George Osborne

Business Owners to Pay Themselves Special Dividends Ahead of Tax Hike

Business Owners to Pay Themselves Special Dividends Ahead of Tax Hike

More than a quarter (28%) of UK small business owners are planning to pay themselves a special dividend ahead of the forthcoming dividend tax hike in April, according to a report by Moore Stephens. Announced earlier this year as part of the Summer Budget, the tax rate on dividends for higher earners will increase from 25% to 32.5% – with the rate for additional tax payers increasing from 30.56% to 38.10%. The survey of business managers also found that over a fifth (21%) of small business owners will reduce their dividend pay outs once the changes come into force, while just 6% expect to increase dividends to maintain their net income. The news follows an ongoing petition calling on George Osborne to reconsider the changes to dividend tax. The petition has now been signed by over 57,... »

Only Half of Small Business Owners Support Osborne’s “Northern Powerhouse”

Only Half of Small Business Owners Support Osborne’s “Northern Powerhouse”

Just 50% of small to medium sized business owners back chancellor of the exchequer George Osborne’s “Northern Powerhouse” plan, according to a new report Federation for Small Businesses (FSB). The survey of more than 3,000 members, revealed that while nine in 10 (93%) small business owners claimed to know about the “Northern Powerhouse” – a fifth (21%) said they were not actually clear what the concept meant in practice. Furthermore, almost a fifth (16%) of Northern firms still need to be persuaded about how the “Northern Powerhouse” concept will positively impact their business. Small enterprises cited greater local control over spending (40%) as their top priority for the “devolution revolution” alongside investments in digital infrastructure (37%), inter-city transport (37%) and workpla... »

Autumn Statement 2015: The Key Issues Impacting Small Business

Autumn Statement 2015: The Key Issues Impacting Small Business

Today, the chancellor of the exchequer George Osborne unveiled the 2015 Autumn Statement– outlining the conservative government’s latest plans for the UK economy over the coming months Prior to the announcement, entrepreneurs called for more regional business support, initiatives to solve the UK’s skills shortage, boost access to finance and abolish Stamp Duty, and while not all wishes were granted – some were. Here, we’ve pulled together the key factors from the statement that will influence small businesses… Reformed business rates and small business rate relief George Osborne announced that uniform business rates will be eliminated and local government will get to keep revenue from business rates by 2020. This, according to the chancellor, is in order to give councils “the tools to driv... »

Banks Forced to Help Rejected Small Businesses Find Alternative Finance Providers

George Osborne announces new legislation which will increase competition in lending market and facilitate small business growth Newly approved government legislation means leading banks are now required to share the details of rejected firms so they can be approached by alternative lenders. Chancellor George Osborne announced that the government will go ahead with legislation (which will come into force in the autumn) that will force banks to forward the details of small and mid-sized businesses they reject for finance to platforms that will connect them to alternative finance providers. The legislation is part of the Small Business, Enterprise and Employment Bill and is in accordance with the government’s overall strategy to increase competition in the lending market and ensure further gr... »

Fall in Lending to UK Businesses Slows Amid Signs of Recovery

Lending to UK businesses fell by £500m in the three months to February according to latest Bank of England figures – but leading economists insist the news is not all bad Despite easier credit conditions and increased assistance from the Bank of England and government to secure funding, the Trends on Lending report, published this week noted that “the annual rate of growth in the stock of lending remained negative”. It did, however, point a slowing down in the fall of lending, with net lending to small and mid-sized businesses – gross lending less repayments – close to zero in Q4 2013, having been negative for the same period a year before. And the fall was far less than the £3.3bn reported in the three months to November. The report also highlighted the rise of alternative sources of fina... »

IR35: Are You In the Know or Out of the Loop?

IR35: Are You In the Know or Out of the Loop?

IR35 is a piece of legislation that was introduced more than a decade ago but it still manages to confuse a number of people. British chancellor George Osborne mentioned IR35 in his December statement saying he believed it to be fit for propose but in need of some slight adjustments; so expect IR35 to big news in 2013. Since 1999/2000 IR35 has been in place to prevent individuals from falsely claiming to be independent contractors for tax benefits. Prior to this legislation it would have been possible for an individual to be employed by a company, then leave and set themselves up as a contractor only to return to the same company and do the same job but without paying regular levels of income tax. To combat scenarios like this, IR35 sets out a number of guidelines to determine whether some... »

Cable Looks to Boost Small Business Lending

Cable Looks to Boost Small Business Lending

Financing a Private Sector Recovery In an attempt to increase lending to small business the Business Secretary, Vince Cable, has been criticial of banking institutions by saying that banks are "…not acting in the national interest. I don’t think they get it." Mr Cable has suggested that there may need to be a "carrot and stick" approach to bank dividends and bonuses. In a report released today Financing a Private Sector Recovery, HM Treasury and the Department for Business Innovation and Skills (BIS) put forward the case for "sustainable and secure sources of finance for investment". Both Vince Cable and The Chancellor of the Exchequer, George Osborne, acknowledge the importance of UK SMEs as the focus for this finance drive by stating that: &ldquo... »