Queen's Speech - new policy effects for businesses in UK

How the queen’s new polices will affect businesses around the UK (big/small)

Today I will give you some insight into how the queen’s new polices will affect businesses around the UK (big/small). There are various topics from the queen’s speech that would affect businesses around the UK (big/small). I will discuss each one in detail to give you an insight before it comes into play.

''To build a stronger economy we must support smaller businesses to compete within their sector. Furthermore, we should ensure they should not be disadvantaged by those who do not play by the rules (larger companies)''.

The main elements are:

• Make it easier for small business to access finances; develop payment practices between small businesses and the clients; grant small firms with reasonable access to the £230 billion spent each year in the shape of public procurement contracts and enhance the availability and resources of funding for businesses that want to invest.

• Guarantee that the red tape that influences small businesses is regularly reviewed to ensure policies are either cut or remain effective and to place that requirement into law.

• Strengthen the reputation of the UK as a trustworthy and fair place to do business, by increasing transparency around who owns and controls UK companies with a register of beneficial ownership, strengthen rules on director disentitlement and remove pointless costs from insolvency law.

• Strengthen UK employment law by tackling National Minimum Wage abuse and cracking down on abuse in zero hours contracts.

• Making it easier for small businesses to expand overseas.

We must protect public revenues by tackling avoidance and also help hard working taxpayers by simplifying the collection of class 2 National Insurance contribution (NIC) paid by the self-employed.

Simplifying the NICs paid by the self-employed:

• Simplify the collection of NICs for the self-employed, who presently have to navigate 2 different processes for 2 separate classes of NICs. 

• Move the collection of class 2 NICs into self assessment, so that it could be collected alongside class 4 NICs with effect from 6 April 2016 (for the 2015 to2016 tax year onwards).

Public sector land assets are to be transferred directly from arms-length bodies to the homes and communities agency, reducing bureaucracy and managing land more efficiently. Furthermore, guarantee that future purchases of land owned by the homes and communities agency and the Greater London authority will be able to develop and use land without being affected by easements and other rights and limitations suspended by the agency. Land registry would transfer statutory responsibility for the local land charges register and delivery of local land charges searches to the land registry, supporting the delivery of digital services and broaden land registry’s powers to facilitate it to grant information and register services relating to land and other property.

The adjustments to the pension tax rules (as announced at the budget) are to help people get on by giving them greater independence and choice over how to access their defined contribution pension savings.

The main elements are:

• Introducing a new tax structure that removes limitations to the way individuals can access their defined contribution pension savings and permits them to access their investments to their marginal tax rate.

• Removing the previous limitations the government placed on how individuals are able to access their money and give individuals the independence and choice to access their pension as they see fit.

• Introducing anti-avoidance requirements to avoid individuals taking advantage of the new flexible arrangements for tax avoidance purposes.

• Private pensions will supply wider choices with defined ambition pensions encouraging greater risks by sharing between parties and allowing savers to have superior assurances about their retirement savings.

Other measures that will effect businesses and indviduals are as follows:

• A new 5p charge for all plastic bags at stores
• New powers to allow fracking firms to dig under private property without needing the land owners permission
• A renewed pledge to increse efforts to keep Scotland in the union
• A Limit to excessive redundancy payouts for public sector workers
• Fines for employers who do not pay the minimum wage
• Up to £2,000 in childcare vouchers for parents who are working

By Tahir Malik at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Kingston upon Thames they are considered in the Finance Industry to be the experts in all types of Accounting and Tax issues. Helping and supporting businesses and individuals throughout the UK, Europe and USA.

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