8th June, the general election! But for those in small business what does that mean?
Recent times have been interesting – Brexit, Trump, two budgets in one year and now the election.
It’s enough to make any mind spin.
So, what’s important for small business. For those of you that run a limited company we’ve seen the introduction of the dividend allowance which means that to the financial year end 5th April 2017 dividends up to £5,000 will be a tax zero rate and thereafter, for normal tax rate payers, 7.5% will be applied, for higher tax payers it’s 32.5%. From the 6th April 2017 that allowance has been reduced to £2,000. Will it be further eroded or even abolished in the Autumn?
And for those of you who are sole traders how can we forget the increase of Class 4 contributions be 2% in the budget of April 2017 only to have this retracted! This only compounds my belief that the Conservative Party do not understand the true nature of small business. 99.6% of our economy is made up of small business, the clients I deal with, and I would welcome the opportunity to represent you to whoever is the new government.
I am waiting for a conversation with Greg Clark, the former MP for my constituency but also the former Secretary of State for Business, Energy and Industrial Strategy. I contacted him a couple of weeks ago and he has agreed to talk with me. My aim is to have a voice for every small business so that the future government understands the driving force of the economy.