General Election 2015: Implications for businesses

29 May 2015

The results of the 2015 Election were a surprise to many, with the Conservatives securing a majority despite many forecasts and opinion polls predicting another hung parliament. What does the result mean for businesses in the UK, and how can you plan accordingly to ensure continued growth?

The Conservatives’ victory has a number of implications for businesses. The Party’s Small Business Manifesto, announced on the 27 April 2015, states that the Party will:

Oppose any increases to Corporation Tax
Keep the Employment Allowance until 2020
Abolish NICs on employees under 21
Set a higher, permanent level for the Annual Investment Allowance
Launch the ‘Help to Grow’ scheme
Treble the number of Start Up Loans to 75,000
Boost support for first-time exporters
Cut a further £10 billion of red tape

In response to these policies, here are some areas for you to consider for your overall business strategy:

Hiring New Staff Members

If you are thinking of hiring additional staff, note that from 6 April 2015 employees will no longer have to pay Class 1 secondary National Insurance Contributions (NICs) for employees under 21. If you are looking to employ young members of staff, ensure your employment proposition is compelling to this age-group in order to attract the best talent.

Selling to International Markets

The First Time Exporters (FTE) initiative was announced on 18th May 2015. The FTE is a package of support (including training and advice) for businesses looking to expand into overseas markets for the first time. If you believe your business has the potential to expand into international markets, please speak to us for further information.

Starting a New Business

Thinking of starting a new business venture? The Conservatives state that they aim to increase the number of business start-ups to 600,000 by the end of the current Parliament. To facilitate this growth, they have pledged an increase in the number of Start Up Loans to 75,000. If you are thinking about starting a new business, please click here to get a copy of our New Business Kit, which provides guidance relating to the financial, tax and accounting considerations of launching a new business.