SNIPPETS FROM THE CHANCELLOR’S AUTUMN 2015 STATEMENT

Here are some interesting snippets from the Autumn statement, with a slight bias towards SME’s.

  • Company car tax.

The government is retaining the diesel supplement in company car tax until 2021, when EU-wide testing procedures will ensure new diesel cars meet air quality standards even under strict real world driving conditions.

  • Corporation Tax

Since 2010 the headline rate of corporation tax has been cut from 28% to 20%, and will fall further, to 18% by the end of the Parliament and give the UK the lowest tax rate in the G20.

  • Backing small businesses

Already, Start-Up Loans have provided £180 million of funding to 33,600 entrepreneurs. The Employment Allowance will rise to £3,000, benefiting over 1 million employers, and helping many businesses take on their first employee.

The cancellation of the planned September 2015 fuel duty increase means a small business with a van will have saved £1,357 by the end of 2015-16 compared to plans inherited by the government at the start of the last Parliament.

At the Spending Review and Autumn Statement small businesses will continue to receive support for apprentices. The apprenticeship levy will only be paid by employers with a pay bill of more than £3 million, meaning that less than 2% of UK employers will pay it. The government will meet its commitment to 75,000 Start-Up Loans by the end of this Parliament.

The Spending Review and Autumn Statement further supports small businesses by extending the doubling of small business rate relief (SBRR) in England for 12 months to April 2017. Around 405,000 of the smallest businesses will continue to receive 100% relief from business rates, with around a further 200,000 benefiting from tapering relief.

  • The Northern Powerhouse

A Northern Powerhouse Investment Fund is set to be created to help small businesses grow. The government has also announced further devolution to Greater Manchester.

The fund will have more than £400m to invest in smaller businesses, subject to European funding arrangements.

Transport spending would increase by 50 per cent to £61bn, funding the largest road investment programme since the 1970s, paving the way for construction of the HS2 link between the South of England and the Northern Powerhouse, and electrifying railway lines such as the Trans-Pennine, Midland Main Line and Great Western.

  • Lower motor insurance costs

The government is determined to crack down on the fraud and claims culture in motor insurance. Whiplash claims cost the country £2 billion a year, an average of £90 per motor insurance policy. It will remove over £1 billion from the cost of providing motor insurance and the government expects the insurance industry to pass an average saving of £40 to £50 per motor insurance policy on to consumers.

  • SME access to finance

To support small and medium sized enterprises (SMEs) in accessing finance, the government plans to designate Experian, Equifax and CreditSafe under the Small and Medium Sized Business (Credit Information) Regulations 2015. These CRAs will receive SME credit information from designated banks and provide equal access to this information to all finance providers. This is a significant milestone in a major structural reform that will promote competition in the SME credit market.

  • Landlords

Stamp duty will be 3pc higher if you buy a second property as a buy-to-let investment, raising a predicted £1bn by 2021. The extra charge applies above the current Stamp Duty Land Tax rates. This increased stamp duty comes on top of new taxes for mortgaged landlords announced in July