The budget 2015: Keypoints to take away for SME's

  • 2 million more jobs have been created, and the economy has grown by 3% – and the aim is to create 1 million new jobs over the next 5 years
  • Investment in businesses is 31.9% higher than in 2010
  • Permanent non-dom tax status will be abolished if you’ve lived in the UK for 15 out of 20 years
  • Companies with profits over £20 million a year will pay accelerated corporation tax
  • The bank levy is to be reduced
  • Increased spending on roads will improve the UK’s infrastructure, and a Road Investment Fund will be set up dedicated to this purpose
  • Large firms will have to pay apprenticeship levies to ensure apprenticeships are high quality, and  a commitment to 3 million new apprenticeships has been announced
  • More powers to be devolved to the North and the Midlands, and £30 million to be invested into the transport infrastructure of the North – great news for startups outside of London
  • Fewer tax breaks for buy-to-let landlords, but tax relief for renting out a room – a nod to the sharing economy
  • £1 million can be passed on without taxation, as inheritance tax is reduced
  • The Annual Investment Allowance set at £200k this year and after
  • Corporation tax will be cut to 18% by 2020
  • 30 hrs free childcare a week for parents of children aged 3-4 from 2017 – good news for entrepreneurial parents
  • In 2016 the Tax Free Personal Allowance will be raised to £11k, with the higher rate of tax (40p) raised to £43k – this will see 23 million people paying less tax
  • New national living wage of £9 an hour to be introduced by 2020 – compulsory for people over the age of 25. It will rise to £7.20 by next April
  • Small businesses will see reduced NI contributions to help offset the cost of a compulsory living wage

Check out what some of our peers had to say:

Lee Biggins, managing director of CV-Library

“The announcement of reduced corporation tax in today’s budget is good news for the recruitment sector, offering more scope for job growth and expansion. That, combined with the introduction of increased Sunday trading hours is great news for businesses and employees alike and we expect to see a continued rise in jobs over the coming months.”

“However, the introduction of a National Living Wage is likely to oppose these positive changes. Despite it being a good introduction for those in low-paid jobs, it is likely to cause a contraction in job growth due to the increased funds that businesses will need to invest in higher wages.”

Kathy McArdle, CEO of Nottingham’s Creative Quarter

“The Chancellor was correct that the drive must be to increase productivity and create an environment where innovation, investment and employment are the priority. Cutting corporation tax to 18% will be a welcome boost for small businesses, giving them confidence to grow and invest in their own futures. The announcement of a National Living Wage of £9/hour along with the commitment to 3m more apprenticeships will also hopefully go a long way to creating valuable, long-term jobs across the country.

I was pleased to see a continued focus on the Northern Powerhouse but with a real commitment to more devolution deals across the country. If there's going to be a genuine shift in economic growth towards a balanced economy then there must be a serious path to devolution for the regions and core cities outside the north.

I welcome the Chancellor’s commitment to building up enterprise zones throughout the country along with the power for counties and newly elected mayors to set their own Sunday trading hours. However, he must match this with a commitment to railway electrification to reassure people that this is not just a political slogan.”

 

 

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