Business Budget? In summary, the Chancellor announced the following: Vat Threshold raised by just £1,000 to £56,000.
Our view: Lower than inflation - not much help to any small business. Paperwork down. Businesses with a turnover of less than £150,000 will be allowed to move to a flat rate VAT scheme - where a simple % of turnover is paid as a flat rate rather than all the complex quarterly "inputs" and "outputs" calculation.
Our view: This is OK but the "devil is in the detail". Certain businesses such as smaller financial advisers do not have to charge VAT on commission but do on fees - would this catch them on the commission? We are finding out.
Corporation Tax Rates and thresholds were frozen.
Our view: This was excellent news.
IT Spend - 100% Relief The ability to offset 100% of any capital expenditure on IT against profits was extended for another 12 months.
Our view: This is excellent news to encourage more and more businesses to increase their development spending in IT.
This should help UK businesses keep pace with the rest of the World in an ever increasing, globalised, electronic economy. Stamp Duty On Property Leases Stamp duty on property leases is to go up to 1% of the Net Present Value. What's that? In simple terms, the NPV is the value of all rents due to the end of a lease with an allowance for inflation.
There will be an exemption threshold of £150,000.
Our view: This is not good news for most smaller businesses and high retail outlets. If the rent of a property is c£20,000 to £30,000 or more you will get caught by the increase. In our opinion, many more businesses will be caught by the increase. Stealth again.