How Are Small Businesses Affected By The New 2015 Budget?

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The Chancellor of the Exchequer, George Osborne, unveiled the 2015 budget report on the 18th March, showing the state of the economy, annual spending plans, changes in duties and taxes as well as financial help for businesses. To make sense of Osborne’s words and decisions, we take a look at how small businesses will be affected by the new budget.

Annual Tax Returns To Be Abolished

Freelancers and small businesses no longer have to endure the gruelling task of filling in self-assessment forms each year. Osborne plans to introduce a new digital tax system within the next five years. According to the Conservatives, small business owners and freelancers will be able to process their taxes online, reducing the time spent on filling in forms to just 10 minutes a year. This change will allow business owners to manage cash flow with ease without having to dedicate a couple of days a year to organising and filing paperwork.

Support For Businesses In The North

Osborne plans to put in place key measures to ensure support for Northern cities and towns. This includes a £13bn investment in rail travel and better roads. Moreover, Osborne is looking to invest £11m in tech hubs (a centre where tech entrepreneurs can work, meet and collaborate together) in Manchester, Leeds and Sheffield. The government also plans to support ten Enterprise zones (areas to encourage economic growth and development) across the country, as well as investing in business and skills support. The budget will allow for the growth of small businesses in the North and other areas of the country. This is great news for business growth and creating new jobs for towns and cities outside of London.

Improving Technology & the Internet

The decision to introduce ultra-fast broadband throughout the country is aimed to improve businesses located in more rural areas of the country. The Chancellor promises that there are plans for broadband upgrades with delivery speeds of 100Mbps. More properties and local businesses can benefit from a faster Internet connection.

Small Business Rate Relief

One of the more welcomed changes is the extension of the small business rate relief scheme. The scheme was introduced in October 2010 and was to expire at the end of March 2015. However, the extension will see the scheme until March 2016. A small business owner with rateable values below £6,000 doesn’t have to pay any rates during this period. Business owners with rateable values between £6,000 and £12,000 can receive relief from 100% to 0%.

So now you know more about the 2015 budget, contact an accountant today to learn more about how your business can benefit from the latest changes. Aston Black Accountants can give you the best advice available.

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