In a budget that was clearly sending a message that key British Institutions are safe with this government during this Brexit world we bring you key points from the Budget 2017 speech by Chancellor Philip Hammond for you to consider.
Self-employed NIC increase to 11% by 2019
The chancellor wants an equal playing field between those that are self-employed and those that are employed and has therefore increased Class 4 NICs by 1% from April 2018 and a further 1% from April 2019.
Dividend allowance slashed
To further reduce the discrepancies in the tax system the chancellor has reduced the dividend allowance to £2,000 from April 2018.
Making Tax Digital: delayed until April 2019
For sole traders, landlords and the self-employed with a turnover below the new £85,000 VAT threshold.
Personal allowance rise
As promised in the Autumn Statement the chancellor has increased the personal allowance by £500 to £11,500 from 6 April 2017 and increased the higher rate threshold to £45,000.
VAT registration threshold rise
From 1 April 2017 the VAT registration threshold will increase to £85,000 and the de-registration threshold will rise to £83,000.
Corporation tax rate cut to 19%
The chancellor continued to cut the UK’s corporation tax rate to 19% from 1 April, to keep the UK competitive in the Brexit world.
Road Tax rates rise
Legislation will be introduced in Finance Bill 2017 to amend applicable rates. The VED rates have increased to ensure that motorists make a fair contribution to the public finances.
VAT on roaming charges outside EU
Holiday makers and business travellers will see a rise in call charges outside of the EU for the first time with the introduction of 20% VAT on roaming telecoms services.
Childcare benefits to double to £5k
From September 2017, free childcare for 3-4 year olds will increase from 15 to 30 hours. In addition, working families will receive up to £2,000 a year towards the cost of childcare for each child under 12, from April 2017.
SDLT payment period to remain at 28 days
Following consultation, the introduction of a 14-day window for filing and paying Stamp Duty Land Tax (SDLT) has been delayed until after April 2018.
Investment in digital infrastructure
Plans to invest £740M in digital infrastructure by 2020 to build a 5G technology hub and support reliable broadband communications.