On the 22nd of November, the current Chancellor, Philip Hammond, delivered his 2017 Autumn Budget speech to Parliament.
It was, from a small business perspective, a fairly uneventful budget. However, there were a few items in the Autumn Budget documents that are worth highlighting:
- The option to use the cash basis for landlords, was confirmed to come into effect from 6 April 2017
- The dividend allowance from 6 April 2018 will now be £2,000 instead of £5,000 which it currently is
- Much talk before the Budget was looking at decreasing the VAT threshold, luckily this will be fixed for the next 2 years at £85,000
- Their will be a consultation paper commissioned for introducing the IR35 changes that have impacted the pubic sector this year, to the private sector (contractors across the city breathed a big sigh of relief of this omission from the speech)
- 2017/18 Personal Allowance increased to £11,850
- The higher tax bracket also increased to £46,350
- The minimum wage will increase from 1 April 2018, to £7.83 which will impact businesses hiring workers below this limit
- For those who sell products via Online Marketplaces, where UK is the point of supply, Online Marketplaces will now be jointly liable to account for the correct VAT treatments
The Budget brought some great news for those who wants to teach Computer Science and also increased the tax credits for R&D but the news that GDP is slowing and the nations productivity levels are dropping under increased wages pressure, really was the key take away for us.
More then ever, it is so important to understand your business financials. To know how you are going and be aware of the challenging and uncertain times ahead. Please contact us for more information on how we can help you achieve this.
Also, look out for our new advisory services which we will be rolling out in February, to help business owners get a clearer view of how they’ve been going and how they stand to cope with any changing economic conditions ahead.