From the top · 16 March 2016

The Budget 2016: A 500-word summary for owners of micro and small businesses

The Budget 2016 provided much food for thought for small and micro business owners

For those who are new to the annual Budget speech, or want a quick insight into how it will impact their small companies, Business Advice has put together a convenient summary so you don’t have to sift through announcement after announcement.

Reform to stamp duty for small businesses

The stamp duty rates system for commercial property is being overhauled, with some 90 per cent of small firms seeing tax bills cut or go unchanged as a result. A zero rate band for commercial stamp duty has been introduced for the first time, with changes set to come into force overnight.

Read more on the development here

Reform to business rates for small businesses

One million small UK businesses are set to benefit from rate relief, Osborne announced in the Budget 2016, as part of a permanent increase in the business rate relief threshold to 15, 000. it’s predicted this will save small companies some 6, 000 a year, with 600, 000 soon to pay rates at all.

Read more on the development here

VAT loophole for oversees internet merchandisers closed

Sure to appeal to enterprising entrepreneurs throughout the UK, foreign companies storing stock in the UK but avoiding VAT payments will have those loopholes closed. It follows an HMRC-established taskforce set up in December 2015 to investigate VAT evasion by overseas companies, and will benefit those selling through platform such as Amazon or eBay.

Read more on the development here

Tax breaks, worth 1, 000 a year, for trading and property income

The “Airbnb allowance” or “spare room subsidy”, two terms already associated with this policy, will allow enterprising individuals to be exempt from tax for the first 1, 000 made through selling services or renting property online.Withno forms to fill in or taxes to pay, Osborne described it as a “tax break for the digital age”. Some half a million people are expected to benefit on the back of the Budget 2016.



Hunter Ruthven was previously editor of Business Advice. He was also the editor of Real Business, the UK's most-read website for entrepreneurs and business leaders at the helm of growing SMEs.

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