It appears that the economy is growing but is there anything in this budget that helps small business save money is a key question. Overall the answer would be NO. However, there are some points worth looking at that will be favourable to business owners.
What's in it for you?
- You will not pay Income Tax until above £10,500
- Higher rate Income Tax will now start above £41,450 next month and then £42,285 next year. This doesn’t seem that generous when you consider that an extra 1.1 million people are paying the higher rate since this government came into power. This has been due to the tinkering with the tax free allowance and the higher rate coming down in the past. It is attempting to make some amends for this. There are 4.4 million people in total that pay the higher tax rate.
- A new single ISA with annual tax-free savings limit of £15,000 from 1 July has been created by merging cash and shares. Good if you have savings and don’t want any of it in shares.
- Beer duty cut by 1p. So you will now be able to “spend a penny” after you’ve bought a pint!
- Business rates discounts will be extended for another three years. The investment allowance will be doubled to £500,000.
- An expansion of apprenticeship grants to support smaller businesses, supporting 100,000 apprentices.
So not much new to get excited about.
One thing that you will really notice from the budget is the NEW £1 COIN! They look great and let’s hope it will tackle the counterfeit problem.