The 2016 Budget Business Impact
Last week’s budget saw the Chancellor introduce a number of measures designed to support businesses, workers and the self-employed. A new “Business Tax Roadmap” includes the following:
- 600,000 businesses will pay no business rates at all while a further 250,000 will pay a lower rate
- Corporation Tax will be reduced to 17% from 2020
- Termination Payments over £30,000 will be subject to NICs and Income Tax
In addition, self-employed workers received good news that their Class 2 National Insurance Contributions (NICs) will be abolished. Together with an increase in personal allowance, these measures recognise and support UK workers, particularly the self-employed who are playing an increasingly important role in the UK jobs market.
Other measures introduced include caps on public sector contractors and reform within the Education and Disability Employment sector.
A good summary of the Budget for Businesses can be found at the REC website: