budget 2016: sme agenda

Budget 2016SME Agenda

Winning with

The UK Budget 2016 saw Chancellor George Osborne vow to ‘back business and enterprise’ with

‘new support for small business and entrepreneurs.’

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Mr Osborne’s Measures to help SMEs include:

• Lowering taxes and

• Offering business rate relief.

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Meaning SMEs

• Keep more of their earnings and

• Grow their businesses.

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Business Rates

The Budget 2016 cut business rates for all small businesses that occupy property with a rateable value of £12,000 or less, effective from April 2017.

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Corporation Tax

It also planned cutting Corporation Tax to 17% by 2020.

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Capital Gains Tax

Further to this, Capital Gains Tax will be cut from 28% to 20% (at the higher rate) and from 18% to 10% (at the basic rate) from

6 April 2016.

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National Insurance

The Chancellor:

• Pledged to scrap Class 2 National Insurance contributions (NICs) for self-employed people from April 2018, meaning that the self-employed only

have to pay Class 4 NICs if their profits are over £8,060 a year.

• Reformed Class 4 NICs, so self-employed people can continue to build benefit entitlement.

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Entrepreneurs’ Relief

Mr Osborne also:

• Extended entrepreneurs’ relief to external investors in unlisted trading companies.

• Introduced (from April 2017) two new £1,000 allowances for property and trading income.

• Exempt individuals with property income or trading income below £1,000 from paying tax on it (as of April 2017) .

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Fuel Duty

The Chancellor froze the main rate of fuel duty at 57.95 pence per litre for 2016-17.

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Stamp Duty

Finally, the Chancellor:

• Changed stamp duty rates for commercial property from 17 March 2016, so that tax bands will be 0% for the portion of

the transaction value up to £150,000; 2% between £150,001 and £250,000, and 5% above £250,000.

• And reduced stamp duty for buyers of commercial property worth up to £1.05 million.

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Further to these measures, the Government remains committed to its SME agenda.

The Government aims to place 1/3 of Government contracts by value with SMEs by 2020.

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But to access these opportunities SMEs must keep abreast of contract notices.

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Supply publishes more non-OJEU contracts than anyone else.

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Supply is the only complete solution in the market that will help you find, bid for, and win

the contracts that will grow your business.

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Over 60,000 start-ups and SMEs have registered on Supply.

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To discover more about how Supply can boost your business visit:

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