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After announcing that Britain has the most competitive tax system in the world, changes announced were relatively minor and targeted principally at small business.
Abolition of ‘Job Tax’ for employees under 21
From 6 April 2015, there will be no Employer’s National Insurance cost for employees under the age of 21, providing that their earnings are less than the Upper Earnings Limit (UEL). Given that for 2013/14 the UEL is the equivalent to an annual salary of £41,444 most businesses will anticipate savings. This also meets the Government’s goal of getting young people into employment.
Business rates targeted to encourage small business
- Due Dilligence
- From 2014/15 the rate of increase in business rates will be capped at 2%
- Up to a £1,000 business rates reduction to help high street businesses
- Extending the small business rate relief for a further twelve months to April 2015
- A re-occupation relief to halve business rates when vacant shops are brought back into use
Corporation tax
The Chancellor made it very clear that further changes to the corporation tax regime would be “economic madness”, consequently it is anticipated rates will continue to fall as previously announced.
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