Britain’s businesses to benefit from lower taxes

Britain’s businesses will benefit from lower taxes, as tax changes come into effect today.

Tax changes that have come into effect today will help businesses reinvest more of their money into growing their business and hiring more staff.

The new changes will help businesses take on apprentices, create more jobs and expand.

This includes action to cut employment costs, taking the very smallest businesses out of employer national insurance contributions all together, extending business rates relief ahead of permanent major rates cuts and ensuring businesses can take advantage of lower prices at the pumps.

The benefits that will be available from today include a £730M boost with the extension of the Small Business Relief Scheme for another year, which will see over 400,000 businesses save an average of £890, with some businesses saving up to £1,450. This comes ahead of cuts to business rates in 2017, when 600,000 small businesses in the UK will be taken out of paying business rates altogether.

For the sixth successive year, the fuel duty freeze will continue, meaning a van driver is spending £30 less on each tank of fuel and the average haulier £150 less per tank, in comparison to what they paid in 2011.

The UK’s range of world famous orchestras will be able to claim 25% relief on eligible expenditure, building on the successes of the current Creative Sector Tax Reliefs.

Many businesses will no longer have to pay National Insurance Contributions, with the removal of employer NICs for apprentices under 25, giving businesses employing apprentices earning £16,000 a year an annual saving of over £1000.

Employment allowance will be increased, which reduces the employers NICs for all businesses and charities, from £2000 to £3000, helping 500,000 employer hire regular staff. This will take around 90,000 employers out of employer NICs altogether and will mean a firm can employ up to 4 people on the new National Living Wage and pay no employer NICs.

Following a cut in Capital Gains Tax (excluding carried interest and gains on residential property), businesses will benefit from expected additional investment, giving them access to the capital they need to create jobs and grow.

From the 6 April, addition tax changes will extend the farmers averaging scheme, with the option to average over five years as well two.

Charities can receive a 25% government top-up through the Gift Aid Small Donations Scheme for their annual amount of donations, which will increase from £5,000 to £8000, with each charity able to claim up to £2,000 of government support per year.

Financial Secretary to the Treasury David Gauke said: “Businesses are the lifeblood of the economy and we’re committed to backing them because we know that it is their enterprise and innovation that will deliver growth and opportunity for the next generation.”

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