Budget 2015- Small Business Counts the Cost
Small businesses may be disproportionally affected by the Chancellor legislating for a national living wage by increasing the minimum wage to £9 by 2020. Small businesses will now have to make real decisions on taking on more staff given the relatively high costs whilst those businesses with relatively low profit margins will also be affected by the new rules.
This measure will be partially offset by an increase to the employment allowance to £3,000 although this will give little comfort to those businesses that now need to pay higher employers national insurance contributions due to the higher wages imposed.
There was some good news for small business with the Annual Investment Allowance for Corporation tax being fixed at £200,000. This should allow 95% of businesses in the UK to get 100% relief for capital expenditure on plant and machinery.