Published on April 4th, 2014 | by Rob Stebbings
Support For Small Businesses Via Tax Reliefs And Schemes
Are you aware of the tax reliefs and schemes available to support small businesses during the new tax year which starts on 6th April? The Chancellor set out plans to facilitate a ‘responsible recovery’ and encourage growth. Any small business owner needs to ensure their account books are in order and familiarise themselves with these various schemes and reliefs available and we have outlined some of the key one’s below:
Tax relief on business investment capital
The Seed Enterprise Investment Scheme (SEIS), designed to boost economic growth by promoting new enterprise and entrepreneurship, offers great tax efficient benefits to individuals whilst also encouraging investing in small and early start-up businesses.
The government announced in the recent budget that the SEIS scheme would be made permanent. It provides generous tax incentives with 50 per cent tax relief as well as the deferral of any Capital Gains Tax on an investment in small early-stage company shares (provided the investor is not employed by the company and has a shareholding of less than 30 per cent).
As of 6th April, companies will receive a £2000 credit against their National Insurance costs through the Employment Allowance. Small businesses with 250 staff or less are now eligible for National Insurance Contribution reductions as part of this scheme which is estimated to assist thousands of small businesses.
Small Business Rates Relief
Administered by local councils since its creation in October 2010, the Government has extended the Small Business Rates Relief scheme until 31 March 2015. Twice the usual rate of 50 per cent, it enables SMEs to get 100 per cent rate relief for business properties with a rateable value of £6000 or less. The rate of relief then declines gradually to 0% if the rateable value is £12,000 or above.
Business Premises Renovation Allowance
In specific ‘assisted areas’, 100 per cent tax relief is currently available for the conversion and renovation of empty business premises (empty for at least a year prior to renovation). As a means of generating areas of deprivation, the relief is available to individuals and partnerships as well as companies. This scheme has been extended to 31 March 2017 for corporation tax purposes and 5 April 2017 for income tax purposes.