The past 18 months have tested UK small businesses like never before, with lockdowns and social distancing rules disrupting operations and threatening survival. In response, the government has rolled out targeted support. Whether you're navigating current challenges or planning ahead, this expert guide outlines the key aids expected in 2022.
Here's what we anticipate for UK small businesses:
VAT can be a major cost for small businesses, especially on essential supplies. To ease this, the government reduced the rate from 20% to 5% for hospitality sectors and items like hot/cold food and soft drinks consumed on premises in 2021. This will rise to 12% until March 31, 2022. Always verify eligibility before planning.
This scheme lets eligible employers cut National Insurance contributions by up to £4,000. As an employer, you can reduce your NI payments via payroll until reaching £4,000 or the tax year ends. Check eligibility on GOV.UK.
Running costs add up quickly, making loans appealing yet daunting. The Pay As You Grow option, part of the Bounce Back Loan scheme, is accessible via major banks. These government-guaranteed loans won't harm your credit score if repayments are on time.
Introduced by Chancellor Rishi Sunak in the 2021 Budget, this allows a 130% deduction on qualifying plant and machinery investments over the next two years, slashing corporation tax bills and boosting cash flow for vital upgrades.
For self-assessment taxpayers, Time to Pay spreads tax bills into affordable instalments. Announced in the latest Budget, HMRC has waived the 5% surcharge, making it easier to manage obligations.
With these measures, 2022 offers real opportunities for small businesses to thrive. Consult professionals to ensure you access the right support.
