The Chancellor George Osborne called it a “budget that backs business” and stated that the budget is “putting rocket boosters on the backs of enterprise and productive investment”.

Bob Baggalley, chief executive of the Colchester Business Enterprise Agency, takes a look at but how some of the 2016 spring budget will work for SMEs.

Small Business Rate Relief/ 600,000 fewer businesses to pay business rates
From April next year, 600,000 more businesses will qualify for small business rate relief as the threshold is raised from £6,000 to £15,000. A further 250,000 companies will also see their business rates cut, as the threshold rises to £51,000. This is great news for small businesses, many of whom will save £6,000 a year.

Corporation Tax cut 
An estimated one million companies will benefit from a cut in corporation tax, which will fall from 28 per cent to 17 per cent by 2020. It is hoped that cuts to taxes like corporation tax will help businesses cope with implementing the National Living Wage for workers over 25.

Capital Gains Tax Cut and Stamp Duty Reforms
Capital Gains Tax at the higher rate will drop from 28 per cent to 20 per cent from April 2016 with the basic rate dropping from 18 per cent to 10 per cent. This includes the sale of equity in businesses, but residential property will include an 8 per cent surcharge. Stamp duty won’t be payable on any property purchase below £150,000.

Rise in personal tax allowance and no more Class 2 NIC 
You won’t have to pay any income tax unless you earn £11,500 while the threshold for the higher 40p rate rises to £45,000 for the 2017/18 tax year.
Plus, from April 2018, Class 2 National Insurance Contributions will be abolished, which will £130 in your pocket if you’re self-employed. From April 2018, if you’re self-employed you will only need to pay one type of National Insurance (Class 4 NICs) if you make a profit of £5,965 or more.

£1,000 tax-free allowance for Airbnb & eBay ‘Micro-Entrepreneurs’
Again from April 2017, people making up to £1,000 from occasional jobs such as lift sharing, selling goods on eBay or renting out property through sites like Airbnb won’t have to pay tax, or fill in tax return forms, on the income.