We have keenly followed George Osborne’s Summer 2015 Budget aware of the implications it has on our corporate clients. Yesterday’s budget announcements by the Chancellor contained several proposals which are likely to please owners of small and medium sized businesses.
One of the headline announcements was the proposed reduction in corporation tax from the current rate of 20 per cent to 19 per cent in the 2017 financial year (FY) and 18 per cent in FY2020. Given the difference between corporate tax rates and personal rates, this downwards trend may be followed by an increased use of personal companies.
An announcement which will appeal to businesses who invest in qualifying plant and machinery is confirmation that the annual investment allowance shall be £200,000 from January 2016. This means that businesses can deduct the value of qualifying plant and machinery up to a total of £200,000 from their profits before tax. This is a permanent cap, which creates certainty for businesses which are planning on making qualifying investments.
An increase to the Employment Allowance from the current rate of £2,000 to £3,000 means that businesses will benefit from a reduction in the National Insurance they pay. Businesses will undoubtedly enjoy this reduction in the cost of staff.
We have a network of trusted accountants and other tax specialists who we can refer you to and are able to advise you on a range of business taxation matters.
No comments:
Post a Comment