Philip Hammond shared the Autumn Budget at the end of October. As well as thanking the British public for their hard work, he made a few announcements for small businesses. This varied from personal tax allowance to business rates.
He said that it was a “Budget for hard-working families…the strivers, the grafters, and the carers who are the backbone of our economy.”
It’s all well and good to say that but what does this actually mean for small businesses and small business owners?
Personal Tax Allowance
This is the amount you can take home without paying tax. Anything above that rate is taxable at varying rates depending on your income.
Hammond announced that personal tax allowance will be raised to £12,500 for basic rate taxpayers, and £50,000 for higher rate taxpayers in 2019.
Savings For Independent Businesses
Philip Hammond shared that he’ll be cutting the business rates bill for very small businesses. Any business with a rateable value of below £51,000 will see their bill cut by a third over a two-year period.
This will apparently lead to up to £8,000 worth of savings.
If you’re an actual high-street shop that sells goods and services, then the Chancellor’s Future High Streets Fund may interest you.
He announces that £675 million worth of co-funding for local councils to plan the future of the high streets.
Hammond suggested that this could include converting commercial premises into residential ones to increase footfall. He said that it could take time to adapt and the rise of online shopping means the changes we’ve seen in recent years are irreversible.
Digital Services Tax
Recently there has been a lot of talk surrounding the digital services tax which has left online retailers worried about their position.
It was announced, however, that it will only apply to businesses that generate million in global sales. It still is uncertain on whether this tax will affect businesses that sell their products through sites such as eBay and Amazon.
The chancellor did mention the environment in his Budget announcement, but there was only one tax announces surrounding it. Companies that manufacture plastic that is less than 30% recycled material will face a levy.
Hammond also said that he’d considered a plastic cup tax but decided that it wouldn’t make any substantial change. However, he intends to continue to monitor progress and may introduce taxes to combat the use of plastic if things don’t improve.
If you have any concerns or queries on how this may affect your business then please don’t hesitate to contact us on 01908 760293.