The Autumn Budget for 2017 listed numerous measures that could have an effect on how small business owners, freelancers and contractors run their business.
IR35
No changes were announced regarding IR35. A consultation on IR35 and how it should be applied to the private sector is to be announced.
Business rates calculations
Business rates calculations will use the Consumer Prices Index (CPI) from April 2018 instead of the Retail Prices Index (RPI).
Vat threshold
VAT threshold will remain unchanged at £85,000 for two years.
Understand How Tax Changes Affect Your Business
Changes to VAT, personal allowances, business rates, and other tax rules can affect how you plan and manage your finances. Get professional accounting and tax guidance to understand your obligations and make informed decisions.
Personal allowance and income Tax
Personal Allowance from April 2018 will now increase to £11,850 while the higher rate tax band will increase to £46,350.
Extra taxes
There was no mention of any changes to Corporation Tax, National Insurance Contribution or dividends.
Research and development investments
Research and Development will see a further £2.3 billion being invested into it by the government with tax credits for R&D increasing to the 12% mark.
‘Making Tax Digital’
There was no statement on “Making Tax digital’ in the Autumn budget.
Stay Ahead of Changing Tax Rules
Tax rules and government policies continue to evolve long after each Budget announcement. Pearl Accountants can help you stay compliant, understand current requirements, and plan your business finances effectively.
New diesel cars
New diesel cars that do not meet “clean diesel” criteria, will be charged an increase in tax. This will only apply to diesel cars and not to diesel vans.
National living wage
National Living Wage amounts will increase to £7.83 from April 2018 for all employees over the age of 25 years.
Tax avoidance
HMRC will tackle tax avoidance with specific measures to be announced.
First time buyers
All first-time buyers will not pay stamp duty on any property up to £300,000 as from the announcement at the Autumn budget 2017. Stamp duty will also not apply to the first £300,000 for any property up to £500,000.
Changes to the spring budget
As from 2018, the main Budget will be announced in Autumn with a Spring Statement instead.
