Listening to the Budget announcement yesterday they were positives for smaller companies but some of these changes may have come too late for some, as the changes are due in 2017.
Some of the take outs are:
Corporation Tax - The corporation tax rate, which is currently 20% and due to fall to 19% in 2017, will be reduced to 17% from 1 April 2020.
Business Rates - A major revamp of business rates, permanently doubling the small business rate relief. From 1 April 2017, small business rate relief (SBRR) will double and the SBRR threshold will be raised to rate-able values of up to £12,000 tapering to £15,000.
From 1 April 2020 business rates in England will be up-rated by reference to the CPI instead of the RPI. The government will aim to introduce more frequent revaluations of properties.
For the Self Employed - The abolition of Class 2 National Insurance contributions for the self-employed from 6 April 2018.
VAT registration and de-registration - The VAT registration threshold will increase from £82,000 to £83,000, and the de-registration threshold will rise from £80,000 to £81,000, from 1 April 2016.
For a more thorough overview of this year's Budget announcement visit the Government's website at: https://www.gov.uk/government/news/budget-2016-some-of-the-things-weve-announced.
