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Small businesses, freelancers & contractors: How the 2015 Budget affects you
by Startacus Admin
Today’s UK Budget recognised the importance of the self-employed workforce to the British economy.
So we asked Crunch Accounting to share the key points on how the 2015 Budget affects Small businesses, freelancers & contractors.
"Today’s Budget recognised the importance of the self-employed workforce to the British economy and reflected the needs of this demographic through reforms and cuts that could change the way Britain does business.
Here are the top highlights for small businesses, freelancers and contractors:
Self-Assessment tax return reforms
The government plan to simplify tax administration by getting rid of the annual tax return. This will make tax simpler by enabling tax and NICs to be collected through digital accounts instead of the annual self-assessment.
Abolition of Class 2 National Insurance Contributions
There are plans for Class 2 NICs to be abolished in the next Parliament. Class 4 will also be reformed to introduce a new contributory benefit test.
Rise in Personal Allowance
The Personal Allowance will rise from £10,600 is 2015-16 to £10,800 in 2016-17 and £11,000 in 2017-18.
The 40% income tax threshold is also set to rise above inflation from £42,385 to £43,300 in 2017-18.
Review of Business Rates
A review of Business Rates has been launched. The government also plan to pilot schemes that reward additional Business Rates growth.
Local Authorities are also being encouraged to use their business rates relief powers to support the sharing economy, which includes shared workspaces and makerspaces.
Improved access to finance and markets
The government aim to unlock the potential of the sharing economy, improve access to finance and boost exports. The Budget 2015 also announced funding for trade missions, focused on regional strengths.
The British Business Bank is looking for proposals to support its Help to Grow scheme, which will make growth finance more available. Alongside this, the government will do more to inform SMEs about the support already available, as well as their options for accessing finance.
Better education and support for SMEs
SMEs will be given better information on how to access and use legal services. This information will be included on the Citizens Advice and the GREAT business websites.
£4 million will be provided to extend the existing Skills Investment Fund for a further two years, which will go towards match funding for training and development in film, television, visual effects, video games and animation."