The Budget announced today by George Osborne, reveals new reforms and cuts in tax to help small and larger businesses continue to trade well and expand.
Here is a brief list of the points mentioned:
- Corporation tax to be cut by 17%
- Reform on business tax to create a modern system (interest deductibility will be capped at 30%, tax payments will be due nearer the time profits are earned)
- Money raised (approx £9 billion) from the tax reform will go to help other smaller firms
- 600,000 small businesses to no longer pay business rates while 250,000 firms to pay less than what they’re paying now.
- VAT loophole (used by internet merchandisers abroad) to be closed
- Reform in commercial stamp duty tax. It’s expected 90% will pay less than they’re paying now or will remain unaffected.
- Help for the North Sea oil sector – the petroleum revenue tax will be cut down and effectively be abolished
Despite plans to significantly cut back spending in certain areas, there is still some positive action being taken to help the business community.