insideKENT Magazine Issue 26 - May 2014 | Page 151
BUSINESS
DODECAHEDRON
BUDGET: 12 ISSUES FOR
BUSINESSES
ON WEDNESDAY 19TH MARCH 2014, GEORGE
OSBORNE PRESENTED HIS BUDGET SPEECH –
YOU CAN READ THE HIGHLIGHTS IN WILKINS
KENNEDY'S BUDGET REPORT AT
WWW.WILKINSKENNEDY.COM. OSBORNE SET
OUT A RANGE OF MEASURES, AIMED TO BOTH
ASSIST AND SUSTAIN ECONOMIC GROWTH.
HERE ARE 12 AREAS THAT MAY BE OF INTEREST:
course, you may need loan finance to expand or even start your export
offering, and the government has expanded its lending scheme to £3 billion,
allied with competitive rates of loan interest.
Economic growth
The UK economy is forecast to grow by 2.7% this year; 2.3% next year;
2.6% in 2016 and 2017; and by 2.5% in 2018. In addition to the growth
forecasts, the Chancellor increased personal tax allowances. This should
provide more disposable income to impact on the retail sector.
£2,000 of National Insurance (NI) savings
If you are paying out more than £2,000 in National Insurance during 2014/15,
then you will receive a credit off of your total annual bill. Not a huge saving,
but extra money nevertheless, which you can then direct towards investing
in staff training, for example.
No Employer’s NI for employees up to the age of 21
Definitely a useful cash-flow addition; as an example, if you employ someone
on £20,000 per annum, you will save NI contributions of just over £1,650
per employee from 6th April 2015. You can use this to augment your staff
benefits, in turn, incentivising your employees to sell more and giving them
a financial reward for doing so.
An annual investment allowance (AIA) of £500,000
This allowance allows businesses to offset the cost of capital additions
directly against its annual taxable profits, rather than spread the cost over
the lifetime of the asset. Do seek professional advice to determine what
capital additions qualify for AIA.
Freeze on fuel duty
The proposed increase in fuel duty in September 2014 will not happen.
This should be good news, as you should not now suffer the expected
increased transportation costs from suppliers.
Air passenger duty (APD) reduced for long-haul flights
Long haul flights to places such as China will benefit from reduced APD,
which will save you a little on your visit to Chinese suppliers.
Business rates relief (BRR) extended in Enterprise Zones
A major concern for businesses is the cost of business rates; despite intense
lobbying, the government has presently only extended BRR in Enterprise
Zones until 2017. So, if you are looking to launch a start-up or relocate to
an Enterprise Zone, this must be done by 6th April 2015 to qualify for rates
relief for five years, up to a maximum of £275,000.
Apprenticeships – extra help
The modern day apprenticeship allows qualifying businesses to employ
and train up the next generation of employees. The government is making
an additional £85 million available over the next two years to fund
apprenticeships. This is a positive step, as providing extra help in employing
and training up skilled employees of the future, can only be a good thing.
Research & development (R&D) cash credits for SMEs increased
to 14.5%
You may also be involved in New Product Development; indeed, you may
be in the early stages of your business and be making a loss. The good
news is that if you have developed a product that qualifies for R&D relief,
you can get cash back against the qualifying expenditure.
The £1 coin
The Royal Mint proposes to introduce a new 12-sided £1 coin in 2017 –
hence the Dodecahedron Budget.
Seed Enterprise Investment Scheme (SEIS)
The Chancellor has made some changes to the SEIS rules, which will make
the scheme more favourable from a Capital Gains Tax perspective for
investors. The SEIS is a great way for new start-ups to attract external
capital of up to £150,000 from investors. Why not put together a business
proposal that sets out why your start-up qualifies under SEIS, and get that
vital investment into your offering?
UK export finance lending scheme
UK e-sellers currently sell £4 billion per annum into overseas markets – the
opportunity for retailing your products outside of the UK is substantial. Of
There is plenty for businesses to absorb and consider in this article, and
we at Wilkins Kennedy LLP, would be delighted to hear from you. We can
help you on your growth journey.
If you would like to find out more,
please contact Rick Schofield on
01233 629255 or
[email protected].
www.wilkinskennedy.com
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