The budget Corporation Tax, which is currently 20%, will be cut to 17% by April 2020 while the Small Business Rate Relief threshold will rise from its current £6,000 level to £15,000 for the smallest businesses, with the threshold for the higher rate rising from £18,000 to £51,000. Mr Osborne said this meant 600,000 small businesses would pay no business rates at all from next year, with another 250,000 seeing rates being cut.
The chancellor had also commissioned the Office of Tax Simplification to look at new ways to make the tax system work better for smaller firms.
Ben Guy, managing director of Phoenix Group (www.phoenixgroup.co.uk), a food manufacturer based in Nottinghamshire, said: “It was a Budget for small business, no doubt about it. He said he’d give us “lower taxes on business and enterprise” and I think, overall, he mostly delivered. I was extremely pleased to see The Chancellor announce rate relief for small businesses. Raising the lower-rate threshold to £15k and the higher-rate to £51k is a strong signal to British businesses to get on and deliver growth.
“It will make a real difference to hundreds of thousands of firms. Corporate tax cuts for SMEs, paid for by tougher regulation for big business tax avoidance is undoubtedly a headline-grabbing move, but behind all the noise of the Commons this move goes some way to soften business challenges like the apprenticeship levy. Overall, a pleasantly surprising set of measures!”
Source: Packaging News | Jobs | Production | Design | Innovation » News