2014 Budget brings salons support on tax and rates

Today’s Budget announcement brought some new measures that could be welcomed small business such as salons and spas.

Chancellor George Osborne said business rates discounts will be extended for another three years.

There will also be an extension of the Annual Investment Allowance, which allows businesses to invest in new equipment for maximum tax benefits. This will rise from £100,000 to £500,000 in 2015.

He announced an extension of grants to smaller businesses to support a further 100,000 apprentices.

Meanwhile a rise in the income tax threshold spelled good news for many part-time therapists. The pre-tax threshold will rise to £10,500 from next year, meaning many part-time workers will not pay tax and the average tax payer will pay £800 less per year.

The announcement of additional tax breaks for childcare will also be welcomed by many working in the salon and spa industry.

Mobile therapists will be pleased with the announcement that the fuel duty rise planned for September has now been scrapped.

A £7bn package to cut energy bills for British manufacturers will be welcomed by suppliers and could have a knock-on effect for salons.

Product suppliers will also be pleased with new measures to double the amount of lending available for export to £3bn, and to cut the interest rates charged on that by a third.