insideKENT Magazine Issue 26 - May 2014 | Page 151

BUSINESS DODECAHEDRON BUDGET: 12 ISSUES FOR BUSINESSES ON WEDNESDAY 19TH MARCH 2014, GEORGE OSBORNE PRESENTED HIS BUDGET SPEECH – YOU CAN READ THE HIGHLIGHTS IN WILKINS KENNEDY'S BUDGET REPORT AT WWW.WILKINSKENNEDY.COM. OSBORNE SET OUT A RANGE OF MEASURES, AIMED TO BOTH ASSIST AND SUSTAIN ECONOMIC GROWTH. HERE ARE 12 AREAS THAT MAY BE OF INTEREST: course, you may need loan finance to expand or even start your export offering, and the government has expanded its lending scheme to £3 billion, allied with competitive rates of loan interest. Economic growth The UK economy is forecast to grow by 2.7% this year; 2.3% next year; 2.6% in 2016 and 2017; and by 2.5% in 2018. In addition to the growth forecasts, the Chancellor increased personal tax allowances. This should provide more disposable income to impact on the retail sector. £2,000 of National Insurance (NI) savings If you are paying out more than £2,000 in National Insurance during 2014/15, then you will receive a credit off of your total annual bill. Not a huge saving, but extra money nevertheless, which you can then direct towards investing in staff training, for example. No Employer’s NI for employees up to the age of 21 Definitely a useful cash-flow addition; as an example, if you employ someone on £20,000 per annum, you will save NI contributions of just over £1,650 per employee from 6th April 2015. You can use this to augment your staff benefits, in turn, incentivising your employees to sell more and giving them a financial reward for doing so. An annual investment allowance (AIA) of £500,000 This allowance allows businesses to offset the cost of capital additions directly against its annual taxable profits, rather than spread the cost over the lifetime of the asset. Do seek professional advice to determine what capital additions qualify for AIA. Freeze on fuel duty The proposed increase in fuel duty in September 2014 will not happen. This should be good news, as you should not now suffer the expected increased transportation costs from suppliers. Air passenger duty (APD) reduced for long-haul flights Long haul flights to places such as China will benefit from reduced APD, which will save you a little on your visit to Chinese suppliers. Business rates relief (BRR) extended in Enterprise Zones A major concern for businesses is the cost of business rates; despite intense lobbying, the government has presently only extended BRR in Enterprise Zones until 2017. So, if you are looking to launch a start-up or relocate to an Enterprise Zone, this must be done by 6th April 2015 to qualify for rates relief for five years, up to a maximum of £275,000. Apprenticeships – extra help The modern day apprenticeship allows qualifying businesses to employ and train up the next generation of employees. The government is making an additional £85 million available over the next two years to fund apprenticeships. This is a positive step, as providing extra help in employing and training up skilled employees of the future, can only be a good thing. Research & development (R&D) cash credits for SMEs increased to 14.5% You may also be involved in New Product Development; indeed, you may be in the early stages of your business and be making a loss. The good news is that if you have developed a product that qualifies for R&D relief, you can get cash back against the qualifying expenditure. The £1 coin The Royal Mint proposes to introduce a new 12-sided £1 coin in 2017 – hence the Dodecahedron Budget. Seed Enterprise Investment Scheme (SEIS) The Chancellor has made some changes to the SEIS rules, which will make the scheme more favourable from a Capital Gains Tax perspective for investors. The SEIS is a great way for new start-ups to attract external capital of up to £150,000 from investors. Why not put together a business proposal that sets out why your start-up qualifies under SEIS, and get that vital investment into your offering? UK export finance lending scheme UK e-sellers currently sell £4 billion per annum into overseas markets – the opportunity for retailing your products outside of the UK is substantial. Of There is plenty for businesses to absorb and consider in this article, and we at Wilkins Kennedy LLP, would be delighted to hear from you. We can help you on your growth journey. If you would like to find out more, please contact Rick Schofield on 01233 629255 or [email protected]. www.wilkinskennedy.com 151