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What does the 2015 Budget mean for business?

July 7, 2015

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.