Businesses across Chelsea & Fulham receive boost as tax changes kick in

 Member of Parliament for Chelsea & Fulham and Chief Secretary to the Treasury, Greg Hands, has welcomed the start of tax reforms that will help businesses across Chelsea & Fulham to invest more of their money into growing and taking on more staff.

 

From 6 April 2016, employer National Insurance contributions for apprentices under 25 are completely abolished, saving a business employing an apprentice on the National Minimum Wage more than £500 a year.

 

The employment allowance for all businesses and charities is also rising from £2,000 to £3,000 so that a firm can employ up to four people full-time on the new National Living Wage and pay no employer National Insurance contributions at all.

 

Businesses will also benefit from a cut in Capital Gains Tax – with the higher rate falling from 28 per cent to 20 per cent, and the basic rate from 18 per cent to 10 per cent – ensuring that they can access the capital they need to grow and create jobs.

 

On Friday, 1 April 2016, a range of other reforms began, including the further extension of the doubling of small business rates relief into 2016/17, and the freezing of fuel duty, which will see small businesses with a van save £12 each time they fill their tank compared with the fuel escalator plans left behind by the last Labour government.

 

Commenting on these reforms, Greg Hands said: “This is great news for businesses big and small across Chelsea & Fulham, making it easier for them to grow, create jobs, and help train young people.

 

“Policies like these show that the Conservatives are delivering on our commitment to support businesses and train people so that they have the skills they need to secure a job and benefit from the security of a regular wage.”