The Budget had all the potential to be a fairy tale. The annual forecasts are set to rise, more people are forecast to be in jobs by 2022, meaning the tax receipt projections are up, making more spending possible! But no.
Philip Hammond put the focus on building business in the 2018 Budget. With extra allowances for spending on Plant and Machinery, up from £200,000 to a massive £1 million for one year from 1st January 2019 to 31st December 2019. We recommend care is taken when planning expenditure especially when a business year end straddles those two dates because the allowance will be apportioned.
And a reduction of one third in the business rates for the small shops, bars, cafes and restaurants, not to mention a complete waiver of business rates on public loos, making it cheaper to do business on the High Street!
The same timing considerations should be given when building or improving a commercial property. The new Structures and Buildings Allowance (SBA) will help those constructing or renovating a commercial building.
This Budget has hit business and property owners. The rules have changed for those wishing to dispose of their shares in their own company at a reduced rate of tax. The criteria for claiming Entrepreneurs Relief (ER) has tightened, while those who rent out a former home have taken a blow too. The final period for the private residence relief has been reduced in addition to the Letting Relief having all but disappeared.
But on the positive side all individual basic rate taxpayers will be £130 per annum better off as the increase in personal allowances is brought forward by one year.
Lots of possibilities in the Budget for businesses, large and small, and we’re here ready to help. We believe it’s better to chat through all plans before taking any action and so if you would like to see how the 2018 Budget changes can help you, your family and your business, why not contact us to run through your thoughts?
Stephen Perry & Co is committed to providing excellent quality business advisory and accountancy services. With our balanced and creative advice, we support our clients in the growth and management of their business finances, helping them to legally minimise their taxation commitments in an approachable, jargon-free way.