Monday’s Budget, though not quite as dramatic as some expected, contained several measures that are relevant to small businesses. We have summarised these below.
► The government will halve the amount small businesses have to contribute to the cost of apprenticeship training from 10% to 5%.
► Businesses with a rateable value of £51,000 will see their business rates bill (the equivalent of council tax for companies) cut by one third for the next two years, until the next revaluation in 2021.
► Philip Hammond pledged up to £1bn of government money to guarantee loans to SME housebuilders via the British Business Bank. SME housebuilders often have trouble getting the financing they need.
► From 2020, the amount that a loss-making SME can receive in research and development (R&D) tax credits will be capped at three times its total pay-as-you-earn (PAYE) and national insurance contributions liability.
► Finally, Hammond ignored calls to get rid of entrepreneurs’ tax relief – under which business owners pay a lower capital-gains tax rate – but will extend the minimum qualifying period from
12 months to two years.