Small business owners across South Bedfordshire have received a welcome summer break in the July Budget, according to a local tax specialist.
Dave Masterson, who runs TaxAssist Accountants in Market Square, Leighton Buzzard and High Street North, Dunstable said that the Chancellor’s second financial statement in four months delivered some much-needed good news for local businesses.
He said: “The new compulsory living wage of £7.20 an hour from next year and £9 an hour by 2020 could impact on many small business, particularly at start-up stage, but this is offset by an increase in their Employment Allowance from £2,000 to £3,000 a year, which is welcome news.
“However, sole director companies are set to lose this benefit next year.
“At a time when many business owners are starting to consider vital investment for growth, setting the annual investment allowance at £200,000 will also be welcomed, as is the reduction in corporation tax to 19 per cent in 2017 and 18 per cent by 2020.
“Businesses which depend on cars and vans to deliver their products and services will also breathe a sigh of relief that fuel duty remains frozen.
“We will be working closely with our owner-managed company clients to look at the implications of new rules on tax free allowances for dividend payments.
“The Chancellor called this a Budget for working people and for local small business owners there were some welcome summer tax breaks, which will help many make vital decisions on recruitment and expansion. With small and medium sized firms in this country employing over 15 million people, support for this sector is crucial to the growth of the UK economy.”
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