The Autumn Budget for 2017 listed numerous measures that could have an effect on how small business owners, freelancers and contractors run their business.
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 will remain unchanged at £85,000 for two years.
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.
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.
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.
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.
Shoaib Aslam is the co-founder of Pearl Chartered Accountants, a UK-based chartered accountancy firm that has multiple locations across London. They are experts in helping startups and established businesses with all aspects of growth, strategy, scaling up, accounting and tax planning.