2017 Spring Budget:
Although this is the last Spring budget it does provide some unexpected changes as well welcome relief for some:
Income Tax and Corporation rates are as confirmed in the Autumn statement
Dividend Taxes are widened by the reduction from April 2018 of the £5000 exemption being reduced to £2000, for a basic rate taxpayer this brings about a£225.00 increase in tax. For higher rate payers a rise £975.00
Class 4 national insurance rates are increased from April 2018 to 10 % and then to 11% with effect from April 2019. We await details of any movement in the nil rate bands, as there appears to be some political pressure placed upon the chancellor on this.
Landlords – so far nothing has for once changed, unless there is a belated press release that has occurred in the past years.
Making Tax Digital – this is the most important administration change, following successful lobbying – landlords and non vat registered sole traders and partnerships the mandatory MTD filings aredeferred to April 2019. Vat registered traders are brought forward to April 2018, Limited Companies stay on course for 2020.
The dividends tax changes and class 4 National Insurance changes will be of most concern to the majority of our clients, we have no doubt that some will want to speak to us directly on this subject to us.