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.’

www.supplycontracts.co.uk

Mr Osborne’s Measures to help SMEs include:

• Lowering taxes and

• Offering business rate relief.


Meaning SMEs

• Keep more of their earnings and

• Grow their businesses.


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.


Corporation Tax

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


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.


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.


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) .


Fuel Duty

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


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.


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.


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


Supply publishes more non-OJEU contracts than anyone else.


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.


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


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

