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Nimbus

By Nimbus

March 24, 2016

Budget 2016: Small business takeaway

March 24, 2016 | By |

With the dust now settling on the Chancellor’s recent budget, we’ve picked out some highlights that will help small business owners as they attempt to navigate through the plethora of proposed legislation.

The headline grabbers were undoubtedly the falling business rates, corporation tax and capital gains tax measures. The reforms to business rates will have the biggest impact as small businesses will look to save significant funds through the proposals, with an additional 600,000 businesses no longer paying any business rates – ever. The Chancellor’s claim is that this will reduce the business rates burden by nearly £7bn over the next five years.

Some would say that the closing of corporation tax loopholes has been a long time coming, but for small business owners they will now have the assurance that the big boys will now be paying their fair share. A number of polls held with small businesses before the budget indicated that the closing of tax loopholes so that big business paid their fair share was the number one desired outcome from the budget.

There was also the extended commitment to funding for small businesses through the British Business Bank. A significant figure of £1bn of financial support was agreed. This will mean that regional councils will be working with the BBB, to help investing in local businesses.

Nimbus believes that small businesses should be at the heart of the nation’s economic growth plan and it looks like the chancellor feels the same way – finally. The closing of tax loopholes and cutting of taxes will motivate local business owners and make them feel valued in the government’s economic ecosystem.

For more support following Budget 2016, get in touch with our team of accountants.

 

Accountant HoveContractors/FreelancersSmall Business
Nimbus

By Nimbus

November 5, 2015

Should you pay yourself an extra dividend?

November 5, 2015 | By |

Up until the chancellor delivered his Summer Budget it was possible to pay less tax if you ran your business through a limited company, this was because you could avoid National Insurance. If you are one of the many people that took advantage of this structuring then from 6 April 2016 your dividends are going to become more expensive. We covered the changes in more detail in our blog on the summer budget in July, but here are the headline changes that impact dividends:

  • Tax rate on dividends is increasing by 7.5%
  • The old notional 10% tax credit is being abolished
  • The first £5,000 of dividends will be tax free 

If you have retained earnings in your company that you are thinking of withdrawing at some point in the future, why not pay them out before the rate increases in April? It is worth taking a moment to consider if it is sensible to take a dividend before the change, if you are not a higher rate tax payer and you have some capacity to take a dividend without incurring any tax, it might be the time to do so.

For those with a lot of money tied up in their company and thinking of calling it a day, remember that Entrepreneurs relief at 10% might be available. This is certainly the cheapest way of getting your money out of a company structure.

If you would like to discuss dividends or liquidating your company in more detail, give one of our accountants a call on 01273 782 747, or visit our Contact Us page for our email address and Skype details.

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