quote
menu

Budget 2015: What it means for you


Small businesses and self-employed people will have their tax affairs dramatically simplified under reforms announced in today’s Budget.

Chancellor George Osborne said that over the next few years the annual tax return will be phased out in favour of a new, more straightforward digital system.

Automatic system

This will also involve companies’ financial information being automatically sent to HM Revenue & Customs and firms being presented with a “simple, single business tax” rather than a mixture of corporation tax and VAT, for example.

The government said that the move to an online-only system would begin with the UK’s 5 million small companies, and should come into effect in 2016.

Graeme Swan, managed services partner at consultant EY, said: “The decision to start with small businesses is a logical one and will ensure these firms can spend more time growing their businesses, which is vital to the continued growth of the UK economy, rather than spending valuable time dealing with an overly complex UK tax system.”

More tax cuts

Osborne confirmed that corporation tax would be cut to 20% from next month, but added that self-employed people would no longer be required to pay Class 2 National Insurance contributions from the next Parliament.

Also from next month, companies which employ under-21s will no longer have to pay National Insurance on their earnings, although this change was originally proposed at the end of 2013.

In another change, farmers will be given more time over which they can average their profits for the purposes of calculating income tax.

At the moment profits can be averaged over two years, but this will be extended to five from April 2016 to help them cope with uncontrollable factors such as the weather and seasonal demand.

Business rate reforms

Ministers have also announced a comprehensive review of the business rates system which currently applies to 1.8 million properties in England.

Treasury secretary Danny Alexander said: “The government has taken measures to help businesses by capping rates and introducing reliefs for smaller businesses. But now the time has come for a radical review of this important tax. We want to ensure the business rates system is fair, efficient and effective.”

Fuel duty frozen

Osborne also announced that he would once again freeze fuel duty, which had been scheduled to rise in September. He said that by the end of the next financial year, duty will have been frozen for five years, the longest period in more than two decades.

Osborne also announced a package of measures aimed at supporting the North Sea oil industry, which has been hit with a sharp fall in the price of oil since last summer.

Publicans and retailers are likely to welcome the news that beer duty is to be cut by 1p for the third consecutive year, while here is also a 2% duty cut on spirits and most types of cider as well as a freeze on duty on wine.

Infrastructure improvements

The government said that it also planned to boost broadband speeds and to investigate the use of satellite technology to keep more remote communities and businesses connected.

Read about our small business manifesto and take part in our #whatbizwant competition. Tell us what you want from the general election in May.

Related Articles

money image

How to make a million

Whether you’re happy keeping your business small but perfectly formed or have your sights set on the sta...

Read More
lightbulb

Energy News 08/09/2017

What’s big in the world of energy this week?  Hacking group Dragonfly has infiltrated European and US e...

Read More
icebergs - iceland

Iceland’s Renewable Energy Story

Here at Switch My Business we are big fans of renewable energy. Many of our suppliers are actively transitioni...

Read More
Excellent, 9.8 / 10

Great customer service

"Did not actually use on this occasion (hence four stars) but very impressed with the customer service given by a gentleman called Mark Weeks who was very knowledgeable. Thank you."

This review was posted by Fiona Howard on the 23rd of October 2017

Excellent

"Excellent, many thanks"

This review was posted by C nash on the 23rd of October 2017

Excellent service

"Excellent service, and fantastic customer service and support from Ian Smith."

This review was posted by Gavin on the 23rd of October 2017

i was just looking for comparison …

"i was just looking for comparison quotations on your web site when Bhavni rang to offer assistance. i am so pleased she did. very professional and extremely helpful and knowledgable. Bhavni even enquired further and got a better deal than was showing. thank you"

This review was posted by Merlin66 on the 23rd of October 2017

I couldn't be more satisfied!

"I couldn't be more satisfied with the service provided by Bhavni on behalf of Switchmybusiness.com. Her professional, helpful and friendly service was truly exceptional."

This review was posted by Gosia Stelmaszczyk on the 20th of October 2017