The Chancellor of the Exchequer, Alistair Darling, announced his proposals to help small businesses in his pre-Budget report on Wednesday 9th December.
There is to be a committment of £500m for a capital growth fund. This will be used to support small businesses and is an extension to the Enterprise Finance Guarantee scheme.
A tax aid for small companies was given by further delaying the 1% increase in corporation tax for profits under £300k. The rate will therefore remain at 21% until at least April 2011.
As anticpated, VAT will go back to 17.5% from 1st January. You will need to ensure that your accounting systems are geared up to help you cope with this change. There are also new flat rate scheme VAT percentages that apply from 1 January 2010, these can be found on the HMRC website
The most negative announcement affecting all businesses is that there is to be an increase in National Insurance of all types by 0.5% in 2011. Individuals with an income below £20k will be protected from this change.
The Chancellor also announced a 50 per cent tax on discretionary bank bonuses of more than £25,000.
Personal allowances for individuals have been frozen at the 2009/10 rates for the 2010/11 year.