From The Top

Spring Budget 2017: A 500-word summary for small businesses and self-employed

Hunter Ruthven | 8 March 2017 | 7 years ago

Spring Budget 2017
Small businesses had some help but were also targeted in the Spring Budget 2017
While chancellor Philip Hammond’s Spring Budget 2017 speech had nearly 7, 000 words, weve boiled it down to the 500 most important words for small companies and the self-employed.

Business rate relief

As expected, the chancellor used the Spring Budget 2017 to address a big concern for small businesses. He will be moving forward with three ways to ease the strain of the upcoming business rates re-evaluation. Companies emerging from rate relief will be able to access an additional cap, there will be a 300m fund for local authorities to help special cases and pubs with a rateable value of less than 100, 000 will get a 1, 000 discount.

Read more here

Tax-free dividend reduction

While help has been provided in the Spring Budget 2017 on the business rates side, companies have been hit by the decision to limit the tax free dividend allowance from 5, 000 to 2, 000.The changes, combined with those introduced by former chancellor George Osborne in 2015, are designed to target small company owners who pay a small salary and then a large dividend.

Read more here

Delay of Making Tax Digital

There has been lots said regarding the impact of Making Tax Digital on small firms, but in the Spring Budget the chancellor said for businesses with a turnover below the VAT registration threshold there will be a one-year delay on the introduction of quarterly reporting at a cost to the exchequer of 280m.

The government will also consult on the design aspects of the tax administration system, including interest and penalties, with the aim of adopting a consistent approach across taxes.

Read more here

Changes to NICs for self-employed

In response to the growing market of self-employed workers, which is putting a strain on the collection of taxes, an incremental increase to Class 4 NICs is being introduced. This is the rate of national insurance contribution that is based on an individual’s annual earnings.

Self-employed individuals currently pay nine per cent NICs on their annual earnings above 8, 060, compared with 12 per cent for employees at companies. The new changes mean that this rate will increase to ten per cent in April 2018, and then 11 per cent in April 2019.

Read more here

£200m for fibre broadband

it’s an ongoing drive to take superfast broadband to every corner of the UK especially supporting rural businesses that struggle with poor connections.

Full-fibre broadband vouchers for businesses will be made available, as pat of a 200m initiative aimed at helping local projects leverage private sector investment. The consensus is the major telcos such as BT and Virgin Media need to see critical mass in rural areas to justify investment.

Read more here

Special business rate discount for pubs

As mentioned above, with pubs closing at a rate of 29 a week the government is giving these kind of companies extra protection. Alongside not announcing any extra duty increases alongside the planned ones in April, smaller pubs will not feel the strain of increased business rates as much.

Read more here

Related Topics

How SMEs Can Innovate Their Way to Success in 2023
30 June 2023

How SMEs Can Innovate Their Way to Success in 2023

Read More →
2021: Financial predictions from four experts
14 January 2021

2021: Financial predictions from four experts

Read More →
Thousands of self-employed to benefit from “tax grab” Loan Charge review
10 January 2019

Thousands of self-employed to benefit from “tax grab” Loan Charge review

Read More →
an embarrassing spectacle?: What real entrepreneurs made of The Apprentice final
18 December 2018

an embarrassing spectacle?: What real entrepreneurs made of The Apprentice final

Read More →
The Apprentice 2018 Final preview: Who’s going to win the 250, 000 investment?
14 December 2018

The Apprentice 2018 Final preview: Who’s going to win the 250, 000 investment?

Read More →
The “bizarre” sales technique that left Apprentice viewers stunned
23 November 2018

The “bizarre” sales technique that left Apprentice viewers stunned

Read More →

If you enjoy reading our articles,
why not sign up for our newsletter?

We commit to just delivering high-quality material that is specially crafted for our audience.

Join Our Newsletter