Did you watch the Autumn Statement? What did you think of the changes that were announced? If you need more information about how your business might be affected, we’ll give you a rundown of the key announcements that affect small businesses.
In the news, there are reports that giving Christmas rewards boosts your employees feelings about your business, and remote working is on the rise.
Top news stories
69% say Christmas rewards boost positivity about employer
71% of employee respondents want to receive gift cards, vouchers or cash from their employer, and just 5% want to receive food or wine.
96% of businesses across the UK and Germany now permit their staff to work remotely and 98% said it is good for business.
Third of small businesses don’t record absence well
Almost a third of managers admitted that their company does not have a sufficient system for recording staff absences and 24% said they didn’t even know how the business records absences.
UK economy grew 0.5% between July and September
This was a slowdown from the 0.7% rate in the second quarter, but still marked the 11th consecutive quarter of growth.
Key dates for your diary
30 November: Cyber Monday
30 November: International Computer Security Day - a great opportunity for you to review your systems to make sure they’re as secure as possible.
7 December: Hanukkah begins
A round-up of the announcements from the Autumn Statement
The Autumn Statement had lots of changes for small businesses. Here’s an overview of the key announcements that might affect your organisation:
Business rates changes
The key change for small businesses was the Chancellor’s announcement that small business rates relief will be extended for 12 months. The scheme for properties valued at £6,000 or less will mean that an estimated 600,000 small and medium businesses will continue to get relief until next year. The announcement has been very positively received, with the FSB tweeting that it was “great news”.
The extension of the rates relief coincides with a delay in the overhaul of the business rates. Despite promises in in the Conservative manifesto that a decision about the new structure would come this year, the new scheme won’t be announced until 2016.
There’s also changes for shop and restaurant owners as the “retail discount” has been dropped. This entitled retail businesses with rateable properties worth up to £50,000 to a £1,500 discount.
By the end of this parliament, local government will keep all revenue from business rates. That means an end to uniform business rates, with elected mayors allowed to raise rates under certain conditions.
A move to digital tax accounts
Following on from the news in the Budget, the Chancellor confirmed that every individual and small business will have their own digital tax account by 2020. The government will be investing £1.3 billion to get the system in place and small businesses should have access by 2017. The move will mean small businesses will need to file quarterly tax returns by 2020.
Changes to automatic enrolment dates
The Chancellor announced that the increases in minimum employer pension contributions would be delayed by six months. This means that the rises will now by in April 2018 and April 2019 to coincide with the new tax years.
New Enterprise Zones
The Chancellor announced that the government would create new Enterprise Zones to bring the total to 26. These zones offer support to small businesses, where they pay reduced taxes and receive business support.
Fifteen of Enterprise Zones will cover smaller towns and rural areas, including Carlisle, Dorset and Ipswich.
Green energy and the environment
The Chancellor announced that the Renewable Heat Incentive, which help businesses fund renewable energy such as biomass boilers, will provide £1.15 billion of funding by 2021. However, this is a cut of almost £700 million from the original forecast by Office for Budget Responsibility. So if you’re thinking of switching to renewable energy, now could be a good time to start.
There was also news that £2.3 billion would be allocated for flood defence schemes to help protect homes and businesses. In particular, sea defences in Rossall in Lancashire would be improved and work would be done to protect 500 businesses in Leeds city centre.
Apprenticeship levy
This is unlikely to affect small businesses, as it only applies on employers’ wage bills over £3 million. For those affected, the levy will be 0.5% of employer wage bill, with £15,000 allowance for eligible firms.
Over to you…
What do you think of the changes? Join the discussion here.