Autumn Statement 2014
4th December 2014
The two big announcements yesterday by the chancellor were reforms of the stamp duty system and the new Diverted Profits tax aimed at multinational companies using aggressive tax planning to avoid paying tax in the UK.
Other announcements effecting small businesses are:
- Research and development tax credit for small and medium businesses will be increased to 230%
- The 100% Small Business rates relief will continue to April 2016
- The tax free allowance will increase to £10,600 and the higher rate band will increase to £42,385 in 2015/16. Although this increase is good news as this band had not moved in recent years it should be noted that this is just an inflationary increase. They also pledged to make the higher rate tax band £50,000 by the end of the decade.
- No National Insurance is payable by employers on apprentices aged under 25
- Entrepreneurs Relief will no longer be available to reduce your tax bill on disposal of goodwill in a soletrader business when you incorporate a company.
If you had any questions on how these announcements could effect your business please feel free to email us at email@example.com.