Peter Goldsworthy, Chairman of Chorley Conservatives, has welcomed the start of tax reforms that will help businesses across Chorley 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 completed abolished, saving a business employing an apprentice on the National Minimum Wage over £500 a year.
The employment allowance for all businesses and charities is also rising today 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 they can access the capital they need to grow and create jobs.
Farmers across Chorley will also for the first time be able to average out the tax they pay on their profits from two to five years, helping them better manage potential fluctuations in income caused by a range of factors from global markets to weather. It is estimated this could benefit over 29,000 farmers nationally who could gain around £950 per year.
On 1 April 2016, saw a range of other reforms begin, 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 to the fuel escalator plans left behind by Labour.
Peter Goldsworthy commented:
‘This is great news for businesses big and small across Chorley, making it easier for them to grow, create jobs and help train young people.