Budget
Pre-Budget Report - How will it affect you?
Download the ACS Pre-Budget Member Briefing here:
The following proposals affecting retailers directly are:
- VAT contributions reduced from 17.5% - 15%. This will take effect on Monday 1st December and last until 1st January 2010 when they will rise again to 17.5%. The Government urges retailers to incorporate these changes into their prices as soon as possible.
- Taxation on alcohol, tobacco and fuel will increase to offset the reductions in VAT.
- Defer increase in small business corporation tax which was due to go up by 1p next year.
- There will be a temporary increase in tax relief thresholds for empty properties with rateable values under £15,000
The measures that will be taken to help Small and Medium sized Enterprises (SMEs) to continue to remain in business and to invest:
- The Chancellor promises £1bn for a temporary Small Business Finance Scheme for those SMEs wanting to borrow between £1000 and £1million.
- Extension to tax repayment schemes that allow HMRC to agree repayment schemes that are affordable and last longer than current temporary measures.
- The Government announced that they will be extending support for businesses in financial difficulty. If a business has sustained losses of up to £50,000 then these can be offset against profits over the past three years.
- The Government is closely monitoring banks' commitments to ensure lending facilities for firms are maintained this follows recent announcements that banks will restore lending to SMEs back to 2007 rates.
- The European Investment Bank has supplied up to £4billion for banks to put towards supplying loans to SMEs, seven UK banks have now signed up to supplying these loans, and these loans will become available soon.
- Struggling businesses will be able to spread all tax payments out for as long as they need.
For further guidance click on the links below:
Business Payment Support Service
Further guidance issued by HMRC 30/11/08