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It’s that time of year again, the red briefcase will make an appearance and Chancellor George Osbourne will deliver Budget 2015 on Wednesday March 18th.

With the general election drawing ever closer, notable issues such as healthcare and pensions will be of great importance. Here at Big Red Cloud, we’re focusing on the business issues and how Budget 2015 could affect you.

In last year’s Budget, Osbourne reduced the corporation tax rate to 21%. He also promised that from 1st April 2015, the rate would drop to 20% and become unified with the small companies’ rate. Given the proximity of the election, it would be extremely surprising if the Chancellor reneged on this but there is a substantial budget deficit to balance. As a business owner, keep an eye out to make sure that corporation tax does in fact make it to 20%.

The Confederation of British Industry (CBI) has also lobbied the government and urged the Chancellor to provide greater support to mid-size firms. The CBI wants Annual Investment Allowances to increase. These allowances are tax relief on qualifying capital expenditures. The CBI also raised the issue of increasing R&D tax credits in order to help innovative small businesses and start ups become profitable more easily and in shorter time.

What about small businesses that don’t need to carry out research and development, or those not in a position to make of capital expenditure tax relief? What will the Budget hold for hairdressers, coffee shops, small construction companies and other independent small businesses which are the backbone of the UK economy? An announcement is expected on the current financial incentive for individuals to register as a company and work on a self-employed basis.

Besides that, business issues for this Budget seem predominantly based around tax incentives for innovative start-ups as well as sorting out tax avoidance issues that have come to light in recent months such as the ’Google Tax’. As such, changes are expected to how the UK taxes international transactions that take place within the UK.

If the Government can pad the coffers through making big business pay a more appropriate amount of tax, it won’t have to take any measures that may hinder the growth of small businesses. That’s something it would never want to do in the lead up to an election campaign. We’ll know for sure on March 18th.

Do you run a small business? Are you budgeting your cash flow? Check out our cash flow guide to make your business budgeting is as simple as possible. Read the guide.

Marc O'Dwyer

After completing a Graduate program in Marketing, Marc’s impressive sales career began at Allied Irish Banks, Pitney Bowes and Panasonic where he received numerous Irish and European sales performance awards and consistently exceeded targets and expectations. In 1992, Marc’s entrepreneurial spirit led him to set up his own business, Irish International Sales (IIS). Initially, this company was a reseller for Take 5 Accounts and Payroll software. Within four years, IIS became the largest reseller of Take 5 in Ireland, acquiring four other Take 5 resellers. He also found time to set up two mobile phone shops under the Cellular World brand and a web design company offering website design services for small businesses. In 2001, he bought the majority share in a small Irish software business, Big Red Book. At that time, the company was losing money. The company became profitable within two months, and Marc then acquired a payroll company to compliment Big Red Books Accounting products. In 2003, IIS were appointed as Channel Partners with SAP for their new SME product, SAP Business One. Marc sold his Take 5 business and concentrated on developing this new market for SAP As a result, by 2007, IIS was recognised as the largest Channel Partner for SAP in EMEA (Europe Middle East and Africa). In 2008, the IIS Sales Manager bought the Company from Marc in an MBO. He launched Big red cloud in June 2012, the online version of big red book, to date the company successfully converts 59% of trials into sales and the number of customers is growing rapidly. Marc continues to run both Big Red Book and Big Red Cloud which now support 75,000 businesses. He is a very keen sportsman, having played rugby for 20 years, represented Leinster at under 16 and under 20 levels, and league squash with Fitzwilliam Lawn Tennis Club for 10 years. Marc has competed in 11 Marathons, including the London and Boston Marathons, and has completed several Triathlons and Half Ironman races. He has also completed six Ironman Races in Austria(x2), Frankfurt (Germany), Nice (France) , Mallorca (Spain) and Copenhagen (Denmark)

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