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Chancellor's Budget 2009
Please find a summary linked below of the Chancellor's Budget speech and David Cameron and Nick Clegg's respective responses. The full Budget report can be viewed here: http://www.hm-treasury.gov.uk/bud_bud09_repindex.htm
Below is set out a summary of some specific announcements in the Budget impacting upon the independent retail sector, which come in addition to the decision to allow businesses to spread payment of this year's inflation up-rating to business rates over three years, as announced on 31st March 2009.
Credit Insurance
The Budget announces that from May 2009 until the end of December 2009, suppliers will be able to purchase six-months' 'top-up' insurance from the Government if credit limits on their UK customers are reduced, backdated to 1 April 2009. It states that the aggregate level of insurance provided under the scheme will be capped at £5 billion, and companies from all sectors of industry and from all stages of the UK supply chain will benefit from the increased certainty that this scheme provides. The Independent Retailers Confederation (SFMTA are members of IRC) called for the Government to review its approach to credit insurance in the Budget submission to the Treasury in March.
HMRC Business Payment Support Service
This was launched in the 2008 Pre-Budget Report to offer help to businesses facing temporary financial difficulties to spread tax payments over an affordable timetable. The Budget announces that HMRC will continue to offer this service for as long as it is needed and, from today, it will be expanded to allow businesses expecting to make losses to offset these against tax bills due on profits from the previous year which they are unable to pay.
Trading Loss Carry-Back
The 2008 Pre-Budget Report announced a temporary, one-year extension of trading loss carry-back for businesses from one to three years for losses up to £50,000. This will now apply for two years from 24 November 2008 for companies, and for the 2008-09 and 2009-10 tax years for unincorporated businesses. The Budget states that this will give around 140,000 loss-making businesses greater tax repayments to support their cashflow.
VAT Registration Threshold
From 1st May the VAT registration threshold will be increased in line with inflation from £67,000 to £68,000. The Budget states that this will keep around 6,000 small businesses out of the VAT system. The IRC called for the threshold to be reviewed in its Budget submission.
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