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2017 Spring Budget Flash Report

by Daniel Ruthven on March 8, 2017 No comments
UK Budget 2017

UK Budget 2017

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:

Corporation Tax:

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.

Business Rates:

£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.

 

Daniel Ruthven2017 Spring Budget Flash Report

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