Autumn Statement brings fuel duty relief
The Chancellor’s decision to scrap the planned 3p increase in fuel duty, due to come into force in January, has been met with relief from small businesses and the self-employed.
As announced in the Autumn Statement, the fuel duty freeze means that those who rely on their cars for work – such as mobile therapists – will not see their petrol and diesel costs increase as planned.
British Retail Consortium Director General Stephen Robertson said: “No-one can afford to pay more for fuel. Cancelling January’s rise is exactly what we asked for. It will provide much needed support for consumers. It will ease the pressure on household budgets, boost customers’ ability to spend and help hard-pressed retailers contain their transport costs.”
Earlier this year, the Chancellor announced other measures to help ease the financial constraints on small businesses. As part of the 2012 Budget, companies with sales of less than £77,000 per year can change their accounting from the established accrual method to a cash basis.
Due to come into force in April 2013, the move means that companies will only have to pay tax on the amount of money they have actually received, rather than on the total value of orders. Therefore tax owed on outstanding payments will only need to be met once the money has actually been received.