Why The Chancellor's Autumn Statement Is Irrelevant!
Very little has changed for businesses ...
There has been loads of fuss surrounding the Chancellor's 2016 Autumn Statement, and I am sure there will be lots more over the coming days; however, the statement and the budget announcements are completely irrelevant if you run a business ...
The Autumn Statement is irrelevant if you're a business owner!
Sure, there are little changes to the rules, but in the main, these make little nibbly differences. For example:
The Chancellor has reduced the threshold at which businesses start paying employer's National Insurance. This will cost each employer £7.20 per employee per year. Individually it makes little difference, but for the Government, this will raise around £145m each year.
The personal allowance has increased £500 - to £11,500 - for 2017 which will save £100pa for most taxpayers.
Fuel duty has been frozen again, to help keep the cost of petrol and diesel down.
I don't think that an employer paying an extra £7 in national insurance or an individual saving £100 in tax is really going to shake your world! Which is why I think the Autumn Statement is irrelevant, and honestly the same can be said for nearly every budgetary announcement in recent years.
What is important is that businesses are allowed to flourish and develop, and that depends on the individual company far more than on the economic climate or the tax rules.
"So, I say again, the Budget and the Autumn Statement are irrelevant if you run a business; but why?"
Because what is important, is that your business is a success! That you, as the business owner, get a nice life and your business employs more people, or pays those people more, as a consequence of your success.
What I think should have been feted (more than it was) as part of the budget, is that the UK is by and large an economic success. There is always more to achieve, but as a nation we are succeeding!
Employment is at the highest rate for over 10 years
Economic growth as recorded by GDP is one of the highest of the G7 countries and grew by 2.3% in the year to September 2016
In the year to September 2016, around 562,000 new companies were started
The UK has around 5.5 million active businesses; an increase of nearly 1.6m or 40% since 2005
However, in business you can't stand still and rest on your laurels; pretty much every business could make more profit or employ more people or pay their employees more.
"This is the real message that I think should be made a fuss of!"
This is also why I want to contribute to making a difference to our clients and why I am offering a free profit improvement review to any business that wants one.
To claim your review, and have a chat with me about how the Autumn Statement doesn't really affect your business, just ring me on 0333 335 0422 or click here to send me an email enquiry and let's get you booked in.
Until next time ...
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas … and can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.