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Big changes for small businesses in the uk in the budget 2016

The new reform is well overdue and is welcomed by small business among the united kingdom.

The chancellor has announced from the next tax year 2017, over 600,000 small business in the uk will no longer have to pay small business rates, with a further 250.000 businesses in the uk will pay less in there rates.

Dept interest payments has also been capped, used by larger businesses to cut the corporation tax bills to 30% of earnings, and also announced corporation tax will be cut by 17% within the next four years in 2020.

George Osborne said he is permanently raising the threshold for small business rate relief from £6,000 to a maximum of £15,000 and increasing higher rate relief from £18,000 to £51,000.

Mr Osborne is pleased to announce 600,000 small businesses relieved of paying business rates from next April would see an annual saving of nearly £6,000.

A number of reforms designed to help small businesses cope with what he called “the great unfairness” they faced when trying to compete with some suppliers selling goods online.

He also introduced two new tax-free allowances worth £1,000 a year for so-called micro-entrepreneurs people who make money from occasional jobs or through renting out property they own.

The chancellor said the government would take measures to stop overseas retailers storing goods in the UK and then selling the goods online without paying VAT.

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