One of the most challenging things for small businesses are business rates, which far exceed the amount they pay in corporation tax. To ease this burden Mr Osborne announced that 630,000 small businesses will pay no business rates at all from next year. He claims that this reduction will save £7bn per year for small businesses.
Commercial property investors will have to pay 0% for properties worth up to £150,000, 2% on the next £100,000 and 5% on properties above £250,000, in a move to help smaller firms.
Big firms face however will face a crackdown on practices which reduce taxable profits, including offsetting debt interest against profits and using losses in one year to offset profits in another.
The government says this combination of measures will raise £9bn.
Both big and small businesses will be grateful that he didn't raise fuel duty. The "feel good factor" that creates is at least as important as the threat of a Tory backbench riot. The overall picture for the economy may not be as many had hoped but there have been moves to help freelances and smaller businesses move forward. Enable’s IFAs in Bishops Stortford can help you with your financial planning.
Source: BBC
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