Philip Hammond started off by saying the UK has continued to confound the commentators with robust growth and a deficit down by over two-thirds, however this was followed by more announcements of fiscal austerity.
We have summarised the key points to note below, for more information contact us for a free consultation. Tax planning and mitigation cannot easily be done retrospectivley:
From April 2017 CT falling to 19%, 2020 17%.
R&D Tax Credits:
Making UK more competitive, reduce administrative burden.
Making Tax Digital:
Delay of one year for small businesses not over VAT threshold.
£25bn of revenue for local governments. Scope to reform revaluations. More frequent revaluations will be set out after consultation.
Cap for SBR leavers to £50pm.
£1000 discount for pubs
Local authorities have £300m fund to help individual hard cases.
Attack on Promoters of Tax Avoidance Schemes:
Increased penalties for Agents promoting tax avoidance.
Contractors & Self Employed
Targeting tax benefits of being self employed
NIC Consultation to reduce differences between PAYE and Self Employed workers
Cost to exchequer is £5bn
From April 2018 – Main rate of class 4 increased to 10%, 11% in April 2019.
Personal Service Companies
HMRC estimate cost of PSC is £6bn
Dividend Allowance reduced from £5,000 to £2,000
Costing Contractors c. £225 each year in additional tax.