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Spring Budget 2017 - The headlines

8th March 2017

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. 

Katharine Arthur, Head of Tax.