Spring Budget 2017 – A Summary
The Spring Budget 2017 did not contain any ground-shaking announcements that we didn’t already know, unless you are self-employed, but there were announcements of interest to our customers in particular, which we have listed below...
- The personal allowance for 2017-18 is £11,500 – up £500.
- Basic Income Tax (20%) is payable up to £45,000 (£43,000 in Scotland). The next rate of 40% is payable up to £150,000 and the rate above that is 45%.
- There are no changes to the basic CGT rates for 2017-18.
- For the 7th consecutive year there will be no increase in fuel duties.
- The main rate of Corporation Tax from 1 April 2017 will be reduced to 19% and then to 17% from 1 April 2020.
- The Chancellor announced increases in the self-employed Class 4 NIC contributions. From April 2018 NICs will increase from 9% to 10%, and from April 2019 there will be a further increase from 10% to 11%. The earlier increase coincides with the ending of Class 2 contributions.
- Business rates increases
- The Chancellor announced 3 relief schemes to help businesses struggling with the effects of the rise in Business Rates. These include capping rate rises for some small businesses, extra funding for a discretionary relief scheme run by local councils and discounts for public houses with a ratable value up to £100,000.
- Making Tax Digital reporting for businesses with turnovers below the VAT threshold will be deferred for a year until 2019.
- From 1 April 2017 the VAT registration threshold increases to £85,000. The deregistration threshold will increase to £83,000.
http://www.uktraining.eu/news-article/spring-budget-2017-a-summary/46