Should small businesses be smiling after the summer budget 2015?

The key items that are of interest to small business are:

  • £3k off employers National Insurance, a 50% increase in the NI allowance
  • Corporation tax to be cut to 19% in 2017 and 18% in 2020
  • Dividend tax credit to be replaced with a new tax-free allowance of £5,000 on dividend income.
  • Inheritance tax threshold to increase to £1m, phased in from 2017
  • Personal tax allowance to rise to £11,000 next year.
  • The 40% tax rate threshold to rise from £42,385 to £43,000 next year
  • Annual investment allowance will be fixed permanently at £200,000 from January 2016
  • Rent-a-room relief scheme to rise to £7,500
  • New national living wage will be introduced for all workers aged over 25, starting at £7.20 an hour from April 2016 and set to reach £9 by 2020
  • £7.2bn to be raised from clampdown on tax avoidance and tax evasion with HMRC budget increased by £750m
  • Non-domiciles: abolishing permanent non-dom status for anyone resident in the UK for 15 of the last 20 years.
  • The amount people can contribute to their pension tax-free to be reduced for individuals with incomes over £150,000
  • Mortgage interest relief for buy-to-let homebuyers to be restricted to basic rate of income tax
Posted July 09,2015 In Business, HMRC