Budget 2013 and Business Tax
20th March 2013The 2013 Budget has some good tax news for SME businesses:
- The new £2,000 Employment Allowance will help reduce the hidden employment cost that Employer’s NIC has now become.
- The continual gradual reduction in the main rate of corporation tax towards 20% will also lead to reductions in the marginal rate, which will help the SME’s that are generating more than £300k of profits each year.
- The threshold increase from £5k to £10k for beneficial loans to employees, that do not attract a notional interest benefit in kind tax charge, is welcome, especially for personal service companies as they get to grips with how they will operate their payroll under the new RTI PAYE rules.
- Further detail on the new Employee Share Status rules remain of interest to business owners who wish to incentivise their key employees. The detail is awaited with interest.
- Increasing the Annual Investment Allowance tenfold, for a 2 year window, gives more certainty to the tax planning tool that is probably of most relevance to all SME businesses.
Some concern should still be held back, however, over proposals for a new General Anti Avoidance tax Rule.
Disclaimer - All information in this post was correct at time of writing.
