With the 2015 general election looming closer and closer, this year’s budget was always going to be a major talking point in what the future of this country looks like. As accountants in Liverpool we care and are dedicated to the businesses that we work with, many of whom are small and medium sized businesses. We have devised a guide, cutting through the rhetoric on how the 2015 budget affects small to medium sized businesses (providing the government stays Conservative!)
REASONS TO BE CHEERFUL
As leading Liverpool accountants we have been delighted to see that things aren’t actually awful for the economy at the moment and many of our small business clients have had a successful past few months. The UK has had the fastest annual economic growth amongst the G7 countries in 2014 and the strongest annual growth since 2007. There is a lot to be positive about.
Leadership organisation Vistage recently reported that from their survey findings, British businesses are generally expecting strong sales and growth in 2015. A huge 75% of you plan to grow your workforce this year and our Liverpool accountancy team can’t wait to work with you.
The General Election
The general election is now less than a month away. Nobody knows who is going to be leading parliament come summertime. Policy’s could be about to shift and small businesses are often impacted by this. It is hard to plan confidently until after the election results.
The budget that was announced by George Osborne last month, is however likely to be implemented to some extent so let’s have a closer look at the specific parts of the budget that will affect our friends and clients who own small or medium sized businesses.
Corporation Tax Reductions
Great news for businesses making a profit in excess of £300,000. Corporation tax for you has been reduced to 20%.
National Insurance Contributions
The government plans to scrap National Insurance Contributions (NIC) for businesses employing under 21s. This is to encourage businesses to employ young team members, under 21 who we know firsthand can be valuable assets to any small or medium sized business.
Described by Chancellor George Osborne as ‘cash back on jobs’ employers can reduce their NIC by being exempt from the first £2000 of their National Insurance Contributions.
Tax Avoidance: Tighter Controls
As Liverpool accountants; us and tax advisers are now subject to new legislation to fight tax avoidance.
Invest in the Future Tax Breaks
Investment allowance has been doubled to £500,000 and extended to the end of 2015. This means that almost every UK business will pay no upfront tax on investment, meaning businesses should take this opportunity to invest!
The amount of lending available to businesses that export is being doubled to three billion pounds. Plus interest rates are cut by half. During the budget announcements, Osborne argued that this could lead to the UK going from the least competitive export finance to the most competitive.
There we have it…
Lots of exciting and beneficial opportunities there for small to medium businesses. For additional information you can contact us firstname.lastname@example.org to discuss any way that the budget changes could help your business and to get the highest standard of advice from our team of Liverpool accountants.