George Osborne delivered an Autumn Statement of giveaways for small businesses that went far wider than the SME community expected according to KPMG.
Commenting on the announcement, David Bywater, Tax Partner at KPMG’s national market practice said: “The small business sector was definitely a winner in the Autumn Statement with the announcement of a number of very positive measures. The Chancellor has obviously listened to the SME community and delivered on key areas such as skills, business rates and access to finance to help them grow."
“The surprise measure though is the removal of employer’s NICs completely for 16 – 20 year olds. Most SMEs now pay more in National Insurance Contributions (NICs) than they do in Corporation Tax so this announcement will be most welcomed by the SME sector as it will reduce the costs to business and hopefully in turn support job creation."
“Overall, the SME community will also be happy with the commitment from the Chancellor to investment in major infrastructure projects and up skilling our young people which will in the long term create an environment for all UK businesses to compete effectively on the world stage.”
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.