The post-election budget is always a time for unpopular measures and with no restraints from the last 5 years’ coalition, there has been significant change. Mr Osborne’s stated aim is to move the UK from a low wage, high tax, high welfare economy to a higher wage, lower tax and lower welfare economy. Changes significant to business include;
- The government will legislate to set a ceiling for the main rates of income tax, the rates of VAT and employer and employee NIC rates so that they cannot rise above their 2015/16 levels.
- Dividend tax credit will be abolished from April 2016 and there will be a new dividend tax allowance of £5,000 a year. Above that level the rate on dividends will rise by 7.5%
- NIC contribution employment allowance of £2000 will rise to £3000 from April 2017.
- Corporation Tax rate will be reduced from 20% to 19% in the financial year 2017 and 18% in 2020.
- Annual investment allowance available to businesses will be reduced to £200,000 from 1 January.
Ward Williams Summer Budget 2015 and full government Budget information available.
Other news for Creative Industries
- Creative Self-employed freelancers have emerged unscathed by the Summer Budget, especially if they operate as a sole trader rather than a one-person limited company
- There are funding opportunities available in July from Creative England in film and gaming sectors
- Ian Livingstone, appointed ambassador to the creative industries for the Department of Business, Innovation and Skills, to champion UK creative enterprise
- A new company called Altara Games has been formed to provide loans for UK studios against games tax breaks. Developers can apply once they have received their interim certificate for tax relief.
- And Mount Fuji is getting Wifi!
