Farron says support for small business will help Cumbria
South Lakes MP Tim Farron has welcomed a range of tax cuts that have come into force this week to help local businesses throughout our county.
With the start of the new financial year, this week, a range of recently announced Government measures designed to help small business now come into effect. Measures being implemented this week include:
- A billion pound package to help ease the burden of the business rates. Businesses with a rateable value of up to £50,000 will receive a business rates discount worth £1,000 for the next two years. Doubled small business rates relief will be extended up to 2015, meaning that businesses with a rateable value of under £12,000 will continue not to have pay any business rates. In addition businesses will now for the first time be able to pay rates bills in monthly instalments.
- A cut in Corporation tax from 23% to 21%
- An increase in business investment tax thresholds.
- As a result the amount of money a businesses can invest with no upfront tax doubles to half a million pounds. This rolling programme of liberating tax cuts continues, with Sunday seeing 450,000 businesses across the UK set free from National Insurance contributions. The new Employment Allowance will ensue that businesses will benefit from a new annual discount of up to £2000 on the National Insurance they pay. Business hiring new staff aged under 21 won't have to pay any National Insurance contributions at all for them, ensuring that increased youth employment pays for employee and business alike.
- In 2011 the Government increased the earnings threshold which determines when such businesses have to register for VAT, taking many out of VAT altogether.
Tim said: "Over the last few years, I have regularly lobbied and pressed for the government to do more to help businesses and to support the high street. I hope this package of measures will make a big difference for Cumbrian businesses. From now on businesses can keep more of the money they make, to be spent on hiring staff or increasing wages and making the investments necessary to secure growth in the future. This means increased security and prosperity for local families."