jobs here, that Britain is open for business." Says Osborne.
Corporation tax has been cut to 20%, coming into effect from April 2015. This means we will have the lowest rate of corporation tax in Europe, and should mean that we see a lot more businesses want to come and ‘set up shop’ in the UK.
EMPLOYMENT AND JOBS
As of April 2016, Class 2 NIC are to be taken via self assessment. This means that the tax system for freelances and sole traders will be a lot more simple.
Every business in the country will get the Employment Allowance - a £2,000 cash-back on jobs. Great news for anyone thinking about taking on their first employee and a real incentive for those who are growing and taking on new staff.
The seed enterprise investment fund has been made permanent. This is a scheme which incentivises investors to back risky startups and allows investors to commit up to £150,000 in a single company. In return they can receive a tax relief of up to 50% for the year that they made the investment. This means there is a massive incentive for investors to back startups and should see Britain producing more great new businesses. You can find out more about the SEIS here.
The Annual investment allowance (AIA) has doubled to £500k until the end of 2015. The AIA allows businesses to invest in new plant and machinery for maximum tax benefits. Therefore, businesses that choose to invest in equipment will receive nearly 100% tax relief on those items! Want to know more about the AIA? Click here (http://www.growthbusiness.co.uk/growing-a-business/financial-management/1274533/the-annual-investment-allowance-explained.thtml)
So there’s all of the most juicy bits for business owners. What do you think will affect you most?