Key points from Autumn Budget 2017

Key points from Autumn Budget 2017
On 22 November 2017, the Chancellor Philip Hammond presented the Autumn Budget to Parliament. We have summarised below some key points which will impact your business.

1.     Personal Tax

There are to be some changes to the thresholds in 2018-19. Personal Tax Allowance will be increased to £11,850 and higher rate threshold to £46,350. This means that taxpayers will pay less tax than previously.  There will be a further increase to the personal allowance to £12,500 and the higher rate threshold to £50,000 by 2020.

2.     Business Tax

There has been an increase in the R&D tax credit for large business to 12% which will help investment into innovation and new technologies.  The proposed reduction of the corporation tax rate to 17% from April 2020 is still going ahead as planned.

3.     Dividend Allowance

The dividends received by individuals are subject to special tax rates. It has been confirmed that the Dividend Allowance will be reduced from £5000 to £2000 from April 2018.

4.     National Insurance

The simplification of the NICs system is being delayed for a year. Therefore, there will not be an increase to Class 4 NICs.

5.     Capital Gains Tax

The introduction of the 30-day payment window between a capital gain arising on a residential property and payment has been delayed until April 2020.  Capital gains tax relief for overseas buyers of UK commercial property will be phased out, with exemptions for foreign pension funds

6.     Charity Tax

From 2019, the three monetary thresholds will be reduced to two to help simplify the donor benefit rules. The first threshold for donations below £100 will remain as 25%. For donations exceeding £100 charities will be able to offer an additional benefit to donors up to 5% of the amount of the donation.

7.     VAT

The VAT threshold for small businesses is to remain at £85,000 for the next two years. Online marketplaces will become liable to the VAT for non-UK business selling goods via that marketplace together with other anti-evasion measures.

8.     The National Minimum Wage

From April 2018, the National Minimum Wage will increase, so it is important that all employers are aware of the changes.

·      Apprentices - £3.70 per hour

·      16 and 7 year olds - £4.20 per hour

·      18 to 20 year olds - £5.90 per hour

·      21 to 24 year olds - £7.38 per hour

Over the next few months, we will give more detailed information about the impact of the Autumn Budget on your business. If you would like to discuss how the changes shown above will affect your business then get in touch with us by calling 0115 956 9452 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
Self-Assessment Tax return deadlines for 2017
New penalties on tax returns

Related Posts