Spring Budget 2017 - The headlines
The Chancellor delivered his Spring Budget this afternoon.
The key tax measures announcements include:
- A welcome delay, until 2019, of the introduction of digital tax accounts and quarterly reporting for businesses with turnover under the VAT threshold;
- An increase to the main Class 4 National Insurance rate for the self-employed to 10% from April 2018 and to 11% from April 2019;
- Confirmation that Class 2 National Insurance, for the self-employed, will be abolished from April 2018;
- A reduction in the administration burden when claiming research and development (R&D) tax credits;
- Anti-avoidance measures, including penalties for professionals introducing tax avoidance schemes which are later defeated;
- A consultation in summer 2017 on employment and self-employment status for tax and National Insurance purposes;
- Transitional reliefs to ease the effects of the Business Rates revaluation;
- A reduction to the tax free dividend allowance from £5,000 to £2,000 from April 2018;
- The continuing freeze of Vehicle Excise Duty;
- Confirmation that the Personal Allowance will increase to £11,500 from April 2017 and to £12,500 by 2020;
- Confirmation that the Corporation Tax rate will fall to 17% by 2020; and
- An increase to the National Living Wage, from April 2017, to £7.50.
Our more detailed summary will follow later today. Please let your usual haysmacintyre contact know if you have any queries in the meantime.