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What does the 2013 budget mean for you?

Yesterday George Osborne announced details of the 2013 budget. He started off with good news; revealing the government will freeze the duty on fuel for 5 years and scrapped the planned rise on the duty on beer. So far so good!

However, the really interesting points came when he discussed the plans for small businesses. Indeed, he started his speech by saying that this budget is one for those who want to start their own business. So what has he actually done to ensure that this is the case?

The first really interesting thing he announced was the ‘Employment Allowance’ which will come into force next April. Its aim is to create jobs and back small businesses. This allowance means the first £2,000 will be deducted from the employer National Insurance bill of every company. For nearly half a million small businesses in the UK this will mean no NI at all! For sole traders looking to take on their first employee this is great news, meaning young companies can expand more quickly than before.

The tax free personal allowance is also set to rise to £10,000 next year, meaning low income workers all over the country will be better off. This will benefit workers as well as people setting up their own companies as they can take a bigger tax free wage when they first start up.

If you would like any more information about how the 2013 budget will affect your business don’t hesitate to contact us today.

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