What the Spring Statement could mean for your business
Spring Statement 2018
Chancellor of the Exchequer Philip Hammond presented his first Spring Statement to Parliament last week. The Spring Statement allows people and businesses to plan for the future. Politics often goes over our heads in this busy life, but it can be important to take notice of events like these. If you are a business owner, it is especially important that you are in the know regarding new government policies. Read on to find out how the government changes announced in the Spring Statement might affect your business.
The economy has grown for five consecutive years, and exceeded expectations in 2017. A healthy economy will always be beneficial for both new and existing businesses.
Creation of jobs
More jobs being created is another indicator of a healthy economy. It can suggest more prospects for people in this country.
This has had the longest period of expansion in 50 years.
Rise in wages
The National Living Wage will rise from £7.50 to £7.83 come April 2018. The minimum wage for under 25s and apprentices will also increase. This is especially important to remember as it is essential that the law is obeyed when paying your employees.
Tax-free personal allowance
Similarly, tax-free personal allowance (the amount you earn before you begin to pay income tax) will rise to £11,850 from April 2018.
Business rates revaluations
It was announced in the Autumn Budget 2017 that business rates revaluations will take place every three years instead of five. The Spring Statement confirmed that the next revaluation will be brought forward to 2021 from the initial due date of 2022.
The Spring Statement also aims to improve the UK’s digital connectivity. This will provide faster, reliable broadband to homes and businesses. Definitely beneficial to those businesses that are embracing digital! The Spring Statement will allocate the first wave of funding towards this Fund.
Support will be provided to those businesses that would like to ‘go digital’ regarding payments. However, the Statement also aims to ensure that businesses that prefer cash payments will still be supported.
Multinational digital businesses
Steps will be made to ensure these large, digital companies pay their fair share of tax. This ensures fairness for all.
Supporting people to get the skills they need
The Statement aims to provide help for those who wish to expand their skills or retrain. It will also support self-employed people and self-funding employees who are in training. This is massively beneficial to businesses because a skilled workforce supported in their efforts to train could be a major driving force in forging successful businesses.
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