For 2016 to be the successful business year we’re all planning, it’s critical we’re clued up on the policy changes which may (or definitely will) affect us over the next 12 months.

A significant date for your business diary has already been revealed as Wednesday March 16, when the 2016 Budget will be published. As ever, the Chancellor will set out Government plans for the economy, including tax and employment measures which will undoubtedly impact upon future balance books.

But what do we already know about 2016? Here’s an overview of the eight changes most likely to affect small businesses…

A new National Living Wage

A new National Living Wage comes into play from April 2016, meaning all staff over the age of 25 must receive the minimum rate of £7.20 per hour. It’s a fair increase from the £6.70 minimum wage rate which only came into force last October. We’re told this figure will rise to £9 by 2020.

Downing Street has also announced further HMRC funding to investigate abuse and deploy sanctions against employers not complying with the National Living Wage.

Pension scheme adoption

We should all know about auto-enrolment by now, but for many, 2016 will be the year it really does mean business. Its roll-out will be complete by mid-2017, so this year sees the staging dates for several categories of employers with fewer than 30 workers.

You’ll already be well aware of these and the potentially huge change they could make to your business. The Pensions Regulator is encouraged that the majority of small and micro employers due to stage this year are well under way with their preparations.

National Insurance contributions

From April 6, there’ll be a 50% increase to the Employment Allowance from £2,000 to £3,000 a year, which will help small business owners to reduce their wage bill and potentially offset the increased Living Wage cost.

A measure introduced to encourage small businesses to recruit and grow, this discount on Class 1 National Insurance Contributions is not eligible for sole employee director-led companies. You’re likely to be among almost one and a half million businesses and charities that will benefit, possibly even allowing you to take on your very first employee?

Tax returns and simplifications

Not only are all small businesses expected to receive their own secure, digital tax accounts within the next year, significant changes lie ahead in the way returns are to be submitted.

Although some larger companies will be required to submit quarterly tax returns from 2016, smaller firms aren’t expected to pick this up until closer to the 2020 deadline. It’s hoped that – far from adding to an administrative burden – the move towards simpler, online systems will actually ease red tape and help SMEs plan cash flow more easily.

Business rate relief

Another positive for small businesses, the doubling of the rate relief handed to those using one property has been extended until April 2017.

This means as many as 405,000 of the smallest businesses will carry on receiving the full 100% relief from the rates put on their workplace. It’s been doubled from the previous 50% relief rate, and it’s thought a further 200,000 companies will benefit from tapering relief.

So if you use only one property, office or workspace, and it has a rateable value of just £6,000 or less, you’re exempt. March’s Budget will see a review of these rates.

EU exit?

Whether or not June 2016 emerges as the date for a UK referendum on leaving the European Union (as has been recently reported), the Prime Minister has committed to a vote before the end of 2017.

Leaving the Union would have huge implications for businesses of all sizes, particularly with regard to seeking foreign investment and trading overseas. But even if a ‘Brexit’ doesn’t materialise, many commentators believe that even asking the question will be enough to cast doubt over the short-term viability of UK business.

The Confederation of British Industry’s Carolyn Fairbairn warns that: “careful consideration is needed on the UK’s relationship with Europe,” in a sign that her organisation has no intention of remaining on the sidelines in a debate set to dominate UK politics in 2016.

Enterprise zones

Late last year, 18 new Enterprise Zones were unveiled, bringing the UK’s total to 26. These areas are primed for small businesses looking to set up or evolve, offering benefits through business rate discounts, simplified local planning for premises, support on superfast broadband and tax relief on large investments.

Nine of the new and extended zones are within the ‘northern powerhouse’, another initiative which could prove advantageous for SMEs as further powers are devolved.

Access to finance

Securing finance through alternative lenders should become more accessible than ever as the new proposed requirement for the UK’s major lenders to share the financial information they keep on small businesses comes into force.

In order to give small firms the best chance of securing a business loan, traditional lenders will also soon be required to refer those businesses they reject for a loan to an online finance platform that will provide information on alternative providers that may be a better match for their finance needs.  

Attributed to Russell Gould, COO of  Everline.