The Chancellor, George Osborne, announced yesterday a number of incentives to help small firms tackle expensive taxes and help with business growth. Osborne revealed the manufacturing sector was on the up with incentives for the ‘makers and doers’, highlighting the support there for the industry.
Budget highlights – help for businesses
- HMRC given more powers to collect debts from those people or companies that can pay but refuse to
- £7 billion package to cut energy bills to help UK manufacturers
- Business rates relief to be extended for another 3 years
- Corporation tax rates reduced
- Doubling of Annual Investment Allowance for businesses
National Chairman of The Federation of Small Businesses (FSB), John Allan, has welcomed Osborne’s Budget commenting:
“This was always going to be a ‘steady-as-you-go' Budget for business, designed to get the UK's financial affairs in order. The Chancellor delivered a Budget to maintain positive momentum in the economy, while incorporating fiscal prudence. Today's Budget offered a clear signal for businesses to grow through the increased investment allowance, and with a focus on manufacturing. The £7 billion package to cut manufacturing energy bills will help create jobs and strengthen this key sector”.
The FSB are especially pleased with the plans to cut energy bills as their first quarterly index for small businesses revealed utility costs have contributed the most to rising business costs . This should help those already finding it difficult and give them some extra breathing space.
In regards to HMRC targeting tax avoidance, what will this mean for businesses struggling to pay VAT, PAYE?