How the Budget will Affect Your Small Business

The latest budget statement contained some important takeaways for small business owners and freelancers.

Understandably given the circumstances, many of the announcements were made in response to the economic threat posed by the COVID 19 outbreak.

We’ve provided a handy summary of the most important announcements below.

Chancellor George Osborne delivered his fourth Budget statement in the last 12 months on Wednesday and there were some important announcements for contractors and small business owners.
We have summarised the most important changes below.
Increase in the tax-free allowances
The government will increase the tax-free personal allowance threshold from £11,000 to £11,500. The higher rate threshold will also increase from £43,000 to £45,000. Both changes will take effect from April 2017. This is a positive move for basic rate taxpayers who will be taking home an extra £56 each year. The government believes that 1.3 million lower earners will not be taxed at all.