The UK budget was announced by George Osborne yesterday and it looks like small businesses are the clear winners this year. However, it looks like it’ll be bigger businesses that foot the bill.
One thing the Federation of Small Businesses and SME owners all over the UK have been campaigning for is lower business rates because these can sometimes vastly outweigh what’s paid in corporation tax.
Yesterday’s budget announced that 630,000 small businesses will pay no business rates from next year. Osborne claimed the reduction would save around £7 billion per year for businesses.
Big businesses, however, aren’t quite so lucky with a crackdown on multinational tax avoidance by tightening the rules on deductibility of interest and how businesses carry forward losses. These new rules are expected to raise £9 billion over the forecast period to 2021.
The Chancellor also said that the rate of corporation tax would be reduced by 17 percent by April 2020.