George Osborne has unveiled his latest budget, but what does this mean for businesses?
Here are a round up of the key points affecting businesses:
- National Insurance employment allowance for small firms is set to increase by 50% from 2016 (so it will now be £3,000)
- Dividend tax credit will be replaced by a tax-free allowance of £5,000 on dividend income.
- There is a proposal to allow shop to open for longer on Sundays, read about the proposal here. This may affect small shops who rely on the larger shops having to close.
- Non-dom status will be abolished – this means from April 2017, anyone who has lived in the UK for 15 of the past 20 years will pay the same level of tax as other UK citizens.
- New national living wage for over 25 year olds will be introduced, which starts at £7.20 an hour and is set to reach £9 by 2020.
- Personal allowance is set to rise to £11,000 next year, this is set to rise to £12,500 by 2020 meaning people working 30 hours a week on minimum wage will not pay income tax.
- Corporation tax will be cut to 19% in 2017 and 18% in 2020.
Does the 2015 budget affect your business? Comment below and share what affects you most.