This year's Autumn Statement
outlined the financial policies that the Government wants to take
over the next few years. Here are some of the ways in which small
to medium sized businesses are likely to be affected by these
plans.

Cuts in corporation tax

Continuing much the same strategy as
the previous chancellor when it comes to making the UK seem an
attractive place to invest, Phillip Hammond announced that
Corporation tax will be reduced to just 17% by 2020.

Access to investment for start-ups

Promising £400 million of capital
for venture capital funds, the Chancellor promised to make it
easier for individuals and companies to directly invest in UK
start-ups. This funding boost is designed to stop UK businesses
being bought out early in their trading lives.

Crackdown on tax avoidance

Bowing to public pressure, the
Government has announced that it will continue to close tax
loopholes for individuals and businesses and will ensure that
everyone is paying their fair share through the 'Business Tax
Roadmap'.

5G Connectivity

The Government announced its
intention to make the UK a leader in 5G technology to boost
productivity. It said that it would be offering business rate
relief to make the implementation of fibre broadband schemes easier
for broadband providers. This could have a knock-on effect for many
small and medium sized businesses.

Devolution

Devolution was a word that
repeatedly cropped up in the statement. A new National Productivity
Investment Fund was announced which will be spent on combating the
productivity gap between London and the UK regions. It will mostly
be spent on improving infrastructure and innovation in these
areas.

End to salary exchange schemes

Under plans unveiled in the Autumn
Statement, employers and employees will have to pay National
Insurance contributions on any 'expense benefits' that are deducted
from an employee's salary, like a gym membership or car hire
scheme.

An end to 'salary exchange': Employers (and
employees) will no longer be able to escape effective National
Insurance contributions by exchanging their wage for 'expenses'
(i.e. schemes such as gym membership or car hire schemes). Some
things, such as childcare or hybrid-car schemes, would be except
from this

Advised Minimum National Living Wage
rise

In good news for employees, the Chancellor announced
that he would be raising the new National Living Wage to £7.50 in
2017. The Personal Allowance will also be raised to £12,500 by the
end of the Government's term in Parliament.

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