Autumn Statement Summary
Contractors and Limited company owners will be interested in hearing the latest news from the Autumn Statement last week, with Chancellor George Osborne starting the announcement by saying, ”Britain’s economic plan is working, but the job is not done.”
We take a look at what the Autumn Statement announcement means for you from a personal level, as well as how your business may be affected.
According to the Chancellor, this year’s aims were to secure the public finances, support families with their costs, provide young people with the necessary skills and to help businesses to develop and grow.
How will the Government help businesses to grow?
As well as creating jobs and help for the high street, the Chancellor has also said that it plans to help businesses grow by doing the following:
- Doubling the Small Business Rate Relief for a further 12 months.
- Making it much cheaper for businesses to hire young people.
- Having a cap on the Retail Prices Index increase in businesses rates (for England) to 2%.
- A £1,000 business rates discount, which will help the high street to grow and prosper.
Responding to the Chancellor’s Autumn Statement, the Federation of Small Businesses (FSB) has said it will build on economic growth and will provide real help for small firms’ overheads through action on business rates and fuel duty.
John Allan, National Chairman, Federation of Small Businesses, said, “Today’s Autumn Statement represents steady progress, with a range of announcements that address members’ concerns in the cost of doing business, with action on business rates and confirmation that next year’s fuel duty rise will be cancelled.
“The statement is a sobering reminder about the scale of the deficit the country faces and the tough choices which need to be made. We therefore welcome the use of what spare resources the Chancellor could find to focus tax cuts on encouraging firms to take on younger workers, which must be an overriding priority.”
On a personal level
With regards to benefits and pensions, the Chancellor said that the state pension age is to increase to 68 during the 2030’s and 69 during the 2040’s.
It was also revealed that those aged 18 – 21 who are claiming benefits without basic Maths or English skills will have to undertake training. If not, they will lose these benefits.
Many contractors who rely on their car or public transport to get to jobs will be pleased to hear that petrol taxes will remain frozen and that the planned rise of 2p per litre has now been cancelled. Train fares will also be rising in line with inflation, rather than at 1% above RPI.
For more information on the Autumn Statement, download our Budget Report.
For more information on contracting, or our accountancy package, speak to a member of our new business team on 01442 275789 or email email@example.com.
For just £120 + VAT per month, SJD Accountancy offers an all-inclusive fixed fee accountancy package, which covers:
- Year-end accounts*
- Corporation tax
- Payroll bureau
- Dividend administration
- Dealing with HM Revenue and Customs and Companies House
- Quarterly VAT Calculations
- Support with Annual Returns
- Personal Taxation
- Access to your own dedicated accountant* for all help and advice
- Free bookkeeping software