During the announcement of the 2015 Budget, Osborne reported that since 2010, “Business investment has grown four times faster than household consumption, Britain’s manufacturing output has grown more than four and a half times faster than it did in the entire decade before the crisis, and over the last year, the North grew faster than the South.”
So how does the budget affect businesses in the UK?
Osborne said that “In 2010, city bankers boasted of paying lower tax rates than their cleaners; the rich routinely avoided stamp duty; and foreigners paid no capital gains tax.” it is put forward that the in the next month ‘Diverted Profits Tax’ will be introduced, this is aimed at large companies who shift their profits offshore.
North Sea Tax
Osborne says the price of oil falling is posing a threat to the North Sea oil industry.
- Petroleum Revenue Tax to be cut from 50% to 35%
- New tax allowance to be introduced
- Supplementary charge for oil companies to be cut from 30% to 20%
Review of business rates
There has been pressure from businesses large and small for a review of the business rates system, as it has been said to be behind in times and needs to be modernised.
For a more details on how the review may affect businesses read our blog ‘Business Rates Review Launched‘. Also in our blog ‘Pubs Business Rates Info Request – Are You Ready?‘ we wrote about how the business rate review will affect pubs.
Adult, youth and apprentice minimum wage rates to rise. The National Minimum Wage is expected to rise to £6.70 per hour this Autumn.
In April National Insurance for employing under 21s, this will hopefully encourage employees to hire more apprentices.
Corporate tax will be cut from 21% to 20%, which is one of the lowest rates for any major economy.
Digital Tax Account
Announced in the speech was the introduction of the digital tax account, this will allow businesses to manage their tax payments via an online account. Therefore most of the information needed will be automatically received. This will abolish the annual tax return.
Want to read Chancellor George Osborne’s speech in full? Click here.