On 22nd November, Phillip Hammond delivered his inaugural Autumn Budget 2017 to the House of Commons with a remit to adopt a balanced approach to both frontline public services and the entrepreneurial community of the UK’s private sector.
The Chancellor put solving the housing crisis at the heart of his second budget but there was limited change for both owner managed businesses and for new personal tax announcements.
The key points of interest are summarised below.
Personal Allowance and Tax Rates
Stamp Duty
Small Businesses VAT
Making Tax Digital
Plans for MTD have not changed since the announcements made earlier in the year. Under the current timetable, only VAT registered organisations with a turnover over the VAT threshold will be mandated into MTD from April 2019.
Cars
Pensions, Savings and Investments
Proposed Changes to IR35
The Government is consulting on changes to contractors providing services through Limited Companies.
Clients may need to deduct PAYE without providing benefits such as holiday pay and sickness pay.
The Chancellor put solving the housing crisis at the heart of his second budget but there was limited change for both owner managed businesses and for new personal tax announcements.
The key points of interest are summarised below.
Personal Allowance and Tax Rates
- The personal allowance and higher rate threshold will increase from 6 April 2018, bringing them nearer the levels promised in the 2015 Conservative manifesto.
- The personal allowance for 2018/19 will increase to £11,850 (up from £11,500 in the current tax year) and the higher rate threshold will rise from £45,000 to £46,350.
Stamp Duty
- The government will abolish stamp duty for all first time buyers for homes up to £300,000 and buyers will pay £5,000 less on purchases between £300,000 and £500,000.
Small Businesses VAT
- VAT threshold will remain at £85,000.
Making Tax Digital
Plans for MTD have not changed since the announcements made earlier in the year. Under the current timetable, only VAT registered organisations with a turnover over the VAT threshold will be mandated into MTD from April 2019.
Cars
- From next April, diesel cars that don’t meet air quality standards will be hit by additional tax.
- Fuel duty has been frozen for the eighth year in a row, saving the average driver £160 a year according to government statistics.
Pensions, Savings and Investments
- The ISA annual subscription limit remains unchanged at £20,000 for 2018/19.
- The Lifetime allowance for pension savings will increase from £1,000,000 to £1,030,000 from 6 April 2018
- The band of savings income subject to the 0% starting rate will remain unchanged at £5,000 for 2018/19
Proposed Changes to IR35
The Government is consulting on changes to contractors providing services through Limited Companies.
Clients may need to deduct PAYE without providing benefits such as holiday pay and sickness pay.