At Commercial Domestic Investigations we’re always keeping our finger on the pulse of any news that will affect SMEs financially.
A few days ago George Osbourne unveiled the 2016 Budget, and it was generally good news all round for SMEs. Here we take a look at some of the key factors that will be affecting small and medium sized enterprises.
- The new threshold for small business rate relief is to increase from £6,000 to £15,000
- 600,000 small businesses will pay no business rates from April next year
- London is to get full retention of its business rates next April – Three years earlier than planned.
Although this will be seen as a triumph for London, the city will in turn be less appealing than it is currently due to the fact that Osborne is slashing rates for all other SMEs outside of London at the same time.
The chancellor set out reforms of Business tax that will ultimately boost small businesses. He suggested that extra money collected from multinationals who have avoided UK tax would be spent on SMEs.
- Corporation tax will be reduced to 17% by 2020
- Two new £1000 allowances for “micro-entrepreneurs” who use websites like Airbnb to rent out rooms in their homes and sell items on sites such as eBay. At least 500,000 people are expected to benefit from this and there will be no tax return forms to fill in. This was dubbed a “tax break for the digital age”.
- Effective immediately – commercial stamp duty rate announced at 0% on purchases up to £150,000, 2% on the next £100,000 and then 5% as the top rate on anything above £250,000.
- New 2% rate for high value leases with net present value of above £5 million.
It seems the general outlook for the global economy is materially weaker. However, the UK is forecast for grow faster than any other major Western economy.
- Growth forecast to be 2% down in 2016 – this is down 2.4% in November’s Autumn Statement
- GDP is predicted to grow 2.2% in 2017 and then 2.1% in 2018 – this is down from 2.4% and 2.5% which were the figures forecast four months ago
- A million jobs forecast to be created by 2020
- Inflation forecast to be 0.7% for 2016 – rising to 1.6% next year
About Commercial Domestic Investigations
Commercial Domestic Investigations are regarded within the debt collection and credit control industry as one of the best credit management companies in the UK. Established in 1988 to support and service all sizes of companies in the field of Credit Management.
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