Budget Summary for Businesses

Mr Osborne wants to tell the whole world, particularly those bits with lots of money to invest, that the UK is “open for business”.

He plans to slash £350m of red tape and help make Britain the “best place in Europe to start, grow and finance a business”.

And he also plans to makes more savings by publishing a new strategy paper to on tax evasion and avoidance with the aim of reclaiming £1 billion this year (£14 billion is estimated to have been lost in 2008!)

Encouragement for Business Growth

• New rules to require planners to prioritise growth and jobs
• £100m funding for science facilities
• 21 “Enterprise Zones” to be created in England, backed by tax incentives.  The first ten will be in the areas with highest need but also highest potential including Leeds, Liverpool and Sheffield.  Businesses in these zones will benefit from rates discounts, super-fast broadband and enhanced capital allowances
• Funding for 12 further university technical colleges
• And extra 40,000 apprenticeships for young people out of work – making a total of £250,000 over next 4 years
• Funding for 100,000 new work experience placements
• £2bn extra funding for Green Investment Bank to support low-carbon investment – to launch in 2012
• An introduction of export credits and initiatives for high value manufacturing companies
• Doubling of Entrepreneurs Relief to £10 million as of 6^th April, and the limit that can be invested in a company to double to 400%
• EIS Scheme extended – Income Tax relief to increase from 20%-30%
• A ‘Start-Up Britain’ initiative to be announced next week.  Established entrepreneurs will help start-up and growing businesses
• R&D Tax credits to increase by 200%
• Working with banks to get a 50% increase in credit to small businesses
• Start-up capital will be made available to improve entrepreneurship and investment
• Mileage allowance to go up from 40p to 45p
• Income Tax relief to increase from 20%-30%

Personal Tax Allowances

• Income tax allowance to increase by £1000 from 6^th April
• Personal tax allowance to rise a further £630 to £8,015 in April 2012
• Consultation on long-term plan to merge income tax and National Insurance to make life easier for both small businesses and HMRC
• 50% top rate of tax to remain but review of how much it raises

Corporation Tax

• Corporation tax to be cut by 2% in April, not 1% as previously planned
• Tax to cut by 1% in each of the next three years, reducing it to 23%
• Bank levy to be adjusted so banks do not pay less tax as a result

Tax Relief

• 43 tax reliefs to be scrapped as part of simplification of tax code
• No new regulation on firms with fewer than 10 staff for three years
• Business rate relief holiday for small firms extended for another year

Fuel

New ‘fuel stabiliser’ to be introduced:

• Fuel duty to be cut by 1p per litre from 6pm today
• Planned 4p per litre rise due in April to be delayed to 2012
• Annual fuel duty escalator scrapped when oil prices are high
• VAT on fuel will not be reduced

And as ever, any changes that affect your bookkeeping and accounting will be automatically updated in Liquid Accounts at the appropriate time and will be ready and waiting for when you next login.

What do you think of the Budget?  How will it affect your business?  Is it good news or bad news?  Leave us a comment below or tweet us on @liquidaccounts.