The annual forecasts are set to rise, more people are forecast to be in jobs by 2022, meaning the tax receipt projections are up, making more spending possible!
Philip Hammond put the focus on building a business in the 2018 Budget. With extra allowances for spending on Plant and Machinery, up from £200,000 to a massive £1 million for one year from 1st January 2019 to 31st December 2019. We recommend care is taken when planning expenditure especially when a business year end straggles those 2 dates because the allowance will be apportioned.
The same timing considerations should be given when building or improving a commercial property. The new Structures and Buildings Allowance (SBA) will help those constructing or renovating a commercial building.
And a reduction of one third in the business rates for the small shops, bars, cafes and restaurants, not to mention a complete waiver of business rates on public loos, making it cheaper to do business on the High Street!
This Budget has hit business and property owners. The rules have changed for those wishing to dispose of their shares in their own company at a reduced rate of tax. The criteria for claiming Entrepreneurs Relief (ER) has tightened, while those who rent out a former home have taken a blow too. The final period for the private residence relief has been reduced in addition to the Letting Relief having all but disappeared.
But on the positive side all, individual basic rate taxpayers will be £130 per annum better off as the increase in personal allowances is brought forward by one year.
Lots of possible help in the Budget for businesses, large and small and we’re here ready to help. We believe it’s better to chat through all plans before taking any action and so if you would like to see how the 2018 Budget changes can help you, your family and your business, why not contact Dinah Jones on 0113 229 3000 or Dinah@JonesAccountants.co.uk who will arrange for us to get together.
Jones Growth Accountants based in Leeds City Centre and Morley have been reporting on the budget for 20 year, offering a free business software to help business control costs, grow business and reduce tax.