This time last week we were absorbing the Chancellors Autumn Budget 2018 and overall it contained a lot of positives for small business owners. Here are the key points from the Chancellor’s speech and how they may affect you and your business…
- Personal tax allowance will be raised to £12,500 for basic rate taxpayers, and £50,000 for higher rate taxpayers in 2019
- £675 million will be put towards a Future High Streets Fund
- Business rates bills for businesses with a rateable value of £51,000 or less will be cut by a third over two years
- Annual investment allowance will be increased from £200,000 to £1 million for two years
- Small businesses will now only have to contribute five per cent to the apprenticeship levy
- New mandatory business rates relief for all toilets made available to the public, whether publicly or privately owned
- A £30 billion package for England’s roads, including repairs to bridges and potholes
- Fuel duty will be frozen for the ninth year in a row, saving car drivers around £1,000and van drivers around £2,500
- Beer, cider and spirits duties will be frozen, though wine duty will rise with inflation and tobacco duty will continue to rise by inflation plus two per cent
- The VAT threshold won’t change
- The national living wage will increase to £8.21
Other main areas concerning small business are…
Personal tax allowance
The personal tax allowance is the amount you are allowed to take home without paying tax. Anything you earn above that is taxable at a varying rate dependant on your total income. The chancellor announced that personal tax allowance will be raising to £12,500 for basic rate taxpayers, and £50,000 for higher rate taxpayers in 2019.
Up to £8,000 of savings for independent businesses
The Chancellor also declared he will be cutting the business rates bill for the smallest of small businesses. Businesses with a rateable value of £51,000 and under will see their bill cut by a third over a two-year period. According to the Budget announcement, this will lead to up to £8,000 worth of savings.
Green taxes on UK small businesses
While the Chancellor made mention of the environment in his Budget announcement, there was only one tax announced – companies manufacturing plastic that is less than 30% recycled material will face a levy.
He also said that he had considered a plastic cup tax, but decided that it wouldn’t make a substantial change. He will, however, continue to monitor progress, and may introduce another tax if things don’t improve.
If you need to speak to an accountant about any of these points and how they affect your company, get in touch – we’re always happy to talk business.