Budget implications for small limited companies
In spite of measures to help small business, the Chancellor left contractors frustrated by the lack of any Budget day clarification on IR35 “office holders”. Nick Huber sifts the Budget paperwork and online discussions to assess the overall pros and cons for small limited companies.
Small businesses were among the most obvious winners from Wednesday’s Budget, which included a reduction in employer’s national insurance bills and a scrapping of stamp duty on shares trades on the Alternative Investment Market.
There were also measures to improve the supply of funding to SMEs – such as extending the capital gains tax exemption under the Seed Enterprise Investment Scheme (SEIS).
The Treasury document setting out the £2,000 Employer’s allowance explained that every business will be able to employ one worker on a salary of £22,400, or four employees working full time on the adult National Minimum Wage, without paying any employer NICs at all.
AccountingWEB member jonbryce said the measure...