In his autumn statement today Chancellor George Osborne’s announced a raft of ‘responsible recovery’ measures including some significant benefits for owner managed businesses (OMBs).
Anne Wilson, senior tax manager at Pierce, has identified six key elements of the autumn statement that Lancashire owner managed businesses should know.
1. The business rate rise will be capped at two per cent, with the introduction of a new reoccupation relief to halve the rate for new occupants in vacant premises. Retailers with a rate of up to £50,000 will receive a discount of £1,000 for the next two years. In addition, the small business rate relief will be doubled for a further 12 months from 1 April 2014, helping 540,000 firms.
2. Petrol tax rise of 2p a litre, planned for next year has been cancelled, which the chancellor says will save a small firm running one van £1,360 a year.
3. From April 2015 the government will bring in a new £1,000 transferable tax allowance between married couples. This will benefit eligible couples by up to £200 in 2015-16.
4. £1 billion of loans will unblock housing developments on sites in the North West. The chancellor announced that Aldermore and Virgin, two challenger banks, are joining the Help to Buy scheme this month. This follows recent surveys suggesting residential construction is growing at fastest rates in a decade.
5. Employment is forecast to rise by 400,000 in 2013 and unemployment to fall from 7.6 per cent this year to seven per cent in 2015, and 5.6 per cent by 2018. The OBR forecasts private businesses will create 3.1 million more jobs by 2019.
6. Employers are to be exempt from paying national insurance contributions (NICs) for workers under the age of 21, making it cheaper for businesses to employ young people earning below £813 per week.