There wasn’t a lot to get small business owners excited in today’s Budget, says Nigel Harris.
As usual, we had some chipping away around the edges of the tax system, most of which was balanced by some nasty-looking expansion of anti-avoidance provisions. Those looking for a raft of vote catching pre-election giveaways will have been disappointed. For most SMEs it’s a case of business as usual.
Annual Investment Allowance
Businesses of all sizes will be relieved that the higher allowance has been extended to the end of 2015, rather than returning to just £25,000 in on 1 January 2015. The doubling of the allowance to £500,000 from 1 April 2014 (6 April 2014 for unincorporated businesses) was on the wish list but unexpected. It may not be relevant to most small businesses, but it is a huge boost to SME printers, manufacturers and others who use expensive machinery.
Extending rates relief for small businesses
If you operate from business premises your rates may well be more than your rent. The £2.8bn support for small business ratepayers for five years from April 2014 is expected to benefit 1.8m businesses.
The £2,000 employment allowance from April 2014 (announced last year) is going to be particularly...
About Nigel Harris
I'm a partner with Burton Sweet, chartered accountants & business advisers, and run the Shepton Mallet office down in beautiful Somerset. Despite the name, Shepton Mallet is actually the home of Glastonbury Festival! I trained in audit and corporate tax with Grant Thornton and came to my current position in 1991 via small local practices and a stint with a training consortium.
I have the distinction of being one of the original members of the AccountingWEB editorial team, having been a freelance writer here for a year or so before John Stockdyk joined!