As the dust settles following the last Autumn Statement address before the 2015 general election, business owners across the UK, myself included, reflect on what the announcement means for our respective businesses having anxiously waited to see what changes were going to be delivered last week.
The Statement included a surprising amount of good news for us, such as:
• Business rate review
• Infrastructure investment
• £900m for SMEs
• Increased R&D reliefs
• Apprenticeship national insurance contribution relief
• Peer-to-peer aid
• First time exporters access to £45 million funding package
As a small business owner, the above was welcome. However, as the build up to the announcement heightened – I had had my own thoughts about what I would personally introduce in the Statement, my favourite of which evolved into an idea I’ve coined the ‘Business Allowance’.
Although, sadly this wasn’t touched on by the Chancellor, I’m sure many fellow business owners would agree that a Business Allowance, like it’s sister ‘The Personal Allowance’ which lets people earn £10,000 without paying tax, would be a welcomed addition. The idea being that it would let every business in the UK make a tax free profit of £100,000 each and every year.
Designed to both help small business owners keep or reinvest what they have worked so hard on, and risked so much for, as well the more mature business that wants to grow – the Business Allowance would be a radical tax change that would shake both the business and political world.
The clever bit is that the Business Allowance would be almost tax neutral. This is because the savings that will be made will either be spent on new staff (who will pay tax), or on more marketing (which will generate VAT) or for owner/management bonuses (who will pay tax).
The new Business Allowance would be a tax relief that will accelerate business instantly, produce massive good will, and cost virtually nothing.
What do you think? Would this have been something you would have liked to see in the Autumn Statement?
If you had any of your own ideas on what should have been included, we would love to hear them!
To read the Statement’s key announcements for SMEs, head over to Real Business where they’ve summed it all up perfectly in under 500 words.