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Budget 2017: How will it affect your business?

Budget 2017: How will it affect your business?

Chancellor Phillip Hammond’s first and last spring Budget statement was a relatively low-key affair. There were little in the way of headline-making announcements (not counting the speedy U-turn on the proposed increases to self-employed national insurance).

Nonetheless Budget 2017 contained important measures that could be significant for your business in the future.

Business rates

The government announced at Budget 2016 that the small business rate relief for will double from 50% to 100% on a permanent basis from April 2017. This was a welcome change for businesses owning rateable property valued at £15,000 or below.

Budget 2017 saw the chancellor announce additional assistance for businesses coming out of small business rate relief. The government has pledged to limit the increase in bills faced by businesses losing the relief to £50 a month.

In addition, £300 million will be given to local governments to enable them to provide discretionary rate relief to struggling businesses. The government is currently consulting on this measure and further details will be announced in the future.

Digital tax reporting

The digitalising of tax returns, a cornerstone of George Osborne’s chancellorship, was pushed back by 1 year (until April 2019) for unincorporated businesses and landlords with annual turnover below the VAT registration threshold. This will provide these businesses with more time to prepare for quarterly reporting.

R&D tax credits

The chancellor reiterated the government’s commitment to transform the UK into a hub for innovation and R&D. Though his statement provided little in the way of details, the chancellor pledged to simplify the UK’s R&D tax credit regime. The Treasury will provide further details after a consultation.             

Read our in-depth guide to Spring Budget 2017.

Contact us on tracya@knightandcompany.co.uk or call 01628 631 056 to find out how we can help you plan for your business’ future.