The day of the much anticipated Autumn Budget 2017 has finally arrived. Phillip Hammond has now delivered the Budget, set to make Britain ‘fit for the future’ and help the UK ‘seize opportunities’ from Brexit.
Here are the key points which will most significantly impact you and your business:
Confirmation of dividend tax:
- Don’t forget, although the £5,000 annual tax-free dividend allowance was introduced less than a year ago, this will reduce to just £2,000 from April 2018, so Directors need to be prepared.
Income tax
- Basic-rate income tax threshold will rise to £11,850 in April next year
- The higher rate threshold will rise to £46,350, up from £45,001 today
VAT
The chancellor says he recognises that small businesses are under great ‘pressure’ currently, and therefore:
- VAT threshold for small business will remain at £85,000 for two years
National Living Wage
- This will rise by 4.4pc to £7.83 an hour from next April
Property
- Business rates: Will rise by the Consumer Price Index (CPI) from April 2018 (they currently rise by the Retail Price Index which tends to be higher than the CPI). This is expected to save businesses £2.3bn
- The £1,000 discount for small pubs will be extended to March 2019
- Council tax: Local authorities have been given the power to charge 100% council tax premium on empty properties
- Stamp duty: Will be abolished for first-time buyers on homes up to £300,000
Capital gains
- The capital gains indexation allowance for companies will be frozen from 1 January 2018
Vehicles
- From April, diesel cars failing to meet air quality standards will be hit by additional tax
- Extra funds and tax incentives for electric car drivers, including a new £400m charging infrastructure fund
R&D
- A further £2.3bn will be allocated for investment in Research and Development
If you have any questions about how the budget will affect you and your business please get in touch or call 01925 210 000
