The chancellor’s budget always seems to be a mixed bag and produces feelings of trepidation while you’re waiting for the 8th of July, but this year’s budget brings mostly good news for businesses, finally something worth waiting for!
1. Corporation Tax
the new budget plans to announce tax cuts is welcome news to all companies with the current 20% corporation tax cut to 19% in 2017 and 18% in 2020. This isn’t all good news however, as some experts have suggested that 1% of the tax break will contribute to the new National Living Wage which is rising in tandem with the corporation tax dropping. It’s still a 1% break though!
2. National Insurance Employment Allowance
The National Insurance employment allowance is rising 50% from £2000 to £3000 giving employers a much needed bit of breathing room!
3. Tax Free Personal Allowance raised
Although this isn’t quite strictly business-related it seems worth putting in, purely because personal allowance raises are always good! The tax free allowance is being increased from £10,600 to £11,000 as of next year which will eventually rise to £12,500 in 2020 while the higher-rate threshold will increase from £42,385 to £43,000 next year and up to £50,000 in 2020.