How the Budget affects Wirral businesses

In the Spring Budget, Chancellor Phillip Hammond made changes that will affect businesses across the country, and those on the Wirral are no exception.

The website of Wirral Chamber of Commerce quoted the reaction to the Budget by Dr. Adam Marshall, Director General of the British Chamber of Commerce. He broadly welcomed the Budget but wants more action, saying:

“More needs to be done in the coming months to improve infrastructure, promote international trade, and encourage lagging business investment to ensure the UK is Brexit-ready.”

Directors and shareholders in Wirral companies will see their tax-fee allowance on share dividends decreases from £5,000 to £2,000.

The government has budgeted £435m over the next five years to help businesses deal with rate rises. Business rate increases are to be capped at a maximum of £600 a year.

The Wirral has no shortage of quality pubs, with WhatPub.com listing more than 60 on the peninsula that serve real ale. Pubs will be entitled to a £1,000 business rate discount.

Self-employed workers, of whom there are around 70,000 in Merseyside, will still need to listen closely for future announcements on their Class 4 National Insurance contributions. Hammond initially announced that these were to increase from 8% to 9% in April 2018, but has since scrapped the plans.

Lastly, a £300m hardship fund will be created to help businesses struggling to cope with business rate rises. Here, relief will be at the discretion of Wirral Council, and it is believed it will be targeted at retail business, cafes and pubs.

For independent financial advice on your Wirral business and how the Budget changes affect it, talk to us at Endeavour Financial Planning.

The tax treatment is dependent on individual circumstances and may be subject to change in future.