Tax reforms that came into force last week will help businesses across East Hampshire to invest more of their money into growing and taking on more staff.
From the 6th April 2016, employer National Insurance contributions for apprentices under 25 are completely abolished, saving a business employing an apprentice on the National Minimum Wage over £500 a year.
The employment allowance for all businesses and charities is also rising from the 6th April from £2,000 to £3,000 so that a firm can employ up to four people full time on the new National Living Wage and pay no employer National Insurance contributions at all.
Businesses will also benefit from a cut in Capital Gains Tax – with the higher rate falling from 28 per cent to 20 per cent and the basic rate from 18 per cent to 10 per cent – ensuring they can access the capital they need to grow and create jobs.
Farmers across East Hampshire will also for the first time be able to average out the tax they pay on their profits from two to five years, helping them better manage potential fluctuations in income caused by a range of factors from global markets to weather.
And from Friday, 1 April 2016, a range of other reforms began, including the further extension of the doubling of small business rates relief into 2016/17 and the freezing of fuel duty – which will see small businesses with a van save £12 each time they fill their tank compared to the fuel escalator plans left behind by Labour.
East Hampshire MP, Damian Hinds, commented:
“This is good news for businesses big and small across the area, making it easier for them to grow, create jobs and help train young people.
“And these changes are in addition to the tax reforms made to help working people, with the further increase in the personal allowance to £11,000 - taking an estimated 971 low-earners in East Hampshire out of paying income tax altogether, and giving an income tax cut to more than 48,000 people across the constituency -as well as the introduction of the National Living Wage.
“There are also changes to help those on middle incomes with a rise in the Higher Rate Threshold of tax to £43,000, and the new Personal Savings Allowance that means the first £1,000 of interest a basic rate taxpayer earns on their savings will be tax free.
“This is a major package of reforms and will be a boost for local business as well as make a real difference to take home pay for thousands of people across East Hampshire.”