The Chancellor tells us that the private sector has created many more jobs than have been lost from the public sector, and he expects that this will further increase with 3.1 million jobs being created by 2019. Much of this growth in employment will come from owner managed businesses like yours……..so what tax measures were included to help?
Well here is our summary of the key points for owner managed businesses:
Employers NIC will be abolished for all employees under the age of 21 with effect from April 2015 giving a five year NIC holiday for those employing younger members of staff
£2,000 employment allowance covering again employers NIC available for all businesses from April 2014 – pre announced
Despite apparent lobbying by members of Parliament, the rate of corporation tax will not be increased and so the lowest rate will remain at 20%
There will be a package of measures to assist businesses with the cost of business rates, including:
- doubling small business rates relief until April 2015,
- discounting business rate bills for retail premises and
- the introduction of a temporary reoccupation relief, granting a 50% discount from business rates for new occupants of previously empty retail premises for 18 months, to help reduce the number of boarded up shops on English high streets.
There will be further comment to follow on the introduction of tax benefits for the sale of shares into a ‘John Lewis style’ employee ownership structure.
There were other changes aimed at individuals and also yet further tax avoidance measures to come, however overall for most owner managed businesses the financial impact from this Autumn Statement appears on first read to be much less than the expectations being placed on them.