Supply Contracts examines the SME Agenda aspects of the UK Budget 2016.

1. Budget 2016
SME Agenda
Winning with

2. The UK Budget 2016 saw Chancellor George Osborne vow to
‘back business and enterprise’ with
‘new support for small business and entrepreneurs.’
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3. Mr Osborne’s Measures to help SMEs include:
• Lowering taxes and
• Offering business rate relief.
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4. Meaning SMEs
• Keep more of their earnings and
• Grow their businesses.
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5. Business Rates
The Budget 2016 cut business rates for all small businesses that
occupy property with a rateable value of £12,000 or less,
effective from April 2017.
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6. Corporation Tax
It also planned cutting Corporation Tax to 17% by 2020.
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7. Capital Gains Tax
Further to this, Capital Gains Tax will be cut from 28% to 20% (at
the higher rate) and from 18% to 10% (at the basic rate) from
6 April 2016.
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8. National Insurance
The Chancellor:
• Pledged to scrap Class 2 National Insurance contributions
(NICs) for self-employed people from April 2018, meaning
that the self-employed only have to pay Class 4 NICs if their
profits are over £8,060 a year.
• Reformed Class 4 NICs, so self-employed people can continue
to build benefit entitlement.
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9. Entrepreneurs’ Relief
Mr Osborne also:
• Extended entrepreneurs’ relief to external investors in
unlisted trading companies.
• Introduced (from April 2017) two new £1,000 allowances for
property and trading income.
• Exempt individuals with property income or trading income
below £1,000 from paying tax on it (as of April 2017) .
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10. Fuel Duty
The Chancellor froze the main rate of fuel duty at 57.95 pence
per litre for 2016-17.
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11. Stamp Duty
Finally, the Chancellor:
• Changed stamp duty rates for commercial property from 17
March 2016, so that tax bands will be 0% for the portion of
the transaction value up to £150,000; 2% between £150,001
and £250,000, and 5% above £250,000.
• And reduced stamp duty for buyers of commercial property
worth up to £1.05 million.
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12. Further to these measures, the Government remains
committed to its SME agenda.
The Government aims to place 1/3 of Government contracts by
value with SMEs by 2020.
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13. But to access these opportunities SMEs must
keep abreast of contract notices.
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14. Supply publishes more non-OJEU contracts
than anyone else.
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15. Supply is the only complete solution in the
market that will help you find, bid for, and
win the contracts that will grow your
business.
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16. Over 60,000 start-ups and SMEs have
registered on Supply.
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17. To discover more about how Supply can boost
your business visit:
www.supplycontracts.co.uk
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