On Wednesday March 19 George Osborne will deliver the 2014 Budget, with thousands of businesses up and down the country tuning in to see how the latest economic measures will impact them.
Last year’s Budget was widely considered a positive one for entrepreneurs and small businesses, with measures announced including a cut to employers’ national insurance bills, an increase to the employer loan limit and tax relief measures aimed at business owners looking to sell their companies.
But what exactly will Osborne’s fifth Budget announcement hold for business owners? We take a look at some of the measures businesses will be hoping to hear about…
Business rate reform
A number of leading business figures have urged the Chancellor to reform the way business rates are charged, arguing that the current system has been outdated for years. Currently, business rates are charged based on the value of the shop or commercial property where a venture is based, however, the Business Innovation and Skills Committee has called for an examination of whether it would be fairer to base the tax on sales values instead.
Corporation tax exemption
Tax is always a burden on businesses and never more so when they are first starting out, which is why many company owners are calling for the Government to exempt new businesses from corporation tax until they have been up and running for two years. According to commentators, this would be a real help to many businesses as the first few months of operation can prove particularly tough with owners often not paying themselves a salary and relying on credit cards and overdrafts to keep going.
The Confederation of British Industry and the Federation of Small Businesses (FSB) are both keen to see the annual investment allowance, which lets companies offset spending against tax on items such as office equipment and machines and currently stands at £250,000, to be extended beyond 2015.
According to the FSB, 15% of its members are hoping to invest in their business in the coming year and extending the allowance would help them do so.
Access to finance
Accessing finance is still proving to be a huge hurdle for many small firms, leading to calls for the Government to take further steps to tackle the issue. While initiatives like Funding for Lending have had a positive impact, commentators are encouraging the Government to boost community development finance institutions which can help firms which are unable to access bank loans to borrow money.
What measures would you like to see announced in next week’s Budget?
Posted by The Secret Businessman