Budget 2014- Retail Businesses

Business Comments Off on Budget 2014- Retail Businesses

An immediate tangible benefit is the extension to the temporary £250,000 Annual Investment Allowance (AIA) which was die to expire at the end of this year. The increased allowance has been extended to 31 December 2015, and, has also been increased to £500,000, from 1 April 2014.

This will benefit retailer planning shop refurbishments or new site openings as they will obtain an immediate 100% tax deduction for their annual spend on qualifying assents, up to the value of £500,000. This rise in the AIA, combined with the previously announced fall in corporation tax rates to 21% and 20% from April 2014 and 2015, respectively, is designed to encourage businesses to continue to grow.

These announcements represent further good news for employers within the sector, giving the previously announced increase in the minimum wage levels, earlier this year. The cost of employing such workers will also fall when the £2,000 allowance against employers national insurance contributions comes into effect next month, and in a years time employers will to benefit from the NIC exemption for employees under 21.

A further anticipated benefit of the pensions change introduced in the 2014 Budget is that people potentially spending money currently locked up in pensions funds will lead to a boost in the economy and those shops selling products of interest to the older generation and their families may benefit in particular.

If you have any queries please contact Sue Stephens or John Elliott.

For the full 2014 Budget Summary please click this link BWM 2014 Budget Report