IT Equipment Finance Set To Get Easier

And it's all thanks to chancellor George Osborne and his little red dispatch box. As he solemnly held it in front of him for the cameras on Budget day in March, the business world wondered exactly what it contained, in addition of course to the inevitable leaked information seeping through the media in the run-up to the event.

As it turned out, it was a budget specifically designed to help smaller businesses make ends meet. One of the prime features was the cut in National Insurance Contributions (NICs). The chancellor reckons that if businesses have fewer financial tax burdens, they are likely to take on more employees. Productivity will in turn increase and companies should return to a position whereby they can turn to IT equipment finance to help to secure their futures.

So what did he do to improve the situation? First he announced a proposal that would save companies up to £2,000 on their NIC payments. It's called the Employment Allowance and is scheduled to come into effect in April 2014. In fact some employers won't have to make any contribution payments whatsoever. For instance, if someone decided to set up a business from scratch, it's likely that they'll soon be in the position to take on their first employee. They might employ someone on a salary of £22,000, or they might take on four workers at the minimum national wage. If this were the case, that business would not have to pay any jobs tax.

This move has been welcomed by industry and commercial pundits, who see it as a positive step in helping the country, and its hundreds of thousands of businesses, through this crippling double-dip recession period that is causing us all so much doom and gloom. Business leaders are saying that the budget supplied far better news than was hoped for, and they weren't expecting such a wide-ranging programme of help for SMEs.

IT equipment finance can only benefit from these announcements. Any moves to free up cash for the beleaguered small business community to spend on crucial technology support will be applauded - from the independent trader through to small businesses that have increasingly been under pressure and simply haven't had the resources to invest in IT equipment for expansion and growth purposes.

When it comes to payday for staff, HMRC is doing its bit for the business world as well, by removing some of the red tape associated with the reporting requirements of PAYE schemes. They are temporarily suspending the need to report payments to employees at the actual time of payment - they can delay it until their normal monthly payroll process at the end of the month.

When it comes to improving business efficiencies, every little bit helps. We can only look forward to better performance, stimulated by more stability within the small business world - and IT equipment finance becoming more and more achievable.

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