Summary of the Spring Statement 2018

Summary of the Spring Statement 2018
Philip Hammond, the Chancellor of the Exchequer delivered his first spring statement on Tuesday 13 March 2018. This is a summary of the key points and changes announced for 2018/19. The main message of this spring statement was to give people and businesses certainty and stability to plan for the future.

On a general note the economy is continuing to grow and has exceeded the expectations set in 2017. This has resulted in an increase in employment and borrowing is down. Some areas that may be of interest to you and your business are:

Impact on wages

·      National Minimum Wage – this will rise to £7.83 in April 2018

·      The tax-free personal allowance will rise to £11,850 from April 2018

These will both help households with cost of living but employers need to ensure that they are ready for the increase in minimum wage for their employees.

Business rates changes

There will be a business rate revaluation in 2021, this should benefit businesses by having the revaluation earlier than expected.

Improving Digital Connectivity

In 2017 the Challenge Fund was launched, this fund was for a total of £190m. This is to help improve broadband connections for homes and businesses. The first wave of funding will now be allocated across 13 areas in the UK.

Making Tax Digital

HMRC is phasing in its landmark Making Tax Digital (MTD) regime, which will ultimately require taxpayers to move to a fully digital tax system. Regulations have now been issued which set out the requirements for MTD for VAT. Under the new rules, businesses with a turnover above the VAT threshold (currently £85,000) must keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD functional compatible software. These new rules will come into place from 1st April 2019.

Over the coming months we will share more information about Making Tax Digital and other changes which will impact on your business.

In the meantime if you have any queries please do contact us by calling 0115 956 9452 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
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