Budget 2017 - Key points at a glance

Philip Hammond delivered his first Budget as chancellor yesterday, we summarise the key points for small businesses.

09/03/2017, news




The key points for small business are as follows:

The State of the Economy

  • UK was the second-fastest growing economy in the G7 in 2016
  • Growth forecast for 2017 upgraded from 1.4% to 2%
  • GDP downgraded to 1.6%, 1.7%, 1.9% in subsequent years, then 2% in 2021-22
  • Annual rate of inflation forecast to rise from 2.3% to 2.4% in 2017-18 before falling to 2.3% and 2% in subsequent years
  • A further 650,000 people expected to be in employment by 2021

Business

  • £435m for businesses affected by increases in business rates, including £300m hardship fund for worst hit
  • Pubs with rateable value of less than £100,000 to get a one-year £1,000 discount on rates they would have paid
  • Rate rises for businesses losing existing relief will be capped at £50 a month
  • A £820m tax avoidance clampdown, including action to stop businesses converting capital losses into trading losses and introduction of UK VAT on roaming telecoms services outside the EU
  • Privately-owned SMEs to get extra year to prepare for tax digitisation and quarterly reporting
  • Review of taxation of North Sea oil producers

Small business tax

  • For businesses below VAT registration threshold, delay by a year the introduction of quarterly reporting at a cost of £280m

Self-employment

  • An investigation into tax treatment is being conducted by Matthew Taylor of RSA

National living wage

  • National living wage will rise to £7.50 an hour in April, up from £7.20 an hour

Training

  • £300m for 1,000 new PhD placements
  • £270m for disruptive technologies such as robotics and driverless vehicles (the ‘industrial strategy challenge fund’)
  • £16m for a 5G tech hub and £200m for local broadband networks
  • £5m funding to support women returning to work after a career break

Source: BBC, The Guardian

Tags: Policy and Government, Economy, Business Support , Taxation