Aldermore Bank is on a mission to get the UK Government to offer more support for Start-Ups like us. Of course we are a hardcore fan of this #SupportMoreEntrepreneurs-initiative so we'd love to explain you a bit more about the project!
SMEs and entrepreneurs are the backbone of the UK economy. In 2016 small businesses accounted for almost 100% of the country’s private sector and, 15.7 million of us were employed by an SME. British self-employment and entrepreneurship are set to become even more important drivers for the UK economy with the rise of the gig economy. Yet, more can be done by the government to help facilitate small business growth and entrepreneurship in the UK.
We are calling on the Government to launch the Entrepreneur ISA and Small Business Savings Allowance to support aspiring entrepreneurs and growing SMEs.
How it’ll Work
Aldermore Bank is planning to lobby the government over the next 12 months to introduce two new schemes to help entrepreneurial people and small businesses set up and grow their business.
Please do lend your support by signing the petition and spreading the word!
What is the Entrepreneur ISA?
The Entrepreneur ISA is a scheme to help accelerate people’s plans to set up their first business by receiving a cash lump sum or bonus on incorporation of their business. As many as 1-in-3 employees could see themselves starting their own business in the next couple of years. This scheme will appeal to would be entrepreneurs and people who aspire to set up their own business.
Akin to the Help to Buy: ISA scheme for first time buyers, the Entrepreneur ISA is designed to encourage people to save, on a regular basis, towards the capital they’ll need to launch their own business. In return, on top of the tax free interest they’ll earn on their savings they’ll also receive a Government bonus. A welcome boost to their business plans allowing would be self-starters to start earlier or provide greater security around cash-flow at a time they most need it.
The funds saved in an Entrepreneur ISA would form part of an individual’s annual ISA allowance.
What does the Small Business Savings Allowance mean?
The Small Business Savings Allowance is to incentivise businesses to save spare or surplus cash either to fund future investment or to help them through tougher trading periods and is targeted firmly at existing small businesses.
We all, as individuals, receive a Personal Savings Allowance meaning the interest we receive on our savings, within certain limits, is exempt from income tax calculations. We are proposing that small businesses in the UK should also benefit from a similar scheme with income generated from savings interest exempt from Corporation Tax, allowing business owners to keep more of what they earn.
These ideas are currently just that, ideas, but Aldermore is passionate about making them a reality. They may of course change as they talk with the Government and engage with the wider business community. Both schemes would require government backing and would form part of the wider package of business support provided by HM Treasury.
You can read our founder's opinion on this matter on the SupportMoreEntrepreneurs website together with tons of other founder and start-up stories. Sign the petition and help start-ups of today and tomorrow thrive!