Well this years budget has been described in a number of different ways: “A mucha do about nothing,” “A deficit attention disorder,” “A pre-budget budget,” “An election budget,” and so on and so forth. The overall view is that the real budget will take place after the election. But what should the UK’s freelancers make of it all?
First off, if you’re a cider-swilling contractor, who has an unquenchable thirst for apple and pear flavoured alcoholic delights, you’ll be pretty darn angry at the news that duty has gone up 10%!
It’s not all bad news however. Small businesses looking for more investment will be happy that the government is actively encouraging banks to lend more money. RBS and Lloyds will be lending nearly £94bn of new business loans over the next year, almost half of which will go to smaller firms. Yippee!
Furthermore, the chancellor is looking to cut business rates for “fledgling businesses,” as well as existing ones, for one year from October. He will also double the Annual Investment Allowance to £100,000 – although most small businesses invest less than the current £50,000 limit, so perhaps not too much of a difference there.
Another morsel of positive news see’s the entrepreneur’s capital gains tax relief doubled which should enable more investment in small businesses.
All-in-all, the budget is a positive one for small businesses – and small limited companies in particular. Crunch offers a superb service for those wanting to set up under the limited banner, and makes the whole process ridiculously easy.
For more information on the budget, you’d better wait till after May 6!