How will the budget affect small businesses?

 

Roger Bowen of TaxAssist Accountants in Llanelli has kindly put together some comments on how the budget will affect small local businesses.

 

Fuel- Budget 2011 introduces Fair Fuel Stabiliser and at 6pm tonight, fuel duty will be cut by 1p per litre.

“Local businesses have been hit hard by constantly increasing fuel prices. The fuel duty cut of 1p per litre, the fuel escalator being scrapped until 2015 and the introduction of a Fair Fuel Stabiliser come as unexpected but very welcome news. However, will these measures be enough to make a significant impact to the price at the pump for small businesses?”

No new regulation on firms with fewer than 10 staff for three years + tax simplification

“Red tape has become an overwhelming burden on small businesses. However, the Chancellor moved closer to the government’s aspiration for ‘simplification’ of the UK tax regime confirming that there would be a consultation on the prospect of merging NI and income tax and 43 tax reliefs will be cut whose rationale is no longer valid. The major news in this area though, is that small businesses with fewer than ten staff will be exempt of new regulations for three years.”

Corporation tax cut

“From April 2011, the main rate of corporation tax will be cut from 28% to 26% and the small companies rate from 21% to 20%. This will ease the tax burden for companies whilst supporting the government’s aim of creating the most competitive tax system in the G20. So not only will it help existing UK businesses, but it may encourage new companies to form and perhaps even cross borders!”

Contact Tax Assist Llanelli today!