The Budget 2016: what does it mean for startups?

It’s that time of year again – when the Chancellor lays out his plans for the country’s economy and we find out what’s in store. It’s important information to know, but small business owners are busy people and we know that you don’t have a spare hour to sit through all the jeering from the Commons. So we watched the budget and highlighted the key things you need to know if you’re a startup or small business owner.

-       The businesses in our economy have created 150,000 more jobs than the OBR expected

-       OBR forecasts the creation of 1m more jobs this parliament

-       By 2019 a surplus of £10.4 billion is predicted

-       Greater devolution of power in order to give the local community more say in where money goes

-       Crackdown on tax for larger corporations and reforms to business tax, such as a cap on interest deductibility at 30%. The money gained from these crackdowns will go towards small businesses

-       Firms can use losses flexibly, will help over 70,000 British companies

-       Corporation tax reduced – by April 2020 it will be 17%

-       Help for micro-entrepreneurs – two new tax-free allowances worth £1000 a year, a tax break for the digital age that 500,000 people will benefit from

-       Government to close a VAT loophole used by overseas internet merchandisers to help small businesses be more competitive

-       Business rate relief will double to £15k - so 600,000 small businesses from next year will pay no business rates

-       There will also be cuts on stamp duty for commercial transactions by small firms

-       Devolution arrangements will see mayors elected for regions of the UK

-       London is to prepare for 5G technology – improved connectivity will help our startups and SMEs

-       Funding for High Speed 3 will see improved connections between Sheffield and Manchester

-       Fuel duty will be frozen – great news for businesses that rely on vehicles

-       From 2018 Class 2 National Insurance will be abolished altogether – great news for the self-employed

-       Headline rate of capital gains tax cut from 28% to 20%

-       The ISA limit will increase to £20,000, and the personal tax-free limit will be raised to £11,500 from April 2017

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