UK small business get a boost as VAT threshold raised, rates frozen

Raising the threshold takes 28,000 UK businesses out of paying VAT altogether, and ensure that the United Kingdom has a higher threshold than any European Union (EU) member state and joint highest in the Organisation for Economic Cooperation and Development (OECD), an official release said.

Recognising the inflationary pressures facing small businesses, especially with energy bills, finance minister Jeremy Hunt announced a slew of measures to support them at Spring Budget.

The small business multiplier for business rates was also frozen beginning yesterday for a fourth consecutive year, protecting over a million ratepayers from a 6.6 per cent increase in their bills.

The measure is part of the £4.3 billion business rates support package announced at Autumn Statement that includes the 12-month extension of the 75-per cent relief for 230,000 retail, hospitality and leisure (RHL) properties that also came into force yesterday.

These tax cuts arrive alongside other measures coming into force due to the start of the new business tax year on April 1.

The tax cuts for small businesses form part of the government’s ‘Help to Grow’ initiative to make 2024 the year of the small and medium enterprises, including through providing swift and simple access to finance.

Fibre2Fashion News Desk (DS)