What impact could the Autumn Statement 2012 have on your business

As expected the Autumn Statement delivered by George Osborne, the Chancellor of the Exchequer wasn’t particularly optimistic given the country’s difficult economic position.

However, there were some important and positive messages for small and medium-sized enterprises despite continuing austerity measures.

Fuel

Welcome news is that the dreaded 3p-a-litre increase in fuel duty, planned for early 2013, has been scrapped. This is particularly good news for fleet and haulage companies and other businesses with large fuel outgoings.

Finance and taxes

The announcement that the temporary doubling of small business rate relief scheme will be extended by another year to April 2014 was also timely.
In addition, the main rate of corporation tax will be cut by a further 1% to 21% with effect from April 2014.

Personal income tax allowances will be increased by £235 more than previously announced to £9,440 next year meaning that you and your employees can earn more money before having to pay tax on it.

The threshold for 40% income tax rate will rise by 1% in 2014 and 2015, from £41,450 to £41,865 and then £42,285.

Lending

An extra £1billion will be allocated by the Government to their much-vaunted Business Bank, where SMEs are able to apply for credit with discounted repayments.

IT

There was also good news for millions of businesses that rely on the internet. The Government has confirmed ultra-fast broadband will be rolled out in 12 cities: Brighton and Hove, Cambridge, Coventry, Derby, Oxford, Portsmouth, Salford, York, Newport, Aberdeen, Perth and Derry-Londonderry.

Sandra Smart

About the author

I believe that recruitment is at the heart of a growing economy and that a different type of recruitment service, with honesty, efficiency and integrity at its heart, can benefit all. Octopus Personnel is the result of hard work, focus and commitment to that vision – to delivering consistently great results for our candidates and clients alike, as well as ensuring the agency is a vibrant, inclusive, inspirational place to work and develop rewarding careers.