Are 2017’s business tax changes working in favour of SMEs?

2017 has been a year of controversial tax changes, with the proposed increase to class 4 NICs causing outcry for small business owners and the self employed.

However, since Chancellor Philip hammond reversed his position on that particular increase, it seems sole trades and SMEs might have changed their minds, too.

Over half of small business owners in favour of 2017 tax changes

A new survey by Simply Business has found that a slim majority of small business owners are actually in favour of the tax changes planned and introduced this year.

Of the 212 people we polled, 55 per cent said the changes would likely have a positive impact on their business, while 45 per cent thought the changes were more likely to affect them negatively.

While there’s only a 10 per cent difference, things are looking a lot better than when the 2017 Spring Budget was announced. Before the change to NICs was reversed, 73 per cent of small business owners thought this year’s tax changes would be bad for business. Now, it seems, things look more hopeful.

What’s changing in 2017?

There have been a number of tax changes either announced or introduced this year, and it’s important you know how things look so you can plan accordingly.

Here are some of the main changes from 2017 that could impact your business:

  • Increased personal allowance
  • Small business rate relief
  • Inheritance tax breaks
  • Changes to ISAs and introduction of lifetime ISAs
  • Dividend allowances
  • A number of buy-to-let changes

For a full explanation of each of these, check out our guide to tax changes for small businesses 2017.

Looking for self-employed insurance?

With Simply Business you can build a single self employed insurance policy combining the covers that are relevant to you. Whether it’s public liability insurance, professional indemnity or whatever else you need, we’ll run you a quick quote online, and let you decide if we’re a good fit.

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