As a UK business owner, the 2019 Budget should be of special interest to you since there are many factors of this new budget that will affect you and every aspect of your business. From taxation and wages, to prices on goods sold in the UK and abroad, the 2019 Budget has some important points to consider.
Let’s take a closer look, segment by segment, at the factors of the 2019 Budget that will affect your business the most and what you can do to ensure your business is successful in 2019 and beyond.
Taxation And Wages
Employee’s will see a new personal allowance threshold, from £11,850 to £12,500, as well as a higher rate income tax threshold, from £46,350 to £50,000 beginning in April. This won’t affect your business as much as the National Living Wage increase which will take affect the same time and rise from £7.83 to £8.21 an hour. For larger businesses, especially retailers, an increase in wages could mean a decrease in profits or an increase in the price of goods and services.
Alcohol And Tobacco
We will see an increase across the board on alcohol and tobacco prices with many of these increasing in line with inflation with tobacco prices increasing an additional 2% over inflation.
Business And Digital
This segment of the 2019 Budget will see the most changes as a new 2% digital services tax on the UK revenues of big technology companies will begin in April of 2020. More changes include an increase in the annual investment allowance from £200,000 to £1m for two years, while the small company contributions to the apprenticeship levy to be reduced from 10% to 5% saving many UK small businesses a lot of money and providing relief to those who might be struggling.
Speaking of business relief, business rates bill for firms with a rateable value of £51,000 or less will be reduced by 1/3 over the next 2 years. Additionally, a measure to reduce bills of many independent shops, pubs and restaurants by up to £8,000 was included as was almost £900m in business rates relief for small businesses. These measures alone can help many small businesses succeed adding positive growth to the UK economy.
Contact Commercial Business Solutions
With the wide range of changes as a result of the 2019 Budget, business owners might have some questions or concerns on certain points they don’t understand. Contacting a business management consulting firm that specialises in HR, employment law, marketing, finance and business loans is the solution these business owners need to ensure the future growth and sustainability of their businesses.
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